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- Peet Group (PPC) posts operating income of $ 28.5 million, up 89 percent from revenue and settlement growth
- The group had 3142 gross sales of $ 858.8 million in FY21 sales, up 35 percent over FY20 with 2980 verified comparisons
- Peet managing director and CEO Brendan Gore says earnings were at the high end of earnings guidance announced in July
- Peet has also announced a final dividend of 2.5 cents per share (franked) for FY21, bringing the total dividend for FY21 to 3.5 cents per share
- PPC’s shares are up 4.2 percent to trade $ 1.24
The Peet Group (PPC) posted operating profit and statutory profit after tax of $ 28.5 million for FY21, up 89 percent and 195 percent, respectively, from FY20 increases in sales and billing.
The Group achieved earnings before interest, taxes, depreciation, and amortization (EBITDA) of $ 58.1 million for FY21, compared to $ 37 million (before restructuring and disposal charges) in FY20.
Revenue growth from higher sales and billing as well as price growth across the portfolio contributed to the improved EBITDA.
The group had 3,142 gross sales of $ 858.8 million in FY21, up 35 percent from FY20 with 2980 comparisons (up 66 percent) secured based on improving market conditions in Queensland and Western Australia .
At the end of June 2021, there were 1948 contracts with a gross value of $ 546.6 million, compared to 1,786 contracts in FY20.
Peet’s executive director and CEO Brendan Gore said earnings are at the high end of earnings guidance announced in July.
“The improved profit compared to FY20 is due to higher sales and billing volumes in the group’s three businesses and most of the states in which it operates, supported by continued favorable market conditions, government incentives and consumer confidence in FY21,” said he called.
In FY21, the company generated 5.9 cents in operating profit and statutory earnings per share, compared to 3.1 cents in operating profit and 6.2 cents in statutory loss per share in FY20.
“While business practices normalized for most of the country in the first half of FY21, Melbourne continued to experience significant disruption from COVID-19-related lockdowns,” Gore said.
“While sales and billing from our Victorian portfolio remained solid and market conditions robust, the group has continued to prioritize the safety and well-being of its Victorian employees, who have shown tremendous character and resilience.”
The group has gearing of 24.8 percent within its target corridor of 20 to 30 percent with net interest-bearing debt (including peet bonds) of $ 203.9 million.
Peet begins FY 22 with $ 175.1 million in cash and credit facilities and a weighted average loan life of more than three years.
Peet announced a final dividend of 2.5 cents per share (franked) for FY21, so the total dividend for FY21 will be 3.5 cents per share. This compares to a fully franked dividend of 1.5 cents per share in FY20.
At 1:42 p.m. AEST, PPC’s shares rose 4.2 percent to $ 1.24.