Michael Hill full year profit drops 30% on tax adjustments

By

Benjamin Fitzgerald

Published
Aug 24, 2016

Australia's Michael Hill International posted a 30 percent decline in annual profit for the year ending June 30, as it accounted for tax adjustments.

The Brisbane-based jeweller said profit fell to A$19.6 million (US$14.92 million), or 5.09 Australian cents per share, in the 12 months, from $27.8 million, or 7.22 cents, the year earlier.

The earnings included a $28.8 million settlement of a historic tax dispute with New Zealand’s Inland Revenue Department and $19.4 million of tax adjustments related to its listing on the ASX. Adjusting for those items, profit increased 4.2 percent to $28.9 million.

The retailer grew revenue and earnings before interest and tax across its key Australian, New Zealand and Canadian markets. Total revenue lifted 9.5% to a record $551.1 million, while sales improved in the newcomer US market. Michael Hill's emerging Emma & Roe brand boosted revenue and slimmed down its loss, the company said.

“This result is particularly pleasing against a backdrop of a continued challenging retail environment, especially in regions impacted by the resources sector downturn,” the company said, in a statement.