Tony Galati's Spudshed has posted yet another record result, lifting revenue by some $49 million through the year to achieve another record profit.
Tony Galati's Spudshed has posted yet another record result, lifting revenue by some $49 million through the year to achieve another record profit.
Vegie Bandits Pty Ltd, trading as Spudshed, increased its customer base by 4.8 per cent through the year, a figure the entity said was due to cost-of-living pressures forcing Australians to look for value alternatives.
Its financial report revealed the independent grocer also boosted its online sales by 16.5 per cent, despite online shopping currently only being offered at a handful of its 17 stores.
Those increases drove an 8.1 per cent uptick in revenue to $649 million (from $600 million in FY24); boosting profit to $17.2 million (from $14.1m in FY24).
The report also revealed it paid some $82 million to its 1600 employees - up $9 million on last year's figure.
The report said although inflationary pressures had eased, high cost-of-living costs continued to push customers to focus on value when making their food purchases.
"In this environment, Spudshed has maintained its strong market position by continuing to deliver on its promise of affordable fresh produce and groceries," the director's report said.
"This clear value proposition has resonated with consumers, resulting in a 4.8 per cent increase in customer numbers compared to the prior year.
"The demand for convenience and online shopping also remained strong and online sales continued to perform strongly."
It was also revealed a strategic decision to source more products directly from manufacturers had been made through the year.
"This initiative forms part of Spudshed's broader strategy to strengthen its supply chain, enhance price competitiveness and deliver even greater savings to customers," the report said.
"To support this initiative and improve product availability, the business increased its overall stock holdings and average days of inventory on hand.
"These operational improvements, together with a continued focus on efficiency and cost management, have contributed to a strong financial outcome for the year.
"The business delivered a profit before tax margin of 3.7 per cent, which reflects the effective execution of key strategic initiatives."
The value of the company's total assets hit $170 million, while a fully franked dividend of $6 million, the same as the year prior, was paid to the owners.
Business News' Rich 100 publication - unveiled today - values the Galati family as $295 million.
