Cost Cutting Priority in F23-24? Company performance in F22-23 was superb as outlined below.
Its a moot point, but it can be argued that they earned their $19.9 million in performance bonuses .
It will be difficult to match 2022-23 Perfs in the current Fiscal year , given the neutral economic outlook in Canada.
However, freight and transportation costs did come down in the second half of 2022 and remain depressed.
So, logically, in order to earn bonuses in the current fiscal year , the major focus would presumably be on cutting costs.
One area where significant costs can be made is making inventory management more real time , rather than early bulk buying in order to ensure timely delivery of inventory .
Supply chain bottlenecks have largely been ameliorated enabling significant gains in reducing excess inventory and extended shelf life.
There are other areas of operating costs that could benefit from insightful cost compression .
Otherwise, performance bonuses this year will be very difficult to generate ..
.....Net sales for fiscal 2023 increased by $138.6-million, or 20.9 per cent, to $800.6-million.
....The company's e-commerce net sales continue to be strong, representing approximately 28 per cent (1) of the total net sales for fiscal 2023.
...Gross profit for fiscal 2023 increased $95.5-million to $448.7-million as compared with $353.2-million for fiscal 2022.
..Gross profit as a percentage of net sales for fiscal 2023 increased to 56.0 per cent from 53.4 per cent for fiscal 2022.
..Net earnings from continuing operations for fiscal 2023 were $77.7-million ($1.59 basic and diluted earnings per share) as compared with $143.2-million ($2.93 basic and diluted earnings per share) for fiscal 2022. The decrease in net earnings from continuing operations in fiscal 2023 of $65.5-million is primarily attributable to the non-recurring $88.6-million gain on settlement of liabilities subject to compromise recognized in fiscal 2022, the reduction of federal subsidies of $21.5-million, lower restructuring recoveries of $10.8-million, the increase in overall operating costs, including performance incentive plan awards, and an increase in net finance costs in fiscal 2023, partially offset by an increase in gross profits and an increase in the income tax recovery of $31.7-million arising from the recognition of previously unrecognized deferred tax assets.
....Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) from continuing operations for fiscal 2023 was $57.0-million as compared with $38.6-million for fiscal 2022.
....Adjusted ROA (results from operating activities) (1) for the fiscal 2023 was $45.7-million as compared with $19.6-million for the fiscal 2022.