Covid disruptions hit retailers’ bottom line.

 

Officeworks’ full-year revenue increased by 4.6 per cent in the 2022 financial year to $3,1 million but its earnings of $181 million were 14.6 per cent lower than the prior year. 

 

Sales and margin mix for the year was impacted by COVID-related temporary store closures in the first half. Strong growth continued in technology and furniture as customers continued to work and learn from home throughout the year. 

 

As COVID-related disruptions eased, trading conditions improved in the second half, with sales growth of 5.5 per cent supported by continued demand growth across technology and furniture categories.

 

Officeworks’ margin and earnings were impacted by changing sales mix during the year and increased price investment to maintain Officeworks’ ‘everyday low-price credentials’. 

 

The earnings result also reflected higher costs of doing business associated with managing COVID-related disruptions. 

 

Online penetration, including click and collect, remained elevated during the year, driven by strong online sales during periods of lockdown. 

 

Consistent with its focus on sustainable long-term growth, Officeworks continued to invest to modernise its supply chain, completing the transition to a new Victorian customer fulfilment centre (CFC), and progressing the development of a Western Australian CFC and Victorian international distribution centre. 

 

During the year, Officeworks upgraded 75 stores and opened two new stores and relocated three stores. 

 

As at 30 June 2022 there were a total of 168 Officeworks stores across Australia.