Officeworks Reports Strong First Half
| 23 February, 2018
Australian stationery and business supplies reseller Officeworks has reported a 9.7 percent increase in total revenue to $1,017 million for the six months to 31 December 2017.
Sales for the second quarter increased 11.8 per cent, resulting in sales growth of 9.8 per cent for the half. The business also achieved a 9.7 per cent increase in earnings before interest and tax (EBIT) to $68 million. An ongoing commitment to disciplined capital and inventory management saw the business deliver a record return on capital (ROC) of 15.7 per cent.
This result represents Officeworks’ 20th consecutive half of store transaction growth, along with a double-digit increase in both online sales and transactions, highlighting its ongoing focus on every channel.
Strong revenue and earnings growth was delivered amid continued competitive intensity across the half. Investment in the store network and online continued, with improvements to store design and merchandise layouts, enhancements to the online offer, and the introduction of new and expanded product and services across a number of categories, including learning & development and STEM, furniture, technology, and expanded Print, Copy & Create services.
Officeworks Managing Director Mark Ward said: “We are pleased that our strategy of offering low prices on the widest range of products and brands in the categories that are most important to our customers is continuing to resonate, and is complemented by great service across every channel.
“The investments that we are making in-store and online are helping our team to deliver our customers a seamless and convenient experience, whether they choose to shop in-store, by phone, online, or Click & Collect.
“We are also pleased with customers’ feedback on our recently expanded service offerings, including the enhanced Print, Copy & Create, and our range of prepaid services for small business customers looking to start, run or grow their business.
“Our important Back to School trading period has provided a strong start to the second half. Looking ahead, we remain focused on continuing to strengthen and expand our offer and extend our every channel reach as we continue to help our customers make bigger things happen.”
Three new stores were also opened during the half. At the end of December 2017 there were 165 stores operating across Australia.