After coming close to collapse in 2014, women’s wear retailer Noni B has produced a fivefold surge in full-year profit and is on track to boost future revenue to $1 billion a year.
Noni B recorded profit of $17.3 million for the year to June 30 after a 17.6 per cent hike in revenue to $372.4 million.
Driving the improvement were stronger sales and the first full-year contribution from the Pretty Girl business that Noni B acquired from James Packer in 2016.
Group like-for-like sales grew 4.5 per cent, with a particularly strong performance in the second half of the financial year, while online sales increased by 68 per cent to $20 million to represent 5.8 per cent of sales.
In July, Noni B also acquired Specialty Fashion Group’s Millers, Katies, Crossroads, Autograph and Rivers brands for $31 million.
The retailer said the deal will triple annual revenue to about $1 billion, lift volumes of garments sold to 40 million items and expand its store network from 645 to more than 1400.
Despite the five new brands recently trading at a loss, Noni B chairman Richard Facioni said he was confident the retailer could turn them around.
“Early indications following completion of the acquisition are encouraging,” Mr Facioni said in Noni B’s annual report, released on Wednesday.
“As with Pretty Girl, there are substantial cost, supply chain and other operational synergies, and we anticipate that the businesses will be restored to profitability in the 2020 financial year.”
The company did not provide a guidance for the current financial year and declared a final dividend of 4 cents per share.
At 1327 AEST, Noni B shares were down seven cents, or 2.1 per cent to $3.29.
NONI B FY18 PROFIT SURGES:
* Net profit up 432pct to $17.3m
* Revenue up 17.6pct to $372.4m
* Fully franked final dividend of 4 cents per share