As I write this, the daily media have been writing headlines like “Bunnings NZ annual profit surges” (here) and “Bunnings’ meteoric NZ profit” (here) in response to the final 2015 year end documents just published.
And indeed the New Zealand operation’s Net Profit has more than doubled since last year. However, as a percentage of its admittedly decent double digit top line growth it’s still slim pickings.
Asked about her bottom line, Bunnings' GM NZ, Jacqui Coombes (above), talks about the high level of investment being put into stores, property and hardware and software.
“We’ve been putting a lot of investment into our capabilities for the future, both with our team and with the equipment that we have,” she says.
“It’s about our stores, from a systems, process and equipment perspective. It’s about growth for the long term and what our whole network will look like in the next 5-10 years.
“For us it’s about continuous growth rather than having a great spike and then declining again. We are happy with the investment that we are making.
“Take team training – we invested 37,000 hours last year in team training and this year will be more because, regardless of what is happening digitally, you’ve still got to have a team that knows the product, are passionate to be there and want to be there long term.”
And, looking at the longer term, at Bunnings New Zealand’s revenue and Net Profit for the last five financial years, there is indeed evidence of healthy progress, high levels of investment or not.
Revenue Net Profit
2011 $586m $2m
2012 $637m ($2.7m)
2013 $707m $1.1m
2014 $813m $5.9m
2015 $899m $12.0m
Read our full interview with Jacqui Coombes in the December issue of NZ Hardware Journal!