Lenard’s reports profit surge
Updated 10:00am Monday August 10
Australia’s largest specialty chicken retailer, Lenard’s, yesterday announced that the gross profit of its franchised stores rose to 52.44 per cent in the 2008/09 financial year on the back of significant store expansion including a successful arrangement with Metcash.
The average annual profit of each Lenard’s franchise rose 12.2 per cent, with average sales up 2.2 per cent.
Lenard’s CEO Bruce Myers was delighted with the results given the current economic climate and its effects on retail and grocery trade.
“Our three-phase growth strategy is well on its way to realising the goals we have set, from both a company and franchise perspective,” he said. “We are beginning to see the results of focusing our energy into increasing operating profits as the first phase of this plan, with our next step to look to growing sales, followed by customer numbers.”
Over the last 18 months, Lenard’s has been implementing a multi-faceted growth strategy aimed at capitalising on the increasing demand for premium quality fresh food with the convenience of home preparation.
A formalised alliance with grocery and liquor wholesaler Metcash to roll out its store-in-store concept through its IGA network has proved successful, with more than 35 already in operation and a further 18 in the pipeline.”This is a very exciting time at Lenard’s,” said Lenard’s founder and director, Lenard Poulter. “We’ve injected even more funds and manpower into franchise recruitment growing our team from one person to four, to ensure we’re able to meet the demand for potential new franchise owners.”
“We are the largest and strongest retail chicken company in Australia and that’s because we’ve created a great business model with great people, and a brand that is so successful no one can take us on. We intend to keep it that way,” he added.