Reject Shop reinstates dividends, installs Clinton Cahn as CEO
Australia’s largest discount variety retailer, The Reject Shop, has reinstated dividend payments and intends to undertake a further on-market share buyback of up to $10 million, after posting higher sales and profit.
The Reject Shop also said acting chief executive Clinton Cahn would take the role permanently from Thursday. Mr Cahn will continue to act as chief financial officer while a search for a replacement is conducted.
Clinton Cahn has been named the new CEO of The Reject Shop. Elke Meitzel
Sales rose 5.2 per cent to $819.3 million in 2023, when considering the extra trading week in the prior year, following an improving merchandise offer, mostly focused on low prices on branded household essentials.
The company did not provide profit guidance for this year, but Mr Cahn said comparative sales growth during the first seven weeks of the new year was up 4.4 per cent, and total sales growth including new stores was up 6.4 per cent.
“Shrink, as you’ve heard from other retailers talk about going back to pre-COVID levels, so that’s been a headwind,” Mr Cahn said.
The company returned to positive comparative sales growth for the year, up 4 per cent, with a stronger second half as shoppers flocked to value chains seeking bargains.
The retailer sells a broad range of food, snacks, greeting cards, pet products, kitchenware and party supplies across its 380 stores in Australia.
Earnings before interest and tax rose 35.7 per cent to $20.8 million in the 52 weeks to July 2. Net profit jumped 30.5 per cent to $10.31 million. Statutory net profit was 63.4 per cent higher.
Investors were rewarded with a total dividend of 16¢, which includes a final dividend of 6.5¢ and a special dividend of 9.5¢. This will be paid on November 3.
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