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ASX AND NZX ANNOUNCEMENT FY21H1 RESULTS TRANSFORMATION DELIVERS STRONG SALES AND PROFIT GROWTH 23 February 2021 Michael Hill International Limited ( ASX / NZX : MHJ ) today announced its half year financial results for the 26 - week period ended 27 December 2020 . Key Financial Results • Statutory net profit after tax increased by 82.1 % to $ 39.0m ( FY20H1 : $ 21.4m ) . • • Statutory earnings before interest and tax ( EBIT ) increased by 66.9 % to $ 58.9m ( FY20H1 : $ 35.3m ) . Comparable EBIT¹ of $ 44.6m against $ 31.6m for FY20H1 . Group same store sales were up 6.3 % to $ 312.1m ( FY20H1 : $ 293.6m ) . The COVID - 19 impact of 3,709 lost store trading days , equating to lost sales of ~ $ 23m , and the closure of 15 under- performing stores , led to group operating revenues reducing by 2.9 % to $ 319.9m for the half ( FY20H1 : $ 329.5m ) . Group gross margin increased to 62.7 % ( FY20H1 : 61.7 % ) while absorbing the impact of the increasing gold price . Decisive working capital management resulted in a significant improvement in net cash position . Focused inventory management , resulting in a reduction of ~ $ 30m to $ 170.6m ( FY20H1 : $ 200.1m ) . Interim dividend payment of AU 1.5 cents per share , unfranked and fully imputed with conduit foreign income . Operational Performance • Digital sales increased by 102 % to $ 18.5m , representing 5.8 % of total sales ( FY20H1 : 2.8 % ) . Loyalty program Brilliance by Michael Hill reached over 480,000 members , an increase of over 200 % for the half . • Branded collection sales represented 38.4 % of total sales for the half year ( FY20H1 : 35.4 % ) . • • Deliberate cash preservation and unwavering cost management throughout the half . 3,709 lost store trading days across all markets for the half , due to government mandated store closures . One under - performing store ( in Australia ) permanently closed during the half , giving a network total of 289 stores across all markets , a reduction of 15 from FY20H1 . Commenting on the announcement of the Company's half year results , CEO Daniel Bracken , said : " I'm particularly pleased with our results given the challenging environment for our business - continuous store closures throughout the half , significant decline in foot traffic in all markets , the material impact of 3,709 lost trading days , and not a single day of all stores open . In spite of all these obstacles , to deliver this significant performance improvement is truly outstanding . Our comparable profits increased by 41 % , due to the focus and energy of our team and the transformational change agenda at Michael Hill . " I am very proud of our company metrics - same stores sales at + 6.3 % , digital growth of over 100 % , retail margins up 200bps , costs down , inventory way down and an outstanding cash position at the close of the half . The digitisation and elevation of our brand is clearly resonating with our customers , as are our key strategic initiatives across loyalty , retail fundamentals and product newness . " Michael Hill is a business that has been focused on transformation , and while the global challenges have significantly impacted operations , and continue to do so on a daily basis , the performance across ALL metrics proves we have built strong foundations for growth . " 1 Comparable EBIT is pre - AASB16 and excludes wage subsidies