Kiwi DIY Ethic Powers Mitre 10 Result

24 October 2012
For Immediate Release

Kiwi DIY Ethic Powers Mitre 10 Result

The economy might be slow but New Zealand’s appetite for DIY is powering on as leading hardware and gardening supply chain Mitre 10 records another strong result.

The New Zealand owned and operated co-operative topped its main rivals last year to become the No.1 hardware chain by revenue and has maintained that position with another year of solid growth and expansion.

“All our numbers are well up on last year and when you consider both the New Zealand and international economic environment our financials prove we are doing very well in a tough retail and trade atmosphere,” says Mitre 10 Chairman Martin Dippie.

Mitre 10 network sales for the 2012 financial year were $858.37 million up 6.5% on the previous years’ $805.47 million, the highest in the company’s 38 year history.

“Most importantly, and the true measure of profitability for any co-operative, our distributions to members were also up 4.5% on last year to $45.7 million while share capital increased by 5.2% to $44.5 million.”

Mr Dippie highlighted an improved performance at the Mitre 10 Support Centre as an example of the initiatives within company operations supporting the members. Group revenue was also up $32.2 million (6.3%) on the previous year to $536.8 million and Mitre 10 New Zealand Limited returned an after tax profit of $3.4 million, up $2 million on the last financial year.”

Mitre 10 Chief Executive John Hartmann said the current focus on expanding the Mega store format and refreshing the look, product and service offerings within Mitre 10 stores would continue at pace.

“It may seem counterintuitive to the environment we’re operating in, but our programme of expansion, reinvestment and refreshing the stores and product lines is proving to be a very strong formula for success for our members,” said Mr Hartmann.

“That programme is powering ahead with a target of 44 Mega stores by 2015 and 85% of our near 100 stores new or refreshed over the same time period. We’ll open Mega store numbers 33 and 34 by the end of this calendar year having just opened two new stores in the last two months.”

“We’re already seeing quite outstanding sales results from the first quarter of the new financial year.” Mr Hartmann said first quarter sales for the 2013 financial year were up 9% on a same stores basis across the group while sales in Mega stores were up 15% in the first quarter.

“One of the most encouraging indicators in our revenue numbers is the split between growth from new stores and sales in existing stores, which is about 50-50. That means it is not just the new stores that are driving the numbers upwards and that both trade and retail customers like what we are doing to improve our service.
“The trade sector is bringing excellent results following our decision to refocus and bring in people with the appropriate expertise to service our trade customers.”

“In the retail sector new product lines and the new look stores are clearly working for customers – that’s directly from their feedback. The Mitre 10 Easy As campaign has also been very successful with 325,000 video downloads of the Mitre 10 Easy As guides from the Mitre 10 YouTube channel between mid April and September 30.”

Mitre 10s Annual Release will be available on Friday.

Group Sales Group Revenue
Year NZ$ Year NZ$
2012 $858,378,895 2012 $536,800,582
2011 $805,472,293 2011 $504,611,693
2010 $798,152,919 2010 $494,343,253

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