Latest / Best of Business / Jonathan Waecker: Michael Hill CEO on the company's profit jumping 376 percent to A$10m

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Jonathan Waecker: Michael Hill CEO on the company's profit jumping 376 percent to A$10m · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from Newstalk ZB.
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  Speaker 2: Follow this and our wide range of podcasts now on iHeartRadio.
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  Speaker 2: In the run of good results this reporting season, we
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  Speaker 2: can now add Michael Hill Jeweller International. The after-tax profit
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  Speaker 2: is up 376% for the year. The group revenue is
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  Speaker 2: up almost 2% to a record $ 655. 7 million. And the
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  Speaker 2: chief executive, Jonathan Waker, is.
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  Speaker 1: Back with us. Hello, Jonathan. Hey, Heather. How are you going?
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  Speaker 2: I'm very well, thank you. You must be pleased.
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  Speaker 1: I'm very, very chuffed. The team worked so hard to
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  Speaker 1: get this result and to be up in all three markets,
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  Speaker 1: including New Zealand, is a great result.
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  Speaker 2: Now, did I see correctly that we are in New
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  Speaker 2: Zealand outperforming store sales, like same store sales outperforming the Australians?
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  Speaker 1: You saw that for the first eight weeks of the year.
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  Speaker 1: That's right. New Zealand was up over 3% and Australia
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  Speaker 1: was up 1.7. So New Zealand's doing its fair share.
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  Speaker 2: What do we put that down to?
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  Speaker 1: I think our offer in New Zealand is resonating really,
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  Speaker 1: really strongly. And in Australia, we are seeing some softness
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  Speaker 1: with certain consumers. So we're just needing to go to
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  Speaker 1: market a little bit differently. But we're seeing an excellent
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  Speaker 1: response across both markets. I mean, to be up in Australia,
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  Speaker 1: which is growth on growth, I'll take any day. Yeah.
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  Speaker 2: Can we put this down to the fact that our
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  Speaker 2: economy is starting to get a bit warmer? It's a
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  Speaker 2: bit dicey over there. Is that what is coming into
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  Speaker 2: these decisions?
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  Speaker 1: I would love to say that the New Zealand economy
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  Speaker 1: has turned a corner. That would make a lot of
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  Speaker 1: us feel really great, I think. Is there a back coming, Jonathan?
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  Speaker 1: I'm pinning it on we're making good choices out at stores,
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  Speaker 1: and our offer is really resonating.
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  Speaker 2: What are you seeing in the New Zealand economy?
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  Speaker 1: Well, I mean, we're seeing that our offer really does
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  Speaker 1: have to be sharp. I mean, Kiwis know good value
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  Speaker 1: when they see it, and they want to make sure
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  Speaker 1: that the quality of their jewelry is excellent. So we've
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  Speaker 1: got a lot of work to do to make sure
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  Speaker 1: that people believe us when we show up.
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  Speaker 2: Canada is still just doing so well. Are you guys
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  Speaker 2: still building more stores in Canada?
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  Speaker 1: We are. So we're getting ready to refit five of
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  Speaker 1: our top six stores, which is something we're really excited about.
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  Speaker 1: We have two new flagships that we just opened and
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  Speaker 1: I'm on the hunt for two more. Hopefully in the
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  Speaker 1: next year, I'll be able to announce them.
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  Speaker 2: Why are they doing so well? What's going on there?
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  Speaker 1: I think it's a combination of product market fit. The
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  Speaker 1: Canadian consumer really does love the kind of handwriting and
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  Speaker 1: the product that we bring from New Zealand. The economy
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  Speaker 1: is doing well, and our product market fits just perfect.
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  Speaker 2: Okay. Now, how much of the uptick in your business
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  Speaker 2: can we say has got to do with Rob Phyfe
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  Speaker 2: and his vision?
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  Speaker 1: Well, as the gentleman who hired me, I want to
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  Speaker 1: say a lot. The man is just an absolute legend,
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  Speaker 1: and I'm going to miss him dearly, but this has
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  Speaker 1: definitely been a long time coming. He's been an incredible
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  Speaker 1: steward of this brand, a dear friend of the Hill
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  Speaker 1: family and Sir Michael and Lady Christine, and we just
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  Speaker 1: owe so much to him and his efforts.
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  Speaker 2: Yeah, so why has Rob decided to leave?
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  Speaker 1: I think he's off to go do other things. He's
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  Speaker 1: been with Michael Hill for well over a decade. He's
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  Speaker 1: just really, really given us so much of his incredible time.
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  Speaker 1: He's also on the board of Air Canada, so he's
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  Speaker 1: got airlines in his blood. And I think he's got
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  Speaker 1: some big plans globally. Yeah, okay.
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  Speaker 2: And so you're reinstating the dividend, are you? That's always
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  Speaker 2: a good sign, isn't it?
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  Speaker 1: We are. That's right, two cents. Yeah.
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  Speaker 2: Two cents. I love it. Thank you, Jonathan. Good on you, mate.
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  Speaker 2: You go well. Look after yourself. Jonathan Waker, Michael Hill International,
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  Speaker 2: Chief Executive.