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- Peet Group (PPC) posts an operating profit of $28.5 million, up 89 per cent, on the back of sales and settlement growth
- The group generated 3142 sales in FY21, with a gross value of $858.8 million, marking a 35 per cent growth over FY20 with 2980 settlements secured
- Peet managing director and CEO Brendan Gore says profit was at the upper end of the earnings guidance announced in July
- Peet has also announced a final dividend of 2.5 cents per share, fully franked, for FY21, bringing the total dividend for FY21 to 3.5 cents per share
- Shares in PPC are up 4.2 per cent to trade $1.24
Peet Group (PPC) generated operational profit and statutory profit after tax of $28.5 million in FY21, representing growth of 89 per cent and 195 per cent, respectively over FY20, thanks to an increase in sales and settlements.
During FY21, the group generated earnings before interest, taxes, depreciation, and amortization (EBITDA) of $58.1 million, compared to $37million (before restructuring and divestment-related charges) in FY20.
Revenue growth from greater sales and settlements, along with price growth throughout the portfolio contributed to the improved EBITDA.
The group generated 3142 sales in FY21, with a gross value of $858.8 million, marking a 35 per cent growth over FY20 with 2980 settlements secured (up 66 per cent) based on improving market conditions in Queensland and Western Australia.
There were 1948 contracts on hand at the end of June 2021, with a gross value of $546.6 million, compared to 1786 contracts in FY20.
Peet managing director and CEO Brendan Gore said profit was at the upper end of the earnings guidance announced in July.
“The improved profit compared to FY20 is on the back of both higher sales and settlements volumes across the group’s three business segments and across most states that it operates in, supported by continuing favourable market conditions, government stimulus and consumer confidence during FY21,” he said.
In FY21, the company earned 5.9 cents in operating and statutory earnings per share, compared to 3.1 cents in operating earnings and 6.2 cents in statutory loss per share in FY20.
“While business practices normalised across the majority of the country in the first half of FY21, Melbourne continued to be subject to significant disruption resulting from COVID-19-related lock downs,” Mr Gore said.
“While sales and settlements from our Victorian portfolio remained solid and market conditions resilient, the group continued to prioritise the safety and wellbeing of its Victorian employees, who have demonstrated enormous character and resilience.”
The group has a gearing of 24.8 per cent within its target range of 20 to 30 per cent with net interest-bearing debt (including Peet Bonds) sitting at $203.9 million.
Peet begins FY22 with $175.1 million in cash and loan facility headroom and a weighted average debt term of more than three years.
Peet announced a final dividend of 2.5 cents per share, fully franked, for FY21, bringing 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.
Shares in PPC were up 4.2 per cent to $1.24 at 1:42 pm AEST.
