Table of Contents
What changed
Revenue rose 22.6% to NZ$358.4m and profit before tax climbed 70.6% to NZ$66.1m, with NPAT up 69.6% to NZ$47.5m. Operating profit expanded 59.0% to NZ$73.0m, indicating meaningful operating leverage on the sales uplift. Against that P&L strength, operating cash flow fell 6.9% to NZ$45.5m and cash on hand eased to NZ$93.9m from NZ$98.6m. Inventories rose 16.6% to NZ$101.1m. Equity strengthened 17.1% to NZ$282.8m while total liabilities fell 4.8%. Homeware contributed about 62.1% of revenue at a roughly 18.6% EBIT margin, with sporting goods at 37.9% of sales and a slightly higher ~21.7% margin. The declared interim dividend is 11.5 cps versus 9.0 cps in the prior interim.
What matters
- Earnings quality is clean at the tax line but not at the cash line. PBT and NPAT growth are within 1pp of each other (70.6% vs 69.6%) and the effective tax rate is stable at 28.2% (prior 27.7%), so the profit step-up is not flattered by tax. However, OCF fell NZ$3.4m while NPAT rose NZ$19.5m, a clear divergence driven by the NZ$14.4m inventory build.
- Capital allocation has tilted more aggressive on dividend relative to cash. The interim DPS of 11.5 cps represents 53.9% of NPAT but 75.7% of pre-lease FCF of NZ$33.8m, versus 55.2% of FCF in the prior period. FCF/NPAT fell to 71.3% from 129.5%.
- Balance sheet remains a net asset story. ROE rose to 16.8% from 11.6%, cash is still NZ$93.9m with no disclosed debt, and equity is up NZ$41.3m. The balance sheet can comfortably absorb the inventory position.
Expectations
No guidance, forward work, or formal targets were disclosed. On seasonality, HY21 represented only 41.7% of FY21 revenue and 38.2% of FY21 NPAT, so the business is historically second-half weighted. Annualising HY22 revenue gives NZ$716.8m, just 2.1% above FY21's NZ$701.8m; if the prior second-half weighting repeats, the full year would materially exceed that annualised figure, but this release does not support or deny such an outcome directly. The release does not provide comparable-store, channel, or trading-update commentary to calibrate H2.
Quality of result
The operating result looks largely durable — PBT up 70.6% with stable tax rate, expanding segment margins inferred in both homeware and sporting goods, and no non-recurring items flagged. What is less durable-looking is the cash picture: cash conversion deteriorated materially, with FCF/NPAT almost halving from 129.5% to 71.3%. The driver is a 16.6% lift in inventories to NZ$101.1m, although inventory days actually improved slightly to 51.4 from 54.0, suggesting the build is tracking sales velocity rather than indicating obsolescence risk. Capex eased to NZ$11.6m from NZ$12.6m (3.3% of revenue vs 4.3%), which flattered FCF but not meaningfully.
Unresolved
- Current-period trade receivables were not extracted, preventing a full operating working-capital view and a check on whether the inventory build is fully organic or partially receivables-funded.
- No gross margin, same-store sales, or online-versus-store split is supplied, so the mix behind the 22.6% revenue lift cannot be decomposed.
- No H2 trading commentary, forward work, or formal guidance was disclosed, and prior-period segment comparatives were not extracted, so segment momentum cannot be measured.
- The dividend disclosed is the interim component only; the full-period payout cannot be assessed from this release alone.
This briefing cannot assess competitive positioning, category-level demand trends, or how much of the HY22 strength reflects post-lockdown pull-forward versus a sustainable sales base.
Key metrics
| Metric | HY22 | HY21 | Change |
|---|---|---|---|
| Revenue | $358.4m | $292.4m | +22.6% ↑ |
| Net profit after tax | $47.5m | $28.0m | +69.6% ↑ |
| Net cash inflow from operating activities | $45.5m | $48.8m | -6.9% ↓ |
| Interim dividend per share | 11.5c | — | — |
| Operating profit | $73.0m | $45.9m | +59.0% ↑ |
| Profit before tax | $66.1m | $38.7m | +70.6% ↑ |
| Total assets | $653.6m | $630.9m | +3.6% ↑ |
Reference: annolyse.ai/briefings/bgp-hy22
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Homeware | $222.6m | — | $41.4m | n/a |
| Sporting goods | $135.8m | — | $29.4m | n/a |
Reference: annolyse.ai/briefings/bgp-hy22
Analytical metrics
| Metric | HY22 | HY21 | Context |
|---|---|---|---|
| PBT growth | +70.6% | — | — |
| Effective tax rate | 28.2% | 27.7% | — |
| FCF pre-lease | $33.8m | $36.2m | −$2.4m |
| FCF / NPAT | 71.3% | 129.5% | complementary conversion metric |
| Capex % revenue | 3.3% | 4.3% | — |
| Capex | −$11.6m | −$12.6m | +$0.9m |
| Inventory days | 51.4 | 54.0 | -2.6 days |
| Trade debtors | — | $2.7m | — |
| Payout ratio vs NPAT | 53.9% | — | — |
| Payout ratio vs FCF pre-lease | 75.7% | — | covered |
| ROE (annualised) | 16.8% | 11.6% | Strengthening |
| HY21 share of FY21 revenue | 41.7% | — | Other half was 58.3% |
| HY21 share of FY21 NPAT | 38.2% | — | Other half was 61.8% |
| Profit from continuing operations | $47.5m | — | — |
Reference: annolyse.ai/briefings/bgp-hy22
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX/ASX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.