Super Retail Group has bounced back with increased revenue - but its profits are actually down.
👉Background: Super Retail Group is the owner behind a bunch of well-known Aussie brands. Think: Rebel, Supercheap Auto, BCF and Macpac.
👉 What happened: Obviously a retail group centred around camping, fishing and sports was gonna have a tough time during COVID restrictions, but now the company has bounced back…
👉 What else: It saw its revenue up by 2.8% to $3.55 billion for the full year. But we're not throwing a party just yet, because because profits are actually down by almost 20% compared to the same period last year.
💡Revenue and profit are often thrown together in the same sentence, but it’s important to remember the difference when you’re looking at a company's financial performance.
💡 Revenue is the income that a business generates through its products or services. Whereas profit is the slice of that revenue that’s left over after you subtract all the business expenses.
💡Ultimately, investors are looking to invest in profitable businesses that can continue growing with those profits, or can potentially pay a dividend. But Super Retail Group reckon its return to profit is juuuuuust around the corner.
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