Bunnings posts loss despite DIY love affair
Home improvement supplies retailer Bunnings has booked an annual loss of $2.6 million, even though Kiwis' love affair with DIY helped push revenue up 9 per cent to $637.3m.
The loss for the year ended June 30 follows a $1.9m net profit for the prior year, results filed with the Companies Office show.
Bunnings was hit by higher costs for the 2012 financial year, with selling expenses up 11.4 per cent to $133.2m and administrative expenses up 51 per cent to $23m.
Before tax and finance costs, the retailer made a profit of $15.8m for the year. But that was more than unwound by $17.5m in finance costs - almost all of which was interest on related party loans.
The group's wage and salary bill for the year was $87.8m, up from $80m the prior year.
Bunnings is owned by ASX-listed retail, insurance, resources and chemicals and fertilisers clongomerate Wesfarmers, which also owns Kmart.
In August, Wesfarmers reported an 11 per cent rise in full-year net profit to A$2.1 billion ($2.6 billion).
Earnings before interest and tax for Bunnings in Australia and New Zealand rose 4.9 per cent to A$841m.