WELLINGTON: Hardware chain Bunnings has more than doubled annual profit in New Zealand following demand for do-it-yourself home improvement and building products from consumers and tradespeople.
The New Zealand unit of the diversified Australian company Wesfarmers reported net profit of $12 million for the year ended June 30, from $5.8m a year earlier, according to financial statements lodged with the Companies Office.
The directors said in a statement that the “pleasing” profit increase was driven mainly by revenue growth of 11 percent for year to $898m, from $813m in 2014, as well as productivity gains.
“Revenues increased in both consumer and commercial areas as well as across all merchandising categories and the breadth of the good trading performance was a highlight for the year,” the statement said.
Earlier in the year its parent Wesfarmers, which is listed on the ASX, reported an underlying profit of AU$2.44 billion (NZ$2.69 billion) for the June year, up 8.3 percent on the prior year.
Bunnings’ primary New Zealand rival, Mitre 10, reported a 92 percent drop in earnings for the year to June 30, at $106,000, reflecting accounting adjustments, higher rent and banking for future development sites.
In New Zealand, Bunnings has 50 stores and trade centres nationwide and it employs more than 3700 staff, of which around 850 are on a collective contract under the First Union.
Some Bunnings union members have been holding pickets across New Zealand over changes to their rostering system and scuffles broke out last month when a dozen protesters chained themselves together at the company’s New Lynn store in Auckland.
