Warehouse : FY22 Interim Financial Statements 30 January 2022

The Warehouse Group Limited

Interim Financial Statements

For the 26 weeks ended 30 January 2022

For and on behalf of the Board

Joan Withers		Dean Hamilton
Chair		Chair of the Audit and Risk Committee
21 March 2022

Consolidated Income Statement

		Unaudited	Unaudited	Audited
		26 Weeks	26 Weeks	52 Weeks
		Ended	Ended	Ended
		30 January	31 January	1 August
	Note	2022	2021	2021
		$ 000	$ 000	$ 000
Retail sales	4	1,729,984	1,808,255	3,414,601
Cost of retail goods sold		(1,130,424)	(1,152,874)	(2,173,245)
Gross profit		599,560	655,381	1,241,356
Other income		3,624	2,639	7,050
Employee expenses		(297,740)	(286,678)	(573,734)
Depreciation and amortisation expenses	4	(77,495)	(73,550)	(149,303)
Other operating expenses		(140,652)	(124,378)	(244,255)
Operating profit	4	87,297	173,414	281,114
Unusual items	5	-	(79,036)	(86,955)
Earnings before interest and tax		87,297	94,378	194,159
Net interest expense		(18,457)	(18,886)	(37,458)
Profit before tax		68,840	75,492	156,701
Income tax expense		(19,652)	(21,250)	(40,491)
Net profit for the period		49,188	54,242	116,210
Attributable to:
Shareholders of the parent		50,442	54,965	117,651
Minority interests		(1,254)	(723)	(1,441)
		49,188	54,242	116,210
Earnings per share attributable to shareholders of the parent:
Basic earnings per share		14.6 cents	15.9 cents	34.1 cents

Consolidated Statement of Comprehensive Income

	Unaudited	Unaudited	Audited
	26 Weeks	26 Weeks	52 Weeks
	Ended	Ended	Ended
	30 January	31 January	1 August
	2022	2021	2021
	$ 000	$ 000	$ 000
Net profit for the period	49,188	54,242	116,210
Items that may be reclassified subsequently to the Income Statement
Movement in foreign currency translation reserve	383	(45)	55
Movement in hedge reserves (net of tax)	9,174	(640)	19,188
Total comprehensive income for the period	58,745	53,557	135,453
Attributable to:
Shareholders of the parent	59,999	54,280	136,894
Minority interest	(1,254)	(723)	(1,441)
Total comprehensive income	58,745	53,557	135,453

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Consolidated Statement of Changes in Equity

					Foreign
					Currency
		Share	Treasury	Hedge	Translation	Retained	Minority	Total
(Unaudited)	Note	Capital	Stock	Reserves	Reserve	Earnings	Interest	Equity
For the 26 weeks ended 30 January 2022		$ 000	$ 000	$ 000	$ 000	$ 000	$ 000	$ 000
Balance at the beginning of the period		365,517	(5,282)	6,171	(115)	85,871	(2,694)	449,468
Profit for the half year		-	-	-	-	50,442	(1,254)	49,188
Movement in foreign currency translation reserve		-	-	-	383	-	-	383
Movement in derivative cash flow hedges		-	-	12,741	-	-	-	12,741
Tax related to movement in hedge reserve		-	-	(3,567)	-	-	-	(3,567)
Total comprehensive income		-	-	9,174	383	50,442	(1,254)	58,745
Minority put option exercised		-	-	-	-	(1,316)	983	(333)
Dividends paid		-	-	-	-	(60,698)	(126)	(60,824)
Treasury stock dividends received		-	-	-	-	243	-	243
Balance at the end of the period		365,517	(5,282)	15,345	268	74,542	(3,091)	447,299
					Foreign
					Currency
		Share	Treasury	Hedge	Translation	Retained	Minority	Total
(Unaudited)		Capital	Stock	Reserves	Reserve	Earnings	Interest	Equity
For the 26 weeks ended 31 January 2021		$ 000	$ 000	$ 000	$ 000	$ 000	$ 000	$ 000
Balance at the beginning of the period		365,517	(5,456)	(13,017)	(170)	30,259	(794)	376,339
Profit for the half year		-	-	-	-	54,965	(723)	54,242
Movement in foreign currency translation reserve		-	-	-	(45)	-	-	(45)
Movement in cash flow and monetised hedges		-	-	(889)	-	-	-	(889)
Tax related to movement in hedge reserve		-	-	249	-	-	-	249
Total comprehensive income		-	-	(640)	(45)	54,965	(723)	53,557
Share rights charged to the income statement		-	-	-	-	-	72	72
Minority put options exercised		-	94	-	-	(361)	267	-
Balance at the end of the period		365,517	(5,362)	(13,657)	(215)	84,863	(1,178)	429,968
					Foreign
					Currency
		Share	Treasury	Hedge	Translation	Retained	Minority	Total
(Audited)		Capital	Stock	Reserves	Reserve	Earnings	Interest	Equity
For the 52 weeks ended 1 August 2021		$ 000	$ 000	$ 000	$ 000	$ 000	$ 000	$ 000
Balance at the beginning of the period		365,517	(5,456)	(13,017)	(170)	30,259	(794)	376,339
Profit for the year		-	-	-	-	117,651	(1,441)	116,210
Movement in foreign currency translation reserve		-	-	-	55	-	-	55
Movement in derivative cash flow hedges		-	-	26,651	-	-	-	26,651
Tax related to movement in hedge reserve		-	-	(7,463)	-	-	-	(7,463)
Total comprehensive income		-	-	19,188	55	117,651	(1,441)	135,453
Contributions by and distributions to owners:
Share rights charged to the income statement		-	-	-	-	-	93	93
Share rights vested		-	-	-	-	1,697	(1,697)	-
Minority put options exercised		-	174	-	-	(1,558)	1,145	(239)
Dividends paid		-	-	-	-	(62,432)	-	(62,432)
Treasury stock dividends received		-	-	-	-	254	-	254
Balance at the end of the period		365,517	(5,282)	6,171	(115)	85,871	(2,694)	449,468

3

Consolidated Balance Sheet

		Unaudited	Unaudited	Audited
		As at	As at	As at
		30 January	31 January	1 August
	Note	2022	2021	2021
ASSETS		$ 000	$ 000	$ 000
Current assets
Cash and cash equivalents	16	149,966	183,585	160,526
Trade and other receivables	8	89,586	86,129	79,277
Inventories	7	530,615	497,740	457,151
Derivative financial instruments	17	31,536	77	8,837
Taxation receivable		1,053	-	-
Total current assets		802,756	767,531	705,791
Non-current assets
Derivative financial instruments	17	-	-	1,310
Property, plant and equipment	11	199,019	195,839	194,619
Intangible assets	12	189,295	149,745	166,991
Right of use assets	13	699,852	751,380	736,524
Investment in associate	3	4,176	-	-
Deferred taxation		79,904	97,211	86,120
Total non-current assets		1,172,246	1,194,175	1,185,564
Total assets		1,975,002	1,961,706	1,891,355
LIABILITIES
Current liabilities
Trade and other payables	9	600,310	501,644	436,579
Derivative financial instruments	17	-	31,742	4,353
Taxation payable		-	4,255	10,878
Lease liabilities	14	96,782	96,287	97,812
Provisions	10	55,457	63,029	74,515
Total current liabilities		752,549	696,957	624,137
Non-current liabilities
Lease liabilities	14	754,144	813,861	794,379
Provisions	10	21,010	20,920	23,371
Total non-current liabilities		775,154	834,781	817,750
Total liabilities		1,527,703	1,531,738	1,441,887
Net assets		447,299	429,968	449,468
EQUITY
Contributed equity		360,235	360,155	360,235
Reserves		15,613	(13,872)	6,056
Retained earnings		74,542	84,863	85,871
Total equity attributable to shareholders		450,390	431,146	452,162
Minority interest		(3,091)	(1,178)	(2,694)
Total equity		447,299	429,968	449,468

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Consolidated Statement of Cash Flows

		Unaudited	Unaudited	Audited
		26 Weeks	26 Weeks	52 Weeks
		Ended	Ended	Ended
		30 January	31 January	1 August
	Note	2022	2021	2021
Cash flows from operating activities		$ 000	$ 000	$ 000
Cash received from customers		1,727,132	1,808,006	3,425,114
Payments to suppliers and employees		(1,518,505)	(1,584,811)	(3,040,261)
COVID-19 Wage subsidy repayment		-	(67,550)	(67,550)
Income tax paid		(28,598)	(23,139)	(32,132)
Interest paid		(18,519)	(22,467)	(37,910)
Net cash flows from operating activities		161,510	110,039	247,261
Cash flows from investing activities
Proceeds from sale of property, plant and equipment		-	104	190
Purchase of property, plant, equipment and software		(57,667)	(39,431)	(83,180)
Purchase of associate	3	(4,500)	-	-
Purchase of minority interest		(333)	-	(239)
Net cash flows from investing activities		(62,500)	(39,327)	(83,229)
Cash flows from financing activities
Early termination of interest rate swaps		-	(6,622)	(9,767)
Lease principal repayments		(48,655)	(48,573)	(99,383)
Treasury stock dividends received		243	-	254
Dividends paid to parent shareholders		(61,032)	-	(62,678)
Dividends paid to minority shareholders		(126)	-	-
Net cash flows from financing activities		(109,570)	(55,195)	(171,574)
Net cash flow		(10,560)	15,517	(7,542)
Opening cash position		160,526	168,068	168,068
Closing cash position		149,966	183,585	160,526

Reconciliation of Operating Cash Flows

Profit after tax		49,188	54,242	116,210
Non-cash items
Depreciation and amortisation expenses	4	77,495	73,550	149,303
Loss from investment in associate		324	-	-
Right of use asset impairment	13	-	625	1,582
Share based payment expense		-	72	93
COVID-19 landlord rent relief	14	(812)	-	-
Movement in deferred tax		2,651	3,960	8,219
Interest rate hedge derivative write-off		-	195	3,340
Movement in monetised derivative hedge reserve		-	(2,264)	-
Total non-cash items		79,658	76,138	162,537
Items classified as investing or financing activities
Net loss on disposal of property, plant and equipment		440	99	637
Gain on lease terminations	15	(2,327)	(547)	(1,237)
Supplementary dividend tax credit		334	-	246
Total investing and financing adjustments		(1,553)	(448)	(354)
Changes in assets and liabilities
Trade and other receivables		(10,309)	(1,866)	4,986
Inventories		(73,464)	(104,130)	(63,541)
Trade and other payables		151,340	93,737	14,497
Provisions		(21,419)	(907)	13,030
Income tax		(11,931)	(6,727)	(104)
Total changes in assets and liabilities		34,217	(19,893)	(31,132)
Net cash flows from operating activities		161,510	110,039	247,261

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