Officeworks made a record 2 million deliveries last year
Officeworks today reported a 6.1 per cent increase in total revenue to $1.96 billion for the 12 months to 30 June 2017, attributing the strong performance to its ‘every channel’ strategy.
Earnings before interest and tax increased by 7.5 per cent to $144 million and return on capital lifted to 14.7 per cent, reflecting effective cost control and capital discipline.
The company attributed its sales and earnings growth to layout and design changes in stores, new and expanded product ranges and the continued enhancement of its online offer.
“We are really pleased that our every channel offer is continuing to resonate with customers, and this is reflected in our strong result,” Officeworks’ managing director Mark Ward said.
“Officeworks’ performance is a testament to the team’s focus on delivering a great and seamless experience for customers, whether it be in-store, online and over the phone,” he said, adding that the company made a record two million deliveries to customers across the country in the 12 months to 30 June 2017.
The company saw strong momentum in its B2B segment during the year and will increase the number of business specialists employed in its store network.
Officeworks’ improved earnings stood in contrast to fellow Wesfarmers business Coles, which saw earnings fall 13.5 per cent to $1.61 billion.
Coles Online, a tiny fraction of the total grocery business, saw double digit sales growth, with increased fulfilment rates and delivery efficiency, and online liquor transactions saw a 20 per cent increase.
Wesfarmers said it is planning to launch a second ‘dark store’, which facilitates the fulfilment of online orders, in Sydney in early FY18.
Despite comparable food and liquor sales growth slowing to just one per cent, Wesfarmers reported a $2.87 billion full-year profit for the 12 months to 30 June 2017.