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Smiggle - Matilda’s Range
Annual Report 2023 Chairman’s Report
Solomon Lew
Chairman
John Bryce
Interim CEO (Retail) and
Just Group CFO
On behalf of the Premier
Investments Limited
(“Premier”) Board of
Directors, I am pleased
to present the 2023
Annual Report for the
financial year ended
29 July 2023 (“FY23”).
This year marks 15 years since Premier’s
acquisition of the Just Group in 2008.
Reflecting on the past 15 years, I am
delighted with Premier’s continued
growth and development as a
formidable retail and investment group.
Notwithstanding the numerous
challenges presented over the past
years – a once in a lifetime global
pandemic, Brexit, and challenging
macroeconomic environments to
name a few - one thing has
remained constant: Premier has
continued to deliver for all of
its stakeholders.
Premier reported a statutory Net Profit
After Tax (“NPAT”) of $271.1 million for
FY23. This year’s statutory profit result
includes the accounting impact of
equity accounting partway through the
year for Premier’s 25.79% investment in
Myer Holdings Limited. Premier now
equity accounts for its investments in
Myer Holdings Limited as well as Breville
Group Limited. Premier’s adjusted NPAT
(non-IFRS), excluding the accounting
effects of equity accounting and a
non-cash impairment of intangible
assets, was $278.6 million for the year,
up 6.43% on FY221.
1 Refer to page 6 of the Directors Report for an explanation of Premier’s Adjusted NPAT, including a reconciliation to statutory NPAT. Due to the complexities of equity accounting and
considering that equity accounting for Myer commenced partway through the year, the Group has presented an adjusted NPAT to better explain the impact of AASB 128 Investment in
Associates and Joint Ventures on this year’s profit result.
Premier Investments Limited 1
Chairman’s Report continued
Premier Retail – Outstanding performance
Smiggle – Rebounding as schools reopen
Premier Retail, our wholly owned retail segment,
contributed record Earnings Before Interest and Tax (“EBIT”)
of $356.5 million, up 6.4% on FY222 and up 113% on
‘pre-COVID’ FY19.
Smiggle is the ultimate destination for school essentials as well
as innovative and fun products for young people. The brand
has fully reset since COVID, delivering a record global sales
result of $319.8 million in FY23, up 22.4% on FY22.
Smiggle performed well in all existing markets of Australia,
New Zealand, Europe and Asia. We are particularly pleased
with the brand’s record wholesale sales performance,
reflecting continued strong demand from existing and new
partners. Smiggle is represented in over 800 doors during
peak “back-to-school” trading periods.
Smiggle continues to have successful collaborations
with major international studios including Disney,
and sporting collaborations with the Australian Football
League (AFL), to name a few. We are pleased to report
that Smiggle celebrated its 20th Birthday with the launch
of a successful birthday range in the second half of the year.
Smiggle is an exciting brand, offering further growth potential
through expanding the brand’s reach in existing markets,
as well as growing and evolving the wholesale sales channel.
Strong omni-channel offering
Each Premier Retail brand seeks to delight customers
in whichever way they choose to shop, and to support this
we continue to invest in people, technology and marketing
to improve our world-class platforms and customer
experiences.
The business delivered online sales of $324.7 million in FY23,
representing 19.8% of total Group sales for the year.
Sales in the online channel are delivered at a significantly
higher EBIT margin than the retail store channel.
Significantly for each of the seven brands, the most viewed
window and the largest store is the brand’s online channel.
Our customers also value the Group’s more than 1,100 bricks
and mortar stores in six countries. With the appropriate
landlord support, opportunities exist to refresh, upgrade
and/or expand stores across all of Premier’s brands over
the next three years as we simultaneously continue to invest
in our online potential.
Premier Retail comprises of our seven iconic brands – Peter
Alexander, Smiggle, Just Jeans, Jay Jays, Portmans, Dotti and
Jacqui E. Our omni-channel customer experience allows for
a seamless shopping experience, supporting customers
in whichever way they choose to engage with us. Be it
through our over 1,100 bricks and mortar stores across six
countries, or online via our websites across four countries
or through our wholesale partnership arrangements with
international ‘best in class’ retail partners.
Premier Retail reported record global sales for the year
of $1.644 billion, up 9.7% on FY22. This result reflects yet
another record sales result for Peter Alexander, a record sales
contribution from the apparel brands, and a record Smiggle
global sales result.
Our five apparel brands contributed sales for the year of
$844.8 million, an increase of 17.9% on ‘pre-COVID’ FY19,
trading as a more efficient business through 37 less stores
than at the end of FY19.
The apparel brands continue to focus on improved product
and sourcing, and enhancing the customer experience,
whilst maintaining a strong focus on operational efficiency
and excellence.
Peter Alexander – Powerful designer brand
delivering record sales
Peter Alexander is a unique design-led brand that continues
to excite our customers and deliver year on year record results
for our shareholders.
The brand has cemented its position as one of the
leading lifestyle and gifting brands in Australia and New
Zealand for the entire family, delivering full year sales of
$478.9 million, up 11.8% on FY22 and up 93.3% on FY19.
The record sales result was driven by exceptional performance
across all product categories and channels. Peter Alexander
delivered yet another record sales week in the lead up
to Christmas 2022, as well as a record Mother’s Day in the
second half.
We are optimistic for the future of this much-loved heritage
brand. Opportunities have been identified for new or larger
format stores to better showcase the product offering.
Furthermore, we continue to progress our business cases for
future offshore market expansion of this brand.
2 Premier Retail EBIT of $356.5 million excludes significant items. Refer to page 11 of the Directors Report for a reconciliation of Premier Retail EBIT and statutory reported profit before tax
for the Retail Segment.
2
Annual Report 2023 Balance sheet and dividends
Premier maintains a strong balance sheet with cash on
hand of $417.6 million at the end of FY23.
At the end of FY23, Premier’s 25.6% investment in Breville
Group Limited had a market value of $829.3 million.
Premier received a total of $10.9 million in fully franked
dividends from Breville during the year.
During FY23, Premier commenced accounting for its 25.8%
investment in Myer Holdings Limited as an investment
in associate. The market value of Premier’s investment in
Myer at the end of FY23 was $137.7 million. Premier received
a total of $21.6 million in fully franked dividends from its
investment in Myer during the year.
Acknowledgements
Premier’s year after year outstanding results do not happen
by chance. Premier’s results are an outcome of the Board
and the leadership team’s careful planning, strong execution
and a continuous pursuit for excellence in all that we do.
On a personal note, I am thankful to have the counsel
and insight of such an experienced and cohesive group of
fellow Directors, especially as we embark on our strategic
review journey.
Of course, our outstanding results would not be possible
without our dedicated global teams. Our exceptional teams
deliver day after day for our customers, our communities,
and our shareholders. On behalf of all shareholders, I would
like to say thank you to all of our global team members.
In late August 2023, the Premier Board announced the
commencement of a strategic review into the corporate,
operating and capital structure of the Group. The Board
believes that this is an exciting and important initiative,
building on the recent success of the Group and exploring
the future growth avenues available to the Group.
The strategic review will be a key focus for the Board in the
near term, with our businesses reviewing their respective
growth plans and optimal structures. This is the beginning
stages of a review that will take some time to complete.
I look forward to updating shareholders in due course
as our strategic review progresses.
Considering the strategic review, and the fact that the current
retail environment, whilst challenging, may present new
opportunities for the Group the Board has approved a final
fully franked ordinary dividend of 60 cents per share.
The full year ordinary and special dividends for FY23 total
130 cents per share. During FY23, Premier has paid a total
of $237.2 million in fully franked dividends to shareholders.
Additionally, in late August 2023, Premier announced
the resignation of Richard Murray as Premier Retail CEO.
On behalf of the Board, I want to express our sincere thanks
to Richard for providing the Group with leadership over the
past two years. The Board also announced that John Bryce,
Premier Retail’s long-standing Chief Financial Officer, will step
into the role of interim CEO (Retail) during this all-important
phase for the Group. I would personally like to thank John for
taking on this role, in addition to his responsibilities as Premier
Retail CFO, leading our teams through the strategic review,
whilst also focusing on the first-rate retail execution that the
Group is known for.
I encourage all of our shareholders to participate in the
company’s Annual General Meeting on 1 December 2023 for
a further review on the Group’s performance and strategies
for the future.
Solomon Lew
Chairman and
Non-Executive Director
Premier Investments Limited 3
The Directors
Solomon Lew
Chairman and
Non-Executive Director
David M. Crean
Deputy Chairman
and Non-Executive Director
Richard Murray
Premier Retail CEO &
Executive Director
(Resigned: 21 August 2023)
Sylvia Falzon
Non-Executive Director
Sally Herman
Non-Executive Director
Henry D. Lanzer AM
Non-Executive Director
Terrence McCartney
Non-Executive Director
Timothy Antonie
Non-Executive Director
Michael R.I. McLeod
Non-Executive Director
4
Annual Report 2023 Brand Performance Premier Retail
Peter Alexander, is a powerful designer brand and delivered
another record sales result for the year of $478.9 million, up 11.8%
on FY22 and up 93.3% on FY19. Peter Alexander’s unique design led
product continues to excite customers. The creative direction of the
marketing program positions the brand as one of the leading lifestyle
and gifting brands catering for the entire family in Australia and New
Zealand. The creative involvement of Peter Alexander as Founder and
Creative Director, in collaboration with a strong team, under the
leadership of Judy Coomber (Managing Director – Peter Alexander),
has allowed the brand to maintain the design led, look and feel of
the much-loved heritage of the Peter Alexander brand.
Smiggle, is a powerful global brand and delivered record global sales
of $319.8 million in FY23, up 22.4% on FY22, whilst trading as a
more efficient business with 51 fewer stores compared with previous
record sales delivered in FY19. Smiggle has reset from the COVID-19
pandemic and is growing from strength to strength with strong and
sustainable momentum across all channels. Smiggle celebrated its
20th birthday in 2H23, with the launch of a highly successful
limited-edition birthday range. John Cheston (Managing Director –
Smiggle) continues to lead a high performing team that will maximise
EBIT growth through both like-for-like and new growth across all
markets and channels.
Apparel Brands
Our Apparel Brands (consisting of
Just Jeans, Jay Jays, Portmans, Dotti and
Jacqui E) delivered record sales of $844.8
million in FY23, up 17.9% on FY19. All
individual apparel brands delivered growth
over the 4-year period from pre-COVID
FY19 to FY23. Under the leadership
of Teresa Rendo (Managing Director –
Apparel Brands) the group has a trusted
portfolio of apparel brands positioned to
deliver future growth:
• Optimising store portfolio with the
opportunity to explore new formats
• Continuous improvement in product
and sourcing
• Continuing to enhance the customer
experience, building brand engagement
and awareness
Jay Jays, delivered a strong result for
FY23, with sales growth of 4.6% over 4
years from FY19 to FY23, whilst reducing
store numbers by 5.3%. Jay Jays has
a strong, distinctive and competitive
market position and is well positioned
for future growth, with store layout trials
extended over 4 stores, creating a better
customer experience, and increased
investment in social marketing to build
brand engagement.
Jacqui E, delivered strong results in FY23,
delivering sales of $81.9 million, up 17.5%
on FY22. Jacqui E has an extremely strong
and distinctive market position and is well
positioned for future growth. The brand
has a loyal customer base who trust the
brand for both work and occasion dressing,
and customers have responded strongly
to new, seasonally relevant, high quality
volume programs, presenting further growth
potential in the future.
Just Jeans, the Group’s iconic original
brand, delivered sales of $307.1 million
representing growth of 27.0% over a
four year period. With new ranges being
well received by customers, and design
work progressing on a new store format
to better showcase the product offering,
the brand has a strong, distinctive and
competitive market position and is well
positioned for future growth.
Portmans, delivered a record sales result
of $165.6 million in FY23, up 5.7% on
FY22. The brand has achieved 29.0% sales
growth over a 4-year period from FY19 to
FY23. Portmans has an extremely strong
and distinctive market position and is well
positioned for future growth, particularly
through strong growth in tailoring and desk
to dinner dressing, and extended ranging
launched in FY22.
Dotti, delivered strong results in FY23, with
sales of $113.7 million, up 3.6% on FY22,
delivering its second best sales result in the
history of the brand. New volume trend
programs and seasonally relevant product has
resonated with customers, presenting further
opportunities for growth. Dotti has a strong,
distinctive and competitive market position
and is well positioned for future growth.
Premier Investments Limited 5
Peter Alexander
Powerful designer brand delivering record results
•
•
•
•
•
Record FY23 sales of $478.9 million, up 11.8% on FY22
•
The Brand has a runway for further growth:
Peter Alexander delivered four year sales growth of
93.3% from pre-COVID FY19 to FY23
- 6 new stores and 4 relocations/expansions into larger
format stores confirmed to open in 1H24
Peter Alexander’s unique design led product continues
to excite customers. The brand has cemented its position
as one of the leading lifestyle and gifting brands for the
entire family throughout Australia and New Zealand
Peter Alexander’s record sales result was driven by
exceptional performance across all channels and all
product categories (womenswear, menswear, children’s
wear and gifting)
Six new stores were opened during FY23, all trading
significantly ahead of expectations
•
- 20 to 30 opportunities have been identified for both
new and/or larger format stores in the near term to
better showcase the wider product offering that has
been developed in recent years
- the brand continues to progress with the development
of business cases into future offshore market
opportunities, including global cross border ecommerce
platform provider to grow the brand across 35 countries
set to launch in November 2023
The creative involvement of Peter Alexander as Founder
& Creative Director in collaboration with a strong team,
under the leadership of Judy Coomber, has allowed the
brand to maintain the design led, look and feel of the
much-loved heritage of the Peter Alexander brand
Peter Alexander Sales $’M
500
400
300
200
100
0
478.9
428.5
384.6
288.2
247.8
FY19
FY20
FY21
FY22
FY23
6
Annual Report 2023
Smiggle delivered record global sales of $319.8 million in
FY23, up 22.4% on FY22
• Asia has rebounded strongly, delivering exceptional total
and like-for-like sales growth
Smiggle
Growth momentum delivers record results
•
•
•
Smiggle is a unique global brand and the ultimate
children’s destination for school essentials. From
backpacks, water bottles and lunchboxes to pens and
pencil cases, Smiggle is the original creator of all things
fun, colourful and on trend
Record results have been delivered across all categories,
including new expansion into bath and body ranges, as
well as categories designed for the brand’s younger fans
(3-7 years of age)
• Australia and New Zealand delivered a record full year
performance, with total and like-for-like sales growth
across both markets, including a record Christmas and
record back to school result
•
Europe sales performance has continued to surpass
expectations, gaining significant market share and
delivering strong like-for-like sales growth in FY23
•
Smiggle’s international wholesale markets have delivered
record sales in FY23, with continued strong demand from
both existing and new partners. The brand is represented
in 350 wholesale doors all year round across many
countries stretching from Asia through to Europe. This
flexes up to over 800 doors for the peak ‘back-to-school’
selling period
• Highly successful global collaborations in FY23 with Harry
Potter, Minecraft, Mickey & Minnie, Australian Football
League, and Matilda’s ranges delivering record results
• Under the leadership of John Cheston
(Managing Director – Smiggle), Smiggle will maximise
EBIT growth as sales continue to grow in all markets and
across all channels:
- 30+ opportunities have been identified for new stores
in the near term in existing market
- Wholesale model continues to evolve
» Further door growth opportunities to gain more
market share in existing markets in the near term
» Opportunity for key partners to evolve to include
their own freestanding Smiggle stores
- Continue to explore future offshore
market opportunities
Smiggle Global Sales $’M
Smiggle - Mickey & Minnie range
Smiggle has reset from the pandemic
and is growing from strength to strength
with strong and sustainable momentum
across all channels.
300
200
100
0
FY20, FY21 & FY22 impacted by COVID
lockdowns and school closures
306.5
319.8
256.3
261.2
209.6
FY19
FY20
FY21
FY22
FY23
Premier Investments Limited 7
Omni-channel
Delighting customers however they choose to shop
•
Premier’s strategy is to delight customers however they
choose to engage and shop, whether this is
in-store or online
• Online sales of $324.7 million, up 119.2% on pre-COVID
FY19, contributing 19.8% of total FY23 sales
• Online Sales of $153.8 million in 2H23, up 6.3% on
2H22, delivering normalised growth on the comparative
reporting period no longer impacted by COVID lockdowns
•
•
For each of the seven brands the most viewed window
and the largest store is the brand’s online channel
The Online channel continues to deliver a significantly
higher EBIT margin than the retail store network providing
significant operating leverage for future growth
• Customers continue to value the Group’s more than
1,100 bricks and mortar stores across six countries. With
the appropriate landlord support, opportunities exist
for new stores and to refresh, upgrade and/or expand
existing stores across all brands
Online Sales Growth
FY20, FY21 & FY22 impacted by COVID
lockdowns and school closures
22.7%
20.9%
19.8%
340.1
324.7
20.0%
18.1%
297.5
11.7%
220.4
9.5%
112.5
148.2
15.0%
10.0%
5.0%
0.0%
350
300
250
200
150
100
50
0
FY18
FY19
FY20 FY21 FY22 FY23
Online Sales ($’M)
Online sales as % of Total Sales
Online Sales CAGR +23.6% over 5 years
8
Annual Report 2023 Our Commitment to Ethical
& Responsible Business Practices
Premier acknowledges that ethical and responsible operations drive positive
change throughout our value chain for each brand: the workers and the suppliers
we partner with, our customers, our team, our stakeholders, the communities we
serve and our shareholders.
As a Group, we are focused on creating sustainable long-term
value for our customers, team members, shareholders,
suppliers and the broader community with our commitment
to make meaningful and lasting change. Our focus is to
always act ethically, with integrity, responsibly and with care
in all our dealings.
Ethical and responsible business practices are sponsored at a
Board level and are a strategic focus of our Directors. Our CEO
and Executive Team are accountable for the implementation
of our agreed commitments and goals.
This year we have strengthened our focus to the following
four pillars which better align to our strategic efforts:
People, Partners, Planet and Product.
As part of communicating our work in these areas, our brands
have launched their ‘Better Practices’ customer facing online
sites which align with, and provide insight into, brand specific
activities in each pillar. We will continue to evolve these sites
over time as our work continues to evolve.
Premier Investments Limited 9
People
We strive to create a great place to work that is safe, inclusive and has the best
talent who can connect with current and emerging customer needs.
The most enduring impact we can have on our team members
is to create an environment that fosters engagement: allowing
them to bring their whole selves to the workplace, and
ensuring they strive for excellence while prioritising their
wellbeing.
We are a committed team of over 10,000 team members
across seven countries. Our people lay the groundwork for
our success.
Our work program that underlies our people strategy has a
particular focus on:
Our training and development programs enable in person and
remote self-learning via our ‘JUST Learn’ platform. In FY23, 17
training programs were available on our online platform.
Reward and Recognition
We believe that celebrating our achievements, big and small,
are important for individuals and teams.
We recognise and reward in a number of ways throughout
the year including bi-annual Brand retail conferences, annual
Just Excellence Awards and bonus and incentive programs.
1.
team member wellbeing & engagement;
Diversity, equality & inclusion
2. diversity, equality & inclusion; and
All workplaces should be free from discrimination.
3. health & safety.
Team Member Wellbeing & Engagement
Background
Our culture framework aligns personal performance with
organisational goals and values. This arms our team with
purpose, enabling our people to achieve both career
progression and their full potential.
We have a suite of vehicles for our team members across all
markets to provide us with feedback, including our People
Support Advisory line for all questions or concerns, together
with focus group discussions to better understand key issues,
improve ways of working and develop initiatives to maximise
team member engagement.
Employee Assistance Program
We recognise that sometimes our team members face difficult
or challenging circumstances in their life.
An employee assistance program is available to all team
members across all markets, providing team members with
access to confidential psychological, social and financial
counselling services.
Training and Development
We are committed to unlocking the potential of every team
member. Premier provides ongoing learning and development
for our team. We ensure all team members understand the
competencies for their roles and support this with a
comprehensive induction program, training, tools and regular
development discussions.
We are proud of the opportunities and careers our company
provides to all team members, and in particular, for women in
retail.
In FY23, 91% of our total team, and 55% of our executive
leadership team, are women. Our Board is made up of 22%
women. We continue to focus on building more holistic
diversity and inclusion across our teams. We are committed to
learning from, and engaging with, our team on diversity and
inclusion initiatives.
Health & Safety
Creating a safe environment for our team, partners and
customers is a key priority that is embedded in our culture.
Our teams are trained to monitor, assess, prevent, record and
mitigate risks using the ‘Just Play it Safe’ and ‘Safety Eyes’
framework.
Our Distribution Centres in Australia and New Zealand are a
key focus given the potential risk of injury in the movement of
stock. Our Key Performance Indicators (KPIs) include Lost Time
Injury Frequency Rate (LTIFR – the number of Lost Time
Injuries per million hours worked) and Lost Time Injuries (LTI).
Both metrics saw improvement on the previous year and we
remain focused on ensuring all our teams return home safely
and without incident.
We reported a 9.7% improvement to LTIFR and a 6%
reduction in LTI compared to the previous year.
10
Annual Report 2023 91%
WOMEN TEAM
MEMBERS
55%
WOMEN IN EXECUTIVE
LEADERSHIP ROLES
(average service 10 years)
9.7%
IMPROVEMENT IN
LOST TIME
(injury frequency rate
compared to FY22)
New Projects to Improve Workplace Health & Safety
In addition to our general safety framework, two new projects have commenced in FY23 to address key
Health & Safety risks in our workplace:
Manual handling task analysis project
Manual handling incidents are the leading cause
of injuries and claims in the workplace. We have
engaged expert external advisers to complete an
independent analysis and risk based
recommendation report.
Psychosocial risk assessment
Recent legislative changes in several jurisdictions related to
psychosocial risk have clarified and increased our obligation to
assess, monitor and control risks relating to occupational
violence. Our external advisers are assisting us to assess our
psychosocial risk profiles across all operations, and to provide
a detailed analysis to assist in building an actionable
improvement plan.
Premier Investments Limited 11
Partners
Ethical Sourcing
We are committed to the highest standards of ethical conduct and responsible
sourcing practices to protect the rights of workers and the communities from
which we source. Our program framework drives ongoing improvement through
measurable and actionable insight.
Our Supplier Partners
Modern Slavery Statement FY22
We partner with suppliers – both locally and internationally
– with factories located in Australia, China, Bangladesh,
Vietnam, Pakistan, India, Indonesia and Taiwan. In our first full
non-COVID impacted trading year since FY19, we have
returned to a normal travel schedule, enabling us to visit and
engage with our international factory partners. Furthermore,
we have successfully collaborated with key partners from all
regions to update suppliers on our ethical sourcing work
program, and to carry out key sourcing activities.
We continue to work closely with our partners to ensure they
understand the importance of full transparency, and support
our approach of continuous improvement.
Our Ethical Sourcing Program
In FY23 we continued to partner with LRQA (formerly
ELEVATE) to embed our Ethical Sourcing program, and to
further understand the Modern Slavery risk within our
product supply chain. The deployment of Elevate Responsible
Sourcing Assessments (ERSA), SMETA 4 Pillar Audits (for
nominated licensed factories), Production Verification
Assessments (PVA) and Anonymous Worker Sentiment
Surveys (WSS) built on the level of data and insights that was
collected in the previous year.
Partnered with our strategic audit partner
in FY23 LRQA to conduct:
122 on-site social compliance audits
(ERSA and SMETA)
34 on-site production verification audits
40 anonymous worker sentiment surveys
12
Documents are available on Premier’s website;
www.premierinvestments.com.au
Audit and Risk Monitoring
We monitor risks in our supply chain through reviewing public
and proprietary risk indices at a country and province level
through the use of EiQ and Sentinel tools.
Social compliance audits are one part of our holistic work
program which seek to understand the true working
conditions in the factories we partner with. ERSA’s are our
nominated social compliance audit due to their focus on
transparency and integrity. These audits provide an in-depth
assessment of a factory’s compliance level, so we can make
informed decisions about necessary remediation and capacity
building based on an assessment of the following five key
pillars as outlined directly below.
LABOUR
HEALTH
& SAFETY
ENVIRONMENT
BUSINESS
ETHICS
MANAGEMENT
SYSTEMS
Annual Report 2023 Partners
Published our
third Modern
Slavery Statement
in January 2023
Expansion of
Worker Voice Program
and Speak Up
Channels in FY23
Over 80% of
our product teams
trained in Ethical
Sourcing and
Modern Slavery
awareness
Modern Slavery Reporting
Worker Voice
Premier has zero tolerance to modern slavery in all its forms.
Our third Modern Slavery Statement was published in
January 2023, which spoke to the results of our Ethical
Sourcing program. Our Modern Slavery Statement includes
our framework for measuring the effectiveness of our
program against a number of indicators and
engagement points.
Our Modern Slavery Statement is a comprehensive report
on all of our activities and due diligence, and is published
in January each year. Some key areas of focus in FY23 are
set out below.
Living Wage Commitment
In June 2022, Premier published our first Living Wage
Position Statement, which included a clear roadmap of plans
and activities.
Premier is committed to working alongside our suppliers,
NGOs, unions and industry peers in addition to exploring
multi stakeholder initiatives, where we will continue to strive
to close the gap between minimum legal wage and a living
wage. During FY23 we progressed a number of activities
including finalising the scope of a wage gap analysis,
to further understand the wages paid within our supply chain.
Further details on our progress will be reported on in our next
Modern Slavery Statement.
Documents are available on Premier’s website;
www.premierinvestments.com.au
In FY23, we expanded on our worker voice program by
launching a new pilot project in Bangladesh. The Amader
Kotha worker helpline is an existing third-party grievance
mechanism benefiting workers in the Bangladesh garment
manufacturing industry. By implementing this mechanism in
our Bangladesh factory partners, we give workers a channel
to report grievances they may be experiencing, whilst also
giving Premier further insight into worker experience.
In partnership with LRQA, we have begun the rollout of this
grievance mechanism in key factories, and will continue to
do so into FY24.
Training
Throughout FY23 we continued our training efforts through
the delivery of our internal Ethical Sourcing and Modern
Slavery awareness training. Through this exercise we have
trained 80% of product team members to date. This year we
also introduced our Ethical Sourcing program to our Australian
store managers, with updates provided at our annual store
conferences. This supports our work to further educate our
internal team members, regardless of role, on the topic of
Modern Slavery and our Ethical Sourcing program more
generally. We will continue to undertake this training program
in FY24.
As part of our ongoing commitment to collaboration and
education, we also conducted Ethical Sourcing and Modern
Slavery training for our supplier and factory partners. Run over
two sessions, we provided our partners with an update on our
Ethical Sourcing program to date and educated participants
on Modern Slavery risks in supply chains. We also focused on
the ongoing support we require from our supplier and factory
partners. This training was a valuable exercise to further
engage and collaborate with our partners, and we will
continue to build out further capacity around training
programs in the future.
To support our formal training, we have also implemented
a number of informal ‘Lunch and Learn’ training and
awareness activities, including an internal event
commemorating the 10th anniversary of the tragic
Rana Plaza factory collapse.
Premier Investments Limited 13
Partners
Community
Through continued collaboration, we are proud to work alongside a number of
community organisations through financial and in-kind support programs.
We support both brand and team level fundraising for a
number of important causes.
Foodbank Fundraiser
Thread Together
Our five apparel brands plus Peter Alexander have worked
with Thread Together since 2022. Thread Together was
founded on the idea that unsold clothing should be donated,
rather than disposed, providing new clothing to people in
need, while also protecting the environment.
In FY23, 10,659 items donated, supporting over 2,100
people in need. Since FY22, 43,658 items donated,
supporting over 8,700 people in need.
RSPCA & Paw Justice
Peter Alexander along with our Peter Alexander team have
had a long-standing relationship with the RSPCA in Australia,
and Paw Justice in New Zealand.
This year the proceeds of charity chocolate blocks were
donated to the RSPCA and this, along with other activities,
raised just under $133,000. Since the partnership commenced
over 15 years ago, a total sum of over $1.4 million has been
raised.
Our commitment to communities in New Zealand has seen
similar activity with proceeds donated to Paw Justice. In FY23
we raised $8,500, totalling over $148,000 since our
partnership began in 2014.
Animal Welfare donation of $141,200 for the RSPCA
(Australia) and Paw Justice (NZ) in FY23.
Supporting the National Breast
Cancer Foundation
Just Group has been supporting the National Breast Cancer
Foundation via their ‘Go Pink’ campaign since 2016 through
various fundraising efforts. To date Just Group have raised
over $150,000 for this important cause and look forward to
continuing this in years to come.
Throughout FY23, the Jay Jays retail operations team
conducted a food drive in partnership with Foodbank Victoria.
Foodbank are an organisation who provide food and grocery
relief to Australians experiencing food insecurity. The food
collected provides hundreds of meals to people in need.
Supporting Families and Children
Our Smiggle brand contribute and fundraise for a number
of charities that support children’s physical and mental
well-being at home and in schools.
Alannah & Madeline Foundation
The Alannah & Madeline Foundation is an organisation
committed to the safety and well-being of children. Smiggle is
proud to be the Foundation’s Official Buddy Bag Partner. Since
2019, Smiggle has provided complimentary products and in
FY23 donated $80,000 (RRP) worth of backpacks.
The Diana Award
In FY23 Smiggle sold ‘Choose Kindness Keyrings’ during the
Back to School period, with all proceeds donated to The Diana
Award Anti-Bullying Programme in the UK and Republic of
Ireland. Smiggle raised over £9,000 for this cause.
Dolly’s Dream
Smiggle has supported Dolly’s Dream for the past four years,
raising funds for the antibullying cause through the sale of the
‘Choose Kindness Keyring’ for the past two years. This
initiative has raised over $50,000 in FY23, and over $100,000
in the past two years. The funds raised help Dolly’s Dream to
continue to support schools, speak directly to parents via an
online portal, and expand the services of the Dolly’s Dream
Support Line helping parents, carers and children around
bullying and associated mental health issues.
14
Annual Report 2023 Planet
We recognise our responsibility to ensure we have a positive impact on the
environment and reduce the amount of energy and natural resources consumed.
We are committed to ongoing improvement, including
focusing on increasing our understanding of our impact on
the planet and what change and mitigation strategies we can
implement to manage current and future risk.
In FY23 we have implemented or improved a number of our
processes including:
•
Forest Stewardship Council (FSC) certified materials used
in our distribution centre and packaging
• All customer-facing shipper bags used in our online
business have been converted to 100% recycled plastic,
with a further trial underway exploring alternative options
• Moving to adopt Australasian Recycling Labels (ARLs) on
some of our packaging, bags and tags to better educate
customers on what materials can be recycled. ARLs are an
initiative of the Australian Packaging Covenant, of which
Just Group is a signatory
• A review of ticketing, including in Peter Alexander
• Completed the scoping of a project to convert all poly-
bags from virgin plastic to those utilising recycled plastic,
or the removal of poly-bags completely where to do so
maintains product integrity
•
•
In FY23 we reduced the number of customer plastic
shopping bags ordered across our network by 40%
• We are well underway in removing customer plastic
shopping bags from our stores to comply with legislative
requirements. This includes the complete removal of
plastic bags in Peter Alexander and Smiggle, and from
all our apparel brands in WA. In addition, by the end of
2023, plastic shopping bags will also have been removed
from all brands in Queensland and the ACT
• Across our Australian and New Zealand distribution
centres, over 900 tonnes of cardboard was recycled
removing the ‘Penny’ plastic kimble in favour of a plant
based alternative made from corn starch
In our Smiggle brand, switching from PVC visual
merchandising signage to recycled and reusable paper
signage. This switch is saving over 6,000kg of PVC vinyl
from going to landfill each year. Reviews are underway to
expand this initiative to all Premier brands
• We continue to ensure all lighting supplied to new and
refurbished stores along with support offices is low
energy LED
We acknowledge that our journey is one of continuous review
and improvement. We will continue to adapt our policies and
activities to ensure they meet the expectations of the suppliers
and workers in our supply chain, our customers, team
members and shareholders.
Case Study
In FY23, our Melbourne support office and Australian distribution centres partnered with social enterprise Reground to
collect soft plastics and coffee grounds from those workplaces. The soft plastic is recycled into building film, whilst coffee
grounds are distributed to home and community gardens. Through our partnership with Reground we have recovered
4,458kg of resources, whilst avoiding 4,952 greenhouse gas emissions.
Soft plastic recycling:
3,198 kg
SOFT PLASTIC
DIVERTED
2,558 kg
EMISSIONS
AVOIDED
640
TROLLEYS OF SOFT
PLASTIC SAVED
Coffee ground collection:
1,260 kg
COFFEE GROUNDS
DIVERTED
2,394 kg
EMISSIONS
AVOIDED
HOME GARDENS: 83%
MELBOURNE ZOO: 3%
COMMUNITY GARDENS: 12%
(END USERS)
Premier Investments Limited 15
Product
We are committed to creating product ranges that meet changing customer trends
and values.
Premier recognises the social and environmental impacts that our purchasing decisions have. This year, we accelerated our
existing sourcing efforts to embed human rights, animal welfare and responsible fabric procurement requirements.
Underpinning this work is the evolution and expansion of our framework for responsibly sourced materials along with a more
detailed governance around our customer facing communications.
The vast majority of the apparel products we sell are composed of one or more of cotton, polyester or viscose fibres.
Our approach to these materials continues to evolve with more of our products moving away from utilising the conventional
form of the fibre (for example, moving from virgin polyester to recycled polyester).
We will continue to evolve and mature in our capability to source a far greater proportion of our products in preferred materials.
In FY23, we continued to work on initiatives such as:
•
Better Cotton membership
Better Cotton’s mission is “to help cotton communities
survive and thrive, while protecting and restoring the
environment”. Since Just Jeans’ membership first
commenced in early 2021, Premier has expanded its
membership to include Jay Jays, Dotti, Portmans, Jacqui E
and Peter Alexander. Premier is committed to improving
cotton farming practices globally with Better Cotton
• Global Organic Textile Standard (GOTS)
GOTS is an internationally recognised organic textile
standard. Products carrying GOTS certification contain an
assurance of organic origin, as well as environmentally
and socially responsible processing, as clothing produced
under a GOTS certification must use a minimum of
95% organic cotton. Peter Alexander continues its
commitment to GOTS for a selection of women’s apparel
and childrenswear
LENZING™ ECOVERO™ & Birla Cellulose’s LIVAECO™
A large proportion of viscose used in apparel is made
from pulp sourced from endangered and ancient forests.
LENZING™ ECOVERO™ and Birla Cellulose’s Liva Eco™
are viscose fibres derived from certified renewable wood
sources and made using more responsible production
methods, both generating lower emissions and having
a reduced water impact than traditional viscose. Premier
continues to explore more responsible sources of viscose
and increase the proportion of improved options such as
LENZING™ ECOVERO™ and Birla Cellulose’s Liva Eco™
•
16
Case Study
Our largest project to date has been the rollout of
our Better Cotton membership and usage across Jay
Jays, Dotti, Portmans, Jacqui E, Just Jeans and
Peter Alexander.
• Over 55% of Just Jeans cotton procurement
in FY23 was sourced as Better Cotton
• At a group level, 664 metric tonnes of Better
Cotton in FY23, which equates to over 16%
of our total cotton sourcing across all six brands,
an improvement from FY22.
• Cotton Pledge
We do not condone the sourcing of cotton harvested
from any region where state sanctioned forced labour
regimes or where forced labour practices exist
• Recycled polyester
Synthetic fibres such as polyester are essentially a type
of plastic which is usually derived from petroleum.
Recycled polyester uses existing materials in the supply
chain to help create new fabric. With a lower reliance
on resources such as water and energy, these fabrics
leave a smaller impact on the environment. Our teams
are incorporating recycled polyester where possible into
new ranges and are continuing to review additional
alternatives to virgin synthetics
• Animal welfare
Premier does not condone any form of animal cruelty.
The following animal derived materials are banned from
all Just Group products - angora & other rabbit hair; fur
and feathers
Annual Report 2023 Premier Investments Limited
A.C.N. 006 727 966
Financial Report
For the 52 weeks ended 29 July 2023 and 30 July 2022
Contents
Directors’ Report
Auditor’s Independence Declaration
Statement of Comprehensive Income
Statement of Financial Position
Statement of Cash Flows
Statement of Changes In Equity
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report to the
Members of Premier Investments Limited
ASX Additional Information
Corporate Directory
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1
Annual Report 2023 DIRECTORS’ REPORT
The Board of Directors of Premier Investments Limited (A.B.N. 64 006 727 966) has pleasure in submitting its report in
respect of the financial year ended 29 July 2023.
The Directors present their report together with the consolidated financial report of Premier Investments Limited (the
“Company” or “Premier") and its controlled entities (the “Group”) for the 52 week period 31 July 2022 to 29 July 2023,
together with the independent audit report to the members thereon.
DIRECTORS
The names and details of the Company’s Directors in office during the financial year and until the date of the report are
as follows. Directors were in office for this entire period unless otherwise stated.
Solomon Lew Chairman and Non-Executive Director
Mr. Lew was appointed as Non-Executive Director and Chairman of Premier on 31 March 2008. Mr. Lew is a director of
Century Plaza Investments Pty Ltd, the largest shareholder in Premier and was previously Chairman of Premier from
1987 to 1994.
Mr. Lew has over 50 years’ experience in the manufacture, wholesale and retailing of textiles, apparel and general
merchandise, as well as property development. His success in the retail industry has been largely due to his ability to
read fashion trends and interpret them for the Australasian market, in addition to his demonstrated ability in the timing
of strategic investments.
Mr. Lew was a Director of Coles Myer Limited from 1985 to 2002, serving as Vice Chairman from 1989, Chairman from
1991 to 1995, Executive Chairman in 1995 and Vice Chairman in 1995 and 1996.
Mr. Lew is a member of the World Retail Hall of Fame and is the first Australian to be formally inducted.
He is also a former Board Member of the Reserve Bank of Australia and former Member of the Prime Minister’s
Business Advisory Council.
Mr. Lew was the inaugural Chairman of the Mount Scopus Foundation (1987 – 2013) which supports the Mount
Scopus College, one of Australia’s leading private colleges with 2000 students. He has also been the Chairman or a
Director of a range of philanthropic organisations.
Dr. David M. Crean Deputy Chairman and Non-Executive Director
Dr. Crean has been an Independent Non-Executive Director of Premier since December 2009, Deputy Chairman since
July 2015 and is currently the Chairman of Premier’s Audit and Risk Committee (appointed August 2010).
Dr. Crean was Chairman of the Hydro Electric Corporation (Hydro Tasmania) from September 2004 until October 2014
and was also Chairman of the Business Risk Committee at Hydro Tasmania, member of the Audit Committee and
Chairman of the Corporate Governance Committee.
Dr. Crean was State Treasurer of Tasmania from August 1998 to his retirement from the position in February 2004. He
was also Minister for Employment from July 2002 to February 2004. He was a Member for Buckingham in the
Legislative Council from 1992 to February 1999, and then for Elwick until May 2004. From 1989 to 1992 he was the
member for Denison in the House of Assembly. From 1993 to 1998 he held Shadow Portfolios of State Development,
Public Sector Management, Finance and Treasury.
Dr. Crean has been a Non-Executive Director and Deputy Chairman of Moonlake Investments, owner of VDL dairy
farms in Tasmania from August 2016 to April 2018. He is also a Board member of the Linfox Foundation. Dr. Crean
graduated from Monash University in 1976 with a Bachelor of Medicine and Bachelor of Surgery.
2
Premier Investments Limited 2
Directors’ Report
DIRECTORS’ REPORT
(CONTINUED)
Timothy Antonie Non-Executive Director and Lead Independent Director
Mr. Antonie was appointed to the Board of Directors on 1 December 2009. He holds a Bachelor of Economics degree
from Monash University and qualified as a Chartered Accountant with Price Waterhouse. He has 20 years’ experience
in investment banking and formerly held positions of Managing Director from 2004 to 2008 and Senior Advisor in 2009
at UBS Investment Banking, with particular focus on large scale mergers and acquisitions and capital raisings in the
Australian retail, consumer, media and entertainment sectors.
Mr. Antonie is also Chairman of Breville Group Limited and Netwealth Group Limited and is a Principal of Stratford
Advisory Group.
Sylvia Falzon Non-Executive Director
Ms. Falzon was appointed to the Board of Directors on 16 March 2018. She brings to Premier an executive career that
spanned over nearly 30 years in Financial Services where she held senior executive positions responsible for
institutional and retail funds management businesses, both here in Australia and offshore.
As a Non-Executive Director since 2010, Ms. Falzon has experience across a range of sectors and customer driven
businesses in financial services, health, aged care, e-commerce and retail. During this time, she has been involved in
several business transformations, IPOs, merger and acquisitions and divestment activities. Ms. Falzon is currently an
Independent Non-Executive Director of the ASX listed company Suncorp Group Limited. In the not-for-profit sector, she
is the Chairman of Cabrini Australia Limited, and is also a member of the Australian Government Takeovers Panel. Ms.
Falzon previously served on the board of ASX listed companies Zebit Inc until 17 March 2022, Regis Healthcare until
October 2021 and Perpetual Limited until October 2019.
Ms. Falzon holds a Masters Degree in Industrial Relations and Human Resource Management (Hons) from the
University of Sydney and a Bachelor of Business from the University of Western Sydney. She is a Senior Fellow of the
Financial Services Institute of Australasia and a Fellow of the Australian Institute of Company Directors.
Sally Herman Non-Executive Director
Ms. Herman is an experienced Non-Executive Director in the fields of financial services, retail, manufacturing and
property. She had a successful executive career spanning 25 years in financial services in both Australia and the US,
transitioning in late 2010 to a full time career as a Non-Executive Director.
Prior to that, she had spent 16 years with the Westpac Group, running major business units in most operating divisions
of the Group as well as heading up Corporate Affairs and Sustainability through the merger with St. George and the
global financial crisis.
Ms. Herman sits on both listed and not-for-profit Boards, including Suncorp Group Limited, Breville Group Limited and
Abacus Property Group. She is also a Trustee of the Art Gallery of NSW. Ms. Herman was previously a director of
Irongate Funds Management Limited (recently taken over by Charter Hall), and E&P Financial Group Limited (resigned
November 2021). Ms. Herman holds a Bachelor of Arts from the University of New South Wales and is a Graduate of
the Australian Institute of Company Directors.
Henry D. Lanzer AM B.COM. LLB (Melb) Non-Executive Director
Henry Lanzer AM is Managing Partner of Australian commercial law firm, Arnold Bloch Leibler. Henry has over 40
years’ experience in providing legal, corporate finance and strategic advice to some of Australia’s leading companies.
Mr. Lanzer was appointed to the Board of Directors in 2008. He is a Non-Executive Director of Just Group Limited,
Thorney Opportunities Limited and previously the TarraWarra Museum of Art and the Burnett Institute. He is also a Life
Governor of the Mount Scopus College Council. In June 2015, Mr. Lanzer was appointed as a Member of the Order of
Australia.
3
3
Directors’ Report continuedAnnual Report 2023
DIRECTORS’ REPORT
(CONTINUED)
Terrence L. McCartney Non-Executive Director
Mr. McCartney has had a long and successful career in retail. Mr. McCartney started at Boans Department Stores in
Perth then moved to Grace Bros in Sydney. After the acquisition of Grace Bros by Myer, he relocated to the merged
Department Stores Group in Melbourne within the merchandise and marketing department. His successful career
within Coles Myer meant that Terry then moved to the Kmart discount department stores as Head of Merchandise and
Marketing and then Managing Director. Following several years as Managing Director of Kmart Australia and New
Zealand, Terry became Managing Director of Myer Grace Bros. For 5 years Terry lead year on year growth in
profitability of Australia’s largest department store.
Terry’s experience spans the full spectrum of retailing, ranging from luxury goods in department stores to large mass
merchandise discount operations. Terry has also been retained by large international accounting and legal firms as an
expert witness in relation to Australian retail.
In addition to his extensive list of retail experience, he has also been an advisor to large Australian and international
mining companies, prior to joining the Just Group Board in 2008. Terry lends his extensive retail and commercial
expertise to the Just Group as Non-Executive Director, and by serving on a number of committees, including the
Internet Steering Committee of the Group, and through various store and site visits, both locally and overseas. He is
also involved in seasonal and trading performance reviews for the Group. Terry is a member of the Remuneration and
Nomination Committee of Premier Investments Limited. In August 2017, he was appointed Chairman of the
Remuneration and Nomination Committee. Terry is also a Non-Executive Director of Myer Holdings Limited.
Michael R.I. McLeod Non-Executive Director
Mr. McLeod is a former Executive Director of the Century Plaza Group and has been involved with the Group since
1996 as an advisor in the areas of corporate strategy, investment and public affairs. He has been a Non-Executive
Director of Premier Investments Limited since 2002 and was a Non-Executive Director of Just Group Limited from 2007
to 2013. Past experience includes the Australian Board of an international funds manager, chief of staff to a Federal
Cabinet Minister and statutory appointments including as a Commission Member of the National Occupational Health
and Safety Commission. He holds a Bachelor of Arts (First Class Honours and University Medal) from the University of
New South Wales.
Richard Murray Executive Director (Resigned as Director: 21 August 2023)
Richard Murray commenced as Premier Retail Chief Executive Officer on 6 September 2021 and was appointed to the
Premier Board as Executive Director on 3 December 2021. Richard has over 25 years’ experience in retail and finance.
Prior to joining Premier, Richard held the position of Group Chief Executive Officer and Executive Director at JB Hi-Fi
Limited (ceased August 2021). Richard joined JB Hi-Fi as Chief Financial Officer in 2003 and took the business
through the IPO process. Richard was appointed as Group CEO of JB Hi-Fi on 1 July 2014, at the age of 38. Prior to
his career at JB Hi-Fi, Richard was an Associate Director in the Corporate Finance Division of Deloitte.
Richard resigned as Premier Retail Chief Executive Officer effective 15 September 2023, and resigned as Executive
Director of Premier Investments Limited effective 21 August 2023.
COMPANY SECRETARY
Marinda Meyer
Ms. Meyer has over 20 years’ experience as a practising Chartered Accountant in senior finance roles. She has both
local and international experience in financial accounting and reporting, corporate governance, and administration of
listed companies.
4
Premier Investments Limited 4
DIRECTORS’ REPORT
(CONTINUED)
PRINCIPAL ACTIVITIES
The Group operates a number of specialty retail fashion chains within the specialty retail fashion markets in Australia,
New Zealand, Asia and Europe. The Group also has significant investments in listed securities and money market
deposits.
DIVIDENDS
Final Dividend approved for 2023
Dividends paid in the year:
Final Dividend for 2022 (paid: 25 January 2023)
Special Dividend for 2022 (paid: 25 January 2023)
Interim Dividend for the half-year ended 28 January 2023 (paid: 26 July 2023)
Special Dividend for the half-year ended 28 January 2023 (paid: 26 July 2023)
OPERATING AND FINANCIAL REVIEW
Group Overview:
CENTS
60.00
54.00
25.00
54.00
16.00
$’000
95,565
85,981
39,806
85,981
25,476
Premier Investments Limited acquired a controlling interest in Just Group Limited (“Just Group”), a listed company on
the Australian Securities Exchange in August 2008. Just Group is a leading specialty fashion retailer with operations in
Australia, New Zealand, Asia and Europe. The Group has a portfolio of well-recognised retail brands, consisting of
Just Jeans, Jay Jays, Jacqui E, Portmans, Dotti, Peter Alexander and Smiggle. Currently, these seven unique brands
are trading from more than 1,100 stores across six countries, as well as through wholesale and online. The Group’s
key strategic growth initiatives continue to deliver results for the Group. The Group’s emphasis is on a range of brands
that provide diversification through breadth of target demographic and sufficiently broad appeal to enable a broad
footprint. Over 90% of the product range is designed, sourced and sold under its own brands. There is a continuing
investment in these brands to ensure they remain relevant to changing customer tastes and remain at the forefront of
their respective target markets.
In addition to its investment in Just Group, Premier owns strategic investments in Breville Group Limited (2023:
25.56%) and Myer Holdings Limited (2023: 25.79%). As at 29 July 2023, both these investments are reflected as
Investments in Associates in the Group’s Statement of Financial Position. The combined fair value of these
investments at year-end was $966.9 million (based on quoted market prices as at 29 July 2023).
The Group’s reported revenue from contracts with customers, total income and net profit before income tax for the 52
week period ended 29 July 2023 (2022: 52 week period ended 30 July 2022) are summarised below:
CONSOLIDATED
52 WEEKS ENDED
29 JULY 2023
$’000
52 WEEKS ENDED
30 JULY 2022
$’000
% CHANGE
Revenue from contracts with customers
1,643,502
1,497,520
Total interest income
Total dividend income
Total other income and revenue
Total revenue and other income
14,162
4,695
2,194
1,321
2,449
15,586
+9.7%
+972%
+91.7%
-85.9%
1,664,553
1,516,876
+9.7%
Reported profit before income tax
382,137
392,663
-2.7%
5
5
Directors’ Report continuedAnnual Report 2023
DIRECTORS’ REPORT
(CONTINUED)
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Group Overview (continued):
During the 2023 financial year, the Group increased its shareholding in Myer Holdings Limited (“Myer”) to 25.79%
(at 30 July 2022, the Group’s holding was 19.88%). Due to the Group’s increased shareholding, and the fact that Mr
Terry McCartney, joined the Myer Board, the Group commenced accounting for its investment in Myer as an
Investment in Associate from 13 December 2022 (refer to the Group’s Investments in Associates note to the financial
statements for more information). The total dividend income of $4,695,000 reflected in other revenue for the year
ended 29 July 2023 only reflects the dividend income received from Myer prior to 13 December 2022. Dividends
received subsequent to 13 December 2022 have been recorded in the statement of financial position as a reduction of
the carrying value of the investment in associate.
Accounting for an investment as an associate under AASB 128 Investments in Associates and Joint Ventures involve
complex accounting treatments for profit share, dividends received and other gains and losses resulting from
shareholding dilution. To better understand and compare the result of the Group, and the sources of income received
from its investments, the below table presents an adjusted net profit after taxation (Non-IFRS), which reflects the
accounting for the Group’s investments on the basis of dividends received during the year instead of profit share
under equity accounting and excludes the non-cash impairment expense of intangible assets. Non-IFRS information is
not subject to audit or review.
CONSOLIDATED
52 WEEKS ENDED
29 JULY 2023
$’000
52 WEEKS ENDED
30 JULY 2022
$’000
% CHANGE
Statutory net profit after taxation, under IFRS
271,078
285,174
-4.94%
Exclude:
Share of profit from associates
(30,864)
(27,085)
Loss (gain) on investments in associates, resulting from
share issue (included in other expenses/ income)
Non-cash impairment expense of intangible assets
Include:
Cash dividends received from investment in associates,
not accounted for in statutory profit after taxation
Income tax expense adjustment on accounting for
investments in associates
Adjusted net profit after taxation (non-IFRS)
Investment Segment:
703
5,000
(15,251)
-
27,894
10,402
4,759
278,570
8,509
261,749
+6.43%
The Group’s balance sheet remains strong, primarily due to the significant asset holding of the investment segment.
INVESTMENT IN BREVILLE GROUP LIMITED
As at 29 July 2023, the Group continued to reflect its 25.56% (2022: 25.62%) shareholding in Breville Group Limited
(“Breville”) as an investment in associate, with an equity accounted value of $333.7 million (2022: $312.2 million). The
fair value of the Group’s interest in Breville as determined based on the quoted market price for the shares as at
29 July 2023 was $829.3 million (2022: $760.3 million). Dividends received from Breville during the year amounted to
$10.9 million (2022: $10.4 million).
Breville is a company incorporated in Australia, whose shares are quoted on the Australian Securities Exchange. The
principal activities of Breville involves the innovation, development, marketing and distribution of small electrical
appliances.
6
Premier Investments Limited 6
DIRECTORS’ REPORT
(CONTINUED)
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Investment Segment (continued):
INVESTMENT IN BREVILLE GROUP LIMITED (CONTINUED)
Details of the Group’s investment in Breville can be summarised as follows:
% shareholding in Breville at year-end
25.56%
25.62%
-0.2%
AS AT 29 JULY
2023
AS AT 30 JULY
2022
% CHANGE
52 WEEKS ENDED
29 JULY 2023
$’000
52 WEEKS ENDED
30 JULY 2022
$’000
% CHANGE
Fair value of investment at year-end, based on quoted
market prices
829,270
760,285
+9.1%
Carrying value at year-end in the Statement of Financial
Position, based on equity accounting
333,666
312,201
+6.9%
Profit from associate recorded in the Group’s Statement
of Comprehensive Income
28,169
27,085
+4.0%
Cash dividends received from Breville during the year
10,950
10,402
+5.3%
INVESTMENT IN MYER HOLDINGS LIMITED
During the year, the Group commenced accounting for its shareholding in Myer Holdings Limited (“Myer”) as an
investment in associate. As at 29 July 2023, the Group’s shareholding in Myer was 25.79%. In addition to the Group’s
shareholding, Mr Terry McCartney, a Premier Non-Executive Director, joined the Myer Board of Directors effective
13 December 2022. Premier commenced equity accounting its investment in Myer as of 13 December 2022.
A timeline of the Group’s shareholding in Myer is presented below:
% SHAREHOLDING IN MYER AT:
30 JULY 2022
4 AUGUST 2022
27 FEBRUARY 2023
29 JULY 2023
(YEAR-END)
POST YEAR-END:
30 AUGUST 2023
19.88%
22.87%
25.79%
25.79%
28.79%
The fair value of the Group’s interest in Myer as determined based on the quoted market price for shares as at
29 July 2023 was $137.7 million (2022: $75.9 million). Dividends received from Myer during the year amounted to
$21.6 million (2022: $2.4 million).
Myer is a company incorporated in Australia, whose shares are quoted on the Australian Securities Exchange. The
principal activities of Myer involves operation of a number of department stores across Australia and through its online
business.
7
7
Directors’ Report continuedAnnual Report 2023
DIRECTORS’ REPORT
(CONTINUED)
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Investment Segment (continued):
INVESTMENT IN MYER HOLDINGS LIMITED
Details of the Group’s investment in Myer can be summarised as follows:
52 WEEKS ENDED
29 JULY 2023
$’000
52 WEEKS ENDED
30 JULY 2022
$’000
% CHANGE
Fair value of investment at year-end, based on quoted
market prices
137,667
75,932 *
n/m
Carrying value at year-end in the Statement of Financial
Position, based on equity accounting
125,109
75,932 *
n/m
Profit from associate recorded in the Group’s Statement
of Comprehensive Income
2,695
-
n/m
Cash dividends received from Myer during the year
21,639
2,449 *
+783.6%
* For the 2022 financial year, the investment was reflected in the Financial Statements of Premier Investments Limited as a Listed
Equity Investment at Fair Value. Dividends received were wholly reflected in profit and loss for the 2022 financial year.
PROPERTY INVESTMENT
Premier owns its Australian Distribution Centre, as well as the global head office building of Premier Retail in
Melbourne. These properties are carried at a combined written down value at 29 July 2023 of $71.2 million
(2022: $72.7 million).
CASH HOLDINGS
The Investment Segment recorded cash on hand as at 29 July 2023 of $242.8 million (2022: $284.2 million). Interest
earned during the year ended 29 July 2023 amounted to $8.9 million (2022: $1.0 million). The investment segment’s
cash holdings remain strong despite paying $237.2 million in dividends to shareholders during the 2023 financial year
(2022: dividends paid amounted to $146.3 million).
Retail Segment:
As Premier’s core business, Just Group (Premier Retail) was the key contributor to the Group’s operating results for
the financial year. Key financial indicators for the retail segment for the 52-week period ended 29 July 2023
(2022: 52 week period ended 30 July 2022) are highlighted below:
RETAIL SEGMENT
52 WEEKS ENDED
29 JULY 2023
$’000
52 WEEKS ENDED
30 JULY 2022
$’000
% CHANGE
Revenue from contracts with customers
Total segment income
1,643,502
1,650,898
1,497,520
+9.7%
1,498,139
+10.2%
Segment net profit before income tax
352,515
353,192
-0.2%
8
Premier Investments Limited 8
DIRECTORS’ REPORT
(CONTINUED)
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Retail Segment (continued):
The Retail Segment contributed $352.5 million to the Group’s net profit before income tax for the 52 week period
ended 29 July 2023 (2022: $353.2 million net profit before income tax for the 52 week period ended 30 July 2022).
Premier Retail’s Earnings Before Interest and Tax (EBIT), excluding significant items was $356.5 million for the 2023
financial year, up 6.4% on the previous financial year.
Premier Retail EBIT (comparable 52-week basis)
400
350
300
250
200
150
100
50
0
304.3
335.0
356.5
167.3
187.2
FY19
(Pre-COVID)
FY20
FY21
FY22
FY23
$'million
+ 6.4% on PY
+ 113.1% on “Pre-Covid” FY19
Refer to page 11 of the Directors’ Report for a reconciliation of Premier Retail EBIT and reported Premier Retail Profit
before Tax.
Over the years, Premier Retail has evolved into a multi-channel global business, growing the portfolio of 7 unique
brands to each have a distinctive and competitive market position. The Group’s ability to remain nimble, under the
leadership of an experienced Board and highly motivated senior management team, enables us to pivot when macro-
economic environments change.
Evolution of Premier Retail Sales to Customers over the years
FY12
FY16
FY19
FY23
Sales of
$837m, trading
in 4 countries
and online.
Sales break through $1bn
trading in 6 countries and
online.
Pre-Covid: Sales of
~$1.3bn trading in 7
countries, online and
global wholesale.
Sales of ~$1.65bn trading
in 6 countries, online and
global wholesale.
Premier Retail delivered global sales for the 2023 financial year of $1,643.5 million, up 9.7% on the 2022 financial year.
Global sales are up 29.3% on pre-pandemic sales for the 2019 financial year.
9
9
Directors’ Report continuedAnnual Report 2023
DIRECTORS’ REPORT
(CONTINUED)
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Retail Segment (continued):
Revenue from customers per Geographic Segment for the 52 weeks ended 29 July 2023
Europe
7%
Asia
5%
New Zealand
10%
Australia
78%
Premier Retail delivered a gross margin percentage of 62.2%, down 255 basis points on the previous year
(2022: 64.8%), driven by currency headwinds and a market wide promotional environment in the last quarter of the
2023 financial year. The strong sales, solid gross profit and strong cost control has delivered a record EBIT of
$356.5 million, up 6.4% on the previous year (2022: $335.0 million).
Peter Alexander delivered another record sales result for the 52-week period ended 29 July 2023 of $478.9 million, up
11.8% on a record set in the prior year (2022: $428.5 million). The record result was driven across all Peter Alexander
product categories. The Group’s decision to continuously invest in inventory, enabled Peter Alexander to be in-stock
during key gift giving periods of the year – Black Friday/Cyber Monday, Christmas, Easter, Mother’s Day and Father’s
Day.
Smiggle delivered record global sales of $319.8 million for the 52 weeks ended 29 July 2023, an increase of 22.4% on
the prior financial year. Pleasingly, Smiggle celebrated its 20th birthday during the second half of 2023, with the launch
of a highly successful limited edition range. Smiggle has reset from the pandemic and is growing from strength to
strength.
The Group’s five iconic Apparel Brands (Just Jeans, Jay Jays, Portmans, Dotti and Jacqui-E) delivered a combined
sales result for the period ended 29 July 2023 of $844.8 million - up 17.9% on pre-pandemic sales of $671.8 million in
the 2019 financial year, and trading from 37 less stores than at July 2019.
The Retail Segment delivered online sales of $324.7 million for the 52 weeks ended 29 July 2023 contributing 19.8% of
total group sales to customers for the period ended 29 July 2023 (2022: 22.7%). The Group is pleased to have world
class customer facing websites.
The Group seeks to delight customers with a seamless customer experience across all channels, supporting
customers in whichever way they choose to shop. As a result, the Group will continue to invest in people, technology
and marketing to improve our platforms and customer experiences.
The Group operates centralised distribution centres in four countries, including the Group’s owned Australian
Distribution Centre. These distribution centres have enabled the Group to be agile and scale up operations in response
to customer shopping behaviours across all channels.
The Group prides itself on having:
A portfolio of seven unique brands, each with a strong and distinctive competitive market position
Omni-channel – driving a seamless customer experience across all channels
Leverage across centralised support functions
Support from its experienced Board, and capital
10
Premier Investments Limited 10
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I
Annual Report 2023
DIRECTORS’ REPORT
(CONTINUED)
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the Group during the financial year ended
29 July 2023.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
The Directors of Premier Investments Limited approved a final ordinary dividend in respect of the 2023 financial year.
The total amount of the final ordinary dividend is $95,565,000 (2022: Final ordinary dividend of $85,981,000 and a
special dividend of $39,806,000) which represents a fully franked ordinary dividend of 60 cents per share (2022:
Final ordinary dividend of 54 cents per share, special dividend of 25 cents per share). The dividend has not been
provided for in the 2023 financial statements.
On 21 August 2023, Premier Investments Limited announced that it has commenced a formal review to assess its
corporate, operating and capital structure. The review will consider a range of options, including a separation of the
Group into two or more distinct entities by way of demerger. The review will examine capital requirements, business
plans, management structures and any cost of dis-synergies. Given the range of issues to be considered, there is no
certainty that the review will result in a change to the Group’s current corporate, operating or capital structure.
In addition, on 21 August 2023, Premier Investments Limited announced that Mr Richard Murray resigned from his
role as Chief Executive Officer (Premier Retail) effective 15 September 2023. Mr. John Bryce, Premier Retail’s Chief
Financial Officer, has been appointed as interim Chief Executive Officer (Retail) effective 21 August 2023, and will
continue to fulfil his CFO responsibilities in the interim.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Certain likely developments in the operations of the Group and the expected results of those operations in financial
years subsequent to the period ended 29 July 2023 are referred to in the preceding operating and financial review.
No additional information is included on the likely developments in the operations of the Group and the expected
results of those operations as the Directors reasonably believe that the disclosure of such information would be likely
to result in unreasonable prejudice to the Group if included in this report, and it has therefore been excluded in
accordance with section 299(3) of the Corporations Act 2001.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group’s operations are not subject to any significant environmental obligations or regulations.
SHARE OPTIONS AND SHARES ISSUED DURING THE FINANCIAL YEAR
Unissued Shares:
As at the date of this report, there were 1,051,965 (2022: 1,412,074) unissued performance rights. Refer to the
remuneration report for further details of the options outstanding in relation to Key Management Personnel.
Shares Issued as a Result of the Exercise of Options:
A total of 231,603 shares (2022: 129,077) were issued during the year pursuant to the Group’s Performance Rights
Plan. No other shares were issued during the year.
ROUNDING
The company is a company of the kind specified in ASIC Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191, dated 24 March 2016. In accordance with that ASIC instrument amounts in the financial
statements and the Directors’ Report have been rounded to the nearest thousand dollars unless specifically stated to
be otherwise.
12
Premier Investments Limited 12
DIRECTORS’ REPORT
(CONTINUED)
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
To the extent permitted by law, the company indemnifies every person who is or has been a director or officer of the
company or of a wholly-owned subsidiary of the company against liability for damages awarded or judgments
entered against them and legal defence costs and expenses, arising out of a wrongful act, incurred by that person
whilst acting in their capacity as a director or officer provided there has been no admission, or judgment, award or
other finding by a court, tribunal or arbitrator which establishes improper use of position, or committing of any
criminal, dishonest, fraudulent or malicious act.
The officers include the Directors, as named earlier in this report, the Company Secretary and other officers, being
the executive senior management team. Details of the nature of the liabilities covered or the amount of the premium
paid in respect of the Directors, and Officers, liability insurance contracts are not disclosed as such disclosure is
prohibited under the terms of the contracts.
INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the company has agreed to indemnify its auditors, Ernst & Young, as part of the
terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified
amount). No payment has been made to indemnify Ernst & Young during or since the financial year.
DIRECTOR INTERESTS IN SHARES AND RIGHTS OF THE COMPANY
At the date of this report, the interests of the Directors in the shares and performance rights of the company were:
Solomon Lew
Timothy Antonie
Sally Herman
Henry Lanzer AM
Michael McLeod
Richard Murray
4,437,699 ordinary shares**
5,001 ordinary shares
11,500 ordinary shares
27,665 ordinary shares
28,186 ordinary shares
100,000 ordinary shares
**Mr. Lew is an associate of Century Plaza Investments Pty. Ltd. and Metrepark Pty. Ltd (Associated Entities). The
Associated Entities, collectively, have a relevant interest in 59,804,731 shares in the Company. However, Mr. Lew
does not have a relevant interest in the shares of the Company held by the Associated Entities.
DIRECTORS’ MEETINGS
The number of meetings of the Board of Directors during the financial year, and the number of meetings attended by
each Director were as follows:
DIRECTOR
Solomon Lew
Richard Murray
Timothy Antonie
David Crean
Sylvia Falzon
Sally Herman
Henry Lanzer AM
Terrence McCartney
Michael McLeod
BOARD MEETINGS
AUDIT AND RISK COMMITTEE
REMUNERATION AND
NOMINATION COMMITTEE
MEETINGS
HELD
NUMBER
ATTENDED
MEETINGS
HELD
NUMBER
ATTENDED
MEETINGS
HELD
NUMBER
ATTENDED
8
8
8
8
8
8
8
8
8
8
7
8
8
7
8
8
8
8
-
-
4
4
4
4
-
-
-
1
2
4
4
4
4
2
2
-
-
-
3
-
-
-
-
3
3
1
-
3
-
-
-
-
3
3
13
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DIRECTORS’ REPORT
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CORPORATE GOVERNANCE STATEMENT
To view Premier’s Corporate Governance Statement, please visit www.premierinvestments.com.au/about-us/board-
policies.
AUDITOR INDEPENDENCE
The Directors received a copy of the Auditor’s Independence Declaration in relation to the audit for this financial year
and is presented on page 34.
NON-AUDIT SERVICES
The Directors are satisfied that the provision of non-audit services is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2001. The nature and scope of each type of non-audit
service provided means that independence was not compromised.
Details of non-audit services provided by the Group’s auditor, Ernst & Young, can be found in Note 31 of the
Financial Report.
REMUNERATION REPORT
The Remuneration Report, which forms part of this Directors’ Report, is presented from page 15.
The Directors’ Report is signed in accordance with a resolution of the Board of Directors.
Solomon Lew
Chairman
28 September 2023
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Premier Investments Limited 14
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT
Dear Shareholders,
As Chairman of the Remuneration and Nomination Committee, I am pleased to present Premier Investments’
remuneration report for the 52 weeks ended 29 July 2023. This report outlines, in detail, the remuneration outcomes
and incentive arrangements, related to our performance.
Premier has delivered an outstanding result for shareholders during the 2023 financial year. Premier Retail delivered
a record EBIT of $356.5 million – the Group’s highest EBIT on record – up 6.4% on the previous financial year.
The Board recognises that the performance of the Group depends on the quality and dedication of our entire global
workforce. Our experienced executive leadership team, which includes our executive Key Management Personnel,
provide the integral backbone to the Group, delivering year-on-year growth in an increasingly competitive landscape.
The Group continued its strong performance in FY23. This has translated into strong returns for our shareholders:
Premier Investments Limited statutory net profit after tax of $271.1 million, although this is down 4.9% on
the 2022 financial year, this remains up over 150% on a ‘pre-COVID’ 2019 financial year;
Premier Investments Limited adjusted net profit after tax of $278.6 million, up 6.4% on the 2022 financial
year (refer to page 6 of the Directors’ Report for a breakdown of adjusted net profit after tax);
A record Premier Retail EBIT of $356.5 million, an increase of 6.4% on the previous financial year, and an
increase of 113.1% on a ‘pre-COVID’ 2019 financial year;
Premier Retail sales to customers of $1,643.5 million, up 9.7% on the previous financial year, and up 29.3%
on a ‘pre-COVID’ 2019 financial year;
During the 2023 financial year, Premier paid dividends to shareholders totaling over $237.2 million;
Full year total dividends of 130 cents (ordinary and special) per share for the 2023 financial year, an
increase of 4.0% on the previous financial year, and the highest ordinary dividend in the Group’s history;
The Group’s total shareholder return (TSR) consistently outperforming the ASX 200 Index return.
Full year ordinary and special dividends per share
(cents per share, fully franked)
140
120
100
80
60
40
20
0
25
100
16
114
70
70
80
FY19
FY20
FY21
FY22
FY23
Ordinary
Special
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REMUNERATION REPORT
The Board believes that it is the Group’s ability to respond to changing environments, through strategic planning and
execution by an experienced Board and skilled management team that have led to shareholders enjoying strong
financial returns. The Group is committed to ensuring that executive remuneration outcomes are explicitly linked to
the overall performance and success of the Group. The importance of attracting, retaining and rewarding a diverse
senior executive team is crucial in navigating through a complex macro-economic environment.
The Group encourages and supports a business leadership structure that reflects the values of equal opportunity
across the Group. The Board is proud of its diverse senior executive team, whom are all well respected within the
retail industry. Women represent 55% of Premier Retail’s senior executive leadership team, and 75.5% of
management positions are held by women. Over 90% of the Group’s workforce are women. We will continue to
encourage and support a business leadership structure that reflects the values of equal opportunity across the
Group.
Following the conclusion of the 2023 year, Mr. Richard Murray resigned as Chief Executive Officer (Retail), effective
15 September 2023. Mr. John Bryce, Just Group Limited’s long-standing Chief Financial Officer, has been appointed
as Interim CEO (Retail) and CFO effective 21 August 2023. Mr. Bryce will be well supported by Premier Retail’s
experienced senior management team during the formal strategic review process, announced on 21 August 2023.
The Board appreciates the strength of Premier Retail’s highly skilled and experienced senior management team and
is confident that the team will continue to focus on the first-rate retail execution that this Group is well known for,
whilst exploring all options for further value creation as part of the Group’s strategic review.
The Remuneration Report summarises our remuneration strategies, the way in which incentives are calculated, and
the connection between those strategies and the achievement of positive returns for shareholders.
Terrence McCartney
Chairman, Remuneration and Nomination Committee
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DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED)
This remuneration report for the 52 weeks ended 29 July 2023 outlines the remuneration arrangements of the Group
in accordance with the requirements of the Corporations Act 2001 (Cth), as amended (the “Act”) and its regulations.
This information has been audited as required by section 308 (3C) of the Act.
The remuneration report is presented under the following headings:
1.
Introduction
2. Remuneration Governance
3. Executive remuneration arrangements:
A. Remuneration principles and strategy
B. Fixed remuneration objectives
C. Group performance and its link to executive remuneration
D. Group performance and its link to STI
E. Group performance and its link to LTI
F. Detail of incentive plans
4. Remuneration framework of CEO (Retail)
5. Executive service agreements
6. Non-Executive Director remuneration arrangements
7. Remuneration of Key Management Personnel
8. Additional disclosures relating to Rights and Shares
9. Additional disclosures relating to transactions and balances with Key Management Personnel
1. INTRODUCTION
The remuneration report details the remuneration arrangements for Key Management Personnel (“KMP”) who are
defined as those persons having authority and responsibility for planning, directing and controlling the major activities
of the Group, directly or indirectly, including any director (whether executive or otherwise) of the Group.
The table below outlines the Group’s KMP during the 52 weeks ended 29 July 2023. Unless otherwise indicated, the
individuals were KMP for the entire financial year.
KEY MANAGEMENT PERSONNEL
(i) Non-Executive Directors
Solomon Lew
Chairman and Non-Executive Director
David Crean
Deputy Chairman and Non-Executive Director
Timothy Antonie
Non-Executive Director and Lead Independent Director
Sylvia Falzon
Non-Executive Director
Sally Herman
Non-Executive Director
Henry Lanzer AM
Non-Executive Director
Terrence McCartney
Non-Executive Director
Michael McLeod
Non-Executive Director
17
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REMUNERATION REPORT (AUDITED) (CONTINUED)
1. INTRODUCTION (CONTINUED)
KEY MANAGEMENT PERSONNEL (CONTINUED)
(ii) Executive Director
Richard Murray
Executive Director and Chief Executive Officer (Retail) (see note (a))
(iii) Executives
John Bryce
Chief Financial Officer, Just Group Limited (see note (b))
Marinda Meyer
Company Secretary, Premier Investments Limited
(a) Mr. Murray resigned as Chief Executive Officer (Retail) effective 15 September 2023, and resigned as an
Executive Director effective 21 August 2023.
(b) Mr. Bryce was appointed Interim Chief Executive Officer (Retail) on 21 August 2023, in addition to fulfilling his
duties as Chief Financial Officer of Just Group Limited.
There were no other changes to the KMP after the reporting date and before the date the financial report was
authorised for issue.
2. REMUNERATION GOVERNANCE
Remuneration and Nomination Committee
The Remuneration and Nomination Committee (“Committee”) of the Board of Directors of the Group (“Board”) comprises
three Non-Executive Directors. The Committee is led by Terrence McCartney, an independent Non-Executive Director,
and the majority of its members are independent Non-Executive Directors. This demonstrates an ongoing commitment
to the independence of the Committee. The Committee has delegated decision-making authority for some matters
related to the remuneration arrangements for KMP and is required to make recommendations to the Board on other
matters.
Specifically, the Board approves the remuneration arrangements of the Chief Executive Officer (Retail) (“CEO Retail”)
and other executives, including awards made under the short-term incentive (“STI”) and long-term incentive (“LTI”)
plans, following recommendations from the Committee. The Board also sets the aggregate remuneration for Non-
Executive Directors (which is subject to shareholder approval) and Non-Executive Director fee levels. The Committee
approves, having regard to recommendations made by the CEO (Retail), the level of the Group STI pool.
The Committee meets regularly. The CEO (Retail) attends certain Committee meetings by invitation, where
management input is required. The CEO (Retail) is not present during discussions relating to his own remuneration
arrangements.
Further information relating to the Committee’s role, responsibilities and membership can be seen at
www.premierinvestments.com.au.
Use of remuneration advisors
The Committee may from time to time seek external remuneration advice to ensure it is fully informed when making
remuneration decisions. Remuneration advisors are engaged by, and report directly to, the Committee.
No remuneration recommendations for the purposes of the Corporations Act 2001 were made during the 2023 financial
year.
18
Premier Investments Limited 18
DIRECTORS’ REPORT
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REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS
3A. Remuneration principles and strategy
For the 52 weeks ended 29 July 2023, the executive remuneration framework comprised of fixed remuneration, STI
and LTI, as outlined below.
The Group aims to reward executives with a competitive level and mix of remuneration appropriate to their position and
responsibilities and linked to shareholder value creation.
The Group’s executive remuneration strategy is designed to attract, motivate and retain high performing individuals,
and align the interests of executives with shareholders.
The Group operates mainly in the retail industry, with significant revenues earned in its traditional markets of Australia
and New Zealand. The retail industry in these markets has seen marked structural change over recent years, including
a prevalence in the use of new and existing technology, an increase in international competitors and significant
changes in general consumer sentiment.
Complementing its strong market position in Australia and New Zealand, the Group continues to operate in
international markets in Asia and Europe.
REVENUE FROM CUSTOMERS PER GEOGRAPHIC AREA FY23
Europe
7%
Asia
5%
New Zealand
10%
Australia
78%
The market for skilled and experienced executives in the retail industry continues to be increasingly competitive and
international in nature. The Group’s strong domestic position, as well as global reach, provides exposure to an
international pool of talent and access to a diverse range of strategies to respond to industry changes.
Given these structural changes and the Group’s growth focus, the Board believes it is both critical to the future success
of the business, and in the best interest of shareholders, to attract, retain and develop the best possible executive team
through the provision of competitive remuneration packages, and incentive arrangements which are aligned to growth
and performance. The year-on-year growth in performance and shareholder value over more than a decade, is a
testament to Premier’s remuneration strategy.
The Group’s strategic objective is to be recognised as a leader in the retail industry and build long-term value for
shareholders.
The Group is committed to ensuring that executive remuneration outcomes are explicitly linked to the overall
performance and success of the Group. This section illustrates this link between the Group’s strategic objectives and
its executive remuneration strategies.
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REMUNERATION REPORT (AUDITED) (CONTINUED)
EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3A. Remuneration principles and strategy (continued)
Group Objective
To be recognised as a leader in our industry and build long-term value for our shareholders
Remuneration strategy linkages to Group objective
Align the interests of executives with shareholders
The remuneration framework incorporates “at-
risk” components, through STI and LTI plans.
Performance is assessed against a suite of
financial and non-financial measures relevant
to the success of the Group and generating
returns for shareholders.
Attract, motivate and retain high performing
individuals
Remuneration is competitive as compared to
companies of a similar size and complexity.
Longer-term remuneration frameworks and
“at-risk” components encourage retention,
development and a multi-year performance
focus.
Component
Vehicle
Purpose
Link to performance
To provide competitive
fixed remuneration with
reference to the applicable
role, market and relevant
executive’s experience.
Both the executive’s performance,
and the performance of the Group,
are considered during regular
remuneration reviews.
Comprises
base salary,
superannuation
contributions
and other
benefits
Awarded in
cash
Fixed
remuneration
STI
LTI
Rewards executives for
their contribution to
achievement of Group and
business unit annual
outputs and performance
outcomes.
Awarded in
performance
rights
Rewards executives for
their contribution to the
creation of shareholder
value over the long term.
Discretionary
Bonus
Awarded in
cash or
performance
rights
Rewards executives in
exceptional circumstances
linked to long term
shareholder outcomes.
Key financial metrics based
primarily on Premier Retail’s
earnings before interest and
taxation (“EBIT”) of each business
unit, as well as a suite of other
internal financial and non-financial
measures.
Vesting of performance rights is
dependent on both a positive total
shareholder return (“TSR”) and
measuring against a Comparison
Peer Group (defined in Section 3F
of this report).
Granted at the discretion of the
Board upon recommendation of the
Committee in exceptional
circumstances, and when in the
best interests of the Group.
20
Premier Investments Limited 20
DIRECTORS’ REPORT
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REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3B. Fixed remuneration objectives
Fixed remuneration is reviewed by the Committee. The process consists of a review of the Group, applicable business
unit and executive’s individual performance, relevant comparative remuneration (both externally and internally) and,
where appropriate, external advice. The Committee has access to external advice independent of management.
3C. Group performance and its link to executive remuneration
The Group is pleased to report that despite tough economic conditions, it continued to generate strong returns for
shareholders. The dividends approved for the year reaffirm the confidence the Directors have in the Group’s future
performance and underline Premier’s commitment to enhancing shareholder value through capital management and
business investment.
Closing share price at end of financial year
$22.18
$21.04
$26.84
$17.57
$16.28
2023
2022
2021
2020
2019
Basic earnings per share (cents)
170.31
179.40
171.15
Dividends per share (cents)
Return on equity (%)
130.02
15.6%1
125.02
17.0%
86.89
70.0
80.0
17.7%
10.2%
67.51
70.0
7.9%
1 Return on Equity excludes the impact of a non-cash impairment of intangible assets in FY23 ($5 million).
2 Comprising an ordinary dividend of 114 cents per share (FY22: 100 cents per share), and a special dividend of 16 cents per share
(FY22: 25 cents per share).
The below chart illustrates the total return of the Premier share price against the S&P/ASX200 Accumulation Index,
over the past 3 years, between 2021 and 2023, where the Group has delivered a TSR of 60%, outperforming the
Index’s return of 37%.
PREMIER SHARE PRICE TOTAL RETURN AGAINST ASX200 ACCUMULATION INDEX – 3 YEARS
120%
100%
80%
60%
40%
20%
0%
03-Aug-20
03-Jan-21
03-Jun-21
03-Nov-21
03-Apr-22
03-Sep-22
03-Feb-23
03-Jul-23
.AXJOA Total Return
PMV.AX Total Return
21
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REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3C. Group performance and its link to executive remuneration (continued)
The below chart illustrates full year ordinary and special dividends per share (fully franked) over a 5 year period:
Full year ordinary and special dividends per share
(cents per share, fully franked)
140
120
100
80
60
40
20
0
25
100
16
114
70
70
80
FY19
FY20
FY21
FY22
FY23
Ordinary
Special
Premier Retail achieved another outstanding result in FY23, with Premier Retail EBIT of $356.5 million, an increase of
6.4% on FY22. Notably, Premier Retail’s FY23 EBIT is up 113.1% on a “Pre-COVID” FY19 EBIT of $167.3 million. The
following chart shows Premier Retail’s EBIT for the past 5 years.
Premier Retail EBIT (comparable 52-week basis)
400
350
300
250
200
150
100
50
0
304.3
335.0
356.5
167.3
187.2
FY19
(Pre-COVID)
FY20
FY21
FY22
FY23
$'million
+ 6.4% on PY
+ 113.1% on “Pre-Covid” FY19
Note: Please refer to page 11 of the Directors’ Report for a reconciliation between Premier Retail EBIT (excluding one-off and
significant items) and statutory reported operating profit before tax for the Retail Segment.
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Premier Investments Limited 22
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REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3D. Group performance and its link to STI
STI payment outcomes are primarily driven by Premier Retail’s EBIT growth. The Board continuously evaluates the
most appropriate STI performance hurdles and metrics for each year, ensuring that the STI component rewards the
achievement of metrics most appropriate to the growth of the Group in the relevant year.
For the 2023 financial year, the Group provided Mr. Murray with an STI opportunity equivalent to between 37.5% and
75% of his fixed remuneration, subject to the achievement of performance hurdles. The Board determined that the
2023 financial year should primarily be based on growth of Premier Retail EBIT, achieving growth of 6.4% on FY22.
Mr. Murray was therefore entitled to an STI payment of 37.5% of his fixed remuneration (being $750,000), which has
been reflected as part of his remuneration in section 7.
For the 2023 financial year, the Group provided Mr. Bryce with an STI opportunity equivalent to 50% of his fixed
remuneration, subject to the achievement of performance hurdles. However, due to the increases to Mr. Bryce’s
remuneration arrangements in August 2023 associated with the increased scope of his role (see section 4.2), the
Board determined that no STI payment was to be made to Mr. Bryce in relation to the 2023 financial year.
3E. Group performance and its link to LTI
The performance measure which drives LTI vesting is dependent on an absolute test, being a positive Premier TSR
performance and a relative test, being a comparison against the Comparison Peer Group (as defined in section 3F of
this report).
The table below illustrates the outcomes of the TSR testing performed during the 2023 financial year in relation to
KMP. Due to Premier’s strong share price performance over the past three years, where positive TSR meant the
absolute test was met and the award was eligible for testing, the Group’s relative performance was at the 82nd
percentile against the peer group. This resulted in a vesting outcome of 100%.
Testing Period
1 May 2020 to
30 Sept 2022
Share price at
start of testing
period
Share price at
end of testing
period
Dividends paid
(fully franked)
TSR percentage
TSR percentile
$13.21
$22.17
$1.96
65.87%
82
Mr. Bryce was the only member of the current executive KMP participating in the 2020 LTI grant. Mr. Murray’s LTI
arrangements were not eligible for testing in the 2023 financial year and lapsed on cessation of his employment.
3F. Detail of incentive plans
Short term incentive (“STI”)
The Group operates an annual STI program which is awarded subject to the attainment of clearly defined financial and
non-financial Group and business unit measures.
Who participates?
Executives who have served a minimum of nine months.
How is STI delivered?
Cash.
What is the STI
opportunity?
Executives have an STI opportunity of between 0% and 50% of their fixed
remuneration. Mr. Murray has an STI opportunity of between 37.5% and 75% of
his fixed remuneration.
23
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REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3F. Detail of incentive plans (continued)
Short term incentive (“STI”) (continued)
What are the applicable
financial performance
measures?
STI payments awarded to each executive are explicitly aligned to the key value
drivers of Premier Retail, such that rewards are payable based on the following
criteria:
target EBIT of Premier Retail and an incentive pool has been created;
the executive receives a performance appraisal on target or above;
the executive’s minimum performance outcomes have been achieved; and
the executive’s key performance indicators (“KPIs”) have been met.
The financial performance measures are chosen with reference to the strategic
objective to promote both short term success and provide a framework for
delivering long term value.
The criteria are designed to ensure STI outcomes are aligned to the creation of
shareholder value.
The KPI criteria aligns the individual activities and focus of the executive to
creating shareholder value. Each executive is set multiple KPIs covering
financial, non-financial, Group and business unit measures of performance. The
KPIs are quantifiable and weighted according to their value.
The target EBIT for each year is expected to incorporate growth on the previous
year. As such, in a year in which STI payments are made, Premier Retail
considers the actual result in the prior year in order to assess an STI in the
following year. This mechanism ensures the STI scheme continues to build
shareholder returns over time.
What are the applicable
non-financial
performance
measures?
The award of an STI is dependent on the executive achieving individual aligned
non-financial performance indicators, such as:
retention of existing customers through outstanding customer service;
implementation of key growth initiatives;
demonstrated focus on a continuous improvement in safety performance;
and
demonstrated focus on the growth and development of leadership and team
talent to encourage leadership succession.
How is performance
assessed?
After the end of the financial year, following consideration of the financial and non-
financial performance indicators, the Committee obtains input from the CEO
Retail in relation to the amount of STI to be paid to eligible executives.
The Committee then provides its recommendations to the Board for approval. The
provision of any STI payments is subject to the sole discretion of the Chairman.
24
Premier Investments Limited 24
DIRECTORS’ REPORT
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REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3F. Detail of incentive plans (continued)
Long-term incentive (“LTI”)
Premier’s LTI plan seeks to create shareholder value over the long term by aligning executive remuneration with the
Group’s strategic objectives. The majority of Premier’s LTI rights are assessed according to the performance measures
described in the table below. In certain circumstances, Premier considers that the most appropriate performance
condition relates to retention of key executives. In these circumstances, limited equity rights are issued to certain
executives with the only performance measure relating to the executive remaining employed by the Group on the
relevant vesting date.
Who participates?
Executives.
How is LTI delivered?
Performance rights.
How often are grants
made?
One grant over multiple years. The most recent grant was made to executives in
October 2022, excluding the CEO Retail.
What are the
performance
measures?
The majority of LTI rights awarded to executives are subject to a two-stage
performance test - an absolute and relative test - based on Premier’s TSR. Broadly,
TSR is the percentage growth achieved from an investment in ordinary shares over
the relevant testing period (assuming all dividends are reinvested).
The two-stage performance measure approach ensures that the LTI plan
operates as a key driver for performance whilst also providing an incentive to
executives.
The absolute test requires Premier to achieve a positive TSR over the testing
period. If the TSR is negative over the testing period, then the performance rights
lapse.
If the TSR is positive over the testing period, the relative test is undertaken, which
compares Premier’s TSR with the S&P/ASX200 excluding overseas companies
and companies classified in the Energy or Materials sector (“Comparison Peer
Group”). The Comparison Peer Group represents over 100 companies in the
ASX200, which reflects the Group’s competitors for both capital and talent. The
Comparator Peer Group consists of ASX200 companies, including companies
within the consumer discretionary, consumer staple and information technology
sectors.
Premier’s performance against the Comparison Peer Group measure is determined
according to its ranking against the Comparison Peer Group over the performance
period. The vesting schedule is as follows:
Target
Conversion ratio of rights to shares
available to vest under the TSR
performance condition
Below 50th percentile
50th percentile
Between 50th and 75th percentile
75th percentile and above
0%
50%
Pro Rata
100%
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REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3F. Detail of incentive plans (continued)
Long-term incentive (“LTI”) (continued)
What are the
performance measures
(continued)?
The absolute test (or gateway) ensures that shareholders and executives are
aligned in the goal of absolute wealth creation. The relative test provides alignment
between comparative shareholder return and reward for executives.
The performance rights under each tranche will lapse if the applicable performance
hurdles are not met (unless otherwise determined by the Board in its absolute
discretion).
Premier considers the suitability of the above performance conditions on a regular
basis.
How is performance
assessed?
TSR performance is calculated by an independent external advisor at the end of
each performance period.
Section 8 of this report, titled “Additional disclosures relating to rights and shares”,
provides details of performance rights granted, vested, exercised and lapsed during
the year.
When does the LTI
vest?
For rights issued in the most recent grant during 2022, the performance rights will
vest in accordance with the following schedule:
Tranche 1: LTI rights will be tested for vesting from 1 October 2022 to 1 October
2025 (being the 1st Vesting Date).
Tranche 2: LTI rights will be tested for vesting from 1 October 2022 to 1 October
2026 (being the 2nd Vesting Date).
Tranche 3: LTI rights will be tested for vesting from 1 October 2022 to 1 October
2027 (being the 3rd Vesting Date).
Performance rights have no opportunity to be re-tested.
How are grants treated
on termination?
Generally, all rights (whether vested or unvested) lapse and terminate on cessation
of employment.
May participants enter
into hedging
arrangements?
Executives are prohibited from entering into transactions to hedge or limit the
economic risk of the securities allocated to them under the LTI scheme, either
before vesting or after vesting while the securities are held subject to restriction.
Executives are only able to hedge securities that have vested but continue to be
subject to a trading restriction and a seven-year lock, with the prior consent of the
Board.
No employees have any hedging arrangements in place.
Are there restrictions
on disposals?
Once rights have been allocated, disposal of performance shares is subject to
restrictions whereby Board approval is required to sell shares granted within seven
years under the LTI plan.
Do participants receive
distributions or
dividends on unvested
LTI grants?
Participants do not receive distributions or dividends on unvested LTI grants.
26
Premier Investments Limited 26
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
4.1 REMUNERATION OF CEO (RETAIL), MR. MURRAY
Mr. Murray’s annual fixed remuneration for the 2023 financial year was $2,000,000. Mr. Murray resigned as CEO
(Retail) effective 15 September 2023, and resigned as Executive Director of Premier effective 21 August 2023.
Mr. Murray was eligible to receive an FY23 STI award of between 37.5% and 75% of his fixed remuneration. Mr.
Murray received an STI payment equivalent to 37.5% of his fixed remuneration.
At Premier’s 2021 Annual General Meeting of shareholders held on 2 December 2021, shareholders approved the
granting of 200,000 performance rights to Mr Murray, split into 4 equal tranches, as a once-off sign on retention
performance rights grant. In accordance with the agreed timeframes, in the 2023 financial year, 25% of the once-off
sign on retention performance rights were tested and awarded to Mr. Murray.
As a result of the cessation of his employment, the remaining 50% of Mr. Murray’s unvested once-off sign-on retention
performance rights and all of his LTI rights lapsed. Mr. Murray is not eligible to receive an FY24 STI award.
4.2 FY24 REMUNERATION OF INTERIM CEO (RETAIL), MR. BRYCE
On 21 August 2023, Premier announced the appointment of Mr. John Bryce as Interim CEO (Retail), following the
resignation of Mr. Murray. Mr. Bryce will continue to fulfil his duties as Chief Financial Officer, Just Group Limited,
during this time. The material terms of Mr. Bryce’s employment arrangement as Interim CEO (Retail) and CFO were
provided to the ASX on 21 August 2023, and are summarised below:
Commencement
Date and Term
From 21 August 2023 until 26 July 2024 or when the Board appoints a new CEO
(whichever is earlier), Mr Bryce will be engaged in the position of Interim CEO (Retail),
and CFO.
Fixed Remuneration $1,000,000 per annum, during the period in which Mr. Bryce is engaged in the position of
Interim CEO (Retail) and CFO.
Once-off Retention
Award
The Company will grant Mr. Bryce 25,000 performance rights as a once off retention
award to recognise his increased scope of role. The performance rights will be tested,
and if applicable, will vest on 26 July 2024.
Vesting of the performance rights is subject to Mr. Bryce being actively employed on the
vesting date. If vested, each performance right is an entitlement to a fully paid ordinary
share of the Company (Performance Shares).
The performance rights are subject to the terms and conditions of the Company’s
Performance Rights Plan Rules (Rules). In accordance with the Rules, disposal of
Performance Shares is subject to restrictions whereby Board approval is required to sell
shares granted within 7 years.
27
27
Directors’ Report continuedAnnual Report 2023
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
5. EXECUTIVE SERVICE AGREEMENTS
Remuneration and other terms of employment for KMP and other executives are formalised in written service
agreements (with the exception of Ms. Meyer, whose relevant terms of employment are set out below). Material
provisions of the service agreements are set out below:
Start date
Term of
agreement
Review period
Notice period
required from
Premier
Notice period
required from
employee
Mr. Murray
6 Sept 2021
Ongoing
Annual
12 months
12 months
Mr. Bryce
13 Dec 2016
Ongoing
Annual
12 months
12 months *
Ms. Meyer
4 Feb 2019
Ongoing
Annual
12 months
12 months
* If Mr. Bryce gives notice of termination, then his notice period may be extended to delay the date on which his
termination becomes effective, by a period of up to six months.
6. NON-EXECUTIVE DIRECTOR REMUNERATION ARRANGEMENTS
Determination of fees and maximum aggregate Non-Executive Director Remuneration
The Board seeks to set Non-Executive Director fees at a level which provides the Group with the ability to attract and
retain Non-Executive Directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
The Group’s constitution and the ASX listing rules specify that the Non-Executive Director maximum aggregate
remuneration shall be determined from time to time by a general meeting. The most recent determination of this kind
was at the 2016 Annual General Meeting held on 2 December 2016 when shareholders approved an aggregate
remuneration of an amount not exceeding $1,500,000 per year.
The Chairman of the Group, consistent with his past practice, has declined to accept any remuneration for his role as a
director or for his role on any committees.
Fee policy
Non-Executive Director’s fees consist of base fees and committee fees. The payment of committee fees recognises
the additional time commitment required by Non-Executive Directors who serve on Board committees. Effective
1 August 2021, Premier increased Non-Executive Director base fees by $20,000 each.
Non-Executive Directors may be reimbursed for expenses reasonably incurred in attending to the Group’s affairs. Non-
Executive Directors do not participate in any incentive programs. Premier has not established any schemes for
retirement benefits for Non-Executive Directors (other than superannuation).
28
Premier Investments Limited 28
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.
Premier Investments Limited 30
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
8. ADDITIONAL DISCLOSURES RELATING TO RIGHTS AND SHARES OF KMP
a) Rights awarded, vested and lapsed during the year:
The table below discloses the number of performance rights granted to KMP as remuneration for the financial
year ended 29 July 2023, as well as the number of rights vested and lapsed during the year:
Terms and Conditions
Rights granted
during the year
No.
Grant date
Fair value per
right at grant date
$
-
-
38,319
45,000
Dec-21
May-20
Oct-22
Oct-22
-
-
$11.21
$19.98
2023
Mr. R. Murray
Mr. J. Bryce
Ms. M. Meyer
Expiry and
Exercise date
Rights vested
No.
50,000
8,516
-
-
-
-
-
-
No rights lapsed during the financial year ended 29 July 2023.
b) Value of rights awarded, exercised and lapsed during the year:
2023
Mr. R. Murray
Mr. J. Bryce
Ms. M. Meyer
Value of rights granted
during the year
$
Value of rights exercised
during the year
$
Remuneration consisting of
rights for the year
%
-
429,556
899,100
1,121,500
212,645
-
61%
17%
27%
There were no alterations to the terms and conditions of rights awarded as remuneration since their award date.
The value of rights exercised during the year represent the intrinsic value of the rights based on the share price on
the relevant day of vesting.
c) Shares issued on exercise of rights:
2023
Mr. R. Murray
Mr. J. Bryce
Shares issued
No
Paid per share
$
Unpaid per share
$
Alterations to terms and conditions
of rights awarded since award date
50,000
8,516
-
-
-
-
No
No
d) Rights holdings of KMP:
2023
Mr. R. Murray
Mr. J. Bryce
Ms. M. Meyer
Balance at
30 July 2022
Granted as
remuneration
800,000
25,548
-
-
38,319
45,000
Rights
exercised
(50,000)
(8,516)
-
Balance at
29 July 2023
(not exercisable)
750,000
55,351
45,000
Rights granted to KMP were made in accordance with the provisions of the Group’s Performance Rights Plan.
31
31
Directors’ Report continuedAnnual Report 2023
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
8. ADDITIONAL DISCLOSURES RELATING TO RIGHTS AND SHARES OF KMP (CONTINUED)
e) Number of Ordinary Shares held in Premier Investments Limited by KMP:
2023
NON-EXECUTIVE DIRECTORS
Balance at
30 July 2022
Movement in
shareholdings
Balance at
29 July 2023
Mr. S. Lew *
Mr. T. Antonie
Dr. D.M. Crean
Ms. S. Falzon
Ms. S. Herman
Mr. H.D. Lanzer
Mr. T.L. McCartney
Mr. M.R.I. McLeod
EXECUTIVES
Mr. R. Murray
Mr. J. Bryce
Ms. M. Meyer
TOTAL
4,437,699
5,001
-
-
11,500
27,665
-
28,186
-
14,901
-
4,524,952
-
-
-
-
-
-
-
-
50,000
8,516
20,000
78,516
4,437,699
5,001
-
-
11,500
27,665
-
28,186
50,000
23,417
20,000
4,603,468
* Mr. Lew is an associate of Century Plaza Investments Pty. Ltd. and Metrepark Pty. Ltd (Associated Entities). The Associated
Entities, collectively, have a relevant interest in 59,804,731 (2022: 59,804,731) shares in the company. However, Mr. Lew does not
have a relevant interest in the shares in the company held by the Associated Entities.
9. ADDITIONAL DISCLOSURES RELATING TO TRANSACTIONS AND BALANCES WITH KMP
AND THEIR RELATED PARTIES
Mr. Lanzer is the managing partner of the legal firm Arnold Bloch Leibler. Group companies use the services of
Arnold Bloch Leibler from time to time. Legal services totalling $1,695,213 (2022: $1,479,010), including Mr.
Lanzer's Director fees, GST and disbursements were invoiced by Arnold Bloch Leibler to the Group, with
$234,282 (2022: $114,909) remaining outstanding at year-end. The fees paid for these services were at arm’s
length and on normal commercial terms.
Mr. Lanzer is a director of Loch Awe Pty Ltd. During the year, lease payments totalling $240,167 (2022:
$388,556) including GST was paid to Loch Awe Pty Ltd, with $nil outstanding rent payments at year-end
(2022: $nil). The payments were at arm’s length and on normal commercial terms.
Mr. Lew is a director of Voyager Distributing Company Pty Ltd. During the year, purchases totalling
$25,652,581 (2022: $19,597,245) including GST have been made by Group companies from Voyager
Distributing Co. Pty Ltd, with $3,820,631 (2022: $4,154,029) remaining outstanding at year-end. The purchases
were all at arm’s length and on normal commercial terms.
Mr. Lew is a director of Century Plaza Trading Pty. Ltd. Premier and Century Plaza Trading Pty Ltd are parties
to a Services Agreement to which Century Plaza Trading agrees to provide certain administrative services to
the Company to the extent required and requested by Premier. Premier is required to reimburse Century Plaza
Trading for costs it incurs in providing the Company with the services under the Service Agreement. Premier
reimbursed a total of $434,500 (2022: $440,000) costs including GST incurred by Century Plaza Trading Pty
Ltd, with $nil (2022: $198,000) outstanding at year-end.
Premier Investments Limited 32
32
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
9. ADDITIONAL DISCLOSURES RELATING TO TRANSACTIONS AND BALANCES WITH KMP
AND THEIR RELATED PARTIES (CONTINUED)
Amounts recognised in the financial report at the reporting date in relation to other transactions:
i) Amounts included within Assets and Liabilities
Current Liabilities
Trade and other payables
ii) Amounts included within Profit or Loss
Expenses
Purchases/ Cost of goods sold
Lease rental expense
Legal fees
Other expenses
Total expenses
2023
$’000
4,055
2023
$’000
23,537
218
1,541
435
25,731
33
33
Directors’ Report continuedAnnual Report 2023
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Auditor’s independence declaration to the directors of Premier Investments
Limited
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
As lead auditor for the audit of the financial report of Premier Investments Limited for the financial
GPO Box 67 Melbourne VIC 3001
year ended 29 July 2023, I declare to the best of my knowledge and belief, there have been:
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
Auditor’s independence declaration to the directors of Premier Investments
c. No non-audit services provided that contravene any applicable code of professional conduct in
Limited
relation to the audit.
As lead auditor for the audit of the financial report of Premier Investments Limited for the financial
This declaration is in respect of Premier Investments Limited and the entities it controlled during the
year ended 29 July 2023, I declare to the best of my knowledge and belief, there have been:
financial year.
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
Ernst & Young
c. No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Premier Investments Limited and the entities it controlled during the
financial year.
Glenn Carmody
Partner
28 September 2023
Ernst & Young
Glenn Carmody
Partner
28 September 2023
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Premier Investments Limited 34
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Auditor’s Independence Declaration STATEMENT OF COMPREHENSIVE INCOME
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022
CONSOLIDATED
NOTES
2023
$’000
2022
$’000
Revenue from contracts with customers
Other revenue
Total revenue
Other income
Total revenue and other income
Changes in inventories
Employee expenses
Lease rental expenses
Depreciation and impairment of non-current assets
Advertising and direct marketing
Finance costs
Other expenses
Total expenses
Share of profit of associates
Profit from continuing operations before income tax
Income tax expense
Net profit for the period attributable to owners
Other comprehensive income (loss)
Items that may be reclassified subsequently to profit or loss
Net gain (loss) on cash flow hedges
Foreign currency translation
Net movement in other comprehensive income of associates
Income tax on items of other comprehensive (income) loss
Other comprehensive income which may be reclassified to
profit or loss in subsequent periods, net of tax
Items not to be reclassified subsequently to profit or loss
Net fair value gain (loss) on listed equity investment
Income tax on items of other comprehensive (income) loss
Other comprehensive income (loss) not to be reclassified to
profit or loss in subsequent periods, net of tax
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
ATTRIBUTABLE TO THE OWNERS
Earnings per share from continuing operations attributable to
the ordinary equity holders of the parent:
- basic, profit for the year (cents per share)
- diluted, profit for the year (cents per share)
4
4
4
5
5
5
20
6
24
24
24
6
24
6
7
7
1,643,502
19,022
1,662,524
2,029
1,664,553
(621,011)
(383,091)
(43,756)
(165,222)
(24,569)
(16,513)
(59,118)
1,497,520
3,967
1,501,487
15,389
1,516,876
(527,721)
(350,664)
(21,239)
(166,176)
(22,233)
(8,862)
(54,403)
(1,313,280)
(1,151,298)
30,864
382,137
(111,059)
27,085
392,663
(107,489)
271,078
285,174
491
5,814
4,809
(147)
10,967
29,165
(17,356)
(6,166)
(3,092)
8,895
1,850
1,487
(2,673)
802
11,809
(1,871)
293,854
284,790
170.31
168.59
179.40
178.16
The accompanying notes form an integral part of this Statement of Comprehensive Income.
35
35
For the 52 weeks ended 29 July 2023 and 30 July 2022Statement of Comprehensive IncomeAnnual Report 2023
STATEMENT OF FINANCIAL POSITION
AS AT 29 JULY 2023 AND 30 JULY 2022
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Income tax receivable
Inventories
Other financial instruments
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Deferred tax assets
Listed equity investment at fair value
Investments in associates
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Income tax payable
Lease liabilities
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Interest-bearing liabilities
Deferred tax liabilities
Lease liabilities
Provisions
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Retained earnings
TOTAL EQUITY
CONSOLIDATED
NOTES
2023
$’000
2022
$’000
21
9
10
25
11
17
12
18
6
19
20
13
14
15
16
22
6
14
15
23
24
417,647
12,678
12,214
231,157
577
13,042
687,315
128,495
389,739
822,363
31,442
-
458,775
1,830,814
2,518,129
127,264
1,875
153,045
39,505
14,307
335,996
69,000
78,653
277,287
15,857
440,797
776,793
1,741,336
608,615
25,696
1,107,025
1,741,336
471,273
11,026
-
224,392
87
10,299
717,077
125,313
195,558
827,227
51,426
75,932
312,201
1,587,657
2,304,734
143,454
31,974
158,290
44,505
16,129
394,352
69,000
71,908
80,991
10,964
232,863
627,215
1,677,519
608,615
(4,287)
1,073,191
1,677,519
The accompanying notes form an integral part of this Statement of Financial Position.
Premier Investments Limited 36
36
Statement of Financial PositionAs at 29 July 2023 and 30 July 2022
STATEMENT OF CASH FLOWS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Borrowing costs paid
Interest on lease liabilities
Income taxes paid
CONSOLIDATED
NOTES
2023
$’000
2022
$’000
1,823,370
1,661,826
(1,317,480)
(1,172,536)
13,610
(5,742)
(10,705)
(143,998)
732
(3,193)
(5,605)
(125,747)
NET CASH FLOWS FROM OPERATING ACTIVITIES
21(b)
359,055
355,477
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends received from listed equity investment
Dividends received from investments in associates
Payment for trademarks
Purchase of investments
Payment for property, plant and equipment
NET CASH FLOWS USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Equity dividends paid
Payment of lease liabilities
Proceeds of borrowings
Repayment of borrowings
NET CASH FLOWS USED IN FINANCING ACTIVITIES
4,695
27,894
(136)
(34,400)
(16,315)
(18,262)
(237,244)
(161,754)
188,376
(188,376)
(398,998)
2,449
10,402
(223)
(15,143)
(8,651)
(11,166)
(146,274)
(169,573)
-
(77,834)
(393,681)
NET (DECREASE) INCREASE IN CASH HELD
(58,205)
(49,370)
Cash at the beginning of the financial year
Net foreign exchange difference
CASH AT THE END OF THE FINANCIAL YEAR
21(a)
471,273
4,579
417,647
523,356
(2,713)
471,273
The accompanying notes form an integral part of this Statement of Cash Flows.
37
37
Statement of Cash FlowsFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
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Premier Investments Limited 38
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For the 52 weeks ended 29 July 2023 and 30 July 2022Statement of Changes in Equity
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022
1 GENERAL INFORMATION
The financial report contains the consolidated financial statements of the consolidated entity, comprising
Premier Investments Limited (the ‘parent entity’) and its wholly owned subsidiaries (‘the Group’) for the
52 weeks ended 29 July 2023. The financial report was authorised for issue by the Directors on
28 September 2023.
Premier Investments Limited is a for profit company limited by shares incorporated in Australia whose shares
are publicly traded on the Australian Securities Exchange. The nature of the operations and principal activities
of the Group are described in the Directors’ Report.
The notes to the financial statements have been organised into the following sections:
(i) Other significant group accounting policies: Summarises the basis of financial statement preparation and
other accounting policies adopted in the preparation of these consolidated financial statements. Specific
accounting policies are disclosed in the note to which they relate.
(ii) Group performance: Contains the notes that focus on the results and performance of the Group.
(iii) Operating assets and liabilities: Provides information on the Group’s assets and liabilities used to
generate the Group’s performance.
(iv) Capital invested: Provides information on the capital invested which allows the Group to generate its
performance.
(v) Capital structure and risk management: Provides information on the Group’s capital structure and
summarises the Group’s Risk Management policies.
(vi) Group structure: Contains information in relation to the Group’s structure and related parties.
(vii) Other disclosures: Summarises other disclosures which are required in order to comply with Australian
Accounting Standards and other authoritative pronouncements.
2 OTHER SIGNIFICANT GROUP ACCOUNTING POLICIES
The consolidated financial report is prepared for the 52 weeks from 31 July 2022 to 29 July 2023.
Below is a summary of significant group accounting policies applicable to the Group which have not been
disclosed elsewhere. The notes to the financial statements, which contain detailed accounting policy notes,
should be read in conjunction with the below Group accounting policies.
(a) BASIS OF FINANCIAL REPORT PREPARATION
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. The financial report has been prepared on a
historical cost basis, except for other financial instruments and listed equity investments at fair value, which
have been measured at fair value as explained in the relevant accounting policies throughout the notes.
The financial report is presented in Australian dollars and all values are rounded to the nearest thousand
dollars ($’000), unless otherwise stated, as the Company is of a kind referred to in ASIC Corporations
(Rounding in Financial/Directors’ Reports) Instrument 2016/191, dated 24 March 2016.
(b) STATEMENT OF COMPLIANCE
The financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
39
39
Notes to the Financial StatementsFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
2 OTHER SIGNIFICANT GROUP ACCOUNTING POLICIES (CONTINUED)
(c) BASIS OF CONSOLIDATION
The consolidated financial statements are those of the consolidated entity, comprising Premier
Investments Limited and its wholly owned subsidiaries as at the end of each financial year. A list of the
Group’s subsidiaries is included in note 27.
Subsidiaries are entities that are controlled by the Group. Control is achieved when the Group has:
-
-
-
Power over the investee;
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns.
All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
Investments in subsidiaries held by Premier Investments Limited are accounted for at cost in the separate
financial statements of the parent entity less any impairment losses. Dividends received from subsidiaries
are recorded as a component of other revenue in the separate statement of comprehensive income of the
parent entity, and do not impact the recorded cost of the investment.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when
the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary.
(d) COMPARATIVE AMOUNTS
The current reporting period, 31 July 2022 to 29 July 2023, represents 52 weeks and the comparative
reporting period is from 1 August 2021 to 30 July 2022 which represents 52 weeks. From time to time,
management may change prior year comparatives to reflect classifications applied in the current year.
(e) SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the Group’s consolidated financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts in the financial statements.
Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent
liabilities, revenue and expenses. Management bases its judgements and estimates on historical
experience and on other various factors it believes to be reasonable under the circumstances, the results
of which form the basis of the carrying values of assets and liabilities that are not readily apparent from
other sources.
Management has identified certain critical accounting policies for which significant judgements, estimates
and assumptions are required. These key judgements, estimates and assumptions have been disclosed as
part of the relevant note to the financial statements. Actual results may differ from those estimated under
different assumptions and conditions and may materially affect financial results or the financial position
reported in future periods.
(f) OFFSETTING OF FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated
statement of financial position if there is a currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities
simultaneously.
Premier Investments Limited 40
40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
2 OTHER SIGNIFICANT GROUP ACCOUNTING POLICIES (CONTINUED)
(g) CURRENT VERSUS NON-CURRENT CLASSIFICATION
The Group presents assets and liabilities in the statement of financial position based on current versus non-
current classification. An asset is current when it is:
-
-
Expected to be realised or intended to be sold in the normal operating cycle, or primarily held for the
purpose of trading, or is expected to be realised within twelve months after the reporting period, or;
Cash and cash equivalents unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as non-current. A liability is current when it is:
-
-
Expected to be settled in the normal operating cycle, or primarily held for the purpose of trading, or is
due to be settled within twelve months after the reporting period, or;
There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.
All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-
current.
(h) FOREIGN CURRENCY TRANSLATION
Items included in the financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (‘the functional currency’). Both the
functional and presentation currency of the parent entity and its Australian subsidiaries is Australian
dollars.
Transactions in foreign currencies are initially recorded in the functional currency by applying the
exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the reporting date. All exchange differences
are taken to profit or loss in the statement of comprehensive income. Non-monetary items that are
measured in terms of historical cost in a foreign currency are translated using the exchange rates at the
dates of the initial transactions.
As at the reporting date the assets and liabilities of the overseas subsidiaries are translated into the
presentation currency of the parent entity at the rate of exchange ruling at the reporting date and the
statements of comprehensive income are translated at the weighted average exchange rates for the
period. Exchange variations resulting from the translations are recognised in the foreign currency
translation reserve in equity.
(i) GOODS AND SERVICES TAX (GST), INCLUDING OTHER VALUE-ADDED TAXES
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST) except:
- When the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable; and
-
Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash
flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation
authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the taxation authority.
41
41
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
2 OTHER SIGNIFICANT GROUP ACCOUNTING POLICIES (CONTINUED)
(j) NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
Changes in accounting policies, disclosures, standards and interpretations
The accounting policies adopted are consistent with those of the previous financial year except for new and
amended Australian Accounting Standards and AASB Interpretations relevant to the Group and its
operations that are effective for the current annual reporting period. There are no new and amended
Accounting Standards and Interpretations that had a material impact on the consolidated financial report of
the Group.
Accounting Standards and Interpretations issued but not yet effective
Recently issued or amended Australian Accounting Standards and Interpretations that have been
identified as those which may be relevant to the Group in future reporting periods, but are not yet effective,
have not been early adopted by the Group for the reporting period ended 29 July 2023. The Group does
not anticipate that the below amended standards and interpretations will have a material impact on the
Group, unless otherwise stated below:
- Amendments to AASB 101: Classification of Liabilities as Current or Non-current
- Definition of Accounting Estimates – Amendments to AASB 108
- Disclosure of Material Accounting Policies – Amendments to AASB 101
-
International Tax Reform Pillar Two Model Rules - In June 2023, the AASB issued AASB 2023-2
Amendments to Australian Accounting standards – International tax reform – Pillar Two Model Rules,
which amends AASB 112 ‘Income Taxes’ and introduces:
- A temporary exception to recognise and disclose information about deferred tax assets and
liabilities related to Pillar Two income taxes.
-
Requirements for entities to disclose qualitative and quantitative information about its exposure to
Pillar Two income taxes, including a separate disclosure of current income tax related to Pillar
Two incomes taxes.
These disclosures are effective for the Group in the next financial year and the impact on the Group’s
financial report is yet to be assessed. The Group will continue to monitor developments in tax
legislation and assess the impact of the new requirements in the financial year 2024.
Premier Investments Limited 42
42
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP PERFORMANCE
3 OPERATING SEGMENTS
Identification of operating segments
The Group determines and presents operating segments based on the information that is internally
provided and used by the chief operating decision maker in assessing the performance of the Group and
in determining the allocation of resources.
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any
of the Group’s other components. The operating segments are identified by management based on the
nature of the business conducted, and for which discrete financial information is available and reported to
the chief operating decision maker on at least a monthly basis.
Segment results that are reported to the chief operating decision maker include items directly attributable
to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise
mainly of corporate assets, head office expenses and income tax assets and liabilities.
Reportable Segments
Retail
The retail segment represents the financial performance of a number of speciality retail fashion chains.
Investment
The investment segment represents investments in securities for both long and short term gains, dividend
income and interest.
Accounting policies
The key accounting policies used by the Group in reporting segments internally are the same as those
contained in these financial statements.
Income tax expense
Income tax expense is calculated based on the segment operating net profit using the Group’s effective
income tax rate.
It is the Group’s policy that if items of revenue and expense are not allocated to operating segments then
any associated assets and liabilities are also not allocated to the segments. This is to avoid asymmetrical
allocations within segments which management believe would be inconsistent.
Segment capital expenditure
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and
equipment, and intangible assets other than goodwill.
The table on the following page presents revenue and profit information for operating segments for the
periods ended 29 July 2023 and 30 July 2022.
43
43
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP PERFORMANCE
3 OPERATING SEGMENTS (CONTINUED)
(A) OPERATING SEGMENTS
RETAIL
INVESTMENT
ELIMINATION
CONSOLIDATED
2023
$’000
2022
$’000
2023
$’000
2022
$’000
2023
$’000
2022
$’000
2023
$’000
2022
$’000
REVENUE AND OTHER INCOME
Revenue from contracts
with customers
1,643,502 1,497,520
-
-
Interest revenue
Other revenue
Other income
Total revenue and other
5,202
165
2,029
321
160
138
8,960
1,000
-
-
- 1,643,502 1,497,520
-
14,162
1,321
202,195
295,986
(197,500) (293,500)
4,860
2,646
-
15,251
-
-
2,029
15,389
income
1,650,898 1,498,139
211,155
312,237
(197,500)
(293,500)
1,664,553 1,516,876
Total revenue per the statement of comprehensive income
1,664,553 1,516,876
RESULTS
Depreciation
Depreciation – right-of-
15,793
19,431
1,505
1,505
-
-
17,298
20,936
use asset
144,583
147,817
-
-
-
5,000
-
-
(1,659)
(2,577)
142,924
145,240
-
-
5,000
-
Impairment of intangible
asset brand names
Interest expense
Share of profit of
associates
Profit before income
tax expense
Income tax expense
13,726
7,169
3,052
1,878
(265)
(185)
16,513
8,862
-
-
30,864
27,085
-
-
30,864
27,085
352,515
353,192
232,050
332,885
(202,428)
(293,414)
382,137
392,663
Net profit after tax per the statement of comprehensive income
(111,059)
(107,489)
271,078
285,174
RETAIL
INVESTMENT
ELIMINATION
CONSOLIDATED
2023
$’000
2022
$’000
2023
$’000
2022
$’000
2023
$’000
2022
$’000
2023
$’000
2022
$’000
ASSETS AND LIABILITIES
Segment assets
1,043,614
841,300
1,568,007 1,583,413
(93,492)
(119,979) 2,518,129 2,304,734
Segment liabilities
639,051
500,476
143,469
163,881
(5,727)
(37,142)
776,793
627,215
Capital expenditure
20,606
8,797
-
-
-
-
20,606
8,797
Premier Investments Limited 44
44
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP PERFORMANCE
3 OPERATING SEGMENTS (CONTINUED)
(B) GEOGRAPHIC AREAS OF OPERATION
AUSTRALIA NEW ZEALAND
ASIA
EUROPE
ELIMINATION CONSOLIDATED
2023
$’000
2023
$’000
2023
$’000
2023
$’000
2023
$’000
2023
$’000
REVENUE AND OTHER INCOME
Revenue from contracts
with customers
1,284,730
160,713
90,204
107,855
-
1,643,502
Other revenue and income
49,170
519
127
(17)
(28,748)
21,051
Total revenue and other
income
1,333,900
161,232
90,331
107,838
(28,748)
1,664,553
Segment non-current assets
1,706,279
39,941
14,519
27,486
42,589
1,830,814
Capital expenditure
18,102
1,559
710
235
-
20,606
AUSTRALIA NEW ZEALAND
ASIA
EUROPE
ELIMINATION CONSOLIDATED
2022
$’000
2022
$’000
2022
$’000
2022
$’000
2022
$’000
2022
$’000
REVENUE AND OTHER INCOME
Revenue from contracts
with customers
1,196,623
147,379
49,954
103,564
-
1,497,520
Other revenue and income
37,989
4
139
30
(18,806)
19,356
Total revenue and other
income
1,234,612
147,383
50,093
103,594
(18,806)
1,516,876
Segment non-current assets
1,478,405
26,180
15,102
28,270
39,700
1,587,657
Capital expenditure
7,733
862
159
43
-
8,797
45
45
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP PERFORMANCE
4 REVENUE AND OTHER INCOME
REVENUE
Revenue from contracts with customers
1,643,502
1,497,520
CONSOLIDATED
2023
$’000
2022
$’000
(Disaggregated revenue from contracts with customers is
presented in note 3B, Operating Segments)
OTHER REVENUE
Dividends received from listed equity investment
Sundry revenue
Interest received
TOTAL OTHER REVENUE
TOTAL REVENUE
OTHER INCOME
4,695
165
14,162
19,022
2,449
197
1,321
3,967
1,662,524
1,501,487
Gain on investment in associate resulting from share issue
Insurance proceeds
Other
TOTAL OTHER INCOME
-
1,866
163
2,029
TOTAL REVENUE AND OTHER INCOME
1,664,553
REVENUE RECOGNITION ACCOUNTING POLICY
15,251
-
138
15,389
1,516,876
Revenue recognition occurs at the point in time when control of the goods is transferred to the customer, generally
at the point of sale or on delivery of the goods.
The Group estimates the value of expected customer returns that will arise as a result of the Group’s returns policy,
which entitles the customer to a refund of returned unused products within the specified timeframe for the respective
brands. At the same time, the Group recognises a right of return asset, being the former carrying amount of the
inventory, less any expected costs to recover the goods the Group expects to be returned by customers as a result
of the returns policy.
The Group operates certain loyalty programmes, which allow customers to accumulate points when products are
purchased, and which can be redeemed for free or discounted product once a minimum number of points have
been accumulated. Loyalty points give rise to a separate performance obligation providing a material right to the
customer, therefore a portion of the transaction price is allocated to the loyalty programme based on the relative
stand-alone selling prices.
The Group recognises a contract liability upon the sale of gift cards and recognises revenue when the customer
redeems the gift card, and the Group fulfils its performance obligation. The Group also recognises revenue on the
portion of unredeemed gift cards for which redemption is unlikely, known as gift card breakage. Gift card breakage
is estimated and recognised as revenue in proportion to the pattern of rights exercised by customers. On expiry of
the gift card, any unused funds are recognised in full as breakage.
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using
the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying amount of the financial asset.
Premier Investments Limited 46
46
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP PERFORMANCE
CONSOLIDATED
NOTES
2023
$’000
2022
$’000
5 EXPENSES
LEASE RENTAL EXPENSES (BENEFITS)
Variable lease expenses
Other lease expenses
COVID-19 related rent concessions
Other Australia and New Zealand holdover rent concessions
NET LEASE RENTAL EXPENSES
DEPRECIATION AND IMPAIRMENT OF NON-CURRENT
ASSETS
Depreciation of property, plant and equipment
Depreciation of right-of-use assets
Impairment of intangible asset brand names
TOTAL DEPRECIATION AND IMPAIRMENT OF NON-
CURRENT ASSETS
FINANCE COSTS
Interest on lease liabilities
Interest on bank loans and overdraft
TOTAL FINANCE COSTS
OTHER EXPENSES INCLUDE:
Net loss on disposal of property, plant and equipment
Loss on investment in associate resulting from share issue
17
12
18
14
12,647
32,541
(1,432)
-
43,756
17,298
142,924
5,000
11,723
23,519
(10,538)
(3,465)
21,239
20,936
145,240
-
165,222
166,176
10,705
5,808
16,513
132
703
5,605
3,257
8,862
201
-
47
47
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP PERFORMANCE
6
INCOME TAX
The major components of income tax expense are:
(a)
INCOME TAX RECOGNISED IN PROFIT OR LOSS
CURRENT INCOME TAX
Current income tax charge
Adjustment in respect of current income tax of previous years
DEFERRED INCOME TAX
CONSOLIDATED
2023
$’000
2022
$’000
99,688
2,070
97,603
(1,757)
Relating to origination and reversal of temporary differences
9,301
11,643
INCOME TAX EXPENSE REPORTED IN THE STATEMENT
OF COMPREHENSIVE INCOME
111,059
107,489
(b) STATEMENT OF CHANGES IN EQUITY
Deferred income tax related to items credited directly to equity:
Net deferred income tax on movements on cash-flow hedges
Net deferred income tax on unrealised gain (loss) on listed
equity investment at fair value
INCOME TAX EXPENSE (BENEFIT) REPORTED IN EQUITY
(c) RECONCILIATION BETWEEN TAX EXPENSE AND THE
ACCOUNTING PROFIT BEFORE TAX MULTIPLIED BY THE
GROUP’S APPLICABLE AUSTRALIAN INCOME TAX RATE
147
17,356
17,503
(1,850)
(802)
(2,652)
Accounting profit before income tax
382,137
392,663
At the Parent Entity’s statutory income tax rate of
30% (2022: 30%)
Adjustment in respect of current income tax of previous years
Expenditure not allowable for income tax purposes
Effect of different rates of tax on overseas income
Income not assessable for tax purposes
Other
AGGREGATE INCOME TAX EXPENSE
114,641
2,070
3,702
(3,776)
(5,697)
119
111,059
117,799
(1,757)
1,852
(5,421)
(4,927)
(57)
107,489
Premier Investments Limited 48
48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP PERFORMANCE
6
INCOME TAX (CONTINUED)
(d) RECOGNISED DEFERRED TAX ASSETS AND LIABILITIES
DEFERRED TAX RELATES TO THE FOLLOWING:
Foreign currency balances
Potential capital gains tax on financial investments
Deferred gains and losses on financial instruments
Inventory provisions
Lease arrangements
Employee provisions
Property, plant and equipment
Other provisions
Other
CONSOLIDATED
2023
$’000
2022
$’000
163
(72,343)
(173)
537
7,018
10,762
2,004
3,365
1,456
195
(50,227)
(26)
571
5,648
10,415
4,393
4,455
4,094
NET DEFERRED TAX LIABILITIES
(47,211)
(20,482)
REFLECTED IN THE STATEMENT OF FINANCIAL
POSITION AS FOLLOWS:
Deferred tax assets
Deferred tax liabilities
NET DEFERRED TAX LIABILITIES
INCOME TAX ACCOUNTING POLICY
31,442
(78,653)
(47,211)
51,426
(71,908)
(20,482)
Income tax expense comprises current tax (amounts payable or receivable within 12 months) and deferred tax
(amounts payable or receivable after 12 months). Tax expense is recognised in profit or loss, unless it relates to
items that have been recognised in equity as part of other comprehensive income or directly in equity. In this
instance, the related tax expense is also recognised in other comprehensive income or directly in equity.
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected
to be recovered from or paid to the tax authorities based on the current and prior period taxable income. The tax
rates and tax laws used to calculate tax amounts are those that are enacted or substantially enacted by the
reporting date.
Deferred income tax
Deferred income tax is recognised on temporary differences at the reporting date between the tax base of the
assets and liabilities and their carrying amounts for financial reporting purposes based on the expected manner
of recovery of the carrying value of an asset or liability.
49
49
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP PERFORMANCE
6
INCOME TAX (CONTINUED)
INCOME TAX ACCOUNTING POLICY (CONTINUED)
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantially enacted at the reporting date.
Deferred income tax liabilities are recognised for all temporary differences except:
- When the deferred income tax liability arises from the initial recognition of an asset or liability in a
transaction that is not a business combination or the initial recognition of a lease and, at the time of the
transaction, affects neither the accounting profit nor the taxable profit or loss: and
- When the taxable temporary difference is associated with investments in subsidiaries, associates and
interest in joint ventures, and the timing of the reversal of the temporary differences can be controlled and it
is probable that the temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, except for the following:
- When the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that is
not a business combination or the initial recognition of a lease and, at the time of the transaction affects
neither the accounting profit nor taxable profit;
- When the deductible temporary difference is associated with investments in subsidiaries, associates and
interest in joint ventures, in which case the deferred tax asset is only recognised to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be
available to utilise the deferred tax asset.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each reporting date and recognised to the extent
that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Tax assets and tax liabilities are offset only if a legally enforceable right exists to set off and the tax assets and
tax liabilities relate to the same taxable entity and the same taxation authority.
Tax consolidation
Premier Investments Limited and its wholly owned Australian controlled entities have implemented a tax
consolidation group. The head entity, Premier Investments Limited and the controlled entities continue to
account for their own current and deferred tax amounts. The Group has applied the Group allocation approach
to determining the appropriate amount of current taxes and deferred taxes to allocate to members of the tax
consolidated group. The agreement provides for the allocation of income tax liabilities between the entities
should the head entity default on its tax payment obligations. At reporting date the possibility of default is
remote.
In addition to its own current and deferred tax amounts, Premier Investments Limited also recognises the
current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax
credits assumed from controlled entities in the tax consolidated group.
KEY ACCOUNTING ESTIMATES AND JUDGEMENTS
Deferred tax assets are recognised for deductible temporary differences as management considers that it is
probable that future taxable profits will be available to utilise those temporary differences.
Premier Investments Limited 50
50
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP PERFORMANCE
6
INCOME TAX (CONTINUED)
KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
Significant management judgement is required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level of future taxable profits together with future tax planning
strategies.
Assumptions about the generation of future taxable profits depend on management's estimates of future cash
flows. These depend on estimates of future sales volumes, operating costs, capital expenditure, dividends and
other capital management transactions. Judgements are also required about the application of income tax
legislation.
These judgements and assumptions are subject to risk and uncertainty, hence there is a possibility that
changes in circumstances will alter expectations, which may impact the amount of deferred tax assets and
deferred tax liabilities recognised in the statement of financial position and the amount of other tax losses and
temporary differences not yet recognised. In such circumstances, some or all of the carrying amounts of
recognised deferred tax assets and liabilities may require adjustment, resulting in a corresponding credit or
charge to profit or loss in the statement of comprehensive income.
CONSOLIDATED
2023
$’000
2022
$’000
7 EARNINGS PER SHARE
The following reflects the income and share data used in the
calculation of basic and diluted earnings per share:
Net profit for the period
271,078
285,174
Weighted average number of ordinary shares used in
calculating:
- basic earnings per share
- diluted earnings per share
NUMBER OF
SHARES
‘000
NUMBER OF
SHARES
‘000
159,166
160,796
158,958
160,070
There have been no other conversions to, calls of, or subscriptions for ordinary shares or issues of potential
ordinary shares since the reporting date and before the completion of this financial report.
EARNINGS PER SHARE ACCOUNTING POLICY
Basic earnings per share are calculated as net profit attributable to members of the parent divided by the
weighted average number of ordinary shares.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for costs of
servicing equity, the after tax effect of dividends and interest associated with dilutive potential ordinary shares that
have been recognised as expenses, and other non-discretionary changes in revenue or expenses during the
period that would result from the dilution of potential ordinary shares, divided by the weighted average number of
ordinary shares and dilutive potential ordinary shares.
51
51
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP PERFORMANCE
CONSOLIDATED
2023
$’000
2022
$’000
8 A) DIVIDENDS
DIVIDENDS APPROVED AND/ OR PAID
Interim approved and paid during the year:
Interim ordinary franked dividends:
2023: 54 cents per share (2022: 46 cents)
85,981
73,137
Special franked dividends:
2023: 16 cents per share (2022: nil cents)
25,476
-
Final approved and paid during the year:
Final ordinary franked dividends:
2022: 54 cents per share (2021: 46 cents)
85,981
73,137
Special franked dividends:
2022: 25 cents per share (2021: nil cents)
TOTAL DIVIDENDS FOR THE YEAR
39,806
237,244
-
146,274
DIVIDENDS APPROVED AND NOT RECOGNISED AS A
LIABILITY:
Final franked dividend for 2023:
60 cents per share (2022: 54 cents)
Special franked dividend for 2023:
nil cents per share (2022: 25 cents)
95,565
85,981
-
39,806
The Directors of Premier Investments Limited approved a final ordinary dividend in respect of the 2023
financial year. The total amount of the final dividend is $95,565,000 (2022: $125,787,000) which represents a
fully franked ordinary dividend of 60 cents per share (2022: Final ordinary dividend of 54 cents per share, and
a special dividend of 25 cents per share).
B) FRANKING CREDIT BALANCE
The amount of franking credits available for the subsequent
financial year are:
franking account balance as at the end of the financial year
at 30% (2022: 30%)
franking (debits) credits that will arise from the settlement
of income tax as at the end of the financial year
franking debits that will be used on the payment of
dividends subsequent to the end of the financial year
TOTAL FRANKING CREDIT BALANCE
CONSOLIDATED
2023
$’000
2022
$’000
333,611
289,705
(12,214)
29,631
(40,956)
280,441
(53,830)
265,506
The tax rate at which paid dividends have been franked is 30% (2022: 30%). Dividends approved will be
franked at the rate of 30% (2022: 30%).
Premier Investments Limited 52
52
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
CONSOLIDATED
2023
$’000
2022
$’000
9
TRADE AND OTHER RECEIVABLES (CURRENT)
Sundry debtors
TOTAL CURRENT TRADE AND OTHER RECEIVABLES
12,678
12,678
11,026
11,026
(a) Impairment losses
Receivables are non-interest-bearing and are generally on 30 to 60 day terms. An allowance for credit losses is
recognised based on the expected credit loss from the time the financial asset is initially recognised. Bad debts
are written off when identified. No material allowance for credit losses has been recognised by the Group during
the financial year ended 29 July 2023 (2022: $nil). During the year, no material bad debt expense (2022: $nil)
was recognised. It is expected that sundry debtor balances will be received when due.
(b) Fair value
Due to the short-term nature of these receivables, their carrying value is considered to approximate their fair
value.
TRADE AND OTHER RECEIVABLES ACCOUNTING POLICY
Trade and other receivables are classified as non-derivative financial assets and are recognised initially at
their transaction value. After initial measurement, these assets are measured at amortised cost, less any
allowance for any expected credit losses.
10
INVENTORIES
Finished goods
TOTAL INVENTORIES AT COST
INVENTORIES ACCOUNTING POLICY
CONSOLIDATED
2023
$’000
2022
$’000
231,157
231,157
224,392
224,392
Inventories are valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present location and conditions are accounted for as follows:
- Finished goods - purchase cost plus a proportion of the purchasing department, freight, handling and
warehouse costs incurred to deliver the goods to the point of sale.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated direct
costs necessary to make the sale.
53
53
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
11 OTHER ASSETS (CURRENT)
Deposits and prepayments
TOTAL OTHER CURRENT ASSETS
12 RIGHT-OF-USE ASSETS
Opening balance
Additions
Remeasurements
Depreciation expense
Exchange differences
TOTAL RIGHT-OF-USE ASSETS
CONSOLIDATED
2023
$’000
2022
$’000
13,042
13,042
10,299
10,299
195,558
8,861
325,100
(142,924)
3,144
389,739
167,087
5,290
171,024
(145,240)
(2,603)
195,558
RIGHT-OF-USE ASSETS ACCOUNTING POLICY
The Group recognises right-of-use assets at the commencement date of the lease, being the date that the
underlying asset is available for use. Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date of the lease less any lease incentives received and an
estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the
site on which it is located or restoring the underlying asset to the condition required by the terms and conditions
of the lease, unless those costs are incurred to produce inventories. Unless the Group is reasonably certain to
obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are
depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use
assets are subject to impairment.
KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS
Impairment of right-of-use assets
The carrying values of the right-of-use assets are reviewed for impairment annually. If an indication of
impairment exists, and where the carrying value of the asset exceeds the estimated recoverable amount, the
assets or cash-generating units (CGU) are written down to their recoverable amount. The recoverable amount
is the greater of fair value less costs of disposal and value-in-use. Value-in-use refers to an asset’s value based
on the expected future cash flows arising from its continued use, discounted to present value using a post-tax
discount rate that reflect current market assessments of the risks specific to the CGU.
The recoverable amount was estimated on an individual store basis, as this has been identified as the CGU of
the Group’s retail segment.
No impairment loss was recognised in relation to the Group’s right-of-use assets during the current financial
year (2022: $nil).
Premier Investments Limited 54
54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
13 TRADE AND OTHER PAYABLES (CURRENT)
Trade creditors
Other creditors and accruals
TOTAL CURRENT TRADE AND OTHER PAYABLES
(a) Fair values
CONSOLIDATED
2023
$’000
2022
$’000
56,779
70,485
127,264
64,873
78,581
143,454
Due to the short-term nature of these payables, their carrying values approximate their fair values.
TRADE AND OTHER PAYABLES ACCOUNTING POLICY
Trade and other payables are recognised and carried at original invoice cost, which is the fair value of the
consideration to be paid in the future for goods and services received whether or not billed to the Group.
14 LEASE LIABILITIES
Opening balance
Additions
Remeasurements
Interest expense
Payments
COVID-19 related rent concessions
Other Australia and New Zealand holdover rent concessions
Exchange rate differences
TOTAL LEASE LIABILITIES
COMPRISING OF:
Current lease liability
Non-current lease liability
TOTAL LEASE LIABILITIES
CONSOLIDATED
2023
$’000
2022
$’000
239,281
11,335
328,962
10,705
(161,754)
(1,432)
-
3,235
430,332
153,045
277,287
430,332
237,485
5,660
177,209
5,605
(169,573)
(10,538)
(3,465)
(3,102)
239,281
158,290
80,991
239,281
LEASE LIABILITIES ACCOUNTING POLICY
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in-
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate initially measured using the index or rate as at the commencement date, and amount expected
to be paid under residual value guarantees. The variable lease payments which are not included in the
measurement of the lease liability are recognised as an expense in the period in which the event or condition
that triggers the payment occurs.
55
55
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
14 LEASE LIABILITIES (CONTINUED)
LEASE LIABILITIES ACCOUNTING POLICY (CONTINUED)
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease
commencement date, if the rate implicit in the lease cannot be readily determined, using inputs such as
government bond rates for the lease period and the Group’s expected borrowing margin. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the in-substance fixed lease payments, a change in the
assessment to purchase the underlying asset, or a change in the amounts expected to be payable under a
residual value guarantee.
The Group applies the low-value assets recognition exemption to leases of certain office equipment that are
considered of low value. Lease payments on low-value assets are recognised as a lease expense on a straight-
line basis over the lease term.
Significant judgement in determining the lease term
The Group determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by
an option to terminate the lease, if it is reasonably certain not to be exercised.
After the lease commencement date, the Group reassesses the lease term if there is a significant event or
change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option
to renew.
Where a lease enters holdover, the Group estimates the expected lease term based on reasonably certain
information available as at balance date. Any adjustments required due to changes in estimates or entering into
a new lease agreement are recognised in the period in which the adjustments are made.
Significant judgement in determining the incremental borrowing rate
The Group has applied judgement to determine the incremental borrowing rate, which affects the amount of
lease liabilities and right-of-use assets recognised. The Group assesses and applies the incremental borrowing
rate on a lease by lease basis at the relevant lease commencement date, based on the term of the lease. The
incremental borrowing rate is determined using inputs including the Group’s expected lending facility margin
and applicable government bond rates at the time of entering into the lease, which reflects the expected lease
term.
COVID-19 related rent concessions
The Group has adopted the practical expedient issued by the Australian Accounting Standards Board whereby
it has not accounted for rent concessions which are a direct consequence of the COVID-19 pandemic as lease
modifications. Instead, the Group recognised these concessions in the statement of comprehensive income for
the year ended 29 July 2023 and 30 July 2022 as a variable amount as and when incurred.
The practical expedient may be applied where the following conditions apply:
-
-
-
The changed lease payments were substantially the same or less than the payments prior to the rent
concession;
The reductions only affect payments which fall due before 30 June 2022; and
There has been no substantive change in the terms and conditions of the lease.
Premier Investments Limited 56
56
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
15 PROVISIONS
CURRENT
Employee entitlements – Annual Leave
Employee entitlements – Long Service Leave
Provision for make-good in relation to leased premises
Refund liability
Other provisions
TOTAL CURRENT PROVISIONS
NON-CURRENT
Employee entitlements – Long Service Leave
Provision for make-good in relation to leased premises
Other provisions
TOTAL NON-CURRENT PROVISIONS
MOVEMENT IN PROVISIONS
Provision for make-good in relation to leased premises
Opening balance
Charged to profit or loss
Utilised during the period
CLOSING BALANCE (CURRENT AND NON-CURRENT)
CONSOLIDATED
2023
$’000
2022
$’000
17,904
12,371
5,925
2,088
1,217
39,505
2,981
10,514
2,362
15,857
16,117
592
(270)
16,439
19,063
11,151
11,576
2,088
627
44,505
2,378
4,541
4,045
10,964
17,085
812
(1,780)
16,117
PROVISIONS ACCOUNTING POLICIES
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
If the effect of the time-value of money is material, provisions are determined by discounting the expected future
cash flows at a pre-tax discount rate that reflects the risks specific to the liability and the time value of money.
Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance
cost.
EMPLOYEE ENTITLEMENTS ACCOUNTING POLICIES
Current annual leave
The provisions for employee entitlements to wages, salaries and annual leave (which are expected to be settled
wholly within 12 months of the reporting date) represent the amount which the Group has a present obligation to
pay, resulting from employees’ services provided up to the reporting date. The provisions have been calculated at
nominal amounts based on current wage and salary rates and include related on-costs.
57
57
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
15 PROVISIONS (CONTINUED)
EMPLOYEE ENTITLEMENTS ACCOUNTING POLICIES (CONTINUED)
Long service leave and non-current annual leave
The liability for long service leave and non-current annual leave (which are not expected to be settled wholly
within 12 months of the reporting date) is recognised in the provision for employee benefits and measured as the
present value of expected future payments to be made in respect of services provided by employees up to the
reporting date. Consideration is given to expected future wage and salary levels, experience of employee
departures, and periods of service. Related on-costs have also been included in the liability.
Expected future payments are discounted using market yields at the reporting date on high quality corporate
bonds with terms to maturity that match as closely as possible the estimated cash outflow.
Retirement benefit obligations
All employees of the Group are entitled to benefits from the Group’s superannuation plan on retirement,
disability or death. The Group operates a defined contribution plan. Contributions to the plan are recognised as
an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash
refund or a reduction in the future payment is made available.
PROVISION FOR MAKE-GOOD IN RELATION TO STORE PLANT AND EQUIPMENT ACCOUNTING POLICY
A provision has been recognised in relation to make-good costs arising from contractual obligations in lease
agreements, in regions where the Group has such a present obligation. The provision recognised represents
the present value of the estimated expenditure required to remove these store plant and equipment.
16 OTHER LIABILITIES
CURRENT
Deferred income
TOTAL CURRENT
DEFERRED INCOME ACCOUNTING POLICY
Unredeemed gift cards are expected to be largely redeemed within a year.
CONSOLIDATED
2023
$’000
2022
$’000
14,307
14,307
16,129
16,129
Premier Investments Limited 58
58
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL INVESTED
17 PROPERTY, PLANT AND EQUIPMENT
CONSOLIDATED
LAND
$’000
BUILDINGS
$’000
PLANT AND
EQUIPMENT
$’000
CAPITAL WORKS
IN PROGRESS
$’000
TOTAL
$’000
21,953
59,577
478,116
4,469
564,115
-
(10,380)
(425,240)
-
(435,620)
21,953
49,197
52,876
4,469
128,495
21,953
50,702
44,460
5,726
18,611
8,198
14,882
(18,611)
-
-
(1,505)
(15,793)
-
-
(132)
4
-
-
-
125,313
20,608
-
(17,298)
(132)
4
-
-
-
-
-
21,953
49,197
52,876
4,469
128,495
21,953
59,577
453,571
8,024
543,125
-
21,953
(8,875)
50,702
(408,937)
44,634
-
(417,812)
8,024
125,313
21,953
52,207
58,885
4,753
137,798
-
-
-
-
-
-
-
2,462
2,890
6,335
(2,890)
(1,505)
(19,431)
-
-
(201)
(145)
-
-
-
8,797
-
(20,936)
(201)
(145)
21,953
50,702
44,460
8,198
125,313
AT 29 JULY 2023
Cost
Accumulated depreciation and
impairment
NET CARRYING AMOUNT
RECONCILIATIONS:
Carrying amount at beginning of
the financial year
Additions
Transfers between classes
Depreciation
Disposals
Exchange differences
Carrying amount at end of the
financial year
AT 30 JULY 2022
Cost
Accumulated depreciation and
impairment
NET CARRYING AMOUNT
RECONCILIATIONS:
Carrying amount at beginning of
the financial year
Additions
Transfers between classes
Depreciation
Disposals
Exchange differences
Carrying amount at end of the
financial year
LAND AND BUILDINGS
The land and buildings with a combined carrying amount of $71,150,000 (2022: $72,655,000) have been
pledged to secure certain interest-bearing borrowings of the Group (refer to note 22).
59
59
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL INVESTED
17 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
PROPERTY, PLANT AND EQUIPMENT ACCOUNTING POLICY
Property, plant and equipment is stated at historical cost less accumulated depreciation and any
accumulated impairment losses. Depreciation is calculated on a systematic basis over the estimated useful
life of the asset as follows:
-
-
-
Buildings
40 years
Store plant and equipment
3 to 10 years
Other plant and equipment
2 to 20 years
Freehold land is not depreciated.
KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS
Estimation of useful lives of assets
The estimation of useful lives of assets has been based on historical experience as well as manufacturers’
warranties (for plant and equipment). In addition, the condition of the assets is assessed at least once per
year and considered against the remaining useful life. Adjustments to useful lives are made when
considered necessary and are accounted for as a change in accounting estimate, in accordance with AASB
108 Accounting Policies, Changes in Accounting Estimates and Errors. Depreciation methods used reflect
the pattern in which the asset’s future economic benefits are expected to be consumed and are reviewed at
least at each financial year-end. Adjustments to depreciation methods are made when considered
necessary and are accounted for as a change in accounting estimate, in accordance with AASB 108
Accounting Policies, Changes in Accounting Estimates and Errors.
Impairment testing of Property, Plant and Equipment and key accounting estimates and assumptions
The carrying values of property, plant and equipment are reviewed for impairment annually. If an indication
of impairment exists, and where the carrying value of the asset exceeds the estimated recoverable amount,
the assets or cash-generating units (CGU) are written down to their recoverable amount. The recoverable
amount is the greater of fair value less costs of disposal and value-in-use. Value-in-use refers to an asset’s
value based on the estimated future cash flows arising from its continued use, discounted to present value
using a post-tax discount rate that reflect current market assessments of the risks specific to the CGU.
These value-in-use calculations use cash flow projections based on financial estimates covering a period of
up to five years, discounting using a post-tax discount rate of 10.5% (2022: 10.5%).
If an asset does not generate largely independent cash inflows, the recoverable amount is determined for
the CGU to which the asset belongs. The recoverable amount was estimated for certain items of plant and
equipment on an individual store basis, as this has been identified as the CGU of the Group’s retail
segment.
No impairment loss was recognised during the current financial year (2022: $nil).
60
Premier Investments Limited 60
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL INVESTED
18
INTANGIBLES
RECONCILIATION OF CARRYING AMOUNTS AT THE BEGINNING AND END OF THE PERIOD
YEAR ENDED 29 JULY 2023
As at 31 July 2022 net of accumulated
amortisation and impairment
Impairment of brand names
Trademark registrations
As at 29 July 2023 net of accumulated
amortisation and impairment
AS AT 29 JULY 2023
Cost (gross carrying amount)
Accumulated amortisation and impairment
NET CARRYING AMOUNT
YEAR ENDED 30 JULY 2022
As at 1 August 2021 net of accumulated
amortisation and impairment
Trademark registrations
As at 30 July 2022 net of accumulated
amortisation and impairment
AS AT 30 JULY 2022
Cost (gross carrying amount)
Accumulated amortisation and impairment
NET CARRYING AMOUNT
CONSOLIDATED
GOODWILL
$’000
BRAND NAMES
$’000
TRADEMARKS
$’000
TOTAL
$’000
477,085
-
-
346,179
(5,000)
-
3,963
-
136
827,227
(5,000)
136
477,085
341,179
4,099
822,363
477,085
-
477,085
376,179
(35,000)
341,179
4,099
-
4,099
857,363
(35,000)
822,363
477,085
346,179
-
-
3,740
223
827,004
223
477,085
346,179
3,963
827,227
477,085
-
477,085
376,179
(30,000)
346,179
3,963
-
3,963
857,227
(30,000)
827,227
61
61
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL INVESTED
18
INTANGIBLES (CONTINUED)
GOODWILL ACCOUNTING POLICY
Goodwill acquired in a business combination is initially measured at cost, being the excess of the cost of the
business combination over the Group’s interest in the net fair value of the acquiree’s identifiable assets,
liabilities and contingent liabilities. Following initial recognition, goodwill is measured at cost less any
accumulated impairment losses. Goodwill is not amortised but is subject to impairment testing.
Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances
indicate that the carrying value may be impaired. Goodwill acquired in a business combination is, from the
date of acquisition, allocated to each of the Group’s cash-generating units (CGUs) that are expected to
benefit from the synergies of the combination. Impairment is determined by assessing the recoverable
amount of the CGU to which the goodwill relates.
Where the recoverable amount of the CGU is less than the carrying amount, an impairment loss is
recognised. Impairment losses recognised for goodwill are not subsequently reversed.
OTHER INTANGIBLE ASSETS (excluding goodwill) ACCOUNTING POLICY
Intangible assets acquired separately are initially measured at cost. Intangible assets acquired in a business
combination are initially recognised at fair value. Following initial recognition, intangible assets are carried at
cost less any accumulated amortisation and any accumulated impairment losses.
The useful lives of intangible assets are assessed as either finite or indefinite.
A summary of the key accounting policies applied to the Group’s intangible assets are as follows:
Useful life assessment?
Brands
Indefinite
Trademarks & Licences
Indefinite
Method used?
Not amortised or revalued
Not amortised or revalued
Internally generated or
acquired?
Acquired
Acquired
Impairment test/recoverable
amount testing
Annually or more frequently if
there are indicators of impairment
Annually or more frequently if
there are indicators of impairment
Brand names, trademarks and licences are assessed as having an indefinite useful life, as this reflects
management’s intention to continue to operate these to generate net cash inflows into the foreseeable
future. These assets are not amortised but are subject to impairment testing.
Intangible assets are tested for impairment where an indicator of impairment exists, or in the case of
indefinite life intangibles, impairment is tested annually and where an indicator of impairment exists.
Where the carrying amount of an intangible asset exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount. The recoverable amount is the higher of the asset’s
value-in-use and fair value less costs of disposal. Value-in use refers to an asset’s value based on the
expected future cash flows arising from its continued use, discounted to present value using a post-tax
discount rate that reflect current market assessments of the risks specific to the asset.
If an asset does not generate largely independent cash inflows, the recoverable amount is determined for
the CGU to which the asset belongs.
62
Premier Investments Limited 62
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL INVESTED
18
INTANGIBLES (CONTINUED)
SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS
The recoverable amounts of CGUs are determined based on the higher of value-in-use calculations or fair
value less costs of disposal. These calculations depend on management estimates and assumptions. In
particular, significant estimates and judgements are made in relation to the key assumptions used in
forecasting future cash flows and the expected growth rates used in these cash flow projections, as well as
the discount rates applied to these cash flows. Management assesses these assumptions each reporting
period and considers the potential impact of changes to these assumptions.
IMPAIRMENT TESTING OF GOODWILL
The key factors contributing to the goodwill relate to the synergies existing within the acquired business and
also synergies expected to be achieved as a result of combining Just Group Limited with the rest of the
Group. Accordingly, goodwill is assessed at a retail segment level, which is also an operating segment for the
Group.
The recoverable amount of the CGU has been determined based upon a range of value-in-use calculations,
using estimated cash flow scenarios for a period of five years plus a terminal value.
The value-in-use calculations have been determined based on scenarios of cash flows using financial
estimates for the 2024 financial year (FY24) and are projected for a further four years (FY25 – FY28) based
on estimated growth rates. As part of the annual impairment test for goodwill, management assesses the
reasonableness of profit margin assumptions by reviewing historical cash flow projections as well as future
growth objectives.
The cash flow projections for FY24 are based on financial estimates approved by senior management and the
Board. These financial estimates are projected for a further four years based on average annual estimated
growth rates for FY25 to FY28 of 2.15% (2022: 2.5%). Cash flow estimates beyond the five year period have
been extrapolated using a growth rate ranging from 1.7% to 1.9% (2022: 1.8% to 2.2%), which reflects the
long-term growth expectations beyond the five year period.
The post-tax discount rate applied to these cash flow projections is 9.6% (2022: 9.7%). The discount rate has
been determined using the weighted average cost of capital which incorporates both the cost of debt and the
cost of capital and adjusted for risks specific to the CGU.
In determining the possible scenarios of cash flows, management considered the reasonably possible
changes in estimated sales growth, estimated EBITDA and discount rates applied to the CGU to which
goodwill relates. These reasonably possible adverse change in key assumptions on which the recoverable
amount is based would not cause the carrying amount of the CGU to exceed its recoverable amount.
IMPAIRMENT TESTING OF BRAND NAMES
Brand names acquired through business combinations have been allocated to the following CGU groups
($’000) as no individual brand name is considered significant:
-
Casual wear - $153,975
- Women’s wear - $137,744
-
Non Apparel - $49,460
The recoverable amounts of brand names acquired in a business combination have been determined on an
individual brand basis based upon value-in-use calculations. The value-in-use calculations have been
determined based upon the relief from royalty method using cash flow estimates for a period of five years plus
a terminal value.
63
63
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL INVESTED
18
INTANGIBLES (CONTINUED)
IMPAIRMENT TESTING OF BRAND NAMES (CONTINUED)
The recoverable amount of brand names has been determined based upon a range of value-in-use
calculations, using estimated cash flow scenarios for a period of five years plus a terminal value. The value-in-
use calculations have been determined based on scenarios of cash flows using financial estimates for the
2024 financial year (FY24) and are projected for a further four years (FY25 – FY28) based on estimated
growth rates.
The cash flow projections for FY24 are based on financial estimates approved by senior management and the
Board. These financial estimates are projected for a further four years based on average annual estimated
growth rates for FY25 to FY28. These extrapolated growth rate ranges at which cash flows have been
estimated for the individual brands within each of the CGU groups were 2.0% to 2.3% (2022: 2.5%).
Cash flow estimates beyond the five year period have been extrapolated using a growth rate ranging from
1.7% to 1.9% (2022: 1.8% to 2.2%), which reflects the long-term growth expectations beyond the five year
period.
The post-tax discount rate applied to the cash flow projections for each of the three CGU groups is 8.5%
(2022: 8.5%). The discount rate has been determined using the weighted average cost of capital which
incorporates both the cost of debt and cost of capital and adjusted for risks specific to the CGU.
Royalty rates have been determined for each brand within the CGU groups by considering the brand’s history
and future expected performance. Factors such as the profitability of the brand, market share, brand
recognition and general conditions in the industry have also been considered in determining an appropriate
royalty rate for each brand. Consideration is also given to the industry norms relating to royalty rates by
analysing market derived data for comparable brands and by considering the notional royalty payments as a
percentage of the divisional earnings before interest and taxation generated by the division in which the brand
names are used. Net royalty rates applied across the three CGU groups range between 3.5% and 8%
(2022: 3.5% and 8%).
In addition to the range of cash flow scenarios, management has considered reasonably possible adverse
changes in key assumptions applied to brands within the relevant CGU groups, each of which have been
subjected to sensitivities. Key assumptions relate to estimated sales growth, net royalty rates and discount
rates applied.
As a result of the annual impairment assessment performed for the 2023 financial year, an impairment
expense of $5.0 million was recognised in relation to brand names within the Casual Wear CGU group. The
impairment expense decreases the carrying value of the brand within the Casual Wear CGU group to
$76.2 million.
The carrying value now approximates its recoverable value. Any adverse movements in key assumptions may
lead to a further impairment. Reasonably possible changes in key assumptions relating to a 10% reduction in
estimated sales projections or a discount rate increase of 50 basis points may lead to a further impairment
loss of up to $3.8 million, which is not considered material to the overall recoverable amount of the CGU.
The brand names were acquired through the acquisition of the Just Group in 2008, and the historical carrying
values assigned to the brands were reflective of trading performance and the retail environment over 15 years
ago. The accounting standards do not allow for a re-allocation of the carrying values of indefinite-life intangible
assets, therefore the significant value created within the collective portfolio of brands subsequent to 2008 is
not reflected in the historical carrying values of these intangible assets.
64
Premier Investments Limited 64
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL INVESTED
19 LISTED EQUITY INVESTMENT AT FAIR VALUE
Investment in listed securities at fair value
TOTAL INVESTMENT AT FAIR VALUE
CONSOLIDATED
2023
$’000
-
-
2022
$’000
75,932
75,932
FAIR VALUE LISTED EQUITY INVESTMENT ACCOUNTING POLICY
The listed equity investment comprised a non-derivative equity instrument not held for trading and related to
an equity investment in Myer Holdings Limited, of 19.88%. The Group has previously made the irrevocable
election to designate the listed equity investment as ‘fair value through other comprehensive income’, without
subsequent reclassification of gains or losses nor impairment to profit or loss, as it is not held for trading, with
only dividends recognised in profit or loss. In 2023, the Group accounted for its investment in Myer Holdings
Limited as an Investment in Associate (refer note 20).
The fair value of equity investments in listed securities is determined by reference to quoted market bid prices
at the close of business on the reporting date.
20
INVESTMENTS IN ASSOCIATES
CONSOLIDATED
2023
$’000
2022
$’000
Movements in carrying amounts
Carrying amount at the beginning of the financial year
312,201
271,372
Fair value of investment in Myer Holdings Limited on
commencement of equity accounting
Share of profit after income tax
(Loss) gain resulting from associate share issue
Share of other comprehensive income
Acquisition of additional shareholding in associate
Dividends received
TOTAL INVESTMENTS IN ASSOCIATES
Breville Group Limited
117,372
30,864
(703)
4,810
22,125
(27,894)
458,775
-
27,085
15,251
8,895
-
(10,402)
312,201
As at 29 July 2023, Premier Investments Limited holds 25.56% (2022: 25.62%) of Breville Group Limited
(“BRG”), a company incorporated in Australia whose shares are quoted on the Australian Securities
Exchange. The principal activities of BRG involves the innovation, development, marketing and distribution of
small electrical appliances.
There were no impairment losses relating to the investment in BRG and no capital commitments or other
commitments relating to the associate. The Group’s share of the profit after tax in its investment in BRG for
the year was $28,169,165 (2022: $27,084,695). As at 29 July 2023, the carrying amount of the Group’s
investment in BRG for the year was $333,666,398 (2022: $312,200,635), and the fair value of the Group’s
interest in BRG as determined based on the quoted market price was $829,269,503 (2022: $760,285,377).
65
65
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL INVESTED
20
INVESTMENTS IN ASSOCIATES (CONTINUED)
Breville Group Limited (continued)
During the period, a loss of $703,234 (30 July 2022: gain of $15,251,000) was recorded in the profit and
loss resulting from an issue of shares by BRG, and the corresponding impact on the Group’s method of
equity accounting. The Group received dividends amounting to $10,950,000 from BRG during the year
(2022: $10,402,000).
The financial year end date of BRG is 30 June. For the purpose of applying the equity method of
accounting, the financial statements of BRG for the year ended 30 June 2023 have been used. The
accounting policies applied by BRG in their financial statements materially conform to those used by the
Group for like transactions and events in similar circumstances.
The following table illustrates summarised financial information relating to the Group’s investment in BRG:
EXTRACT OF BRG’S STATEMENT OF FINANCIAL POSITION
30 JUNE 2023
$’000
30 JUNE 2022
$’000
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
NET ASSETS
820,818
554,034
1,374,852
(321,772)
(283,421)
(605,193)
769,659
844,290
334,862
1,179,152
(343,105)
(221,630)
(564,735)
614,417
Group’s share of BRG net assets
196,725
157,414
EXTRACT OF BRG’S STATEMENT OF COMPREHENSIVE INCOME
Revenue
Profit after income tax
Other comprehensive income
30 JUNE 2023
$’000
1,478,554
110,208
20,262
30 JUNE 2022
$’000
1,418,437
105,717
33,651
Group’s share of BRG profit after income tax
28,169
27,085
Myer Holdings Limited
As at 29 July 2023, Metalgrove Pty Ltd, a subsidiary of Premier Investments Limited, holds 25.79% (2022:
19.88%) of Myer Holdings Limited (“MYR”), a company incorporated in Australia whose shares are quoted on
the Australian Securities Exchange. The principal activities of MYR involves the operation of a number of
department stores across Australia and through its online business. On 4 August 2022, the Group acquired a
further 2.99% in MYR, increasing its investment in MYR to 22.87%. In addition to the investment, Mr Terry
McCartney was appointed to the Board of Directors of Myer Holdings Limited, effective from 13 December
2022. Under the Accounting Standards, the Group is considered to hold significant influence from this date
and commenced equity accounting as of 13 December 2022.The Group acquired a further 2.92% on 27
February 2023, taking its total investment in MYR to 25.79%. The fair value of the Group’s investment in MYR
on 13 December 2022 amounted to $117,372,052 and was deemed to be the cost of the investment in
associate at this date. As at 29 July 2023, the carrying amount of the Group’s investment in MYR for the year
was $125,107,876, and the fair value of the Group’s interest in MYR as determined based on the quoted
market price was $137,666,934.
66
Premier Investments Limited 66
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL INVESTED
20
INVESTMENTS IN ASSOCIATES (CONTINUED)
Myer Holdings Limited (continued)
There were no impairment losses relating to the investment in MYR and no capital commitments or other
commitments relating to the associate. The Group’s share of the profit after tax in its investment in MYR from
13 December 2022 to 29 July 2023 was $2,694,541. The Group received total dividends amounting to
$21,639,000 during the year, of which $16,944,000 has been recorded against the investment in associate,
and $4,695,000 was recorded in Other Revenue, as this dividend was received prior to the equity accounting
commencement date.
The financial year end date of MYR is 29 July 2023. For the purpose of applying the equity method of
accounting, the financial statements of MYR for the year ended 29 July 2023 have been used. The
accounting policies applied by MYR in their financial statements materially conform to those used by the
Group for like transactions and events in similar circumstances.
Subsequent to the end of the 2023 financial year, the Group acquired a further 3.0% shareholding in MYR,
increasing its investment to 28.79% as at 30 August 2023.
The following table illustrates summarised financial information relating to the Group’s investment in MYR:
EXTRACT OF MYR’S STATEMENT OF FINANCIAL POSITION
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
NET ASSETS
Group’s share of MYR net assets
EXTRACT OF MYR’S STATEMENT OF COMPREHENSIVE INCOME
Revenue
Profit after income tax
Other comprehensive income
Group’s share of MYR profit after income tax (apportioned for the year)
INVESTMENTS IN ASSOCIATES ACCOUNTING POLICY
29 JULY 2023
$’000
585,400
1,851,400
2,436,800
640,700
1,555,600
2,196,300
240,500
62,025
29 JULY 2023
$’000
2,565,800
60,400
(900)
2,695
An associate is an entity over which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint control
over those policies. The considerations made in determining significant influence are similar to those
necessary to determine control over subsidiaries.
The Group accounts for its investments in associates using the equity method of accounting in the
consolidated financial statements. Under the equity method, the investment in the associates is initially
recognised at cost. Thereafter, the carrying amount of the investment is adjusted to recognise the Group’s
share of profit after tax of the associate, which is recognised in profit or loss, and the Group’s share of other
comprehensive income, which is recognised in other comprehensive income in the statement of
comprehensive income.
67
67
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL INVESTED
20
INVESTMENTS IN ASSOCIATES (CONTINUED)
INVESTMENT IN ASSOCIATES ACCOUNTING POLICY (CONTINUED)
Dividends received from the associate generally reduces the carrying amount of the investment. After
application of the equity method, the Group determines whether it is necessary to recognise an impairment
loss on its investment in an associate. At each reporting period, the Group determines whether there is
objective evidence that the investment in the associate is impaired. If there is such evidence, the Group
calculates the amount of impairment as the difference between the recoverable amount of the associate and
its carrying value, then recognises the impairment loss in profit or loss in the statement of comprehensive
income.
CAPITAL STRUCTURE AND RISK MANAGEMENT
21 NOTES TO THE STATEMENT OF CASH FLOWS
(a) RECONCILIATION OF CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Short-term deposits
TOTAL CASH AND CASH EQUIVALENTS
(b)
RECONCILIATION OF NET PROFIT AFTER INCOME TAX
TO NET CASH FLOWS FROM OPERATIONS
Net profit for the period after tax
Adjustments for:
Depreciation and impairment
Share of profit of associates
Loss (gain) on investments in associates from share issue
Dividends received from listed equity investment
Borrowing costs
Net loss on disposal of property, plant and equipment
Share-based payments expense
Movement in cash flow hedge reserve
Net exchange differences
Changes in assets and liabilities:
Increase in trade and other receivables
(Increase) decrease in other current assets
Increase in inventories
(Increase) decrease in other financial assets
Decrease in deferred tax assets
Decrease in provisions
Increase in deferred tax liabilities
Decrease in trade and other payables
Decrease in other financial liabilities
(Decrease) increase in deferred income
Decrease in income tax payable
NET CASH FLOWS FROM OPERATING ACTIVITIES
CONSOLIDATED
2023
$’000
2022
$’000
211,999
205,648
417,647
204,005
267,268
471,273
271,078
285,174
165,222
(30,864)
703
(4,695)
16
132
7,207
344
1,235
(1,652)
(2,743)
(6,765)
(490)
1,826
(429)
6,745
(3,680)
-
(1,822)
(42,313)
359,055
166,176
(27,085)
(15,251)
(2,449)
56
201
6,098
(4,316)
(378)
(1,536)
27
(15,632)
6,986
4,870
(594)
3,589
(24,183)
(815)
783
(26,244)
355,477
68
Premier Investments Limited 68
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
21 NOTES TO THE STATEMENT OF CASH FLOWS
(CONTINUED)
(c) FINANCE FACILITIES
Working capital and bank overdraft facility
Used
Unused
Finance facility
Used
Unused
Bank guarantee facility
Used
Unused
Interchangeable facility
Used
Unused
Total facilities
Used
Unused
TOTAL
CONSOLIDATED
2023
$’000
2022
$’000
-
-
-
69,000
100,000
169,000
-
-
-
4,184
8,816
13,000
73,184
108,816
182,000
-
-
-
69,000
50,000
119,000
-
-
-
4,413
8,587
13,000
73,413
58,587
132,000
CASH AND CASH EQUIVALENTS ACCOUNTING POLICY
Cash and cash equivalents in the statement of financial position comprise cash on hand and in banks,
money market investments readily convertible to cash within two working days and short-term deposits with
an original maturity of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank overdrafts.
69
69
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
22
INTEREST-BEARING LIABILITIES
NON-CURRENT
Bank loans* unsecured
Bank loans ** secured
TOTAL INTEREST-BEARING LIABILITIES
CONSOLIDATED
2023
$’000
2022
$’000
-
69,000
69,000
-
69,000
69,000
* Bank loans are subject to a negative pledge and cross guarantee within the Just Group Ltd group. Premier Investments
Limited is not a participant or guarantor of the Just Group Ltd financing facilities.
** Premier Investments Limited obtained bank borrowings amounting to $69 million. A $19 million borrowing is secured by a
mortgage over Land and Buildings, representing the National Distribution Centre in Truganina, Victoria. During the year ended
30 July 2022, this borrowing was refinanced and is repayable in full at the end of 5 years, being January 2027. Premier
Investments Limited obtained a further $50 million borrowing which is secured by a mortgage over Land and Buildings,
representing an office building in Melbourne, Victoria. During the year ended 30 July 2022, this borrowing was refinanced and
is repayable in full at the end of 5 years, being December 2026.
(a) Fair values
The carrying values of the Group’s current and non-current interest-bearing liabilities approximate their fair
values.
(b) Defaults and breaches
During the current and prior years, there were no defaults or breaches on any of the loans.
(c) Changes in interest-bearing liabilities arising from financing activities
CONSOLIDATED
30 JULY 2022
$’000
CASH
FLOWS
$’000
OTHER
$’000
29 JULY 2023
$’000
Non-current interest-bearing liabilities
TOTAL INTEREST-BEARING LIABILITIES
69,000
69,000
-
-
-
-
69,000
69,000
‘Other’ includes the effect of the amortisation of the capitalised borrowing costs, which are amortised over
the life of the facility.
INTEREST-BEARING LIABILITIES ACCOUNTING POLICY
Interest-bearing liabilities are initially recognised at the fair value of the consideration received net of issue
costs associated with the borrowing.
After initial recognition, such items are subsequently measured at amortised cost using the effective interest
method. Amortised cost is calculated by taking into account any issue costs, and any discount or premium
on settlement.
Fees paid on the establishment of loan facilities are amortised over the life of the facility while on-
going borrowing costs are expensed as incurred.
70
Premier Investments Limited 70
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
23 CONTRIBUTED EQUITY
Ordinary share capital
608,615
608,615
CONSOLIDATED
2023
$’000
2022
$’000
(a) MOVEMENTS IN SHARES ON ISSUE
Ordinary shares on issue 31 July 2022
Ordinary shares issued during the year (i)
Ordinary shares on issue at 29 July 2023
Ordinary shares on issue 1 August 2021
Ordinary shares issued during the year (i)
Ordinary shares on issue at 30 July 2022
NO. (‘000)
$‘000
158,993
232
159,225
158,864
129
158,993
608,615
-
608,615
608,615
-
608,615
Fully paid ordinary shares carry one vote per share and carry the rights to dividends.
(i)
A total of 231,603 ordinary shares (2022: 129,077) were issued in relation to the performance rights plan.
(b) CAPITAL MANAGEMENT
The Group’s objective is to ensure the entity continues as a going concern as well as to maintain optimal
returns to shareholders. The Group also aims to maintain a capital structure that ensures the lowest cost of
capital available to the Group.
The capital structure of the Group consists of debt which includes interest-bearing borrowings, cash and cash
equivalents and equity attributable to the equity holders of Premier Investments Limited, comprising of
contributed equity, reserves and retained earnings.
The Group operates primarily through its two business segments, investments and retail. The investments
segment is managed and operated through the parent company. The retail segment operates through
subsidiaries established in their respective markets and maintains a central borrowing facility through a
subsidiary, to meet the retail segment’s funding requirements and to enable the Group to find the optimal debt
and equity balance.
The Group’s capital structure is reviewed on a periodic basis in the context of prevailing market conditions,
and appropriate steps are taken to ensure the Group’s capital structure and capital management initiatives
remain in line with the Board’s objectives.
(c) EXTERNALLY IMPOSED CAPITAL REQUIREMENTS
Just Group Ltd, a subsidiary of Premier Investments Limited, is subject to a number of financial undertakings
as part of its financing facility agreement. These undertakings have been satisfied during the period.
The Group is not subject to any capital requirements imposed by regulators or other prudential authorities.
71
71
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
24 RESERVES
RESERVES COMPRISE:
Capital profits reserve
Foreign currency translation reserve (a)
Cash flow hedge reserve (b)
Performance rights reserve (c)
Fair value reserve (d)
TOTAL RESERVES
(a) FOREIGN CURRENCY TRANSLATION RESERVE
Nature and purpose of reserve
Reserve is used to record exchange differences arising from
the translation of the financial statements of foreign
subsidiaries.
- Movements in the reserve
Opening balance
Foreign currency translation of overseas subsidiaries
Net movement in associate entities’ reserves
CLOSING BALANCE
(b) CASH FLOW HEDGE RESERVE
Nature and purpose of reserve
Reserve records the portion of the gain or loss on a hedging
instrument in a cash flow hedge that is determined to be an
effective hedge.
- Movements in the reserve
Opening balance
Net (loss) gain on cash flow hedges
Transferred to statement of financial position/
profit or loss
Deferred income tax movement on cash flow hedges
CLOSING BALANCE
CONSOLIDATED
2023
$’000
2022
$’000
464
19,227
405
34,520
(28,920)
25,696
8,604
5,814
4,809
19,227
61
(229)
720
(147)
405
464
8,604
61
27,313
(40,729)
(4,287)
2,801
(3,092)
8,895
8,604
4,377
3,561
(9,727)
1,850
61
72
Premier Investments Limited 72
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
24 RESERVES (CONTINUED)
(c) PERFORMANCE RIGHTS RESERVE
Nature and purpose of reserve
Reserve is used to record the cumulative amortised value of
performance rights issued to key senior employees, net of
the value of performance shares acquired under the
performance rights plan.
- Movements in the reserve
Opening balance
Performance rights expense for the year
CLOSING BALANCE
(d) FAIR VALUE RESERVE
Nature and purpose of reserve
Reserve is used to record unrealised gains and losses on
fair value revaluation of listed equity investment at fair value.
- Movements in the reserve
Opening balance
Unrealised gain (loss) on revaluation of listed investment
Net Deferred income tax movement on listed investment
CLOSING BALANCE
25 OTHER FINANCIAL INSTRUMENTS
CURRENT ASSETS
Derivatives designated as hedging instruments
Forward currency contracts – cash flow hedges
TOTAL CURRENT ASSETS
(a) DERIVATIVE INSTRUMENTS USED BY THE GROUP
(i) Forward currency contracts – cash flow hedges
CONSOLIDATED
2023
$’000
2022
$’000
27,313
7,207
34,520
21,215
6,098
27,313
(40,729)
29,165
(17,356)
(28,920)
(38,858)
(2,673)
802
(40,729)
577
577
87
87
The majority of the Group’s inventory purchases are denominated in US Dollars. In order to protect against
exchange rates movements, the Group has entered into forward exchange contracts to predominantly
purchase US Dollars.
The forward currency contracts are considered to be highly effective hedges as they are matched against
forecast inventory purchases and are timed to mature when payments are scheduled to be made. Any gain or
loss on the contracts attributable to the hedge risk are recognised in other comprehensive income and
accumulated in the hedge reserve in equity. The cash flows are expected to occur between one to twelve
months from 29 July 2023 and the profit or loss within cost of sales will be affected over the next year as the
inventory is sold.
73
73
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
25 OTHER FINANCIAL INSTRUMENTS (CONTINUED)
(a) DERIVATIVE INSTRUMENTS USED BY THE GROUP (CONTINUED)
(i) Forward currency contracts – cash flow hedges (continued)
At reporting date, the details of outstanding forward currency contracts are:
CONSOLIDATED
2023
$’000
2022
$’000
2023
2022
NOTIONAL AMOUNTS $AUD
AVERAGE EXCHANGE RATE
11,600
-
-
-
0.6896
-
-
-
NOTIONAL AMOUNTS $NZD
AVERAGE EXCHANGE RATE
3,118
-
1,153
-
0.6466
0.6853
-
-
Buy USD / Sell AUD
Maturity < 6 months
Maturity 6 – 12 months
Buy USD / Sell NZD
Maturity < 6 months
Maturity 6 – 12 months
OTHER FINANCIAL INSTRUMENTS AND HEDGING ACCOUNTING POLICY
The Group uses derivative financial instruments such as forward currency contracts to hedge its foreign
currency risks. These derivative financial instruments are initially recognised at fair value on the date on which
the derivative contract is entered into and are subsequently remeasured at fair value at subsequent reporting
dates.
Derivatives are carried as financial assets when their fair value is positive and as financial liabilities when their
fair value is negative. Any gains or losses arising from changes in the fair value of derivatives, except for those
that qualify as cash flow hedges and are considered to be effective, are taken directly to profit or loss for the
period.
Cash flow hedges
Cash flow hedges are hedges of the Group’s exposure to variability in cash flows that is attributable to highly
probable future purchases as well as cash flows attributable to a particular risk associated with a recognised
asset or liability that is a firm commitment and that could affect the statement of comprehensive income. The
Group’s cash flow hedges that meet the strict criteria for hedge accounting are accounted for by recognising the
effective portion of the gain or loss on the hedging instrument directly in other comprehensive income and
accumulated in the cash flow hedge reserve in equity, while the ineffective portion due to counterparty credit risk
is recognised in profit or loss. Amounts taken to equity are reclassified out of equity and included in the
measurement of the hedged transaction (finance costs or inventory purchases) when the forecast transaction
occurs.
If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its
designation as a hedge is revoked (due to being ineffective), amounts previously recognised in equity remain
in equity until the forecast transaction occurs.
Premier Investments Limited 74
74
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES
The Group’s principal financial instruments comprise cash and cash equivalents, derivative financial
instruments, listed equity investments at fair value, receivables, payables, bank overdrafts and interest-bearing
liabilities.
RISK EXPOSURES AND RESPONSES
The Group manages its exposure to key financial risks in accordance with Board-approved policies which are
reviewed annually and includes liquidity risk, foreign currency risk, interest rate risk and credit risk. The
objective of the policy is to support the delivery of the Group’s financial targets whilst protecting future financial
security.
The Group uses different methods to measure and manage different types of risks to which it is exposed.
These include, monitoring levels of exposure to interest rate and foreign exchange risk and assessment of
market forecasts for interest rate and foreign exchange prices. Liquidity risk is monitored through development
of future cash flow forecast projections.
CREDIT RISK
The overwhelming majority of the Group’s sales are on cash terms with settlement within 24 hours. As such,
the Group’s exposure to credit risk is minimal. Receivable balances are monitored on an ongoing basis with
the result that the Group’s exposure to bad debts is not significant.
There are no significant concentrations of credit risk within the Group and financial instruments are spread
amongst a number of financial institutions.
With respect to credit risk arising mainly from cash and cash equivalents and certain derivative instruments,
the Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to
the carrying amount of these instruments. Since the Group trades only with recognised creditworthy third
parties, there is no requirement for collateral by either party.
Credit risk for the Group also arises from financial guarantees that members of the Group act as guarantor. At
29 July 2023, the maximum exposure to credit risk of the Group is the amount guaranteed as disclosed in
note 34.
INTEREST RATE RISK
The Group’s exposure to market interest rates relates primarily to its cash and cash equivalents that it holds
and interest-bearing liabilities.
At reporting date, the Group had the following mix of financial assets and liabilities exposed to variable interest
rate risk that are not designated in cash flow hedges:
Financial Assets
Cash and cash equivalents
Financial Liabilities
Bank loans AUD
NET FINANCIAL ASSETS
75
NOTES
21
22
CONSOLIDATED
2023
$’000
417,647
417,647
69,000
69,000
348,647
2022
$’000
471,273
471,273
69,000
69,000
402,273
75
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
INTEREST RATE RISK (continued)
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Group’s objective of managing interest rate risk is to
minimise the Group’s exposure to fluctuations in interest rates that might impact its interest revenue, interest
expense and cash flow. The Group manages this by locking in a portion of its cash and cash equivalents into
term deposits. The maturity of term deposits is determined based on the Group’s cash flow forecast.
The Group manages its interest rate risk relating to interest-bearing liabilities by having access to both fixed
and variable rate debt which can be drawn down.
Interest rate sensitivity
i)
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the portion
of cash and cash equivalents and interest-bearing liabilities affected. A 100 (2022:100) basis point increase
and decrease in Australian interest rates represents management's assessment of the reasonably possible
change in interest rates. The table indicates an increase or decrease in the Group’s profit after tax.
Impacts of reasonably possible movements:
CONSOLIDATED
+1.0% (100 basis points)
-1.0% (100 basis points)
POST-TAX PROFIT TO
INCREASE (DECREASE) BY:
2023
$’000
2,441
(2,441)
2022
$’000
3,024
(3,024)
Significant assumptions used in the interest rate sensitivity analysis include:
- Reasonably possible movements in interest rates were determined based on the Group’s current credit
rating and mix of debt in Australian and foreign countries, relationships with financial institutions, the level of
debt that is expected to be renewed as well as a review of the last two years’ historical movements and
economic forecasters’ expectations.
- The net exposure at reporting date is representative of what the Group was and is expecting to be exposed
to in the next twelve months.
- The sensitivity analysis assumes all other variables are held constant, and the change in interest rates take
place at the beginning of the financial year and are held constant throughout the reporting period.
FOREIGN OPERATIONS
The Group has operations in Australia, New Zealand, Singapore, Hong Kong, Malaysia, The Republic of
Ireland and the United Kingdom. As a result, movements in the Australian Dollar and the currencies applicable
to these foreign operations affect the Group’s statement of financial position and results from operations.
From time to time the Group obtains New Zealand Dollar denominated financing facilities from a financial
institution to provide a natural hedge of the Group’s exposure to movements in the Australian Dollar and New
Zealand Dollar (AUD/NZD) on translation of the New Zealand statement of financial position. In addition, the
Group, on occasion, hedges its cash flow exposure to movements in the AUD/NZD. The Group also on
occasion, hedges its cash flow exposure to movements in the AUD/SGD, AUD/GBP, AUD/MYR and
AUD/EUR.
Premier Investments Limited 76
76
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FOREIGN CURRENCY TRANSACTIONS
The Group has exposures to foreign currencies principally arising from purchases by operating entities in
currencies other than their functional currency. Over 80% of the Group’s purchases are denominated in
United States Dollar (USD), which is not the functional currency of any Australian entities or any of the foreign
operating entities.
The Group considers its exposure to USD arising from the purchases of inventory to be a long-term and
ongoing exposure. In order to protect against exchange rate movements, the Group enters into forward
exchange contracts to purchase US Dollars. These forward exchange contracts are designated as cash flow
hedges that are subject to movements through equity and profit or loss respectively as foreign exchange rates
move.
The Group’s foreign currency risk management policy provides guidelines for the term over which foreign
currency hedging will be undertaken for part or all of the risk. This term cannot exceed two years. Factors
taken into account include:
-
-
-
the implied market volatility for the currency exposure being hedged and the cost of hedging, relative to
long-term indicators;
the level of the base currency against the currency risk being hedged, relative to long-term indicators;
the Group’s strategic decision-making horizon; and
- other factors considered relevant by the Board
The policy requires periodic reporting to the Audit and Risk Committee, and its application is subject to
oversight from the Chairman of the Audit and Risk Committee or the Chairman of the Board. The policy allows
the use of forward exchange contracts and foreign currency options.
At reporting date, the Group had the following exposures to movements in the United States Dollar (USD),
New Zealand Dollar (NZD), Singapore Dollar (SGD), Pound Sterling (GBP), Malaysian Ringgit (MYR), and
Euro (EUR):
2023
CONSOLIDATED
FINANCIAL ASSETS
USD
$’000
NZD
$’000
SGD
$’000
GBP
$’000
MYR
$’000
EUR
$’000
Cash and cash equivalents
163
30,240
21,120
24,378
8,548
990
Trade and other receivables
Derivative financial assets
2,284
577
-
-
49
-
-
-
-
-
-
-
3,024
30,240
21,169
24,378
8,548
990
FINANCIAL LIABILITIES
Trade and other payables
42,296
42,296
4,820
4,820
258
258
8,243
8,243
-
-
-
-
NET EXPOSURE
(39,272)
25,420
20,911
16,135
8,548
990
77
77
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FOREIGN CURRENCY TRANSACTIONS (CONTINUED)
2022
CONSOLIDATED
FINANCIAL ASSETS
USD
$’000
NZD
$’000
SGD
$’000
GBP
$’000
MYR
$’000
EUR
$’000
Cash and cash equivalents
7,616
29,779
13,015
19,767
7,295
793
Trade and other receivables
Derivative financial assets
876
87
-
-
58
-
-
-
-
-
-
-
8,579
29,779
13,073
19,767
7,295
793
FINANCIAL LIABILITIES
Trade and other payables
44,395
44,395
5,757
5,757
1,043
1,043
3,850
3,850
-
-
-
-
NET EXPOSURE
(35,816)
24,022
12,030
15,917
7,295
793
The Group has forward currency contracts designated as cash flow hedges that are subject to movements
through other comprehensive income and profit or loss respectively as foreign exchange rates move (refer to
Note 24).
FOREIGN CURRENCY RISK
The following sensitivity is based on the foreign exchange risk exposures in existence at the reporting date:
POST-TAX PROFIT
HIGHER/(LOWER)
OTHER COMPREHENSIVE INCOME
HIGHER/(LOWER)
CONSOLIDATED
Impacts of reasonably possible
movements:
CONSOLIDATED
AUD/USD + 10%
AUD/USD – 10.0%
AUD/NZD + 10%
AUD/NZD – 10.0%
AUD/SGD + 10%
AUD/SGD – 10.0%
AUD/GBP + 10%
AUD/GBP – 10.0%
AUD/MYR + 10%
AUD/MYR – 10.0%
AUD/EUR + 10%
AUD/EUR – 10.0%
2023
$’000
3,619
(4,432)
(2,311)
2,824
(1,901)
2,323
(1,467)
1,793
(777)
950
(90)
110
2022
$’000
3,263
(3,989)
(2,184)
2,669
(1,094)
1,337
(1,447)
1,769
(663)
811
(72)
88
2023
$’000
(555)
832
-
-
-
-
-
-
-
-
-
-
2022
$’000
(96)
1
-
-
-
-
-
-
-
-
-
-
Premier Investments Limited 78
78
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FOREIGN CURRENCY RISK (CONTINUED)
Significant assumptions used in the foreign currency exposure sensitivity analysis include:
- Reasonably possible movements in foreign exchange rates were determined based on a review of the last
two years historical movements and economic forecasters’ expectations.
- The net exposure at reporting date is representative of what the Group was and is expecting to be
exposed to in the next twelve months from reporting date.
- The effect on other comprehensive income is the effect on the cash flow hedge reserve.
- The sensitivity does not include financial instruments that are non-monetary items as these are not
considered to give rise to currency risk.
LIQUIDITY RISK
Liquidity risk refers to the risk of encountering difficulties in meeting obligations associated with financial
liabilities and other cash flow commitments. Liquidity risk management is ensuring that there are sufficient
funds available to meet financial commitments in a timely manner and planning for unforeseen events which
may curtail cash flows and cause pressure on liquidity. The Group keeps its short-, medium- and long-term
funding requirements under constant review. Its policy is to have sufficient committed funds available to meet
medium term requirements, with flexibility and headroom to make acquisitions for cash in the event an
opportunity should arise.
The Group has at reporting date, $212.0 million (2022: $204.0 million) cash held in deposit with 11am at call
and the remaining $205.6 million (2022: $267.3 million) cash held in deposit with maturity terms ranging from
30 to 220 days (2022: 30 to 180 days). Hence management believe there is no significant exposure to liquidity
risk at 29 July 2023 and 30 July 2022.
The Group aims to maintain a balance between continuity of funding and flexibility through the use of bank
overdrafts and bank loans with a variety of counterparties.
At reporting date, the remaining undiscounted contractual maturities of the Group’s financial liabilities are:
CONSOLIDATED
FINANCIAL YEAR ENDED 29 JULY 2023
FINANCIAL YEAR ENDED 30 JULY 2022
CONSOLIDATED
MATURITY 0 - 12
MONTHS
MATURITY > 12
MONTHS
MATURITY 0 - 12
MONTHS
MATURITY > 12
MONTHS
$’000
$’000
$’000
$’000
FINANCIAL LIABILITIES
Trade and other payables
Bank loans
Lease liabilities
Forward currency contracts
127,264
3,837
153,045
14,718
298,864
-
78,284
309,688
-
387,972
143,454
2,165
158,290
1,152
305,061
-
76,402
90,440
-
166,842
79
79
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The Group measures financial instruments, such as derivatives and listed equity investments at fair value, at
fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes
place in either the principal market for the asset or liability or, in the absence of a principal market, the most
advantageous market for the asset or liability, which is accessible to the Group.
In determining the fair value of an asset or liability, the Group uses market observable data, to the extent
possible. The fair value of financial assets and financial liabilities is based on market prices (where a market
exists) or using other widely accepted methods of valuation.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the following fair value hierarchy, based on the lowest level input that is significant to the fair value
measurement as a whole:
Level 1 – the fair value is calculated using quoted price in active markets for identical assets or liabilities.
Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable
market data.
FINANCIAL YEAR ENDED 29 JULY 2023
FINANCIAL YEAR ENDED 30 JULY 2022
CONSOLIDATED
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
$’000
$’000
$’000
$’000
$’000
$’000
FINANCIAL ASSETS
Listed equity investment at fair value
Foreign Exchange Contracts
-
-
-
577
-
-
75,932
-
-
87
-
-
There have been no transfers between Level 1, Level 2 and Level 3 during the financial year.
At 29 July 2023 and 30 July 2022, the fair values of cash and cash equivalents, short-term receivables and
payables approximate their carrying values. The carrying value of interest-bearing liabilities is considered to
approximate the fair value, being the amount at which the liability could be settled in a current transaction
between willing parties.
Foreign exchange contracts are initially recognised in the statement of financial position at fair value on the date
which the contract is entered into, and subsequently remeasured to fair value. Foreign exchange contracts are
measured based on observable spot exchange rates, the yield curves of the respective currencies as well as
the currency basis spread between the respective currencies.
Premier Investments Limited 80
80
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP STRUCTURE
27 SUBSIDIARIES
The consolidated financial statements include that of Premier Investments Limited (ultimate parent entity) and the
subsidiaries listed in the following table. (* Indicates not trading as at the date of this report)
Kimtara Investments Pty Ltd
Premfin Pty Ltd
Springdeep Investments Pty Ltd
Prempref Pty Ltd
Metalgrove Pty Ltd
Just Group Limited
Just Jeans Group Pty Limited
Just Jeans Pty Limited
Jay Jays Trademark Pty Limited
Just-Shop Pty Limited
Peter Alexander Sleepwear Pty Limited
Old Blues Pty Limited
Kimbyr Investments Limited
Jacqui E Pty Limited
Jacqueline-Eve Fashions Pty Limited *
Jacqueline-Eve (Hobart) Pty Limited *
Jacqueline-Eve (Retail) Pty Limited *
Jacqueline-Eve (Leases) Pty Limited *
Sydleigh Pty Limited *
Old Favourites Blues Pty Limited *
Urban Brands Retail Pty Ltd *
Portmans Pty Limited
Dotti Pty Ltd
Smiggle Pty Limited
Just Group International Pty Limited *
Smiggle Group Holdings Pty Limited *
Smiggle International Pty Limited *
Smiggle Singapore Pte Ltd
Just Group International HK Limited*
Smiggle HK Limited*
Just Group USA Inc.*
Peter Alexander USA Inc.*
Smiggle USA Inc.*
Just UK International Limited*
Smiggle UK Limited
Peter Alexander UK Limited*
Smiggle Ireland Limited
ETI Holdings Limited*
Roskill Hill Limited*
RSCA Pty Limited*
RSCB Pty Limited*
Just Group Singapore Private Ltd *
Peter Alexander Singapore Private Ltd *
Smiggle Stores Malaysia SDN BHD
81
COUNTRY OF INCORPORATION
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
New Zealand
Australia
2023 INTEREST
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2022 INTEREST
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Singapore
Hong Kong
Hong Kong
USA
USA
USA
UK
UK
UK
Ireland
New Zealand
New Zealand
Australia
Australia
Singapore
Singapore
Malaysia
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
81
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP STRUCTURE
28 PARENT ENTITY INFORMATION
The accounting policies of Premier Investments Limited, being the parent entity, which have been applied in
determining the financial information shown below, are the same as those applied in the consolidated financial
statements.
(a) Summary financial information
Statement of financial position
Current assets
Total assets
Current liabilities
Total liabilities
Shareholders’ equity
Issued capital
Reserves:
- Foreign currency translation reserve
- Performance rights reserve
Retained earnings
Net profit for the period
Other comprehensive loss for the period, net of tax
(b) Guarantees entered into by the parent entity
2023
$’000
2022
$’000
276,578
1,632,906
9,873
101,287
334,021
1,656,004
30,690
117,370
608,615
608,615
14,504
34,520
873,981
218,074
4,949
9,554
27,313
893,152
323,984
9,053
The parent entity has provided no financial guarantees in respect of bank overdrafts and loans of subsidiaries
(2022: $nil).
The parent entity has also given no unsecured guarantees in respect of leases of subsidiaries or bank
overdrafts of subsidiaries (2022: $nil).
(c) Contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities as at 29 July 2023 (2022: $nil).
(d) Contractual commitments for the acquisition of property, plant or equipment
The parent entity did not have any contractual commitments to purchase property, plant and equipment as
at 29 July 2023 or 30 July 2022.
Premier Investments Limited 82
82
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
GROUP STRUCTURE
29 DEED OF CROSS GUARANTEE
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, dated 17 December 2016,
relief has been granted to certain wholly-owned subsidiaries in the Australian Group from the Corporations
law requirements for preparation, audit and lodgement of financial reports.
As a condition of this instrument, Just Group Limited, a subsidiary of Premier Investments Limited, and each
of the controlled entities of Just Group Limited entered into a Deed of Cross Guarantee as at 25 June 2009.
Premier Investments Limited is not a party to the Deed of Cross Guarantee.
30 RELATED PARTY TRANSACTIONS
(a) PARENT ENTITY AND SUBSIDIARIES
The ultimate parent entity is Premier Investments Limited. Details of subsidiaries are provided in note 27.
(b) KEY MANAGEMENT PERSONNEL
COMPENSATION FOR KEY MANAGEMENT PERSONNEL
Short-term employee benefits
Post-employment benefits
Share-based payments
TOTAL
CONSOLIDATED
2023
$
2022
$
5,038,290
110,734
4,553,671
9,702,695
5,635,732
103,272
4,491,427
10,230,431
(c) RELATED PARTY TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
Mr. Lanzer is the managing partner of the legal firm Arnold Bloch Leibler. Group companies use the services of
Arnold Bloch Leibler from time to time. Legal services totalling $1,695,213 (2022: $1,479,010), including Mr.
Lanzer's Director fees, GST and disbursements were invoiced by Arnold Bloch Leibler to the Group, with
$234,282 (2022: $114,909) remaining outstanding at year-end. The fees paid for these services were at arm's
length and on normal commercial terms.
Mr. Lanzer is a director of Loch Awe Pty Ltd. During the year, lease payments totalling $240,167 (2022:
$388,556) including GST was paid to Loch Awe Pty Ltd, with $nil outstanding rent payments at year-end (2022:
$nil). The payments were at arm’s length and on normal commercial terms.
Mr. Lew is a director of Voyager Distributing Company Pty Ltd. During the year, purchases totalling $25,652,581
(2022: $19,597,245) including GST have been made by Group companies from Voyager Distributing Co. Pty
Ltd, with $3,820,631 (2022: $4,154,029) remaining outstanding at year-end. The purchases were all at arm’s
length and on normal commercial terms.
Mr. Lew is a director of Century Plaza Trading Pty. Ltd. The company and Century Plaza Trading Pty Ltd are
parties to a Services Agreement to which Century Plaza Trading agrees to provide certain administrative
services to the company to the extent required and requested by the company. The company is required to
reimburse Century Plaza Trading for costs it incurs in providing the company with the services under the Service
Agreement. The company reimbursed a total of $434,500 (2022: $440,000) costs including GST incurred by
Century Plaza Trading Pty Ltd, with $nil (2022: $198,000) outstanding at year-end.
83
83
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
OTHER DISCLOSURES
31 AUDITOR’S REMUNERATION
The auditor of Premier Investments Limited is Ernst & Young
(Australia). Amounts received, or due and receivable, by
Ernst & Young (Australia) for:
Audit or review of the statutory financial report of the parent
covering the group and auditing the statutory financial
reports of any controlled entities
Other assurance services or agreed-upon-procedures under
other legislation or contractual arrangements not required to
be performed by the auditor
Other non-audit services
SUB-TOTAL
Amounts received, or due and receivable, by overseas
member firms of Ernst & Young (Australia) for:
Audit of the financial report of any controlled entities
TOTAL AUDITOR’S REMUNERATION
32 SHARE-BASED PAYMENT PLANS
(a) RECOGNISED SHARE-BASED PAYMENT EXPENSE
TOTAL EXPENSE ARISING FROM EQUITY-SETTLED
SHARE-BASED PAYMENT TRANSACTIONS
(b) TYPE OF SHARE-BASED PAYMENT PLANS
Performance rights
CONSOLIDATED
2023
$
2022
$
648,628
599,550
43,000
12,669
704,297
39,678
11,613
650,841
210,000
914,297
182,000
832,841
CONSOLIDATED
2023
$’000
7,207
2022
$’000
6,098
The Group grants performance rights to executives, thus ensuring that the executives who are most directly
able to influence the Group’s performance are appropriately aligned with the interests of shareholders.
A performance right is a right to acquire one fully paid ordinary share of the Group after meeting pre-determined
performance conditions. These performance conditions have been discussed in the Remuneration Report
section of the Directors’ Report.
The fair value of the performance rights has been calculated as at the respective grant dates using an
appropriate valuation technique. The valuation model applied, being either the Monte-Carlo simulation pricing
model or the Black-Scholes European pricing model, is dependent on the assumptions underlying the
performance rights granted to ensure these are appropriately factored into the determination of fair value.
Premier Investments Limited 84
84
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
OTHER DISCLOSURES
32 SHARE-BASED PAYMENT PLANS (CONTINUED)
(b) TYPE OF SHARE-BASED PAYMENT PLANS (CONTINUED)
Performance rights (continued)
In determining the share-based payments expense for the period, the number of instruments expected to vest
has been adjusted to reflect the number of executives expected to remain with the Group until the end of the
performance period.
The following table shows the share-based payment arrangements in existence during the current and prior
reporting periods, as well as the factors considered in determining the fair values of the performance rights in
existence:
GRANT DATE
(DD/MM/YYYY)
NUMBER OF
RIGHTS
GRANTED
SHARE ISSUE
PRICE
OPTION LIFE
DIVIDEND
YIELD
VOLATILITY RISK-FREE RATE
FAIR
VALUE
01/05/2020
544,809
$13.21
2.5 – 4 years
02/12/2021
600,000
02/12/2021
200,000
01/07/2022
67,265
24/10/2022
165,000
27/10/2022
455,340
$30.58
$30.58
$22.30
$23.30
$24.08
3 – 6 years
1 – 4 years
1 – 3 years
3 – 5 years
3 – 5 years
3.5%
3.6%
3.6%
3.6%
3.9%
3.9%
36%
24%
24%
30%
25%
25%
0.40%
$8.33
0.87%
$17.40
0.81%
$27.25
2.32%
$20.66
3.73%
$19.98
3.47%
$11.21
(c) SUMMARY OF RIGHTS GRANTED UNDER PERFORMANCE RIGHTS PLANS
The following table illustrates the number (No.) and weighted average exercise prices (“WAEP”) of, and
movements in, performance rights issued during the year:
Balance at beginning of the year
Granted during the year
Exercised during the year (i)
Forfeited during the year
Balance at the end of the year
2023
No.
1,412,074
620,340
(231,603)
(23,846)
1,776,965
2023
WAEP
2022
No.
2022
WAEP
-
-
-
-
-
673,886
867,265
(129,077)
-
1,412,074
-
-
-
-
-
(i) The weighted average share price at the date of exercise of rights exercised during the year was $24.42 (2022: $32.29).
Since the end of the financial year and up to the date of this report, no performance rights have been exercised.
700,000 performance rights have lapsed due to performance conditions not being met.
(d) WEIGHTED AVERAGE FAIR VALUE
The weighted average fair value of performance rights granted during the year was $13.54 (2022: $19.92).
SHARE-BASED PAYMENT ACCOUNTING POLICIES
The Group provides benefits to its employees in the form of share-based payments, whereby employees render
services in exchange for rights over shares (equity-settled transactions). The plan in place to provide these benefits
is a long-term incentive plan known as the performance rights plan (“PRP”). The cost of these equity-settled
transactions with employees is measured by reference to the fair value of the equity instrument at the date at which
they are granted.
85
85
Notes to the Financial Statements continuedFor the 52 weeks ended 29 July 2023 and 30 July 2022Annual Report 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 29 JULY 2023 AND 30 JULY 2022 (CONTINUED)
OTHER DISCLOSURES
32 SHARE-BASED PAYMENT PLANS (CONTINUED)
SHARE-BASED PAYMENT ACCOUNTING POLICIES (continued)
The cost of equity-settled transactions is recognised in profit or loss, together with a corresponding increase in
equity, over the period in which the performance and/or service conditions are fulfilled (the vesting period), ending
on the date on which the relevant employees become fully entitled to the award (the vesting date).
At each subsequent reporting date until vesting, the cumulative charge to profit or loss in the statement of
comprehensive income is the product of: the grant date fair value of the award, the extent to which the vesting
period has expired, and the current best estimate of the number of awards that will vest as at the grant date.
The charge to profit or loss for the period is the cumulative amount as calculated above less the amounts already
charged in previous periods. There is a corresponding entry to equity. No expense is recognised for awards that
do not ultimately vest, except for equity-settled transactions for which vesting is conditional upon a market or non-
vesting condition. These are treated as vested, irrespective of whether or not the market or non-vesting condition
is satisfied, provided that all other performance and service conditions are met.
KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS
The fair value of share-based payment transactions is determined at the grant date using an appropriate
valuation model, which takes into account the terms and conditions upon which the instruments were granted
to key executives. The terms and conditions require estimates to be made of the number of equity instruments
expected to vest. These accounting estimates and assumptions would have no impact on the carrying
amounts of assets or liabilities within the next annual reporting period but may impact the share-based
payment expense and performance rights reserve within equity.
33 EVENTS AFTER THE REPORTING DATE
The Directors of Premier Investments Limited approved a final ordinary dividend in respect of the 2023 financial
year. The total amount of the final ordinary dividend is $95,565,000 (2022: Final ordinary dividend of
$85,981,000 and a special dividend of $39,806,000) which represents a fully franked dividend of 60 cents per
share (2022: Final ordinary dividend of 54 cents per share, special dividend of 25 cents per share). The
dividend has not been provided for in the 2023 financial statements.
On 21 August 2023, Premier Investments Limited announced that it has commenced a formal review to assess
its corporate, operating and capital structure. The review will consider a range of options, including a separation
of the Group into two or more distinct entities by way of demerger. The review will examine capital
requirements, business plans, management structures and any cost of dis-synergies. Given the range of issues
to be considered, there is no certainty that the review will result in a change to the Group’s current corporate,
operating or capital structure.
In addition, on 21 August 2023, Premier Investments Limited announced that Mr Richard Murray resigned from
his role as Chief Executive Officer (Premier Retail) effective 15 September 2023. Mr. John Bryce, Premier
Retail’s Chief Financial Officer, has been appointed as interim Chief Executive Officer (Retail) effective 21
August 2023, and will continue to fulfil his CFO responsibilities in the interim.
34 CONTINGENT LIABILITIES
The Group has bank guarantees and outstanding letters of credit totalling $4,183,609 (2022: $4,413,392).
Premier Investments Limited 86
86
DIRECTORS’ DECLARATION
In accordance with a resolution of the Directors of Premier Investments Limited, I state that:
In the opinion of the Directors:
(a)
the financial statements and notes of Premier Investments Limited for the financial year ended
29 July 2023 are in accordance with the Corporations Act 2001, including:
(i)
(ii)
complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements, and
giving a true and fair view of the consolidated entity’s financial position as at 29 July 2023
and of its performance for the financial year ended on that date, and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
in the opinion of the directors, as at the date of this declaration, there are reasonable grounds to
believe that the members of the Closed Group will be able to meet any obligations or liabilities to
which they are or may become subject, by virtue of the Deed of Cross Guarantee.
(b)
(c)
Note 2(b) confirms that the financial statements also comply with International Financial Reporting Standards
as issued by the International Accounting Standards Board.
The Directors have been given the declaration by the Chief Financial Officer required by section 295A of the
Corporations Act 2001 for the financial year ended 29 July 2023.
On behalf of the Board
Solomon Lew
Chairman
28 September 2023
87
87
Directors’ DeclarationAnnual Report 2023
Ernst & Young
8 Exhibition Street
Ernst & Young
Melbourne VIC 3000 Australia
Ernst & Young
8 Exhibition Street
GPO Box 67 Melbourne VIC 3001
8 Exhibition Street
Melbourne VIC 3000 Australia
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
GPO Box 67 Melbourne VIC 3001
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
Tel: +61 3 9288 8000
ey.com/au
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
Fax: +61 3 8650 7777
ey.com/au
ey.com/au
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
and of its consolidated financial performance for the year ended on that date; and
and of its consolidated financial performance for the year ended on that date; and
and of its consolidated financial performance for the year ended on that date; and
and of its consolidated financial performance for the year ended on that date; and
Independent auditor’s report to the members of Premier Investments
Limited
Independent auditor’s report to the members of Premier Investments
Independent auditor’s report to the members of Premier Investments
Limited
Limited
Report on the audit of the financial report
Report on the audit of the financial report
Independent auditor’s report to the members of Premier Investments
Report on the audit of the financial report
Opinion
Limited
We have audited the financial report of Premier Investments Limited (the Company) and its
Opinion
Opinion
subsidiaries (collectively the Group), which comprises the consolidated statement of financial position
We have audited the financial report of Premier Investments Limited (the Company) and its
We have audited the financial report of Premier Investments Limited (the Company) and its
Report on the audit of the financial report
as at 29 July 2023, the consolidated statement of comprehensive income, consolidated statement of
subsidiaries (collectively the Group), which comprises the consolidated statement of financial position
subsidiaries (collectively the Group), which comprises the consolidated statement of financial position
changes in equity and consolidated statement of cash flows for the year then ended, notes to the
as at 29 July 2023, the consolidated statement of comprehensive income, consolidated statement of
as at 29 July 2023, the consolidated statement of comprehensive income, consolidated statement of
financial statements, including a summary of significant accounting policies, and the directors’
Opinion
changes in equity and consolidated statement of cash flows for the year then ended, notes to the
changes in equity and consolidated statement of cash flows for the year then ended, notes to the
declaration.
financial statements, including a summary of significant accounting policies, and the directors’
We have audited the financial report of Premier Investments Limited (the Company) and its
financial statements, including a summary of significant accounting policies, and the directors’
declaration.
subsidiaries (collectively the Group), which comprises the consolidated statement of financial position
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
as at 29 July 2023, the consolidated statement of comprehensive income, consolidated statement of
Act 2001, including:
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
changes in equity and consolidated statement of cash flows for the year then ended, notes to the
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
financial statements, including a summary of significant accounting policies, and the directors’
Act 2001, including:
a. Giving a true and fair view of the consolidated financial position of the Group as at 29 July 2023
declaration.
a. Giving a true and fair view of the consolidated financial position of the Group as at 29 July 2023
a. Giving a true and fair view of the consolidated financial position of the Group as at 29 July 2023
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Act 2001, including:
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
a. Giving a true and fair view of the consolidated financial position of the Group as at 29 July 2023
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
Basis for opinion
Basis for opinion
those standards are further described in the Auditor’s responsibilities for the audit of the financial
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
report section of our report. We are independent of the Group in accordance with the auditor
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
those standards are further described in the Auditor’s responsibilities for the audit of the financial
those standards are further described in the Auditor’s responsibilities for the audit of the financial
independence requirements of the Corporations Act 2001 and the ethical requirements of the
report section of our report. We are independent of the Group in accordance with the auditor
report section of our report. We are independent of the Group in accordance with the auditor
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Basis for opinion
independence requirements of the Corporations Act 2001 and the ethical requirements of the
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
those standards are further described in the Auditor’s responsibilities for the audit of the financial
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
the Code.
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
report section of our report. We are independent of the Group in accordance with the auditor
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
independence requirements of the Corporations Act 2001 and the ethical requirements of the
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
for our opinion.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
for our opinion.
Key audit matters
the Code.
Key audit matters are those matters that, in our professional judgment, were of most significance in
Key audit matters
Key audit matters
our audit of the financial report of the current year. These matters were addressed in the context of
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
Key audit matters are those matters that, in our professional judgment, were of most significance in
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
for our opinion.
our audit of the financial report of the current year. These matters were addressed in the context of
our audit of the financial report of the current year. These matters were addressed in the context of
a separate opinion on these matters. For each matter below, our description of how our audit
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
addressed the matter is provided in that context.
Key audit matters
a separate opinion on these matters. For each matter below, our description of how our audit
a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
Key audit matters are those matters that, in our professional judgment, were of most significance in
addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
our audit of the financial report of the current year. These matters were addressed in the context of
financial report section of our report, including in relation to these matters. Accordingly, our audit
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
included the performance of procedures designed to respond to our assessment of the risks of
financial report section of our report, including in relation to these matters. Accordingly, our audit
a separate opinion on these matters. For each matter below, our description of how our audit
financial report section of our report, including in relation to these matters. Accordingly, our audit
material misstatement of the financial report. The results of our audit procedures, including the
included the performance of procedures designed to respond to our assessment of the risks of
addressed the matter is provided in that context.
included the performance of procedures designed to respond to our assessment of the risks of
procedures performed to address the matters below, provide the basis for our audit opinion on the
material misstatement of the financial report. The results of our audit procedures, including the
material misstatement of the financial report. The results of our audit procedures, including the
accompanying financial report.
procedures performed to address the matters below, provide the basis for our audit opinion on the
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying financial report.
financial report section of our report, including in relation to these matters. Accordingly, our audit
accompanying financial report.
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
procedures performed to address the matters below, provide the basis for our audit opinion on the
A member firm of Ernst & Young Global Limited
accompanying financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
Premier Investments Limited 88
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independent Auditor’s Report Carrying value of intangible assets
Why significant
Carrying value of intangible assets
Carrying value of intangible assets
Carrying value of intangible assets
At 29 July 2023, the Group held $818.3 million in
Why significant
goodwill and indefinite-life brand names recognised
Why significant
At 29 July 2023, the Group held $818.3 million in
from historical business combinations, representing
goodwill and indefinite-life brand names recognised
At 29 July 2023, the Group held $818.3 million in
33% of total assets.
from historical business combinations, representing
goodwill and indefinite-life brand names recognised
As outlined in Note 18 of the financial report, the
Why significant
33% of total assets.
from historical business combinations, representing
goodwill and brand names are tested by the Group for
33% of total assets.
As outlined in Note 18 of the financial report, the
At 29 July 2023, the Group held $818.3 million in
impairment annually. The recoverable amount of
goodwill and brand names are tested by the Group for
As outlined in Note 18 of the financial report, the
goodwill and indefinite-life brand names recognised
these assets was determined based on a value in use
impairment annually. The recoverable amount of
goodwill and brand names are tested by the Group for
from historical business combinations, representing
model referencing discounted cash flows of the retail
these assets was determined based on a value in use
impairment annually. The recoverable amount of
33% of total assets.
segment for goodwill, and the casual wear, women’s
model referencing discounted cash flows of the retail
these assets was determined based on a value in use
wear and non-apparel cash generating units (CGUs)
As outlined in Note 18 of the financial report, the
segment for goodwill, and the casual wear, women’s
model referencing discounted cash flows of the retail
for brand names. The model contains estimates and
goodwill and brand names are tested by the Group for
wear and non-apparel cash generating units (CGUs)
segment for goodwill, and the casual wear, women’s
significant judgements regarding future cash flow
impairment annually. The recoverable amount of
for brand names. The model contains estimates and
wear and non-apparel cash generating units (CGUs)
projections which are critical to the assessment of
these assets was determined based on a value in use
significant judgements regarding future cash flow
for brand names. The model contains estimates and
impairment, particularly forecast sales growth in the
model referencing discounted cash flows of the retail
projections which are critical to the assessment of
significant judgements regarding future cash flow
casual wear and women’s wear CGUs and discount
segment for goodwill, and the casual wear, women’s
impairment, particularly forecast sales growth in the
projections which are critical to the assessment of
rates applied.
wear and non-apparel cash generating units (CGUs)
casual wear and women’s wear CGUs and discount
impairment, particularly forecast sales growth in the
for brand names. The model contains estimates and
In the current year, the Group recognised $5.0 million
rates applied.
casual wear and women’s wear CGUs and discount
significant judgements regarding future cash flow
of impairment within the Casual Wear group of CGUs.
rates applied.
In the current year, the Group recognised $5.0 million
projections which are critical to the assessment of
Significant assumptions used in the impairment
of impairment within the Casual Wear group of CGUs.
In the current year, the Group recognised $5.0 million
impairment, particularly forecast sales growth in the
testing referred to above are inherently subjective
of impairment within the Casual Wear group of CGUs.
casual wear and women’s wear CGUs and discount
Significant assumptions used in the impairment
and in times of economic uncertainty the degree of
rates applied.
testing referred to above are inherently subjective
Significant assumptions used in the impairment
subjectivity is higher than it might otherwise be.
and in times of economic uncertainty the degree of
testing referred to above are inherently subjective
In the current year, the Group recognised $5.0 million
Changes in certain assumptions can lead to significant
subjectivity is higher than it might otherwise be.
and in times of economic uncertainty the degree of
of impairment within the Casual Wear group of CGUs.
changes in the recoverable amount of these assets.
Changes in certain assumptions can lead to significant
subjectivity is higher than it might otherwise be.
Significant assumptions used in the impairment
Accordingly, given the significant judgements and
changes in the recoverable amount of these assets.
Changes in certain assumptions can lead to significant
testing referred to above are inherently subjective
estimates involved in assessing impairment of
changes in the recoverable amount of these assets.
Accordingly, given the significant judgements and
and in times of economic uncertainty the degree of
intangible assets we considered this a key audit
estimates involved in assessing impairment of
Accordingly, given the significant judgements and
subjectivity is higher than it might otherwise be.
matter. For the same reasons we consider it
intangible assets we considered this a key audit
estimates involved in assessing impairment of
Changes in certain assumptions can lead to significant
important that attention is drawn to the information
matter. For the same reasons we consider it
intangible assets we considered this a key audit
changes in the recoverable amount of these assets.
in Note 18.
important that attention is drawn to the information
matter. For the same reasons we consider it
Accordingly, given the significant judgements and
in Note 18.
important that attention is drawn to the information
estimates involved in assessing impairment of
in Note 18.
intangible assets we considered this a key audit
matter. For the same reasons we consider it
important that attention is drawn to the information
in Note 18.
Existence and valuation of inventory
How our audit addressed the key audit matter
methodologies applied.
How our audit addressed the key audit matter
Our audit procedures included the following:
How our audit addressed the key audit matter
► Assessed the application of the valuation
Our audit procedures included the following:
Our audit procedures included the following:
► Assessed the application of the valuation
► Evaluated whether the determination of CGUs was
methodologies applied.
► Assessed the application of the valuation
How our audit addressed the key audit matter
in accordance with Australian Accounting
methodologies applied.
► Evaluated whether the determination of CGUs was
Standards.
Our audit procedures included the following:
in accordance with Australian Accounting
► Evaluated whether the determination of CGUs was
► Agreed the cashflows within the impairment model
► Assessed the application of the valuation
in accordance with Australian Accounting
Standards.
to board approved cashflows.
methodologies applied.
Standards.
► Agreed the cashflows within the impairment model
► Considered the historical accuracy of the Group’s
► Evaluated whether the determination of CGUs was
► Agreed the cashflows within the impairment model
to board approved cashflows.
cash flow forecasting process.
in accordance with Australian Accounting
to board approved cashflows.
► Considered the historical accuracy of the Group’s
Standards.
► Compared the forecast cash flows used in the
cash flow forecasting process.
► Considered the historical accuracy of the Group’s
value in use model to the actual current year
► Agreed the cashflows within the impairment model
cash flow forecasting process.
► Compared the forecast cash flows used in the
financial performance of the underlying CGUs for
to board approved cashflows.
value in use model to the actual current year
► Compared the forecast cash flows used in the
reasonability.
► Considered the historical accuracy of the Group’s
value in use model to the actual current year
financial performance of the underlying CGUs for
► Assessed key inputs being discount rates, relief
cash flow forecasting process.
reasonability.
financial performance of the underlying CGUs for
from royalty rates and sales growth rates adopted
reasonability.
► Compared the forecast cash flows used in the
► Assessed key inputs being discount rates, relief
in the value in use model including comparison to
value in use model to the actual current year
from royalty rates and sales growth rates adopted
► Assessed key inputs being discount rates, relief
available market data for comparable businesses.
financial performance of the underlying CGUs for
in the value in use model including comparison to
from royalty rates and sales growth rates adopted
► Performed sensitivity analysis on key inputs and
reasonability.
available market data for comparable businesses.
in the value in use model including comparison to
assumptions included in the forecast cashflows
available market data for comparable businesses.
► Assessed key inputs being discount rates, relief
► Performed sensitivity analysis on key inputs and
and impairment models including the discount
from royalty rates and sales growth rates adopted
► Performed sensitivity analysis on key inputs and
assumptions included in the forecast cashflows
rates, to assess the risk of the CGU carrying value
in the value in use model including comparison to
and impairment models including the discount
assumptions included in the forecast cashflows
exceeding the recoverable amount.
available market data for comparable businesses.
rates, to assess the risk of the CGU carrying value
and impairment models including the discount
► Compared earnings multiples derived from the
exceeding the recoverable amount.
rates, to assess the risk of the CGU carrying value
► Performed sensitivity analysis on key inputs and
Group’s value in use model to those observable
exceeding the recoverable amount.
assumptions included in the forecast cashflows
► Compared earnings multiples derived from the
from external market data of comparable listed
and impairment models including the discount
► Compared earnings multiples derived from the
Group’s value in use model to those observable
entities.
rates, to assess the risk of the CGU carrying value
from external market data of comparable listed
Group’s value in use model to those observable
► Assessed the adequacy of the disclosures included
exceeding the recoverable amount.
entities.
from external market data of comparable listed
in the financial report.
entities.
► Compared earnings multiples derived from the
► Assessed the adequacy of the disclosures included
Our valuation specialists were involved in the conduct
Group’s value in use model to those observable
in the financial report.
► Assessed the adequacy of the disclosures included
of these procedures where required.
from external market data of comparable listed
in the financial report.
Our valuation specialists were involved in the conduct
entities.
of these procedures where required.
Our valuation specialists were involved in the conduct
► Assessed the adequacy of the disclosures included
of these procedures where required.
in the financial report.
Why significant
Existence and valuation of inventory
Existence and valuation of inventory
As at 29 July 2023, the Group held $231.2 million in
Why significant
inventories.
Why significant
As at 29 July 2023, the Group held $231.2 million in
Inventories are held at several distribution centres, as
inventories.
As at 29 July 2023, the Group held $231.2 million in
Existence and valuation of inventory
well as at over 1,200 retail stores.
inventories.
Inventories are held at several distribution centres, as
Why significant
As detailed in Note 10 of the financial report,
well as at over 1,200 retail stores.
Inventories are held at several distribution centres, as
inventories are valued at the lower of cost and net
well as at over 1,200 retail stores.
As at 29 July 2023, the Group held $231.2 million in
As detailed in Note 10 of the financial report,
realisable value.
inventories.
inventories are valued at the lower of cost and net
As detailed in Note 10 of the financial report,
The cost of finished goods includes a proportion of
realisable value.
inventories are valued at the lower of cost and net
Inventories are held at several distribution centres, as
purchasing department costs, as well as freight,
realisable value.
well as at over 1,200 retail stores.
The cost of finished goods includes a proportion of
handling, and warehouse costs incurred to deliver the
purchasing department costs, as well as freight,
The cost of finished goods includes a proportion of
As detailed in Note 10 of the financial report,
goods to the point of sale.
handling, and warehouse costs incurred to deliver the
purchasing department costs, as well as freight,
inventories are valued at the lower of cost and net
goods to the point of sale.
handling, and warehouse costs incurred to deliver the
realisable value.
goods to the point of sale.
The cost of finished goods includes a proportion of
purchasing department costs, as well as freight,
handling, and warehouse costs incurred to deliver the
goods to the point of sale.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
89
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
How our audit addressed the key audit matter
Our valuation specialists were involved in the conduct
How our audit addressed the key audit matter
Our audit procedures included the following:
of these procedures where required.
How our audit addressed the key audit matter
► Assessed the application of valuation
Our audit procedures included the following:
methodologies applied for compliance with
Our audit procedures included the following:
► Assessed the application of valuation
Australian Accounting Standards.
methodologies applied for compliance with
► Assessed the application of valuation
How our audit addressed the key audit matter
► Selected a sample of inventory lines and
methodologies applied for compliance with
Australian Accounting Standards.
recalculated cost based on supporting supplier
Our audit procedures included the following:
Australian Accounting Standards.
► Selected a sample of inventory lines and
invoices and assessed the allocation of costs
► Assessed the application of valuation
recalculated cost based on supporting supplier
► Selected a sample of inventory lines and
absorbed from the purchasing department, freight
methodologies applied for compliance with
invoices and assessed the allocation of costs
recalculated cost based on supporting supplier
and warehouse costs.
Australian Accounting Standards.
absorbed from the purchasing department, freight
invoices and assessed the allocation of costs
absorbed from the purchasing department, freight
and warehouse costs.
and warehouse costs.
recalculated cost based on supporting supplier
invoices and assessed the allocation of costs
absorbed from the purchasing department, freight
and warehouse costs.
► Selected a sample of inventory lines and
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independent Auditor’s Report continuedAnnual Report 2023 Why significant
How our audit addressed the key audit matter
Provisions are recorded for matters such as aged and
slow moving inventory to ensure inventory is
Why significant
recorded at the lower of cost and net realisable value.
Why significant
Provisions are recorded for matters such as aged and
This requires a level of judgement with regard to
slow moving inventory to ensure inventory is
Provisions are recorded for matters such as aged and
changing consumer demands and fashion trends.
Carrying value of intangible assets
recorded at the lower of cost and net realisable value.
slow moving inventory to ensure inventory is
Such judgements include the Group’s expectations for
This requires a level of judgement with regard to
recorded at the lower of cost and net realisable value.
future sales and inventory mark downs.
Why significant
changing consumer demands and fashion trends.
This requires a level of judgement with regard to
Accordingly, the existence and valuation of inventory
Such judgements include the Group’s expectations for
changing consumer demands and fashion trends.
At 29 July 2023, the Group held $818.3 million in
was considered to be a key audit matter.
future sales and inventory mark downs.
Such judgements include the Group’s expectations for
goodwill and indefinite-life brand names recognised
future sales and inventory mark downs.
Accordingly, the existence and valuation of inventory
from historical business combinations, representing
was considered to be a key audit matter.
33% of total assets.
Accordingly, the existence and valuation of inventory
was considered to be a key audit matter.
As outlined in Note 18 of the financial report, the
goodwill and brand names are tested by the Group for
impairment annually. The recoverable amount of
these assets was determined based on a value in use
model referencing discounted cash flows of the retail
segment for goodwill, and the casual wear, women’s
wear and non-apparel cash generating units (CGUs)
for brand names. The model contains estimates and
AASB 16 Leases
significant judgements regarding future cash flow
Why significant
projections which are critical to the assessment of
AASB 16 Leases
impairment, particularly forecast sales growth in the
The Group holds a significant volume of leases by
AASB 16 Leases
casual wear and women’s wear CGUs and discount
Why significant
number and value over retail sites as a lessee, which
rates applied.
makes the impact of this accounting standard
Why significant
The Group holds a significant volume of leases by
In the current year, the Group recognised $5.0 million
significant to the financial statements of the Group.
number and value over retail sites as a lessee, which
The Group holds a significant volume of leases by
of impairment within the Casual Wear group of CGUs.
The recognition and measurement of remeasured
makes the impact of this accounting standard
number and value over retail sites as a lessee, which
Significant assumptions used in the impairment
lease agreements executed during the year in
significant to the financial statements of the Group.
makes the impact of this accounting standard
testing referred to above are inherently subjective
accordance with AASB 16 Leases (“AASB 16”) are
significant to the financial statements of the Group.
The recognition and measurement of remeasured
and in times of economic uncertainty the degree of
dependent on a number of key judgements and
lease agreements executed during the year in
The recognition and measurement of remeasured
subjectivity is higher than it might otherwise be.
estimates. These include:
accordance with AASB 16 Leases (“AASB 16”) are
lease agreements executed during the year in
Changes in certain assumptions can lead to significant
►
dependent on a number of key judgements and
accordance with AASB 16 Leases (“AASB 16”) are
changes in the recoverable amount of these assets.
estimates. These include:
dependent on a number of key judgements and
Accordingly, given the significant judgements and
The impact of COVID-19 rental abatements and
estimates. These include:
►
The treatment of the option to extend the lease
►
estimates involved in assessing impairment of
backdated rent variations.
term under holdover; and
The treatment of the option to extend the lease
intangible assets we considered this a key audit
►
Accordingly, given the significant judgements and
term under holdover; and
matter. For the same reasons we consider it
The impact of COVID-19 rental abatements and
►
estimates involved in assessing the treatment of lease
important that attention is drawn to the information
backdated rent variations.
The impact of COVID-19 rental abatements and
►
remeasurements we considered this a key audit
in Note 18.
backdated rent variations.
Accordingly, given the significant judgements and
matter.
estimates involved in assessing the treatment of lease
Accordingly, given the significant judgements and
remeasurements we considered this a key audit
estimates involved in assessing the treatment of lease
matter.
remeasurements we considered this a key audit
matter.
The treatment of the option to extend the lease
term under holdover; and
Existence and valuation of inventory
Why significant
As at 29 July 2023, the Group held $231.2 million in
inventories.
Inventories are held at several distribution centres, as
well as at over 1,200 retail stores.
As detailed in Note 10 of the financial report,
inventories are valued at the lower of cost and net
realisable value.
► Attended store and distribution centre inventory
counts on a sample basis and assessed the stock
How our audit addressed the key audit matter
counting process which addressed inventory
How our audit addressed the key audit matter
► Attended store and distribution centre inventory
quantity and condition.
counts on a sample basis and assessed the stock
► Attended store and distribution centre inventory
► Assessed the basis for inventory provisions,
counting process which addressed inventory
counts on a sample basis and assessed the stock
including the rationale for recording specific
counting process which addressed inventory
quantity and condition.
How our audit addressed the key audit matter
provisions. In doing so we examined the ageing
quantity and condition.
► Assessed the basis for inventory provisions,
profile of inventory, considered how the Group
Our audit procedures included the following:
including the rationale for recording specific
► Assessed the basis for inventory provisions,
identified specific slow-moving inventories,
provisions. In doing so we examined the ageing
including the rationale for recording specific
► Assessed the application of the valuation
assessed future selling prices and historical loss
profile of inventory, considered how the Group
provisions. In doing so we examined the ageing
methodologies applied.
rates.
profile of inventory, considered how the Group
identified specific slow-moving inventories,
► Evaluated whether the determination of CGUs was
► Tested the slow-moving inventory reports for
assessed future selling prices and historical loss
identified specific slow-moving inventories,
in accordance with Australian Accounting
accuracy and completeness.
rates.
assessed future selling prices and historical loss
Standards.
rates.
cash flow forecasting process.
accuracy and completeness.
to board approved cashflows.
accuracy and completeness.
Considered the completeness of inventory provisions
► Tested the slow-moving inventory reports for
► Agreed the cashflows within the impairment model
by identifying mark down sales at or subsequent to
► Tested the slow-moving inventory reports for
year end.
Considered the completeness of inventory provisions
► Considered the historical accuracy of the Group’s
by identifying mark down sales at or subsequent to
Considered the completeness of inventory provisions
year end.
by identifying mark down sales at or subsequent to
► Compared the forecast cash flows used in the
year end.
How our audit addressed the key audit matter
value in use model to the actual current year
financial performance of the underlying CGUs for
reasonability.
Our audit procedures included the following:
How our audit addressed the key audit matter
► Assessed the mathematical accuracy of the
How our audit addressed the key audit matter
Group’s AASB 16 lease calculation model.
► Assessed key inputs being discount rates, relief
Our audit procedures included the following:
from royalty rates and sales growth rates adopted
► For a sample of leases, agreed the Group’s inputs
Our audit procedures included the following:
► Assessed the mathematical accuracy of the
in the value in use model including comparison to
in the AASB 16 lease calculation model in relation
Group’s AASB 16 lease calculation model.
► Assessed the mathematical accuracy of the
available market data for comparable businesses.
to those leases, such as, key dates, fixed and
Group’s AASB 16 lease calculation model.
► For a sample of leases, agreed the Group’s inputs
variable rent payments, renewal options and
► Performed sensitivity analysis on key inputs and
in the AASB 16 lease calculation model in relation
► For a sample of leases, agreed the Group’s inputs
incentives, to the relevant terms of the underlying
assumptions included in the forecast cashflows
to those leases, such as, key dates, fixed and
in the AASB 16 lease calculation model in relation
signed lease agreements.
and impairment models including the discount
variable rent payments, renewal options and
to those leases, such as, key dates, fixed and
► Assessed the accounting treatment applied to a
rates, to assess the risk of the CGU carrying value
incentives, to the relevant terms of the underlying
variable rent payments, renewal options and
sample of renegotiated lease agreements during
exceeding the recoverable amount.
signed lease agreements.
incentives, to the relevant terms of the underlying
the year, including the impact of abatements and
signed lease agreements.
► Assessed the accounting treatment applied to a
► Compared earnings multiples derived from the
backdated rental savings on the lease balances
sample of renegotiated lease agreements during
► Assessed the accounting treatment applied to a
Group’s value in use model to those observable
recognised.
the year, including the impact of abatements and
sample of renegotiated lease agreements during
from external market data of comparable listed
► Considered the Group’s assumptions in relation to
backdated rental savings on the lease balances
the year, including the impact of abatements and
entities.
the treatment of the option to extend and lease
recognised.
backdated rental savings on the lease balances
► Assessed the adequacy of the disclosures included
term under holdover.
recognised.
► Considered the Group’s assumptions in relation to
in the financial report.
► Assessed the incremental borrowing rates used to
the treatment of the option to extend and lease
► Considered the Group’s assumptions in relation to
discount future lease payments to present value.
Our valuation specialists were involved in the conduct
term under holdover.
the treatment of the option to extend and lease
of these procedures where required.
► Assessed the adequacy of the disclosures included
term under holdover.
► Assessed the incremental borrowing rates used to
in the financial report.
discount future lease payments to present value.
► Assessed the incremental borrowing rates used to
We assessed the Group’s calculations of the financial
discount future lease payments to present value.
► Assessed the adequacy of the disclosures included
impact of the standard and the accounting policies,
in the financial report.
► Assessed the adequacy of the disclosures included
How our audit addressed the key audit matter
estimates and judgements made in respect of the
in the financial report.
We assessed the Group’s calculations of the financial
Group’s right of use assets and lease liabilities, as well
Our audit procedures included the following:
impact of the standard and the accounting policies,
We assessed the Group’s calculations of the financial
as related depreciation and interest expense
estimates and judgements made in respect of the
impact of the standard and the accounting policies,
► Assessed the application of valuation
recognised through the Consolidated Statement of
Group’s right of use assets and lease liabilities, as well
estimates and judgements made in respect of the
methodologies applied for compliance with
Comprehensive Income.
as related depreciation and interest expense
Group’s right of use assets and lease liabilities, as well
Australian Accounting Standards.
recognised through the Consolidated Statement of
as related depreciation and interest expense
► Selected a sample of inventory lines and
Comprehensive Income.
recognised through the Consolidated Statement of
recalculated cost based on supporting supplier
Comprehensive Income.
invoices and assessed the allocation of costs
absorbed from the purchasing department, freight
and warehouse costs.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
The cost of finished goods includes a proportion of
purchasing department costs, as well as freight,
handling, and warehouse costs incurred to deliver the
goods to the point of sale.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Premier Investments Limited 90
Why significant
methodologies applied.
to board approved cashflows.
cash flow forecasting process.
► Assessed the application of the valuation
Our audit procedures included the following:
How our audit addressed the key audit matter
in accordance with Australian Accounting
Standards.
In the current year, the Group recognised $5.0 million
of impairment within the Casual Wear group of CGUs.
At 29 July 2023, the Group held $818.3 million in
goodwill and indefinite-life brand names recognised
from historical business combinations, representing
33% of total assets.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
Information other than the financial report and auditor’s report thereon
Information other than the financial report and auditor’s report thereon
information included in the Company’s 2023 annual report other than the financial report and our
Information other than the financial report and auditor’s report thereon
Information other than the financial report and auditor’s report thereon
Information other than the financial report and auditor’s report thereon
Information other than the financial report and auditor’s report thereon
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
The directors are responsible for the other information. The other information comprises the
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
information included in the Company’s 2023 annual report other than the financial report and our
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2023 annual report other than the financial report and our
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2023 annual report other than the financial report and our
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2023 annual report other than the financial report and our
The directors are responsible for the other information. The other information comprises the
report after the date of this auditor’s report.
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
information included in the Company’s 2023 annual report other than the financial report and our
The directors are responsible for the other information. The other information comprises the
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
information included in the Company’s 2023 annual report other than the financial report and our
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
information included in the Company’s 2023 annual report other than the financial report and our
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
information included in the Company’s 2023 annual report other than the financial report and our
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
information included in the Company’s 2023 annual report other than the financial report and our
Carrying value of intangible assets
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
report after the date of this auditor’s report.
Our opinion on the financial report does not cover the other information and we do not and will not
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
report after the date of this auditor’s report.
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
report after the date of this auditor’s report.
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
report after the date of this auditor’s report.
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
report after the date of this auditor’s report.
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
report after the date of this auditor’s report.
report after the date of this auditor’s report.
report after the date of this auditor’s report.
and our related assurance opinion.
report after the date of this auditor’s report.
Our opinion on the financial report does not cover the other information and we do not and will not
Our opinion on the financial report does not cover the other information and we do not and will not
Our opinion on the financial report does not cover the other information and we do not and will not
Our opinion on the financial report does not cover the other information and we do not and will not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
Our opinion on the financial report does not cover the other information and we do not and will not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
Our opinion on the financial report does not cover the other information and we do not and will not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
Our opinion on the financial report does not cover the other information and we do not and will not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
Our opinion on the financial report does not cover the other information and we do not and will not
and our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
Our opinion on the financial report does not cover the other information and we do not and will not
and our related assurance opinion.
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and, in doing so, consider whether the other information is materially inconsistent with the financial
and our related assurance opinion.
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
and our related assurance opinion.
► Evaluated whether the determination of CGUs was
and our related assurance opinion.
As outlined in Note 18 of the financial report, the
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
In connection with our audit of the financial report, our responsibility is to read the other information
and our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information
In connection with our audit of the financial report, our responsibility is to read the other information
In connection with our audit of the financial report, our responsibility is to read the other information
goodwill and brand names are tested by the Group for
and, in doing so, consider whether the other information is materially inconsistent with the financial
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
In connection with our audit of the financial report, our responsibility is to read the other information
impairment annually. The recoverable amount of
and, in doing so, consider whether the other information is materially inconsistent with the financial
In connection with our audit of the financial report, our responsibility is to read the other information
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this
and, in doing so, consider whether the other information is materially inconsistent with the financial
In connection with our audit of the financial report, our responsibility is to read the other information
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
and, in doing so, consider whether the other information is materially inconsistent with the financial
these assets was determined based on a value in use
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
and, in doing so, consider whether the other information is materially inconsistent with the financial
► Agreed the cashflows within the impairment model
auditor’s report, we conclude that there is a material misstatement of this other information, we are
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
model referencing discounted cash flows of the retail
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
required to report that fact. We have nothing to report in this regard.
If, based on the work we have performed on the other information obtained prior to the date of this
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this
segment for goodwill, and the casual wear, women’s
If, based on the work we have performed on the other information obtained prior to the date of this
If, based on the work we have performed on the other information obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are
If, based on the work we have performed on the other information obtained prior to the date of this
► Considered the historical accuracy of the Group’s
auditor’s report, we conclude that there is a material misstatement of this other information, we are
If, based on the work we have performed on the other information obtained prior to the date of this
wear and non-apparel cash generating units (CGUs)
auditor’s report, we conclude that there is a material misstatement of this other information, we are
If, based on the work we have performed on the other information obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are
If, based on the work we have performed on the other information obtained prior to the date of this
required to report that fact. We have nothing to report in this regard.
auditor’s report, we conclude that there is a material misstatement of this other information, we are
If, based on the work we have performed on the other information obtained prior to the date of this
Responsibilities of the directors for the financial report
for brand names. The model contains estimates and
required to report that fact. We have nothing to report in this regard.
auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
auditor’s report, we conclude that there is a material misstatement of this other information, we are
significant judgements regarding future cash flow
► Compared the forecast cash flows used in the
required to report that fact. We have nothing to report in this regard.
The directors of the Company are responsible for the preparation of the financial report that gives a
required to report that fact. We have nothing to report in this regard.
required to report that fact. We have nothing to report in this regard.
required to report that fact. We have nothing to report in this regard.
projections which are critical to the assessment of
Responsibilities of the directors for the financial report
value in use model to the actual current year
Responsibilities of the directors for the financial report
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
Responsibilities of the directors for the financial report
Responsibilities of the directors for the financial report
impairment, particularly forecast sales growth in the
Responsibilities of the directors for the financial report
financial performance of the underlying CGUs for
Responsibilities of the directors for the financial report
and for such internal control as the directors determine is necessary to enable the preparation of the
The directors of the Company are responsible for the preparation of the financial report that gives a
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
Responsibilities of the directors for the financial report
casual wear and women’s wear CGUs and discount
The directors of the Company are responsible for the preparation of the financial report that gives a
Responsibilities of the directors for the financial report
reasonability.
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
financial report that gives a true and fair view and is free from material misstatement, whether due to
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
The directors of the Company are responsible for the preparation of the financial report that gives a
rates applied.
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
The directors of the Company are responsible for the preparation of the financial report that gives a
fraud or error.
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
from royalty rates and sales growth rates adopted
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
financial report that gives a true and fair view and is free from material misstatement, whether due to
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
and for such internal control as the directors determine is necessary to enable the preparation of the
in the value in use model including comparison to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
financial report that gives a true and fair view and is free from material misstatement, whether due to
and for such internal control as the directors determine is necessary to enable the preparation of the
fraud or error.
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
financial report that gives a true and fair view and is free from material misstatement, whether due to
available market data for comparable businesses.
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
fraud or error.
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
fraud or error.
fraud or error.
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
operations, or have no realistic alternative but to do so.
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
assumptions included in the forecast cashflows
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
and impairment models including the discount
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
rates, to assess the risk of the CGU carrying value
operations, or have no realistic alternative but to do so.
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
Auditor’s responsibilities for the audit of the financial report
operations, or have no realistic alternative but to do so.
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
exceeding the recoverable amount.
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
operations, or have no realistic alternative but to do so.
operations, or have no realistic alternative but to do so.
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
► Compared earnings multiples derived from the
Auditor’s responsibilities for the audit of the financial report
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
Auditor’s responsibilities for the audit of the financial report
Auditor’s responsibilities for the audit of the financial report
Auditor’s responsibilities for the audit of the financial report
Group’s value in use model to those observable
Auditor’s responsibilities for the audit of the financial report
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
Auditor’s responsibilities for the audit of the financial report
from external market data of comparable listed
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
audit conducted in accordance with the Australian Auditing Standards will always detect a material
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
entities.
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
► Assessed the adequacy of the disclosures included
audit conducted in accordance with the Australian Auditing Standards will always detect a material
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
if, individually or in the aggregate, they could reasonably be expected to influence the economic
audit conducted in accordance with the Australian Auditing Standards will always detect a material
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
audit conducted in accordance with the Australian Auditing Standards will always detect a material
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
decisions of users taken on the basis of this financial report.
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
audit conducted in accordance with the Australian Auditing Standards will always detect a material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
Our valuation specialists were involved in the conduct
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
if, individually or in the aggregate, they could reasonably be expected to influence the economic
of these procedures where required.
decisions of users taken on the basis of this financial report.
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
if, individually or in the aggregate, they could reasonably be expected to influence the economic
judgment and maintain professional scepticism throughout the audit. We also:
decisions of users taken on the basis of this financial report.
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
decisions of users taken on the basis of this financial report.
decisions of users taken on the basis of this financial report.
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
Existence and valuation of inventory
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
► Identify and assess the risks of material misstatement of the financial report, whether due to
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
judgment and maintain professional scepticism throughout the audit. We also:
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
judgment and maintain professional scepticism throughout the audit. We also:
judgment and maintain professional scepticism throughout the audit. We also:
judgment and maintain professional scepticism throughout the audit. We also:
judgment and maintain professional scepticism throughout the audit. We also:
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
► Identify and assess the risks of material misstatement of the financial report, whether due to
► Identify and assess the risks of material misstatement of the financial report, whether due to
► Identify and assess the risks of material misstatement of the financial report, whether due to
► Identify and assess the risks of material misstatement of the financial report, whether due to
detecting a material misstatement resulting from fraud is higher than for one resulting from
► Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
► Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
► Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
► Identify and assess the risks of material misstatement of the financial report, whether due to
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
► Identify and assess the risks of material misstatement of the financial report, whether due to
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
Inventories are held at several distribution centres, as
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
override of internal control.
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
detecting a material misstatement resulting from fraud is higher than for one resulting from
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
well as at over 1,200 retail stores.
detecting a material misstatement resulting from fraud is higher than for one resulting from
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
detecting a material misstatement resulting from fraud is higher than for one resulting from
As detailed in Note 10 of the financial report,
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
detecting a material misstatement resulting from fraud is higher than for one resulting from
override of internal control.
override of internal control.
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
inventories are valued at the lower of cost and net
override of internal control.
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
recalculated cost based on supporting supplier
override of internal control.
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
realisable value.
override of internal control.
override of internal control.
A member firm of Ernst & Young Global Limited
invoices and assessed the allocation of costs
override of internal control.
override of internal control.
Liability limited by a scheme approved under Professional Standards Legislation
absorbed from the purchasing department, freight
and warehouse costs.
Significant assumptions used in the impairment
testing referred to above are inherently subjective
and in times of economic uncertainty the degree of
subjectivity is higher than it might otherwise be.
Changes in certain assumptions can lead to significant
changes in the recoverable amount of these assets.
Accordingly, given the significant judgements and
estimates involved in assessing impairment of
intangible assets we considered this a key audit
matter. For the same reasons we consider it
important that attention is drawn to the information
in Note 18.
As at 29 July 2023, the Group held $231.2 million in
inventories.
methodologies applied for compliance with
Australian Accounting Standards.
► Performed sensitivity analysis on key inputs and
► Assessed key inputs being discount rates, relief
How our audit addressed the key audit matter
Our audit procedures included the following:
► Selected a sample of inventory lines and
► Assessed the application of valuation
in the financial report.
The cost of finished goods includes a proportion of
purchasing department costs, as well as freight,
handling, and warehouse costs incurred to deliver the
goods to the point of sale.
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
91
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
Why significant
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independent Auditor’s Report continuedAnnual Report 2023 ► Obtain an understanding of internal control relevant to the audit in order to design audit
Why significant
methodologies applied.
to board approved cashflows.
cash flow forecasting process.
► Assessed the application of the valuation
Our audit procedures included the following:
► Assessed key inputs being discount rates, relief
in accordance with Australian Accounting
Standards.
In the current year, the Group recognised $5.0 million
of impairment within the Casual Wear group of CGUs.
At 29 July 2023, the Group held $818.3 million in
goodwill and indefinite-life brand names recognised
from historical business combinations, representing
33% of total assets.
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
► Obtain an understanding of internal control relevant to the audit in order to design audit
► Obtain an understanding of internal control relevant to the audit in order to design audit
opinion on the effectiveness of the Group’s internal control.
► Obtain an understanding of internal control relevant to the audit in order to design audit
► Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
► Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
► Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
► Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
► Obtain an understanding of internal control relevant to the audit in order to design audit
opinion on the effectiveness of the Group’s internal control.
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
► Obtain an understanding of internal control relevant to the audit in order to design audit
opinion on the effectiveness of the Group’s internal control.
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
► Obtain an understanding of internal control relevant to the audit in order to design audit
opinion on the effectiveness of the Group’s internal control.
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
► Obtain an understanding of internal control relevant to the audit in order to design audit
opinion on the effectiveness of the Group’s internal control.
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
estimates and related disclosures made by the directors.
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
opinion on the effectiveness of the Group’s internal control.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
opinion on the effectiveness of the Group’s internal control.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
opinion on the effectiveness of the Group’s internal control.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
Carrying value of intangible assets
estimates and related disclosures made by the directors.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
How our audit addressed the key audit matter
and, based on the audit evidence obtained, whether a material uncertainty exists related to
estimates and related disclosures made by the directors.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
estimates and related disclosures made by the directors.
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
estimates and related disclosures made by the directors.
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
estimates and related disclosures made by the directors.
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
and, based on the audit evidence obtained, whether a material uncertainty exists related to
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
and, based on the audit evidence obtained, whether a material uncertainty exists related to
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
and, based on the audit evidence obtained, whether a material uncertainty exists related to
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
and, based on the audit evidence obtained, whether a material uncertainty exists related to
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
and, based on the audit evidence obtained, whether a material uncertainty exists related to
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
and, based on the audit evidence obtained, whether a material uncertainty exists related to
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
and, based on the audit evidence obtained, whether a material uncertainty exists related to
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
and, based on the audit evidence obtained, whether a material uncertainty exists related to
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
► Evaluated whether the determination of CGUs was
to the date of our auditor’s report. However, future events or conditions may cause the Group to
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
As outlined in Note 18 of the financial report, the
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
cease to continue as a going concern.
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
goodwill and brand names are tested by the Group for
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
to the date of our auditor’s report. However, future events or conditions may cause the Group to
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
to the date of our auditor’s report. However, future events or conditions may cause the Group to
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
to the date of our auditor’s report. However, future events or conditions may cause the Group to
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
impairment annually. The recoverable amount of
to the date of our auditor’s report. However, future events or conditions may cause the Group to
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
cease to continue as a going concern.
to the date of our auditor’s report. However, future events or conditions may cause the Group to
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
cease to continue as a going concern.
to the date of our auditor’s report. However, future events or conditions may cause the Group to
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
these assets was determined based on a value in use
cease to continue as a going concern.
to the date of our auditor’s report. However, future events or conditions may cause the Group to
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
► Evaluate the overall presentation, structure and content of the financial report, including the
► Agreed the cashflows within the impairment model
cease to continue as a going concern.
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
to the date of our auditor’s report. However, future events or conditions may cause the Group to
model referencing discounted cash flows of the retail
cease to continue as a going concern.
to the date of our auditor’s report. However, future events or conditions may cause the Group to
disclosures, and whether the financial report represents the underlying transactions and events
cease to continue as a going concern.
cease to continue as a going concern.
► Evaluate the overall presentation, structure and content of the financial report, including the
segment for goodwill, and the casual wear, women’s
cease to continue as a going concern.
► Evaluate the overall presentation, structure and content of the financial report, including the
cease to continue as a going concern.
in a manner that achieves fair presentation.
► Evaluate the overall presentation, structure and content of the financial report, including the
► Evaluate the overall presentation, structure and content of the financial report, including the
► Considered the historical accuracy of the Group’s
disclosures, and whether the financial report represents the underlying transactions and events
► Evaluate the overall presentation, structure and content of the financial report, including the
wear and non-apparel cash generating units (CGUs)
disclosures, and whether the financial report represents the underlying transactions and events
► Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
► Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
► Evaluate the overall presentation, structure and content of the financial report, including the
in a manner that achieves fair presentation.
disclosures, and whether the financial report represents the underlying transactions and events
► Evaluate the overall presentation, structure and content of the financial report, including the
for brand names. The model contains estimates and
in a manner that achieves fair presentation.
disclosures, and whether the financial report represents the underlying transactions and events
► Evaluate the overall presentation, structure and content of the financial report, including the
in a manner that achieves fair presentation.
disclosures, and whether the financial report represents the underlying transactions and events
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
► Evaluate the overall presentation, structure and content of the financial report, including the
in a manner that achieves fair presentation.
disclosures, and whether the financial report represents the underlying transactions and events
significant judgements regarding future cash flow
in a manner that achieves fair presentation.
disclosures, and whether the financial report represents the underlying transactions and events
► Compared the forecast cash flows used in the
in a manner that achieves fair presentation.
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
business activities within the Group to express an opinion on the financial report. We are
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
projections which are critical to the assessment of
in a manner that achieves fair presentation.
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
value in use model to the actual current year
in a manner that achieves fair presentation.
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
responsible for the direction, supervision and performance of the Group audit. We remain solely
in a manner that achieves fair presentation.
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
impairment, particularly forecast sales growth in the
business activities within the Group to express an opinion on the financial report. We are
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
financial performance of the underlying CGUs for
business activities within the Group to express an opinion on the financial report. We are
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
responsible for our audit opinion.
business activities within the Group to express an opinion on the financial report. We are
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
casual wear and women’s wear CGUs and discount
business activities within the Group to express an opinion on the financial report. We are
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
reasonability.
responsible for the direction, supervision and performance of the Group audit. We remain solely
business activities within the Group to express an opinion on the financial report. We are
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
responsible for the direction, supervision and performance of the Group audit. We remain solely
business activities within the Group to express an opinion on the financial report. We are
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
responsible for the direction, supervision and performance of the Group audit. We remain solely
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
rates applied.
responsible for the direction, supervision and performance of the Group audit. We remain solely
business activities within the Group to express an opinion on the financial report. We are
responsible for our audit opinion.
responsible for the direction, supervision and performance of the Group audit. We remain solely
business activities within the Group to express an opinion on the financial report. We are
responsible for our audit opinion.
responsible for the direction, supervision and performance of the Group audit. We remain solely
business activities within the Group to express an opinion on the financial report. We are
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
responsible for the direction, supervision and performance of the Group audit. We remain solely
from royalty rates and sales growth rates adopted
responsible for our audit opinion.
responsible for the direction, supervision and performance of the Group audit. We remain solely
the audit and significant audit findings, including any significant deficiencies in internal control that we
responsible for our audit opinion.
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
in the value in use model including comparison to
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
identify during our audit.
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
We communicate with the directors regarding, among other matters, the planned scope and timing of
Significant assumptions used in the impairment
the audit and significant audit findings, including any significant deficiencies in internal control that we
We communicate with the directors regarding, among other matters, the planned scope and timing of
available market data for comparable businesses.
the audit and significant audit findings, including any significant deficiencies in internal control that we
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
We communicate with the directors regarding, among other matters, the planned scope and timing of
testing referred to above are inherently subjective
the audit and significant audit findings, including any significant deficiencies in internal control that we
We communicate with the directors regarding, among other matters, the planned scope and timing of
identify during our audit.
the audit and significant audit findings, including any significant deficiencies in internal control that we
We communicate with the directors regarding, among other matters, the planned scope and timing of
identify during our audit.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
and in times of economic uncertainty the degree of
identify during our audit.
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
the audit and significant audit findings, including any significant deficiencies in internal control that we
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
assumptions included in the forecast cashflows
subjectivity is higher than it might otherwise be.
requirements regarding independence, and to communicate with them all relationships and other
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
identify during our audit.
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
and impairment models including the discount
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
Changes in certain assumptions can lead to significant
matters that may reasonably be thought to bear on our independence, and where applicable, actions
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
We also provide the directors with a statement that we have complied with relevant ethical
rates, to assess the risk of the CGU carrying value
requirements regarding independence, and to communicate with them all relationships and other
We also provide the directors with a statement that we have complied with relevant ethical
changes in the recoverable amount of these assets.
taken to eliminate threats or safeguards applied.
requirements regarding independence, and to communicate with them all relationships and other
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
We also provide the directors with a statement that we have complied with relevant ethical
matters that may reasonably be thought to bear on our independence, and where applicable, actions
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
exceeding the recoverable amount.
matters that may reasonably be thought to bear on our independence, and where applicable, actions
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
Accordingly, given the significant judgements and
matters that may reasonably be thought to bear on our independence, and where applicable, actions
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
requirements regarding independence, and to communicate with them all relationships and other
taken to eliminate threats or safeguards applied.
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
estimates involved in assessing impairment of
► Compared earnings multiples derived from the
taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
matters that may reasonably be thought to bear on our independence, and where applicable, actions
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
intangible assets we considered this a key audit
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
Group’s value in use model to those observable
significance in the audit of the financial report of the current year and are therefore the key audit
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
taken to eliminate threats or safeguards applied.
taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most
matter. For the same reasons we consider it
taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most
from external market data of comparable listed
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
From the matters communicated to the directors, we determine those matters that were of most
important that attention is drawn to the information
entities.
significance in the audit of the financial report of the current year and are therefore the key audit
From the matters communicated to the directors, we determine those matters that were of most
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
significance in the audit of the financial report of the current year and are therefore the key audit
From the matters communicated to the directors, we determine those matters that were of most
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
in Note 18.
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
should not be communicated in our report because the adverse consequences of doing so would
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
reasonably be expected to outweigh the public interest benefits of such communication.
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
Report on the audit of the Remuneration Report
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
reasonably be expected to outweigh the public interest benefits of such communication.
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the audit of the Remuneration Report
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the audit of the Remuneration Report
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the audit of the Remuneration Report
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
Existence and valuation of inventory
Report on the audit of the Remuneration Report
Report on the audit of the Remuneration Report
Report on the audit of the Remuneration Report
Report on the audit of the Remuneration Report
Report on the audit of the Remuneration Report
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
Why significant
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
Opinion on the Remuneration Report
Opinion on the Remuneration Report
year ended 29 July 2023.
Opinion on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
Opinion on the Remuneration Report
As at 29 July 2023, the Group held $231.2 million in
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
Opinion on the Remuneration Report
year ended 29 July 2023.
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
inventories.
Opinion on the Remuneration Report
year ended 29 July 2023.
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
year ended 29 July 2023.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
year ended 29 July 2023.
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
year ended 29 July 2023.
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
year ended 29 July 2023.
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
Inventories are held at several distribution centres, as
2023, complies with section 300A of the Corporations Act 2001.
year ended 29 July 2023.
We have audited the Remuneration Report included in pages 17 to 33 of the directors’ report for the
year ended 29 July 2023.
year ended 29 July 2023.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
well as at over 1,200 retail stores.
year ended 29 July 2023.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
year ended 29 July 2023.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
2023, complies with section 300A of the Corporations Act 2001.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
2023, complies with section 300A of the Corporations Act 2001.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
As detailed in Note 10 of the financial report,
2023, complies with section 300A of the Corporations Act 2001.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
2023, complies with section 300A of the Corporations Act 2001.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
2023, complies with section 300A of the Corporations Act 2001.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
inventories are valued at the lower of cost and net
2023, complies with section 300A of the Corporations Act 2001.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
2023, complies with section 300A of the Corporations Act 2001.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
2023, complies with section 300A of the Corporations Act 2001.
2023, complies with section 300A of the Corporations Act 2001.
realisable value.
2023, complies with section 300A of the Corporations Act 2001.
A member firm of Ernst & Young Global Limited
2023, complies with section 300A of the Corporations Act 2001.
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
The cost of finished goods includes a proportion of
purchasing department costs, as well as freight,
handling, and warehouse costs incurred to deliver the
goods to the point of sale.
recalculated cost based on supporting supplier
invoices and assessed the allocation of costs
absorbed from the purchasing department, freight
and warehouse costs.
Our valuation specialists were involved in the conduct
of these procedures where required.
methodologies applied for compliance with
Australian Accounting Standards.
► Assessed the adequacy of the disclosures included
► Performed sensitivity analysis on key inputs and
How our audit addressed the key audit matter
Our audit procedures included the following:
► Selected a sample of inventory lines and
► Assessed the application of valuation
in the financial report.
Premier Investments Limited 92
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Carrying value of intangible assets
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
Ernst & Young
Why significant
accordance with Australian Auditing Standards.
At 29 July 2023, the Group held $818.3 million in
goodwill and indefinite-life brand names recognised
from historical business combinations, representing
33% of total assets.
How our audit addressed the key audit matter
Our audit procedures included the following:
► Assessed the application of the valuation
methodologies applied.
Ernst & Young
Glenn Carmody
Partner
Melbourne, Australia
28 September 2023
As outlined in Note 18 of the financial report, the
goodwill and brand names are tested by the Group for
impairment annually. The recoverable amount of
these assets was determined based on a value in use
model referencing discounted cash flows of the retail
segment for goodwill, and the casual wear, women’s
wear and non-apparel cash generating units (CGUs)
for brand names. The model contains estimates and
significant judgements regarding future cash flow
projections which are critical to the assessment of
impairment, particularly forecast sales growth in the
casual wear and women’s wear CGUs and discount
rates applied.
Glenn Carmody
Partner
Melbourne, Australia
28 September 2023
In the current year, the Group recognised $5.0 million
of impairment within the Casual Wear group of CGUs.
Significant assumptions used in the impairment
testing referred to above are inherently subjective
and in times of economic uncertainty the degree of
subjectivity is higher than it might otherwise be.
Changes in certain assumptions can lead to significant
changes in the recoverable amount of these assets.
Accordingly, given the significant judgements and
estimates involved in assessing impairment of
intangible assets we considered this a key audit
matter. For the same reasons we consider it
important that attention is drawn to the information
in Note 18.
► Evaluated whether the determination of CGUs was
in accordance with Australian Accounting
Standards.
► Agreed the cashflows within the impairment model
to board approved cashflows.
► Considered the historical accuracy of the Group’s
cash flow forecasting process.
► Compared the forecast cash flows used in the
value in use model to the actual current year
financial performance of the underlying CGUs for
reasonability.
► Assessed key inputs being discount rates, relief
from royalty rates and sales growth rates adopted
in the value in use model including comparison to
available market data for comparable businesses.
► Performed sensitivity analysis on key inputs and
assumptions included in the forecast cashflows
and impairment models including the discount
rates, to assess the risk of the CGU carrying value
exceeding the recoverable amount.
► Compared earnings multiples derived from the
Group’s value in use model to those observable
from external market data of comparable listed
entities.
► Assessed the adequacy of the disclosures included
in the financial report.
Our valuation specialists were involved in the conduct
of these procedures where required.
Existence and valuation of inventory
Why significant
How our audit addressed the key audit matter
As at 29 July 2023, the Group held $231.2 million in
inventories.
Inventories are held at several distribution centres, as
well as at over 1,200 retail stores.
As detailed in Note 10 of the financial report,
inventories are valued at the lower of cost and net
realisable value.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
The cost of finished goods includes a proportion of
purchasing department costs, as well as freight,
handling, and warehouse costs incurred to deliver the
goods to the point of sale.
93
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Our audit procedures included the following:
► Assessed the application of valuation
methodologies applied for compliance with
Australian Accounting Standards.
► Selected a sample of inventory lines and
recalculated cost based on supporting supplier
invoices and assessed the allocation of costs
absorbed from the purchasing department, freight
and warehouse costs.
Independent Auditor’s Report continuedAnnual Report 2023 ASX ADDITIONAL SHAREHOLDER INFORMATION
AS AT 22 SEPTEMBER 2023
TWENTY LARGEST SHAREHOLDERS
NAME
TOTAL
% IC
RANK
CENTURY PLAZA INVESTMENTS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
METREPARK PTY LTD
SL SUPERANNUATION NO 1 PTY LTD
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