Shaver Shop up on debut year profit growth

Shaver Shop shares are trading higher after the grooming products specialist lifted its full-year profit and revenue in its first year on the Australian share market.

The company says its pro forma profit rose 20.7 per cent to $9.1 million in the year ending June 30, 2017, while its revenue lifted 33.6 per cent to $142.6 million.

Statutory profit was $9 million, up from $3.9 million the previous year when profits were hit by costs related to its IPO.

Chief executive Cameron Fox says that despite a “tough” retail environment, Shaver Shop’s same store sales grew by 6.2 per cent in 2016/17, partly through the new sales channel it began offering in the second half to Australian customers who purchase bigger quantities of products to resell.

Shaver Shop’s online sales improved by 9.4 per cent to $11.7 million, which the company says was helped by a new website launched in February.

The group’s retail network also grew, with the opening of eight new stores and the buying back of seven franchises, bringing its total number of stores to 95, with 13 franchise outlets remaining.

Looking forward, Fox said Shaver Shop had made a strong start to 2017/18 and was optimistic about how its upcoming festive season promotions will perform.

But, he said, supply uncertainty for the company’s recently introduced resale channel means its same store sales are likely to moderate.

Shaver Shop will pay a fully franked final dividend of 2.4 cents.

Its shares were trading 6.25 per cent higher at 68 cents at 1418 AEST.