Myer gets back in the black, notching up a $51.7m profit in FY21
After a massive loss in FY20 Myer (ASX:MYR) managed to turn things around despite COVID-19 restrictions.
Myer made a profit of $51.7 million compared to the loss it made last year – $13.4 million excluding implementation costs and individually significant items and $172.4 million including these.
Myer said its profit was evidence that its restructuring plan, launched in 2018, was finally beginning to bear fruit. Online sales were up from $208.6 million to $539.5 million in the last 12 months.
The company’s net cash position was $111.8 million, compared to the $107.4 million net debt position it was in back in FY21.
Its sales came in at $2.658 billion, although this was only up 5.5% from FY20.
Although various parts of of FY21 involved lockdowns (especially July), the company highlighted the growth of its online business and last year’s Black Friday trade.
“This result is a testament to the hard work of our team and we are starting to see the business thrive despite the extraordinary market conditions,” said CEO John King.
“The business is well placed ahead of the upcoming peak trading period and the team are focused on remaining agile in response to the various state-based lockdowns and travel restrictions.”
Despite Myer returning to profitability the company continued the suspension of its dividends.
Although the company’s share price is a shadow of what it was a decade ago, they are up over 110% in the past year.
Today’s news of the company’s return to profitability sent Myer shares up 5%.
The company also announced two new executive appointments.
Acting chair JoAnne Stephenson was appointed on a permanent basis and joining the company was Ari Mevis.
ASX investors would know Mevis best from being the chairman of health and wellness product company McPhersons (ASX:MCP).
But Myer pointed to his 25 year stint with SABMiller, which included the time where it acquired Carlton and United Breweries.
“With his executive experience in driving sustainable top-line growth, cost reduction and unlocking value through portfolio optimisation, Ari will bring valuable insights to the Myer board and business,” Stephenson told Myer shareholders.