The Warehouse Group announces $44.5m profit after receiving wage subsidy

The Warehouse Group announces $44.5m profit after receiving wage subsidy
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The Warehouse Group has revealed its preliminary unaudited profit of $44.5 million for the 2020 financial year.

The retail group said on Thursday it would have made a loss of $4.3 million if it wasn't for the $67.8 million received in wage subsidies.

It reported a sales increase of $3.2 billion, up 3.3 percent from the previous year.

The second half of the 2020 financial year found a 4.1 percent increase in sales, generating approximately $1.5 billion.

The Warehouse said in a statement: "Given the loss prior to the wage subsidy, as well as the continued uncertainty around economic activity and trading outlook, the Group Directors have decided not to pay a dividend."

The retail giant ended the 2020 financial year with a net cash position of $168.1 million, as a result of "strong working capital management and robust trading conditions" following the first COVID-19 lockdown period.

The retail group, which owns The Warehouse, Warehouse Stationery, Noel Leeming, Torpedo7, 1-day and The Market announced in July they had to cut up to 1080 jobs as part of a major restructure.

The company added they would announce its full-year results on October 15.