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Adairs returns $6.1m in JobKeeper as it reveals 233% profit

Adrian Flores
Adrian Flores
16 February 2021 1 minute readShare

Homewares giant Adairs has revealed it will return $6.1 million in JobKeeper subsidies as it posted a net profit of 233 per cent in the first half of the 2020–21 financial year.

In a statement to the ASX, the Adairs board said the JobKeeper stimulus will be repaid and recognised in the company’s financial results in the second half of the 2020–21 financial year.

The Adairs result comes despite the company closing its 43 Greater Melbourne Adairs stores during almost half of the reporting period due to Victoria’s second lockdown.

The company reported a statutory net profit after tax of $43.9 million, up by 233.4 per cent.

Adairs managing director and chief executive Mark Ronan said he’s proud of how the company has responded to the challenges caused by the pandemic.

“From the early phase of disrupted supply chains and national store closures in FY20 which saw most team members stood down, to the prolonged period of Victorian store and Support Office closures in 1H FY21. Even now they are managing a lockdown in Victoria and Auckland,” Mr Ronan said.

“Through all of these challenges, our team has successfully adapted to position us well to manage and capitalise on an evolving retail environment.”

Adairs becomes the latest company to return its JobKeeper stimulus after furniture retailer Nick Scali returned a $3.6 million stimulus.

Other companies that have announced their returning of JobKeeper subsidies to the government include Domino’s, Iluka Resources, Toyota and Super Retail Group.

ATO figures revealed that over half a million businesses have graduated from the JobKeeper program since the end of September.

By industry, retail trade (down 68 per cent), accommodation and food services (down 52 per cent), education and training (down 50 per cent), wholesale trade (down 71 per cent) and construction (down 48 per cent) all experienced substantial falls.

Further, every state and territory recorded a decrease of at least 60 per cent in employees receiving JobKeeper from the first phase to the second phase, with the exception of Victoria which recorded a decrease of 44 per cent.

Adairs returns $6.1m in JobKeeper as it reveals 233% profit
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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