Finance for Decision Making Report: 2019 Annual Report Analysis

This report provides a financial analysis of Super Retail Group, focusing on its performance as detailed in its 2019 annual report. The analysis highlights the company's position in the retail industry, particularly with its brands like Supercheap Auto, Rebel, BCF, and Macpac. The report examines key financial metrics, including revenue, which grew by 5.4%, and the significant 25% growth in online sales. It also discusses the increase in loyal customers by 10.9% and the overall growth in customer transactions. The report presents the sales revenue figures for 2019 and 2018, along with the corresponding cost of goods sold and the resulting profits. The report also touches on the company's efforts to manage costs to maximize profitability. This comprehensive financial overview offers insights into Super Retail Group's strategies and performance within the competitive retail landscape.

Running head: FINANCE FOR DECISION MAKING
Finance for Decision Making
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Table of Contents
Nature of the Business...............................................................................................................2
Reference....................................................................................................................................4

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Nature of the Business
The business of Super Retail Group is engaged the retail industry and appropriately
handles different brands such as Supercheap Auto, Rebel, BCF and Macpac. The annual
report for the company shows that the business has been able to maintain its position and
sustainability practices even though the retail industry has gone through a difficult phase. The
chair’s message in the annual report shows that the company has been focusing on
maintaining its market position and also focused on sustainability practices so that it can
build a stronger reputation in the market. Supercheap Auto provides automobile parts and
different accessories for different purposes considering the requirements of the customers.
Rebel on the other hand provides sports goods in retail chains and thereby brings in different
famous sporting brands. BCF provides outdoor retailing services which involves boating and
fishing adventures as well. This shows that Super Retail Group is a merchandise business
which provides different lines of products in Australia.
The business has also achieved financially during the period as the revenue of the
company grew by 5.4% which would directly supported by the sales growth in the online
operations of the business which was of 25% from previous year. Furthermore, the company
has been able to attract more customers as there is a growth in numbers of loyal customers
which grew by 10.9% during the period (Superretailgroup.com.au. 2020). There was a
growth in total customer transactions during the period by 2.3%. The sales revenue which the
company was able to generate was around $ 2700 million in 2019 while the same was $ 2570
million in 2018. The growth in the sales for the business is tremendous which is also one of
the main reasons that the profits of the business has also grown and the same is portrayed to
be $ 139.2 million in 2019. It is also to be noted that that due to an increase in the sales
turnover of the business, cost of goods sold has also increased from $ 1,415.5 million in 2018

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to about 1,488.2 million in 2019. The management however is trying to improve the costs of
the business so that profits can be maximised.

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Reference
Superretailgroup.com.au. (2020). Home - Super Retail Group . [online] Available at:
http://www.superretailgroup.com.au/ [Accessed 3 Feb. 2020].