The Beacon Lighting Group Ltd (ASX: BLX) share price is up more than 4% after telling investors it’s expecting strong profit growth in FY21.
Beacon’s bright FY21
The lighting business said positive trading has continued into the second of the year across its stores and online sales.
There has also been an improvement in the gross profit margins as well as careful management of expenses.
This combination of high revenue, stronger margins and disciplined spending means it’s now expecting FY21 net profit after tax to be between $35.5 million to $37.5 million. That would be growth of 74% to 84% compared to the underlying net profit generated in FY20.
Management comments
Beacon Lighting CEO Glen Robinson said: “Thanks to our adaptable team and the continued support of our valued customers, Beacon Lighting has been able to achieve outstanding results. During the year, Beacon Lighting has continued to innovate with the latest designs in lighting and ceiling fans, store expansion and formats, service to our trade customers and the online shopping experience. Together with specialist customer advice and great value, the Beacon Lighting team has been able to achieve exceptional results in FY21.”
Summary thoughts
Beacon Lighting has done very well to grow profit so much in these strange times. The question will be whether it has just been a one-off year of huge demand, or Beacon can maintain this level of performance into the future financial years. Government stimulus is being being turned off and interest rates won’t stay this low forever.
