Despite a flat trading outlook, Godfreys is continuing to invest in new stores and product innovation. Addressing the company’s maiden annual general meeting in Melbourne on 21 October, managing director Tom Krulis observed that the trading environment was highly competitive.
Thus, Godfreys is anticipating that its earnings will be more heavily biased to the second half of 2016 and that the full year will be in-line with 2015’s results.
Sales for 2015 were $182.6 million, an increase of 5.2% over the previous corresponding period. They were “driven by the successful roll out of new products during the period and our store rollout program, which saw the introduction of the new Godfreys’ ‘We are Clean’ store format,” stated Mr Krulis.
“Comparative store sales for the year were flat, which is pleasing given the deliberate strategy to change the company’s product mix to drive greater sales volume and floor value while lowering the average selling price.”
Godfreys had 212 stores across Australia and New Zealand in 2015 and it plans to open at least 20 additional stores through 2016. Mr Krulis revealed that the company’s on-line sales increased by 33% in 2015.