Shaver Shop and Apiam shrug off COVID-19 to record solid profits
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Shaver Shop’s profit after tax was $10.6 million – up 45 per cent from the prior corresponding period. This was from sales totalling $194.9 million of which $47.8 million was online.
The latter channel is now almost 23 per cent of sales and more than doubled this financial year.
While the majority of Shaver Shop stores remained open despite restrictions, the same couldn’t be said for hairdressers and the company observed in May that people needing haircuts sought to ‘DIY’ rather than wait for barber shops to re-open.
CEO Cameron Fox said it had been an incredible financial year noting the second half was even stronger than the first.
“The resilience and adaptability of our business has been tested and proven itself,” he said.
The company also expects a solid year ahead noting trading results were strong in the first seven weeks of this financial year with sales rising 27.5 per cent.
Shares are now up 40 per cent in 2020, even with the market plunge in February and March.
Bendigo-based vet services provider Apiam also delivered a solid profit – coming in at $4.2 million which was up 32 per cent from last year.
Revenue came in at $118.4 million – a more modest 6 per cent gain from last year.
One interesting venture of Apiam’s this year has been distributing Zoono’s (ASX:ZNO) disinfectant technology for livestock.
Apiam boss Chris Richards noted on an investor conference call this morning while some adjustments had to be made to Apiam’s operations, his company was well prepared for COVID-19.
He credited being in an industry dealing with pandemics on a daily basis as well as increased pet ownership.
“We’ve seen an increase in pet ownership and we’ve also seen those people who’ve had pets make more visits to vets,” he said in response to a Stockhead question.
“So I think they’re spending more time with them, they’re exercising with them more and as a result are forming an even closer relationship and identifying things that they believe should be seen by a vet.
“We’re certainly seeing that – it’s been going now since March and [we’ve] seen ongoing increases.”
Apiam shares rose 10 per cent this morning and are up 27 per cent this year.