Overview

Furniture retailer Nick Scali Limited ("the Company") (ASX: NCK) today reported its results for the half-year ended 31 December 2020, with underlying EBITDA of $60.2m and net profit after tax of $40.5m1 , in line with recent guidance on 5 January 2021. After an exceptional six months of trading, this represents profit growth of approximately 100% on an underlying basis.

Written sales orders for the period were $191.1m, representing growth of 52% on the prior corresponding period. On a same-store basis, sales orders increased 58% on the prior comparable period. Sales revenue for the half increased by 24% to $171.1m, less than the rate of sales order growth primarily due to supply chain and shipping delays affecting the Company’s ability to deliver within the half. The closing order bank at 31 December reached an all time high.

Gross profit margin for HY21 was 64.0%, compared to 62.2% in the prior comparative period. The Company was able to improve margins through reduced SKU discounting.

Also Company presentaion

https://www.nickscali.com.au/media/wysiwyg/Investor_Info/210204_NCK_H1_FY21_Investor_Presentation_FINAL.pdf

Profit Guidance

5 January 2021

Update to Profit Guidance Nick Scali Limited (“NCK” or “the Company”) today wishes to issue the following update to profit guidance for H1 FY21. Unaudited Net Profit After Tax for the six months to 31 December 2020 is expected to be $40.5m, up approximately 100% on the underlying profit for the prior corresponding period, following better than previously anticipated container availability during the months of November and December leading to increased delivery volumes.

As announced in the Company’s Trading Update on 26 October 2020, total written sales orders for the first quarter of FY21 grew by 45%. This compares to second quarter growth of 58%, which was driven by the reopening of the Melbourne metropolitan stores as well as a successful Black November campaign across both the online and in store channels.