Enero profit jumps 372% as group looks to make further acquisitions
Enero Group – the holding company behind the likes of BMF, Naked, Hotwire and The Leading Edge – has seen its net profit soar 372.2% following the acquisition of Orchard Marketing and the realisation of cost reduction and cost efficiency initiatives.
The group also flagged it could be looking for further acquisitions which will enhance its geographical presence in certain areas or enable it to expand its services.
The Enero Group of companies
Fortunate to have known Matt since he set up further down Harris Street. A great advertising man, and obviously a great CEO. Who has galvanised a talented group of people to prove the naysayers wrong year on year. Impressive. Congratulations Matt.
RG.
I’m no maths professor but pretty sure a rise from $4.9m to $8.5m doesn’t equal a 372.2% increase…
Hi Mathematially challenged,
Net profit after tax (NPAT) including significant items was $1.8m for FY17. It was $8.5m for FY18. That is a 372.2% increase
The $4.9m figure you cite is the FY17 NPAT excluding significant items figure.
Hope that clears it up,
Vivienne – Mumbrella
Hi Viviene.
I was wondering did the Enero data report a +372.2% increase in the NPAT (including significant items) or did you derive it from the data.
If it was derived (which I believe is the case as $8.5m/$1.8m = +372.22222%) I think you are torturing mathematics by reporting the growth to the first decimal place.
That rounded $8.5m could have been as high as $8,549,999 or as low as $8,450,000. The rounded $1.8m could have been as high as $1,849,999 or as low as $1,750,000.
This means that the growth could have been anywhere between +356.8% and +388.6%., which I am sure you can appreciate is an 8.9% difference.
Hi ‘Josh’,
Apologies I’m only just coming back to this now – your comment got lost in the sheer volume of competing comments which came through at a similar time. I hope you are still interested in my response.
Yes, Enero did report the 372.2% increase in NPAT (including significant items). I have now update the article to include a screenshot of Enero’s reporting.
To clear up any confusion around rounding, and to counter or confirm the accusation that I am ‘torturing mathematics’ (heavy), I have gone back into the financial report of Enero.
To clarify. The $8.5m figure was rounded (by Enero) from $8,473,000. The $1.8m figure was rounded (by Enero) from $1,796,000.
I calculate that to be a 371.7% difference, which, via rounding, means my headline remains correct. Deeper in its report, Enero calculates it as 371.8% (likely because they have the figures down to the dollar, not because they want to go to war with maths).
The 372.2% figure however remains what Enero reported in its headline results (slight difference down to, as you say, rounding).
In any case, you are correct that rounding was a contributing factor here. I would contend, however, that you are incorrect in the assumption that means my numbers are dramatically (8.9%) off, and in the accusation that I am involved in torturing the discipline of mathematics.
I am (as always) open to being corrected (again) though.
Vivienne – Mumbrella
either your numbers or your maths is way off.
profit of 13.5m, up from 10.4m is an increase of just under 30%…how did we get to 372%?
Hi Fleshpeddler,
It appears you are referring to EBITDA (earnings before interest, tax, depreciation and amortisation) figures.
In talking about profit, I am referring to NPAT (net profit after tax) including significant items, which jumped from $1.8m to $8.5m – a 372% increase.
You are correct. EBITDA did not increase by such a large figure. NPAT, however, did.
Still a massive number, so we’ll have to ask Enero how they did it.
Vivienne – Mumbrella
NPAT may make the nicest headline but ime, EBITDA is the key figure
Go Enron!