Premier’s Strong E-Commerce Lowers Reliance on Store Network Longer Term; FVE Increased to AUD 17.50

No-moat Premier continues to drive strong operating results during a disruptive and unique trading environment dominated by coronavirus-related lockdowns and shifting consumer shopping habits. In the first 24 weeks of fiscal 2021, the group’s online channel has successfully captured sales lost because of widespread store closures. At the same time, better pricing, higher online sales margins, government wage subsidies, and lower rents have resulted in a massive increase in EBIT versus the prior corresponding period, or pcp. Management has guided to between 75% and 85% higher retailing EBIT in the first half of fiscal 2021, without providing quantitative details on the composition of the savings or gross margins.