The total cost for Super Retail’s staff underpayments to $61.2 million.
The parent company of Rebel Sport, Supercheap Auto, Macpac and BCF has admitted it underpaid workers by $8 million more than it originally estimated.
Super Retail Group today joined Coles and Wesfarmers in publicly announcing it had discovered some retail managers and new team members joining the business had been underpaid.
The company first reported this underpayment to investors in February last year, when it admitted it had underpaid store managers their overtime rates to the tune of $53.2 million.
EXPLAINED: Why are businesses self-reporting underpaying staff?
That figure, as reported to the ASX this morning, has since blown out to $61.2 million as the business wears additional expenses to conduct correct back payments to employees.
"The movement in this estimate has two elements," the company told shareholders.
"The total amount of retail manager and set-up team member underpayments is lower than initially estimated.
"Offsetting this decrease is the identification of additional team members also impacted by overtime underpayments."
The announcement comes as the company's first-half net profit fell by 20 per cent to $57.4 million, despite modest revenue growth in the face of drought and bushfires.
Revenue for Super Retail climbed by 2.9 per cent to $1.44 billion.
CEO and Group Managing Director Anthony Heraghty said overall the business was moving in a positive direction.
"With the extraordinary weather events of the summer behind us, we are continuing to see a number of positive trends in the business," Mr Heraghty said.
"Sales momentum has improved in three of our four brands (Supercheap Auto, Rebel and Macpac).
"Online sales, which represent more than 8 per cent of sales, have increased by 22 per cent and click and collect is growing faster than home delivery."
Super Retail Group also updated investors on the impact coronavirus is having on its supply chain, saying they are unlikely to see any impact in the short term.
"A significant proportion of the Group's products are sourced from China, across all of its brands," Super Retail reported.
"The Group currently only sources from two factories located in the city of Wuhan in the province of Hubei, which supply products to Rebel and Macpac.
"There is no expectation of a material impact on availability of product in the short term given current inventory levels."
Super Retail Group announced an interim dividend of 21.5 cents per share, fully franked, in line with a year ago.
Source: 9News https://www.9news.com.au/national/rebel-sport-supercheap-auto-bcf-owner-super-retail-group-8-million-staff-underpayments/d940cd00-4184-417f-9f83-12783c1e243e