Where Is John Winning As Profits Fall Despite Big Revenue Jump?
Winnings Appliances has reported a fall in profits, despite a $193M jump in revenues. The big question is: what has happened to the attention-seeking millennial CEO John Winning, who prior to COVID was a publicity junkie?
It was well known that John Winning, the CEO of Winning appliances and the Winning Group, was the Sydney publicity junkie, who, prior to COVID, had his own PR manager chasing down media interviews in an effort to build his profile — a tad like Ruslan Kogan was doing out of Melbourne — until it all came to a shuddering halt, as the going got rough and their images became tarnished.
Winning, because he had verbal diarrhea about millennials and the expansion of his business, and Kogan because his online business was starting to wobble.
Back in 2019, Millennials unleashed on the young John Winning, after he branded young Australians as ‘lazy’ and scared of hard work.
Despite being a millennial himself, the multimillionaire who recently reshaped the Winning business said that millennials were demanding higher pay after just months in the workforce.
Speaking to the Sydney Morning Herald, the 35-year-old said good millennial workers were ‘few and far between’ and are ‘expecting more than what they put in’.
Winning only got to be CEO after he was hired and promoted by his father into the family company and, while he may have been right. the backlash was enough to stop him in his tracks.
Now he is nowhere to be seen.
In the past John Winning would have been all over the announcement last week, that the Company was moving into a new 45,750 square metre purpose-built distribution centre in Brisbane.
Instead, the honour of announcing the new centre that will be utilised by Appliances Online, Home Clearance, Winning Appliances and Rogerseller, as well as third-party logistics partners including King Living, ifit and Sub-Zero and Wolf, went to Winning Services general manager, Mick Bunt.
Winning Appliances had a good 2020/2021 year, with the business delivering $826 million in revenue vs. $632M in 2020, however questions are being asked about the Companies current liabilities which exceed its current assets by $24.7 million vs. $16.4M in 2020.
Despite the increase in revenues, profit for the 2021 financial year was down to $6.2M, from $6.5M in the previous year.
Dividends paid to ‘members’ John W Winning and John R Winning, the two directors of Winnings appliances, amounted to $6.2 million.
According to their latest financials, the business is sitting on $88M in deposits taken for goods that, as of the end of the year, had not been delivered, resulting in the revenue not being recognised on their books.
During the prior period the Company was carrying $59M in deposits.
The problem now is how much of this potential revenue will be lost as consumers are faced with price rises for imported European appliances of as much as 20-30%.
Then there is the issue of ‘long wait times’ for goods.
It was also revealed that during the past year, 268,197 shares in Winnings Appliances Pty Ltd were issued for a cash payment of $23.9M.
In addition, the remaining 40% interest in Winnings Online Group Pty Ltd was acquired for $23.97M by Winning Appliances Ltd.
The business has total current liabilities of $226M Vs $186M in 2020.