Myer returns to profitability in the second half of FY21

In a preliminary trading update for the year to July 31, 2021, Myer Holdings Limited said that the company expects to return to second half profitability for the first time since 2H FY17, despite significant Covid-19 impacts.

The company’s preliminary total sales were up 5.5 percent for the year to 2,658.3 million Australian dollars compared to FY20. Second half total sales were up 38.3 percent.

Group online sales increased 27.7 percent to 539.5 million Australian dollars representing 20.3 percent of total sales.

Commenting on the trading update, the company’s CEO John King said in a release: “Our Customer First Strategy continues to gain momentum, delivering a significantly improved full year profit result, despite the ongoing Covid impacts in FY21.”

EBITDA for the year is expected to be between 174 million Australian dollars and 179 million Australian dollars, compared to 93.5 million Australian dollars in FY20, and 160.1 million Australian dollars in FY19.

The company reported second half profit after tax between 4 million Australian dollars and 7 million Australian dollars and full year profit after tax between 47 million Australian dollars and 50 million Australian dollars, compared to a net loss after tax of 11.3 million Australian dollars in FY20 and profit after tax of 33.2 million Australian dollars in FY19.

Myer finished the year in a positive net cash position of approximately 112 million Australian dollars compared to 8 million Australian dollars at the end of FY20 with significant headroom in all of its debt covenants. Myer has also agreed with its financiers an extension of its syndicated finance facility to November 2022 to enable an orderly longer-term refinancing.