Beacon Lighting beaming on profit growth forecast

Beacon Lighting beaming on profit growth forecast

Beacon Lighting (ASX: BLX) shares are shining 22 per cent brighter this morning after the Melbourne-based retailer reported sales growth throughout the pandemic to date, as well as expectations underlying profit will rise in FY20.

By the close of business yesterday BLX shares had already clawed back all of their losses due to the market crash, but today's illumination of recent results - including 15.5 per cent total sales growth - sent them surging. 

Comparative sales growth for company stores is up 16.9 per cent in the second half to date, while online sales have risen 77.7 per cent.

"The Beacon Lighting Group has experienced significant growth in sales in H2 FY2020 as customers are spending more time working, educating and completing projects at home," the company said.

"Given the recent changes to customer shopping patterns and future changes in government policies, it is uncertain as to whether the higher levels of sales will continue in the future."

In December the group announced the sale of its Parkinson distribution centre in Queensland to Charter Hall for $28 million, with a leaseback arrangement for the site that was initially developed for Woolworths' (ASX: WOW) failed hardware venture Masters.

The group made a $7.8 million profit before tax on the sale, but this was partially offset to the tune of around $5 million from the closure of its Beacon Energy Solution business.

Regardless of this $2.8 million lift to the bottom line, Beacon Lighting still expects underlying net profit after tax (NPAT) to exceed its $16.5 million result from FY19.

Updated at 11:18am AEST on 17 June 2020

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