Oliver’s reports $2.3m net profit loss
This was a major loss compared to its $5.8m from a year before.
Oliver’s Real Food reported a $2.3m total comprehensive loss attributable to the owners for the year ending 30 June 2024.
Last year, the group reported a net profit of $5.8m.
According to its ASX announcement, the final quarter of the year proved very challenging, and called its full-year result ‘very disappointing’.
The group attributed the loss to delays in establishing The Pheasants Nest as the preferred service centre, increased business costs, and heightened competition at Wyong North and South.
Gross margins in FY2024 lifted marginally to 63.16% from 62.88% in the previous corresponding period. Oliver’s same-store sales fell by 3.81% and transactions also dipped by 1.48%, resulting in a lower Average Transaction Value. The group said rising costs, higher rents from inflationary rent increases, and slower same-store sales growth remain a real issue for it as it begins the new financial year.
“Management is taking action to address the cost issues and further marketing initiatives are underway to drive sales. We can advise that improved signage and specific advertising tested at our Maryborough store in Queensland saw sales and transactions improve by 14.5% in the final quarter compared to the prior corresponding quarter. On the back of this, further marketing activity and improved signage are underway across the network. Increased marketing is budgeted for FY2025 year,” The group said.
“We have previously advised the market of the store closure at Lithgow. In addition, two management positions were recently made redundant, and today, we advise that our Coffs Harbour store will close on 14 October 2024. The Board and management are working on further initiatives to improve revenue and lower costs. The decisions already taken and implemented will start to deliver both the financial and cash flow benefits from the end of September 2024.”
