Profit has more than tripled at one of Western Australia’s most prominent family businesses, which controls the Spudshed chain of retail stores.
Vegie Bandits reported a profit of $12.9 million in the 2019 financial year, according to documents lodged with the Australian Securities and Investments Commission.
That is up from $4 million in the 2018 financial year.
Vegie Bandits is the ultimate holding company for the Spudshed chain and Galati Group.
The company has two directors – brothers Vince and Tony Galati.
Revenue was 14 per cent higher at $325 million, which helped improve gross profit by 16 per cent to $80 million.
The improved result comes despite a tougher retail market.
“Ordinary retail operations, despite an increased consumer and competition squeeze on pricing, have improved on the gross margins reported in 2018,” the report said.
Spudshed has been on an expansion drive in the past year.
In December 2018, Tony Galati announced Spudshed would take over a vacant Masters Warehouse in Joondalup, while last month, a new shop opened in the suburb of Thornlie.
All of this has paid off for the business’s owners, with a dividend of $5 million paid out, according to the report.
The accounts were signed off by Nikki Shen of Hall Chadwick.
