Topic: Games Workshop Finalized Half-Year Earnings Report

[Gankom]

Gdubs has released their financial report for the last half year and its very interesting.

https://assets.ctfassets.net/ost7hseic9hc/1tSExWot8zVGvrPyXJOEJo/dc17ba0f8fc48a497ca6026f2a1fae4d/2023-24_half_year_report_-_final_for_IR.pdf

The Goonhammer guys have a good little write up you should check out for some better analysis, but there's a few things that caught my eye.

https://www.goonhammer.com/games-industry-news-roundup-january-16th-2024/

Firstly, the company financials are in-line with its predictions from its earlier forecast in December, which we covered here. In all areas save for licensing Games Workshop saw an increase in profits when compared to this time last year. The retail sector of the company in particular continues to do well, with Games Workshop opening 14 new stores internationally to bring the company to a total of 535 Games Workshop-owned Warhammer retail locations.

The document also outlines success in the manufacturing department for the company. The earnings report states that “improving efficiency” at the company’s three Nottingham factories has allowed for Games Workshop to break several manufacturing records this year and allowed Games Workshop to negate the need for additional new manufacturing equipment to meet demand. The document also speaks briefly about potential plans to open a fourth factory in the future, as demand increases.

So the company in general is doing REALLY GOOD. The factory stuff in particular is very interesting to me in light of the recent discussion elsewhere about limited boxes. We might rage about how quickly it sells out, but from a business perspective it seems the company is very happy with how things are going.

BUT THERE'S MORE! Check out this tidbit;

earnings report states that the company is currently working with its IT department closely to replace the 20-year-old legacy warehousing systems. This project is known as the systems improvement project, or the SIP, and during the transition period to the modern warehousing systems, it “…may cause service levels to fall short at times for some customers. We will do everything we can to minimise this impact.”

They just updated their website (poorly imo) and are in the midst of what seems like a massive update of their warehousing stuff. That could be a major part of the recent issues. if so, hopefully that means better things in the future once it gets sorted.

[GamesPoet]

Further evidence for the initial runs of products to happen as they have been.

And I agree, the new website seems to be less than favorable, as well as less than what it was before.  Perhaps they'll fix this, perhaps.

By the way ... thanks for posting!

[S.O.F]

earnings report states that the company is currently working with its IT department closely to replace the 20-year-old legacy warehousing systems. This project is known as the systems improvement project, or the SIP, and during the transition period to the modern warehousing systems, it “…may cause service levels to fall short at times for some customers. We will do everything we can to minimise this impact.”

They just updated their website (poorly imo) and are in the midst of what seems like a massive update of their warehousing stuff. That could be a major part of the recent issues. if so, hopefully that means better things in the future once it gets sorted.

Reading that gave me horror flashbacks from my own employer just this fall. This purely talk of how inventory will be managed, so depending on how ambitious knowing the number of units of each item they sell from reserves in GW's DC's to units actively on shelves in it many brick and mortar stores.  My guess is though they just started the train under the promise that they would be able to build the rails ahead of it, this of course never works and then the customer and employees suffer, but hey to Corp "line go up" so that is all that matters.