- Grooming retailer Shaver Shop Group (SSG) has released its half year results
- The company achieved a 16.3 per cent spike in net profit after tax, which came in just short of $8 million
- It also disclosed a 16.8 per cent increase to $12.9 million in EBITDA
- While online sales represented just 17.5 per cent of total sales, they actually improved by 61 per cent
- This is due to Shaver Shop diverting its marketing efforts from traditional mediums to online platforms
- The only downside was a reduction in total marketing expenditure, but the company plans to refine this
- Shaver Shop ended the half 1 period with a net cash of $8.4 million compared to having $6.4 million in debt on June 30
- Overall, Shaver Shop expects to deliver further record sales at the end of the financial year
- Shaver Shop is up 16.5 per cent, with shares trading for 77.5 cents each
Australian grooming retailer Shaver Shop Group (SSG) has seen an increase of over 16 per cent in its share price after releasing its financial results for H1 FY20.
The company announced a 16.3 per cent spike in its net profit after tax which came in at $7.9 million. It also disclosed a 16.8 per cent increase to $12.9 million in EBITDA.
Off the back of this, were impressive total sales figures which came to $107.5 million – a 12.3 per cent jump.
While online sales represented just 17.5 per cent of total sales, online sales actually improved by 61 per cent which is a material growth.
“Around 18 months ago, we highlighted the need to increase investment in Shaver Shop’s omni channel capabilities to ensure our customers experienced similar service levels online as they do in store,” Managing Director and CEO Cameron Fox said.
“With online sales representing 17.6% of total first half sales, Shaver Shop is now well credentialed as the leading omni channel specialty retailer in our category,” Cameron continued.
An omni channel strategy is a content strategy businesses use to improve a user or shopper’s experience whether they’re shopping online, on their phone, or in a physical store.
The grooming retailer claimed a core focus during the period was enhancing the customer experience.
“Improvements have been made across Shaver Shop’s entire online offering, from what the customer sees and experiences on our website, to how orders are allocated and processed within our stores, to how those sales are ultimately put into the hands of our customers,” he added.
Shaver Shop credits the 61 per cent rise of improved online sales to diverting its marketing efforts from TV and print media, to digital spaces. The only cost was a reduction in total marketing expenditure in the first half.
“We will continue to refine marketing expenditure allocations across the various channels going forward to ensure we have the right balance,” he stated.
While headquartered in Australia, Shaver Shop has operations in New Zealand as well.
Positively, its New Zealand operation performed well with store sales up almost 24 per cent.
Shaver Shop ended H1 FY20 with a net cash of $8.4 million up from a net debt position of $6.4 million at June 30.
Operating cash flow was $23.7 million and, as part of its capital management strategies, the Board has declared a 5 per cent increase in its interim dividend to 2.1 cents per share. This will be franked to 80 per cent.
Overall, Shaver Shop expects to deliver another record sales result at the end of the financial year.
Shaver Shop is up 16.5 per cent, with shares trading for 77.5 cents each at 2:24 pm AEDT.