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Officeworks reveals 2017-18 FY results

August 16, 2018

The Australian supplier of office products and solutions has reported a strong twelve months up to June the 30th.

Revenue for the year increased 9.1 per cent to AU$2.14 billion ($1.55 billion/€1.36 billion) and earnings before interest and tax (EBIT) increased by 8.3 per cent to AU$156 million ($113.3 million/€99.66 million). According to the company, “effective cost control and capital discipline” during the period saw return on capital lift to a record 16.6 per cent.

Sales growth was achieved across stores and online with total sales growth of 9.1 per cent. Fourth quarter sales increased 10 per cent.

The strong result reflects Officeworks’ “well-established every channel strategy and a relentless focus on delivering real value to customers,” the company declared.

Strong sales and earnings growth was underpinned by new and expanded categories, merchandise layout and store design changes and enhancements to Officeworks’ online offer. This has been supported by a “continued focus on delivering value for customers through low prices on the widest range of products and great service.”

Officeworks’ continued investments in the store network and online, with the business’ capital expenditure programme during the year representing the largest capital deployment since the 2009 financial year.

Officeworks Managing Director Mark Ward said: “Pleasingly our every channel offer continues to resonate with customers and this has seen us deliver a record result this year. The result is a testament to the team’s focus on delivering a compelling offer and seamless experience for customers, whether it be in-store, online or over the phone. We are really pleased with the positive customer response to a number of new merchandise and service offerings this year, including the new educational craft range tailored for students and creative minds alike.”

“Growth in online has continued,” Ward went on, “and was supported by the launch of our two hour Click & Collect service which has quickly become a preferred delivery option for customers who value convenience. Our business-to-business segment maintained strong momentum during the year with our Business Specialists helping an increasing number of micro, small and medium-sized business customers achieve their big ideas.”

He concluded: “Looking ahead, while we expect the retail environment to remain competitive, we are focused on helping our customers make bigger things happen by continuing to strengthen and expand our offer across every channel.”

During the year six new stores were opened and five stores closed; by the end of June 2018, there were 165 stores operating across Australia.

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