Officeworks delivers revenue growth despite COVID interruptions
February 18, 2022
Officeworks reported AU$1.58 billion ($1.14 billion/ €1 billion) in total revenue for the first half of the 2021/22 financial year, representing an increase of 3.7% from the previous period and strong two-year sales growth of 28%.
The national retailer’s earnings of $82 million ($59 million/ €52 million) represent an 18% decline, due to higher costs and disruptions associated with COVID-19 and ongoing investment to support long-term growth, including accelerating its investment in data and digital capabilities.
Officeworks continued to support Australians to work and learn from home in the half, resulting in continued strong demand for technology and furniture products. Online sales, including Click and Collect, increased to 46% for the half, also reflecting the temporary shift to online channels during COVID-19 related restrictions.
Government-mandated temporary store closures reduced store trading days by 18% and affected in-store Office Supplies and Print & Create categories Costs increased as a result of additional supply chain and fulfilment costs due to the significant increase in online sales, as well as disruptions to international shipping, global supply shortages and increased transportation costs. Additional costs were also incurred to ensure the provision of a COVID-19 safe working and shopping environment for our team members and customers, Officeworks added.
Investment in data, digital and ecommerce capabilities accelerated in the half, to ensure that Officeworks delivers on its long-term growth aspirations, including the recruitment of additional digital roles and the launch of the partnership with Flybuys.
Return on capital declined to 19.6% for the half as a result of the decline in earnings.
Officeworks Managing Director, Sarah Hunter, said: “While the impacts of COVID-19 remain challenging, Officeworks is well-positioned to deliver long-term returns by delivering our strategy, including continuing to invest in the every-channel customer experience, leveraging our data and digital capabilities and modernising our supply chain in order to meet the evolving needs of customers.”
During the half, Officeworks continued to execute its strategy to deliver long-term growth, progressing the development of a new flexible work platform, which will help the business-to-business customer market support hybrid working opportunities.
Officeworks completed the renewal of 31 stores, relocated three stores to new locations, made the transition to a new Customer Fulfilment Centre in Victoria and commenced the rollout of its refreshed brand.
Officeworks had a total of 167 stores across Australia as of 31 December 2021.
Categories : City News
Tags : COVID-19 Financials Growth Investment Officeworks Retail
