Warehouse Group Ltd., New Zealand’s largest discount retailer, rose the most in more than four years after nearly doubling half-year profit and saying that 12-month earnings will beat the previous year.
The company reported half-year net income of NZ$106.3 million ($88 million), compared to NZ$54 million a year earlier, according to a statement today. It expects full-year adjusted profit after tax to be as much as 17 percent more than a year earlier. The shares rose 8.3 percent, the biggest daily gain since October 2008.
Warehouse’s half-year result was boosted by the sale of a distribution center and three stores, earning a NZ$62.4 million pretax gain. It also included the acquisition of electronics retail chain Noel Leeming Group Ltd., which Warehouse said would merge with its equivalent Bond & Bond network of stores.
“While still early in our multi-year transformation, we are pleased with the results of investments,” Chief Executive Officer Mark Powell said in the statement, adding that store re-fits would accelerate to 24 this calendar year.
Warehouse shares rose 29 cents to NZ$3.79 at the 5 p.m. close of trading in Wellington.