Spudshed's net profit after tax has surged to $5.4 million for the 2023 financial year despite supply chain, staffing, and cost-of-living pressures.
Tony Galati’s independent fruit and vegetable player lifted its net profit to $5.4 million for the year ending June 30, up significantly from $1.6 million in the prior financial year.
The Galati family's supermarket foothold brought in more than $517 million in revenue, up from $445 million, from its 17 stores across Western Australia.
In its financial report lodged with ASIC yesterday, Vegie Bandits Pty Ltd, trading as Spudshed, said it chose not to bump its prices in line with inflation to retain its customer base for future growth.
“With consumers feeling the effects of inflation and multiple increases in interest rates affecting disposable incomes, the decision was taken not to pass price increases onto our customers and take a long-term view of maintaining our customer base and value proposition for future growth,” the report read.
“This we have successfully executed this year.”
The report also revealed it cost the family business about $63 million in employee expenses, an increase of more than 15 per cent across its staff base.
“Despite supply chain disruptions, we were able to leverage our position in WA to achieve substantial growth in sales for the business,” the report read.
“Operating costs, however, also increased and the shortage of labour in WA saw employment costs increase in order to attract and retain staff."
A fully franked final dividend of $4 million, up from $3 million last year, was paid to the owners.
