Consequences of Middle East conflict begin to bite for Australian tackle supplier

Sales at Australia’s largest supplier of fishing tackle were hit by the rise in fuel prices and constraints of supply in the second half of its financial year so far as the consequences of the Middle East conflict began to bite.

Revenue at BCF (Boating, Camping Fishing) – part of the Super Retail Group – was down by 1.2% compared to the previous comparable period, while like-for-like sales growth also decreased 3.3% for the 27 to 44 weeks of trading. For the year so far, sales were 0.3% less.

The group blamed reduced customer participation in outdoor activities over the key Easter and school holiday period. “This dynamic was compounded by an unfavourable calendar arising from the separation of Easter and ANZAC Day,” the group told investors.

Overall Super Retail Group reported a 0.4% rise in sales for H2 to date. It said that sales momentum across all four brands was adversely affected by the onset of the Middle East conflict. “Inflationary pressures, higher fuel prices and rising interest rates, together with concerns around fuel availability, weighed on consumer sentiment, with the impact most pronounced over the Easter period.”

It also announced that it was investing approximately $30m in additional working capital, targeted at securing inventory ahead of price increases – most notably in the Supercheap Auto business. “Our brands are further focusing on distributing sufficient supply to regional areas in advance of any potential impact on supply chain operations from elevated fuel prices or rationing.”