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To : Market Information Services Section NZX Limited THE WAREHOUSE GROUP Auckland , Thursday 25 March 2021 The Warehouse Group half year Net Profit After Tax up 88.5 % on previous corresponding period¹ Highlights • Group sales up 7.4 % to $ 1,808.3m • Gross profit margin up 260 basis points to 36.2 % ² with Operating Profit³ up 125.4 % to $ 153.0m • Four brands including The Warehouse , Noel Leeming , Warehouse Stationery and Torpedo7 all reported record operating profits • Adjusted Net Profit After Tax of $ 111.0m for the half year , an increase of 140.2 % Reported Net Profit After Tax of $ 55.0m for the half year , an increase of 88.5 % Interim dividend of 13c per share declared , following special dividend of 5 cents per share declared in February 2021 The Warehouse Group confirmed today a record half year result for the FY21 first half ( " FY21 H1 " ) with Adjusted Net Profit After Tax of $ 111.0m , up 140.2 % on the previous corresponding period . Group sales were up 7.4 % to $ 1,808.3m with online sales growth of 50.3 % , making up 11.9 % of total Group sales . Group CEO Nick Grayston said the record result was pleasing following the 2020 financial year of disrupted trading conditions . " Despite the interruption to trading by the Auckland COVID - 19 level 3 lockdown of last August , the business performed well , demonstrating the ability to adapt and flex amid business interruption " , said Mr Grayston . " As a result of the hard work to execute our transformation by our whole team over the last few years , we were able to drive significant gross profit improvement and cost leverage . I want to thank the team for their resilience and dedication during this difficult period " . The 7.4 % increase in sales revenue contributed to Gross Profit increasing 15.8 % to $ 655m . Group Gross Profit Margin increased 260 basis points to 36.2 % . Major contributors to Gross Profit Margin included increased customer demand , continued benefit from everyday low pricing ( EDLP ) and investment in improved sourcing capability in The Warehouse . Other brands benefited from better inventory management , leading to improved sell - through . Group Operating Profit increased 125.4 % on the prior period to $ 153.0m . Reported Net Profit After Tax , including unusual items , increased 88.5 % from $ 29.2m to $ 55m . Unusual items include the repayment of the $ 67.6m ( before tax ) wage subsidy in December 2020 , while $ 11.3m ( before tax ) relates to restructuring costs and continued investment in our transformation , which is expected to have ongoing benefits . 1 26 weeks ending 31 January 2021 compared to 26 weeks ending 26 January 2020 . 2 Gross Profit margin adjusted for rebates , freight to store and changes in stock provisioning . 3 Adjusted for unusual and non - trading items as presented on slide 18 of the FY21 Interim results presentation and Note 5 of the Interim Financial Statements for the half year ended 31 January 2021 . 4 Adjusted Net Profit After Tax adjusted for unusual items