HA L L ENSTEIN GL A SSON HOL DINGS L IM ITED | I N TER I M R EP ORT 2 02 3

1
 H AL L E N S T EI N G L A S S ON HOLDINGS LIMIT ED | INT ERIM RE PORT 2023

2
 HA L L ENSTEIN GL A SSON HOL DINGS L IM ITED | I N TER I M R EP ORT 2 02 3

THE COMPANY ADVISES THAT SEGMENT RESULTS

GROUP SALES FOR THE SIX
MONTHS TO 1 FEBRUARY 2023 GL ASS ONS E- COMMERCE
Sales in Australia were $102.89 million Digital sales have decreased to 18.1%
WERE $223.29 MILLION, AN for the six-month period, which were up of total Group sales for the six-month
INCREASE OF 30.9% OVER 43.1% against the prior corresponding period, down from 32.8% in the same
period. During the season a new store was period last year. There has been a strong
THE CORRESPONDING PERIOD opened in Macarthur Square, Sydney, while drive from customers to get back into
the Pacific Fair store in Queensland has the physical stores post Covid, which has
LAST YEAR ($170.63 MILLION). been extended and refurbished. Further seen the demand for online shopping
refurbishments are underway, and there are reduce compared to recent comparative
Net profit after tax was $20.83 million currently a number of sites being reviewed periods. There is a continued focus on
(unaudited), an increase of 74.8% over for potential openings in Australia to further digital marketing across the Group to
the corresponding period last year ($11.91 expand the business. Glassons Australia drive engagement across all channels
million). The result is in line with the guidance made a significant contribution to the and ensure that customers enjoy a true
announced to the NZX on 17 February 2023. overall Group profit results. omni channel experience. The Glassons
Gross margin on sales was 56.5% compared App continues to be very successful with
Sales in New Zealand were $60.62 million, more than 1,000,000 downloads, while
with 57.9% in the prior corresponding period. which were up +13.4% against the same
Margin was pressured during the season significant work has been undertaken on
period last year. The lockdowns in the Hallensteins web shop to improve the
by the USD exchange rate and higher than New Zealand in the prior year significantly
normal freight costs. Freight costs have been look and the customer experience.
impacted the results of the in-store
coming down in the new season but are still performance. There is continued focus on
not at pre-covid levels. During the financial technology and the effectiveness of being
period the business continued to focus on omni channel with an increase in investment
DI VI DEND
cost controls given the rapidly increasing to support the digital strategy. During the The Directors have declared an interim
inflation both locally and globally, reducing season the Botany store in Auckland was dividend of 24 cents per share (partially
operating costs where possible. Inventory refurbished, and further refurbishments are imputed) (last year 18 cents per share)
levels have increased in order to alleviate planned in the next six months. to be paid on 19 April 2023. The balance
disruption from freight delays but continued sheet continues to be strong and
to be well managed to preserve liquidity. Glassons continues to lead the way as a inventories well controlled.
fashion brand and has been able to respond
The current financial reporting period has with agility to customer demand while
not been materially impacted by COVID-19. remaining relevant in the markets it trades FU TU RE OU TLOOK
Comparatively, trade in the first half of within. Glassons is looking to continue the
the 2022 financial year was significantly The trading environment for the first
expansion of the physical store presence eight weeks of the winter season has
disrupted by the COVID-19 pandemic, with in Australia where reasonable and invest in
5,432 lost trading days across the Group. been challenging with the cost of living
digital in both markets. and inflationary pressures impacting on
consumers discretionary spend. Group
sales for the first eight weeks of the
H AL L ENSTEI N BROTHERS winter season are +13.9% ahead of the
Sales were $59.79 million for the six-month same period last year.
period (including Australia), with sales
improving +32.0% against the same period Whilst this is a pleasing start, significant
STUA RT D U N C AN last year. As noted above, the New Zealand challenges are expected to continue for
GRO U P C E O lockdowns had a significant impact on the the remainder of the season given the
current economic environment in New
store performance for the brand in the prior
year. During the season, the Invercargill Zealand, Australia and globally. Given the
store was relocated to the new Invercargill current circumstances we do expect the
Central mall and was fitted with a new Australian trading environment to remain
concept design. stronger than that of New Zealand. Cost
efficiencies are being made where possible.
Hallenstein Brothers has successfully We remain focused on our strategic
increased the casual product offering direction and will continue to deliver
which has helped to offset the decline great and affordable fashion product
in demand for tailored product. This has to our customers underpinned by our
included moving to a more smart-casual sustainability ethos.
product range in fitting with current trends.
Investment in the website continues to be We will maintain our focus of operating
a focus and we consider there to be future excellence while continuing to invest in
opportunities for growth in Australia. people, digital and physical stores. This will
result in improved customer engagement
and a great customer experience.

3
 STATEM E NT O F COM PR EHENSIV E INCOM E
FOR THE SI X MO NT H S E N DE D 1 F E B R UARY 2023 (UNAUDITE D)

SIX MONTHS SIX MONTHS

ENDED ENDED
$000’s NOTE 1/2/23 1/2/22
Sales revenue 223,293 170,631
Cost of sales (97,087) (71,864)
Gross profit 126,206 98,767

Other operating income 124 118

Selling expenses (72,127) (62,902)

Distribution expenses (7,283) (5,803)
Administration expenses (16,329) (12,336)
Total expenses 2.2 (95,739) (81,041)

Operating profit 30,591 17,844

Finance income 501 57
Finance expense (1,579) (1,016)
Profit before income tax 29,513 16,885

Income tax expense (8,688) (4,973)

Net profit after tax attributable to the shareholders

of the Holding Company 20,825 11,912

Other comprehensive income

– Items that will not be reclassified to profit or loss
Increase in share option reserve 73 86

– Items that may be subsequently reclassified to profit or loss

Fair value (loss)/gain (net of tax) in cash flow hedge reserve (3,774) 243

Total comprehensive income for the year 17,124 12,241

Earnings per share

Basic and diluted earnings per share 34.91 19.97

The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.

4
STATEM E NT O F F INAN C IAL POSITION
AS AT 1 F EBR UA RY 2 02 3 ( U N AU DI T ED)

AS AT AS AT AS AT
$000’s NOTE 1/2/23 1/2/22 1/8/22
EQUITY
Contributed equity 27,805 27,361 27,805
Asset revaluation reserve 24,894 24,846 24,894
Cashflow hedge reserve (3,142) 750 632
Share option reserve 301 187 228
Retained earnings 43,402 33,937 36,894
Total equity 93,260 87,081 90,453

Represented by

CURRENT ASSETS
Cash and cash equivalents 36,164 32,898 35,113
Trade and other receivables 213 432 466
Advances to employees 189 269 242
Prepayments 5,399 5,385 5,275
Taxation Receivable - - 572
Inventories 3 28,472 22,361 33,441
Derivative financial instruments 38 1,052 1,188
Total current assets 70,475 62,397 76,297

NON-CURRENT ASSETS
Property, plant and equipment 4 53,198 50,040 50,415
Right of use assets 64,641 58,076 67,146
Investment property 3,372 3,372 3,372
Intangible assets 648 548 601
Deferred tax 9,457 7,186 7,364
Total non-current assets 131,316 119,222 128,898

Total assets 201,791 181,619 205,195

CURRENT LIABILITIES
Trade payables 7,962 8,352 13,288
Employee benefits 8,425 7,281 7,252
Other payables 10,913 9,661 16,503
Lease liabilities 24,309 23,365 24,655
Derivative financial instruments 4,456 - 289
Taxation payable 424 438 -
Total current liabilities 56,489 49,097 61,987

NON-CURRENT LIABILITIES
Lease liabilities 52,042 45,441 52,755

Total liabilities 108,531 94,538 114,742

Net assets 93,260 87,081 90,453

The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.

5
 STATEMENT OF CHANGES IN EQUITY
FOR THE SI X MO NT H S E N DE D 1 F E B R UARY 2023 (UNAUDITE D)
CASH
ASSET FLOW SHARE
SHARE TREASURY REVALUATION HEDGE OPTION RETAINED TOTAL
$000’s CAPITAL STOCK RESERVE RESERVE RESERVE EARNINGS EQUITY

Balance at 1 August 2021 29,279 (1,922) 24,846 507 101 36,342 89,153

COMPREHENSIVE INCOME
Profit for year - - - - - 11,912 11,912
Cash flow hedges net of tax - - - 243 - - 243
Increase in share option reserve - - - - 86 - 86
Total comprehensive income - - - 243 86 11,912 12,241

TRANSACTIONS WITH OWNERS

Dividends - 4 - - - (14,317) (14,313)
Total transactions with owners - 4 - - - (14,317) (14,313)
Balance at 1 February 2022 29,279 (1,918) 24,846 750 187 33,937 87,081

COMPREHENSIVE INCOME
Profit for year - - - - - 13,693 13,693
Revaluation net of tax - - 48 - - - 48
Cash flow hedges net of tax - - - (118) - - (118)
Increase in share option reserve - - - - 82 - 82
Total comprehensive income - - 48 (118) 82 13,693 13,705

TRANSACTIONS WITH OWNERS

Sale of treasury stock - 259 - - - - 259
Transfer of share option reserve
- - - - (41) 41 -
to retained earnings
Dividends - 144 - - - (10,736) (10,592)

Gain/loss on sale of treasury

stock transferred to retained - 41 - - - (41) -
earnings

Total transactions with owners - 444 - - (41) (10,736) (10,333)

Balance at 1 August 2022 29,279 (1,474) 24,894 632 228 36,894 90,453

COMPREHENSIVE INCOME
Profit for year - - - - - 20,825 20,825
Cash flow hedges net of tax - - - (3,774) - - (3,774)
Increase in share option reserve - - - - 73 - 73
Total comprehensive income - - - (3,774) 73 20,825 17,124

TRANSACTIONS WITH OWNERS

Dividends - - - - - (14,317) (14,317)
Total transactions with owners - - - - - (14,317) (14,317)

Balance at 1 February 2023 29,279 (1,474) 24,894 (3,142) 301 43,402 93,260

The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.

6
STATEMENT OF CASH FLOWS
FOR THE SI X MO NT H S E N DE D 1 F E B R UARY 2023 (UNAUDITE D)

SIX MONTHS SIX MONTHS

ENDED ENDED
$000’s 1/2/23 1/2/22
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Sales to customers 223,546 170,438
Rent received 124 118
Government grants 165 1,938
Interest received 498 53
Interest on debtors 3 4
224,336 172,551
Cash was applied to:
Payments to suppliers 140,277 105,991
Payments to employees 39,232 34,345
Interest paid on leases 1,579 1,016
Taxation paid 8,242 9,954
189,330 151,306
Net cash flows from operating activities 35,006 21,245

CASH FLOWS FROM INVESTING ACTIVITIES

Cash was provided from:
Proceeds from sale of property, plant, equipment and intangible assets 30 42
Repayment of employee advances 53 22
83 64
Cash was applied to:
Purchase of property, plant, equipment and intangible assets 7,873 3,034
7,873 3,034
Net cash flows applied to investing activities (7,790) (2,970)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash was provided from:
Proceeds from sale of treasury stock and dividends - 4
- 4
Cash was applied to:
Dividend paid 14,317 14,317
Lease liability payments 11,848 10,268
26,165 24,585
Net cash flows applied to financing activities (26,165) (24,581)
Net increase/(decrease) in funds held 1,051 (6,306)

Cash and cash equivalents at the beginning of the period 35,113 39,204
Cash and cash equivalents at the end of the period 36,164 32,898

The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.

7
 STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE SI X MO NT H S E N DE D 1 F E B R UARY 2023 (UNAUDITE D)

RECONCILIATION OF PROFIT AFTER TAXATION

TO CASH FLOWS FROM OPERATING ACTIVITIES
SIX MONTHS SIX MONTHS
ENDED ENDED
$000’s 1/2/23 1/2/22
NET PROFIT AFTER TAXATION 20,825 11,912

ADD/(DEDUCT) ITEMS CLASSIFIED AS INVESTING OR FINANCING ACTIVITIES

Gain on sale of plant and equipment (24) (40)

ADD/(DEDUCT) NON CASH ITEMS

Depreciation and amortisation 18,331 16,624
Deferred taxation (550) (807)
Share option expense 73 86

ADD/(DEDUCT) MOVEMENTS IN WORKING CAPITAL ITEMS

Taxation payable 996 (4,173)
Trade and other receivables and prepayments 129 (4,019)
Trade and other payables and employee benefits (9,743) (3,787)
Inventories 4,969 5,449

NET CASH FLOWS FROM OPERATING ACTIVITIES 35,006 21,245

The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.

8
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SI X MO NT H S E N DE D 1 F E B R UARY 2023 (UNAUDITE D)

1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

This section presents a summary of information considered relevant and material to assist the reader
in understanding the foundations on which the financial statements as a whole have been compiled.

1.1 GENERAL INFORMATION

REPORTING ENTITY
Hallenstein Glasson Holdings Limited (“Company” or “Parent”) together with its subsidiaries (the “Group”)
is a retailer of men’s and women’s clothing in New Zealand and Australia.
The Company is a limited liability company incorporated and domiciled in New Zealand. The address
of its registered office is Level 3, 235-237 Broadway, Newmarket, Auckland.

STATUTORY BASE
Hallenstein Glasson Holdings Limited is a company registered under the Companies Act 1993 and is an
FMC reporting entity under Part 7 of the Financial Markets Conduct Act 2013. The Company is also listed
on the New Zealand Stock Exchange (NZX). The financial statements of the Group have been prepared in
accordance with the requirements of Part 7 of the Financial Markets Conduct Act 2013 and the NZX Main
Board Listing Rules.
The financial statements were approved for issue by the Board of Directors on 31 March 2023.

1.2 GENERAL ACCOUNTING POLICIES

STATEMENT OF COMPLIANCE
These interim financial statements for the half year ended 1 February 2023 have been prepared in
accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP), NZ IAS 34
and IAS 34 Interim Financial Reporting and should be read in conjunction with the 2022 Annual Report.

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accounting policies used in the preparation of these financial statements are consistent with those
used in the previously published interim financial statements to 1 February 2022, and the audited financial
statements to 1 August 2022.
The financial statements for the six months ended 1 February 2023 and 1 February 2022 are unaudited.
The comparative information for the year ended 1 August 2022 is audited.

ENTITIES REPORTING
The financial statements are the Consolidated Financial Statements of the Group comprising Hallenstein
Glasson Holdings Limited and subsidiaries, together they are referred to in these financial statements as the
“Group”. The parent and its subsidiaries are designated as for-profit entities for financial reporting purposes.

9
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE SI X MO NT H S E N DE D 1 F E B R UARY 2023 (UNAUDITE D)

1.3 SIGNIFICANT EVENTS AND TRANSACTIONS

COVID-19 IMPACT
The current financial reporting period has not been materially impacted by COVID-19. Comparatively,
trade in the first half of the 2022 financial year was significantly disrupted by the COVID-19 pandemic,
with 5,432 lost trading days across the Group.
As part of its response to COVID-19, the New Zealand Government provided wage subsidies in the form of
the COVID-19 Leave Support Scheme to eligible businesses to help employers continue to pay their employees
that are self-isolating because of COVID-19 and are unable to work from home. The Group has applied NZ IAS
20 Accounting for Government Grants and Disclosure of Government Assistance in accounting for the funds
received from the COVID-19 Leave Support Scheme. Government wage subsidies received during the period
have been accounted for as government grants and offset against the expenses to which they relate in the
same period as they are incurred as disclosed in note 2.2.
The Group continues to negotiate with landlords for rent relief for periods where stores were unable to trade
due to the various lockdowns in the prior years. While some negotiations have been resolved, others are
ongoing.

2 PERFORMANCE INFORMATION
2.1 SEGMENT INFORMATION
The Board of Directors considers the business from both a product and geographic perspective as follows:
– Hallenstein Brothers (Hallenstein Bros Ltd (New Zealand) and Hallenstein Brothers Australia Limited
(Australia))
– Glassons Limited (New Zealand)
– Glassons Australia Limited (Australia)
– Hallenstein Properties Limited (New Zealand)
– Hallenstein Glasson Holdings Limited – Parent (New Zealand)
Segment results and key balances are shown below. Segment assets and liabilities are measured in the
same way as in the financial statements. Assets and liabilities are allocated based on the operations of
the segment.

10
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SI X MO NT H S E N DE D 1 F E B R UARY 2023 (UNAUDITE D)

2 PERFORMANCE INFORMATION (CONTINUED)

SEGMENT RESULTS
For the six months ended 1 February 2023

GLASSONS GLASSONS HALLENSTEIN HALLENSTEIN TOTAL

$000’s NEW ZEALAND AUSTRALIA BROTHERS PROPERTY PARENT SEGMENTS

INCOME STATEMENT
Sales revenue from
external customers 60,615 102,893 59,785 - - 223,293
Cost of sales (28,913) (40,868) (27,306) - - (97,087)
Gross profit 31,702 62,025 32,479 - - 126,206

Finance income 60 231 177 - 33 501

Finance expenses (599) (540) (435) - (5) (1,579)
Depreciation and
software amortisation 5,808 7,447 4,842 212 22 18,331

Profit before
income tax 4,888 19,341 5,006 246 32 29,513
Income tax expense (1,378) (5,814) (1,418) (69) (9) (8,688)

Profit after income tax 3,510 13,527 3,588 177 23 20,825

BALANCE SHEET
Current assets 15,037 25,709 22,215 5,241 2,273 70,475
Non-current assets 45,533 39,289 24,501 21,992 1 131,316
Current liabilities 15,835 24,812 15,477 328 37 56,489
Non-current liabilities 22,578 17,597 11,867 - - 52,042

Purchase of property,
plant, equipment
and intangibles 1,035 5,497 1,340 1 - 7,873

11
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE SI X MO NT H S E N DE D 1 F E B R UARY 2023 (UNAUDITE D)

2 PERFORMANCE INFORMATION (CONTINUED)

SEGMENT RESULTS
For the six months ended 1 February 2022
GLASSONS GLASSONS HALLENSTEIN HALLENSTEIN TOTAL
$000’s NEW ZEALAND AUSTRALIA BROTHERS PROPERTY PARENT SEGMENTS
INCOME STATEMENT
Sales revenue from
external customers 53,443 71,893 45,295 - - 170,631
Cost of sales (24,684) (28,093) (19,087) - - (71,864)
Gross profit 28,759 43,800 26,208 - - 98,767

Finance income 22 3 31 - 1 57
Finance expenses (452) (268) (296) - - (1,016)
Depreciation and
5,736 5,737 4,931 208 12 16,624
software amortisation

Profit before income tax 3,723 10,691 2,253 212 6 16,885

Income tax expense (1,052) (3,227) (635) (59) - (4,973)

Profit after income tax 2,671 7,464 1,618 153 6 11,912

BALANCE SHEET
Current assets 14,949 20,145 20,536 4,883 1,884 62,397
Non-current assets 43,746 29,302 23,910 22,254 10 119,222
Current liabilities 15,217 19,709 13,785 310 76 49,097
Non-current liabilities 20,507 13,456 11,478 - - 45,441
Purchase of property,
plant, equipment
and intangibles 526 1,870 602 36 - 3,034

2.2 INCOME AND EXPENSES

Profit before income tax includes the following specific expenses: SIX MONTHS SIX MONTHS
ENDED ENDED
$000’s 1/2/23 1/2/22
Occupancy costs1 18,581 14,260
Wages, salaries and other short term benefits 2
38,546 31,125
Depreciation, amortisation and impairment of property,
plant and equipment 5,036 5,033
Gain on sale of property, plant and equipment (23) (40)

Occupancy costs include rental expense on short term leases, depreciation and interest expense on right of use
1.

assets, less rent relief received from landlords during the period.
2.
 Wages, salaries and other short-term benefits includes Leave Support Scheme benefit from the New Zealand
Government of $165,000.

12
NOTES TO THE FINANCIAL STATEMENTS
FO R THE S I X MO N T H S E NDE D 1 F E B RUARY 2023 (UNAUDITE D)

2.3 DIVIDENDS SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
1/2/23 1/2/22 1/2/23 1/2/22
cents per share cents per share $000’s $000’s
Final dividend for the period
ended 1 August 2022 24.00 - 14,317 -
Final dividend for the period
ended 1 August 2021 - 24.00 - 14,317
Total 24.00 24.00 14,317 14,317

3 INVENTORIES
During the six months ended 1 February 2023, the Group recognised in the Statement of Comprehensive
Income, a write down of finished goods inventory to provide for obsolescence of $202,000
(2022: $367,000).

4 PROPERTY, PLANT AND EQUIPMENT

Acquisitions and disposals
During the six months ended 1 February 2023, the Group acquired assets with a total cost of $7,873,000
(2022: $3,034,000).
Assets with a net book value of $7,000 were disposed of during the six months ended 1 February 2023
(2022: $3,000).

5 RELATED PARTY TRANSACTIONS

The Group enters into transactions with related parties. Details of related parties, and the types of
transactions entered into during the period ended 1 February 2023, are consistent with those disclosed
in the audited financial statements for the year ended 1 August 2022.

6 EVENTS SUBSEQUENT TO BALANCE DATE

Subsequent to the half year end, the Board has resolved to pay an interim dividend of 24.0 cents
(2022 Interim Dividend: 18.0 cents) per share (partially imputed). The dividend will be paid on
19th April 2023 to all shareholders on the Company’s register as at 5.00pm, 12th April 2023.

13