The rift between large companies that have repaid JobKeeper and those that have not is growing, with Nick Scali the latest firm to come under fire after recording a 99.5% surge in underlying net profit.
The lounge and dining furniture business told investors on Thursday that its underlying net profit grew to $40.5 million, and sales increased by 24.4% to $171.1 million, for the six months to the end of December 2020.
The spike in profits comes after Nick Scali received $3.55 million in JobKeeper wage subsidies and $539,000 in COVID-19 rent relief.
Growing pressure is mounting on large businesses such as Nick Scali that have snubbed the lead of Toyota, which returned $18 million worth of JobKeeper payments after its profits increased by 30% in the final quarter of last year.
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Toyota CEO Matthew Callachor said at the time that returning JobKeeper was “the right thing to do as a responsible corporate citizen”.
To date, these are the companies that have and have not repaid JobKeeper after recording strong profits last year:
Firms that have given back JobKeeper:
- Toyota announced it will return $18 million in mid-January.
- Super Retail Group, which owns Supercheap Auto, Rebel and MacPac, will return $1.7 million.
- Iluka Resources pledged to repay $13.6 million.
- Domino’s said last week it will return $792,000.
Firms under pressure to give back JobKeeper:
- Nick Scali
- Accent Group
- Premier Investments — owner of Just Jeans, Smiggle, Dotti and Portmans
- Harvey Norman
- Crown Entertainment
Do you think large companies that recorded increased profits in 2020 should return JobKeeper payments? Email us at [email protected] or leave a comment below.