Dusk Reports $10M Net Profit on $91.8M Revenue, Interim Dividend Doubled
Dusk Group Limited has reported a solid 5.2% increase in net profit for the half year ended December 2025, alongside a 5.1% rise in revenue. The company also announced a fully franked interim dividend doubling the prior payout, signalling confidence in its retail operations.
- Net profit after tax rises 5.2% to $10.0 million
- Revenue increases 5.1% to $91.8 million
- Underlying EBIT grows to $14.3 million
- Interim dividend doubled to 4.0 cents per share, fully franked
- Impairment expenses recognised on seven underperforming stores
Steady Growth in a Competitive Retail Landscape
Dusk Group Limited, a key player in the Australian home fragrance and gift retail sector, has delivered a robust half-year performance for the 26 weeks ended 28 December 2025. The company reported a 5.2% increase in net profit after tax to $10.0 million, supported by a 5.1% rise in revenue to $91.8 million. This steady growth reflects the company’s ability to navigate a competitive retail environment while maintaining customer appeal in scented candles, home décor, and gift solutions.
Underlying Earnings and Operational Highlights
Underlying earnings before interest and tax (EBIT) rose to $14.3 million, up from $13.8 million in the prior corresponding period. This improvement underscores operational efficiencies and effective cost management, despite the challenges posed by rising expenses. Notably, the company recognised impairment expenses of $267,000 related to seven underperforming stores, indicating a strategic focus on optimising its retail footprint.
Dividend Policy Signals Confidence
In a clear signal of confidence in its ongoing profitability, Dusk declared a fully franked interim dividend of 4.0 cents per share, doubling the final dividend of 2.0 cents paid for FY25. The interim dividend, amounting to $2.5 million, is scheduled for payment on 25 March 2026. The absence of a dividend reinvestment plan suggests the company is prioritising direct shareholder returns at this stage.
Balance Sheet and Cash Flow Strength
Dusk maintains a solid balance sheet with net assets of $40.7 million and cash and cash equivalents of $35.8 million at period end. Operating cash flow remained strong at $28.1 million, supporting ongoing investment in property, plant, and equipment, as well as intangible assets. Lease liabilities increased slightly to $38.9 million, reflecting the company’s retail store commitments under current lease accounting standards.
Leadership and Outlook
The half-year period saw a board change with Allison Batten appointed in November 2025, replacing David MacLean who resigned in October. The company reported no significant changes in its principal activities or control of entities during the period. While no explicit forward guidance was provided, the doubling of the interim dividend and steady profit growth suggest management’s confidence in the business’s trajectory heading into the second half of FY26.
Bottom Line?
Dusk’s half-year results reflect steady progress and shareholder returns, but watch for how store impairments and lease costs shape future earnings.
Questions in the middle?
- Will Dusk maintain or grow its dividend payout beyond FY26?
- How will the company address underperforming stores and potential further impairments?
- What impact will lease liabilities have on future cash flow and profitability?
