The Reject Shop (ASX:TRS) Reports 1H25 Financial Results
Financial Performance
The Reject Shop reported total sales of $471.7 million for 1H25, reflecting a 2.9% increase compared to the prior corresponding period. Gross profit rose by 6.1% to $196.3 million, with the gross profit margin improving to 41.6%. EBITDA increased by 13.9% to $29.1 million, and EBIT grew by 16.2% to $22.6 million. Net profit after tax reached $16.4 million, up 14.6% on a year-on-year basis. The company maintains a strong balance sheet with cash reserves of $74.9 million and no drawn debt.
Store Expansion
During the first half of the year, The Reject Shop opened nine new stores, bringing the total number of stores to 393 across Australia. The company plans to open an additional seven stores in the second half of FY25, with a pipeline of approximately 15 new stores beyond FY25. One store was closed in 1H25, with plans to close three more in the second half of the year, two of which are set to reopen within the calendar year.
Dividend Announcement
The Reject Shop has declared a fully franked interim dividend of 12.0 cents per share, up from 10.0 cents per share in the prior corresponding period. The dividend will be payable to shareholders registered at 5:00 pm on Thursday, 17 April 2025, and is scheduled for payment on Thursday, 1 May 2025.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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