Hallenstein Glasson Holdings Limited logo

HLG Full Year Results for the period ending 1 August 2025

Full Year Results25 September 2025HLGConsumer Discretionary

New Zealand Stock Exchange Listing Rules
Disclosure Full Year Report



For the year ending 1 August 2025




Contents


Media Release

Results Announcement

Audited Financial Statements & Audit Report

Distribution Notice

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Results announcement

Results for announcement to the market

Name of issuer Hallenstein Glasson Holdings Limited

Reporting Period 12 months to 1 August 2025

Previous Reporting Period 12 months to 1 August 2024

Currency NZD

Amount (000s) Percentage change

Revenue from continuing operations $470,740 8.1%

Total Revenue $470,740 8.1%

Net profit/(loss) from continuing

operations

$39,461 14.4%

Total net profit/(loss) $39,461 14.4%

Final Dividend

Amount per Quoted Equity Security $0.30500000

Imputed amount per Quoted Equity

Security

$0.06705889

Record Date 5 December 2025

Dividend Payment Date 12 December 2025

Current period Prior comparable period

Net tangible assets per Quoted

Equity Security

$1.85 $1.71

A brief explanation of any of the

figures above necessary to enable

the figures to be understood

For further information refer to the attached:

 Chairman’s announcement

 Financial Statements and the Independent

Auditor’s Report

Authority for this announcement

Name of person


authorised to make

this announcement

Cameron Alderton

Contact person for this

announcement

Cameron Alderton

Contact phone number +64 22 394 5785

Contact email address cameron@glassons.com

Date of release through MAP


26 September 2025


Audited financial statements accompany this announcement.

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Distribution Notice





Please note: all cash amounts in this form should be provided to 8 decimal places


Section 1: Issuer information

Name of issuer Hallenstein Glasson Holdings Limited

Financial product name/description Ordinary Shares

NZX ticker code HLG

ISIN (If unknown, check on NZX

website)

NZHLGE 0001S4

Type of distribution

(Please mark with an X in the

relevant box/es)

Full Year X Quarterly

Half Year Special

DRP applies

Record date 5/12/2025

Ex-Date (one business day before the

Record Date)

4/12/2025

Payment date (and allotment date for

DRP)

12/12/2025

Total monies associated with the

distribution

1


$18,192,964 based on the number of units on issue at

the date of the form

Source of distribution (for example,

retained earnings)

Retained Earnings

Currency NZD

Section 2: Distribution amounts per financial product

Gross distribution

2

$0.37205889

Gross taxable amount

3

$0.37205889

Total cash distribution

4

$0.30500000

Excluded amount (applicable to listed

PIEs)

$0.00000000

Supplementary distribution amount $0.03043012

Section 3: Imputation credits and Resident Withholding Tax

5


Is the distribution imputed Partial imputation




1

Continuous issuers should indicate that this is based on the number of units on issue at the date of the form

2

“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of

Resident Withholding Tax (RWT).

3

“Gross taxable amount” is the gross distribution minus any excluded income.

4

“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.

This should include any excluded amounts, where applicable to listed PIEs.

5

The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is

fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute

advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied

6


18.02%

Imputation tax credits per financial

product

$0.06705889

Resident Withholding Tax per

financial product

$0.05572054

Section 4: Distribution re-investment plan1 (if applicable)

DRP % discount (if any)

N/A

Start date and end date for

determining market price for DRP


Date strike price to be announced (if

not available at this time)


Specify source of financial products to

be issued under DRP programme

(new issue or to be bought on market)


DRP strike price per financial product


Last date to submit a participation

notice for this distribution in

accordance with DRP participation

terms


Section 5: Authority for this announcement

Name of person


authorised to make

this announcement

Cameron Alderton

Contact person for this

announcement

Cameron Alderton

Contact phone number +64 22 394 5785

Contact email address cameron@glassons.com

Date of release through MAP


26/09/2025






6

Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

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HALLENSTEIN GLASSON HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 1 AUGUST 2025

Sales Revenue

Cost of Sales

Gross Profit

Other Operating Income

Selling Expenses

Distribution Expenses

Administration Expenses

Total Expenses

Operating Profit

Finance Income

Finance Expense

Profit Before Income Tax

Income Tax Expense

Net Profit after Tax attributable to the Shareholders

of the Holding Company

Other Comprehensive Income

-Items that will not be reclassified to profit or loss

FairValue (Loss)/Gain (net oftax) on Revaluation of Land and Buildings

-Items that may be subsequently reclassified to profit or loss

Fair Value (Loss)/Gain (net of tax) in Cash Flow Hedge Reserve

Movement in Foreign Currency Translation Reserve

Total Comprehensive Income for the year attributable to the Shareholders

of the Holding Company

Earnings Per Share

Basic Earnings per Share

Diluted Earnings per Share

Note

2.1

2.1

2.2

2.1

2.1, 2.2

6.1

2.1

6.1

6.1

2.4

2.4

2025

$'000

470,740

(191,476)

279,264

475

(161,183)

(16,959)

(40,565)

(218,707)

61,032

2,035

(4,689)

58,378

(18,917)

39,461

(20)

(635)

265

39,071

66.2

66.1

2024

$'000

435,635

(176,904)

258,731

353

(152,844)

(15,552)

(36,392)

(204,788)

54,296

1,957

(4,168)

52,085

(17,599)

34,486

(421)

(63)

34,002

57.8

57.8

The Notes to the Consolidated Financial Statements form an integral part of and are to be read in conjunction with these Consolidated Financial Statements.

1

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2
Note2025

2024

$'000

$'000

5.129,279

29,279

26,085

26,105

301

936

265-

37-

55,928

46,887

111,895

103,207

3.158,333

45,915

366

407

732

847

3,646

5,841

3.231,274

27,484

7.51,062

1,317

95,413

81,811

4.262,155

58,779

4.163,785

67,029

4.33,020

3,080

1,273

993

6.25,570

7,323

135,803

137,204

231,216

219,015

11,341

9,828

7.19,877

8,928

18,448

15,400

4.126,680

26,691

7.5639

2

2,376

2,466

69,361

63,315

H


ALL ENST EIN GLASSON HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 1 AUGUST 2025

Equity

Contributed Equity

Asset Revaluation Reserve

Cash Flow Hedge Res

erve

Foreign Currency Translation Reserve

Share

Option Reser ve

Retained Earnings

Total Equity

Repre sented by

Current Assets

Ca sh and Cas

h Equivalents

Trade and Other Receivables

Ad vances to Emplo yees

Prepa yments

In ventories

Derivative Financial Instru ments

Total Current Assets

Non-Current Assets

Property, Plant and Equipment

Right-of-use Assets

In ve st ment Property

Intangible Ass ets

Deferred Tax

Total Non-Current Assets

Total Assets

Current Liabilities

Trade Pay

ables

Employ

ee Benefits

Other Payables

Lea se Liabilities

Derivative Financial Instru ments

Ta xation Payable

Total Current Liabilities

Non-Current Liabilities

Lea se Liabilities

4.149,960

52,493

______________________________Director ______________________________Director Date 26 September 2025

Total Liabilities 119,321

115,808

Net Assets 111,895

103,207

The Notes to the Consolidated Financial Statements form an integral part of and are to be read in conjunction with these Consolidated Financial

Statements. The Consolidated Financial Statements are signed for and on behalf of the Board and were authorised for issue on 26 September 2025.

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HALLENSTEIN GI-ASSON HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 1 AUGUST 2025

Share capital

Treasury

Asset

cash Row Share Option

Foreign

Retained Total Equity

Stock

Revaluation

Hedge Reserve

Currency

Earnings

Reserve Reserve Translation

Note

Reserve

$000 $000 $000 $000 $000 $000 $000 $000

Balance at 1 August 2023 29,279

(1,139)

26,526

999

294 40,717

96,676

Comprehensive Income

Profit for Year

34,486 34,486

Revaluation net ofTax

6.1

(421) (421)

Cash Flow Hedges net ofTax

6.1

(63)

(63)

Total Comprehensive Income

(421)

(63)

34,486

34,002

Transactions with Owners

Sale ofTreasury Stock

5.1, 5.2

141 141

Di.;dends

2.3, 5.1

29

(28,632) (28,603)

Increase in Share Option Reserve

43 43

Share Options Exercised

5.1

948

948

Transfer of Share Option Reserve to Retained

Earnings

(337)

337

(Gain)/ Loss on Sale ofTreasury Stock

transferred to Retained Earnings

5.1

21

(21)

Total Transactions with Owners

1,139

(294)

(28,316)

(27,471)

Balance at 1 August 2024 29,279

26,105

936

46,887

103,207

Comprehensive Income

Profit for Year

39,461 39,461

Revaluation net ofTax

6.1

(20) (20)

Cash Flow Hedges net ofTax

6.1

(635)

(635)

Foreign Currency Translation Reserve

265 265

Total Comprehensive Income

(20)

(635)

265

39,461

39,071

Transactions with Owners

Dii,;dends

2.3

(30,420) (30,420)

Increase in Share Option Reserve

37 37

Total Transactions with Owners

37

(30,420) (30,383)

Balance at 1 August 2025 29,279

26,085

301

37

265

55,928 111,895

The Notes to the Consolidated Financial Statements form an integral part of and are to be read in conjunction with these Consolidated Financial Statements.

3

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HALLENSTEIN GI-ASSON HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 1 AUGUST 2025

Cash Flows from Operating Activities

Cash was provided from:

Sales to Customers

Rent Received

Interest Income

Interest on Debtors

Cash was applied to:

Payments to Suppliers

Payments to Employees

Interest Paid on Leases

Taxation Paid

Net Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash was provided from:

Proceeds from Sale of Property, Plant and Equipment and Intangible Assets

Repayment of Employee Mvances

Cash was applied to:

Purchase of Property, Plant and Equipment and Intangible Assets

Net Cash Flows applied to Investing Activities

Cash Flows from Financing Activities

Cash was provided from:

Sale ofTreasury Stock and Dividends

Cash was applied to:

Dividend Paid

Lease Liability Payments

Net Cash Flows applied to Financing Activities

Net lncrease/(Decrease) in Funds held

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

Note

2.2

2.1

2.1

2.2

4.2

5.1, 5.2

2.3

4.1

3.1

2025

2024

$'000

$'000

471,282

435,154

231

248

2,031

1,951

4

6

473,548

437,359

278,908

252,304

84,356

78,808

4,689

4,168

16,990

16,769

384,943

352,049

88,605

85,310

89

168

115

261

204

429

15,830

15,944

15,830

15,944

(15,626)

(15,515)

170

---------

170

30,420

28,632

30,141

27,896

60,561

56,528

(60,561)

(

56,358)

12,418

13,437

45,915

32,478

58,333

45,915

The Notes to the Consolidated Financial Statements form an integral part of and are to be read in conjunction with these Consolidated Financial Statements.

4

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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

RECONCILIATION OF PROFIT AFTER TAXATION

TO CASH FLOWS FROM OPERATING ACTIVITIES

Net Profit after Taxation

Add/ (deduct) items classified as Investing or Financing activities

Loss/(Gain) on Sale of Plant and Equipment

Add/ (deduct) Non Cash Items

Depreciation and Amortisation

Gain on Termination of Lease

Net Fair Value Loss on Investment Property

Deferred Taxation

Share Option Expense

Foreign Currency Translation Reserve

Add/ (deduct) movements in Working Capital Items

Taxation Payable

Trade and Other Receivables and Prepayments

Trade and Other Payables, Employee Benefits and Other Working Capital

Inventories

Net Cash Flows from Operating Activities

Note

2.2

2.2

2.2

2.2

6.2

2025

2024

$'000

$'000

39,461

34,486

2

528

40,629

38,516

(112)

60

128

2,017

(1,045)

37

43

265

(90)

1,876

2,236

(499)

7,778

7,868

(3,790)

3,521

88,605

85,310

The Notes to the Consolidated Financial Staterrents form an integral part of and are to be read in conjunction with these Consolidated Financial Staterrents.

5

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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

1. Basis of preparation

This section presents a summary of information considered relevant and material to assist the reader in understanding the

foundations on which the financial statements as a whole have been compiled. Material accounting policies specific to notes

shown in other sections are disclosed in a shaded box and are included as part of that particular note.

1.1 General information

Reporting entity

Hallenstein Glasson Holdings Limited ("Company" or "Parent") together with its subsidiaries (the "Group") is a retailer of men's

and women's clothing in New Zealand and Australia.

The Company is a limited liability company incorporated and domiciled in New Zealand. The address of its registered office

is Level 3, 235-237 Broadway, Newmarket, Auckland.

Statutory base

Hallenstein Glasson Holdings Limited is a company registered under the Companies Act 1993 and is a FMC reporting entity

under Part 7 of the Financial Markets Conduct Act 2013. The Company is also listed on the New Zealand Stock Exchange

(NZX). The financial statements of the Group have been prepared in accordance with the requirements of Part 7 of the

Financial Markets Conduct Act 2013 and the NZX Main Board Listing Rules.

The financial statements were approved for issue by the Board of Directors on 26 September 2025.

6

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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

1.2 General accounting policies

Statement of compliance

These financial statements for the year ended 1 August 2025 have been prepared in accordance with Generally Accepted

Accounting Practice in New Zealand (GAAP). They comply with New Zealand equivalents to International Financial

Reporting Standards (NZ IFRS), other New Zealand accounting standards and authoritative notices that are applicable to

entities that apply NZ IFRS. The financial statements comply with International Financial Reporting Standards Accounting

Standards (IFRS Accounting Standards).

Basis of preparation of financial statements

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies

have been consistently applied to all the periods presented, unless otherwise stated.

The reporting currency used in the preparation of these financial statements is New Zealand dollars, rounded where

necessary to the nearest thousand dollars.

Entities reporting

The financial statements are the Consolidated Financial Statements of the Group comprising Hallenstein Glasson

Holdings Limited and its subsidiaries, together they are referred to in these financial statements as 'the Group'. The

parent and its subsidiaries are designated as for-profit entities for financial reporting purposes.

Principles of consolidation

Subsidiaries

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to,

or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its

power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They

are deconsolidated from the date that control ceases.

lntercompany transactions, balances and unrealised gains and losses on transactions between Group companies are

eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies

adopted by the Group.

Investments in subsidiaries

Principal Subsidiaries

Hallenstein Bros Limited

Hallensteins Australia Pty Limited

Glassons Limited

Glas sons Australia Pty Limited

Hallenstein Properties Limited

Interest held by parent

and group

2025 2024

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

7

Principal activities

Retail of menswear in New Zealand

Retail of menswear in Australia

Retail of womenswear in New Zealand

Retail of womenswear in Australia

Property ownership in New Zealand

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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of

investment property, land and buildings and certain financial assets and liabilities (including derivative instruments) measured

at fair value.

Climate related risks

Transactions and balances

As part of its risk management framework, the Group continues to monitor its exposure to risk, including climate related risks

and regulatory related reporting requirements. For the year ended 1 August 2025, the Group completed its second climate­

related risk assessment in accordance with the Aotearoa New Zealand Climate Standards. Based on this assessment, no

climate-related risks or opportunities were identified that have a material impact on the financial statements, and there are no

specific disclosures to note. The identified climate related risks and opportunities including both physical and transitional

impacts have been considered as part of the below critical accounting estimates, judgements and assumptions.

Our Climate Related Disclosure will be published by the end of November 2025 on our website -

https:/lwww.hallensteinglasson.co.nz/climate-related-disclosures.

Critical accounting estimates, judgements and assumptions

The preparation of financial statements in conformity with NZ IFRS and IFRS Accounting Standards require the use of certain

critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's

accounting policies.

Property, plant and equipment/Right of use Assets: The Group has assessed whether the carrying value of its property, plant

and equipment and right of use assets have suffered any impairment since they were acquired. The recoverable amounts of

cash generating units (at a store level) have been determined based on value in use calculations. These calculations require the

use of estimates and projections of future operating performance.

Inventory provision: The Group assessed the inventory provision using management judgement which considers a range of

factors including the review of historical data, the age of inventory and current selling price trends to determine the

appropriateness of the provision.

Revaluation of Land and Buildings: The fair value of the Group's land and buildings is determined by the Board following an

independent valuation undertaken at least every three years. The basis of the valuation is assessed within a range indicated by

two valuation approaches: discounted cash flow analysis and an income capitalisation approach. The key assumptions are

disclosed in note 4.2.

Revaluation of Investment Property: The fair value of the Group's investment property is determined by the Board following

an independent valuation undertaken annually. The basis of the valuation is assessed within a range indicated by two valuation

approaches: discounted cash flow analysis and an income capitalisation approach. The key assumptions are disclosed in note

4.3.

Foreign currency translation

Functional and presentation currency

Items included in the financial statements for each of the Group's operations are measured using the currency of the primary

economic environment in which it operates ('the functional currency'). The financial statements are presented in New Zealand

dollars, which is the Group's presentational currency.

Effective 2 August 2024, Glassons Australia and Hallensteins Australia, previously registered as branches in Australia, became

separate companies registered with the Australian Securities and Investments Commission (ASIC) under Part 5B.1 of the

Corporations Act 2001 (Cth) (Australia). As a result, the Group now has two operating subsidiaries in Australia.

As part of the domiciliation of these companies, the functional currency of the Australian branches/subsidiaries have been

reassessed. Over time there has been a gradual change in operations in Australia which has culminated in converting the

branches to subsidiaries as noted above. Management has further determined that a change in functional currency from New

Zealand Dollars (NZD) to Australian Dollars (AUD) upon the restructuring of the Australian branches on the 2 August 2024 is

appropriate.

8

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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

The results and financial position of all the Group entities that have a functional currency different from the presentation

currency are translated into the presentation currency as follows:

• Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;

• Income and expenses for each statement of comprehensive income are translated at average exchange rates; and

• All resulting exchange differences are recognised in other comprehensive income.

On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and other

currency instruments designated as hedges of such investments, are taken to other comprehensive income.

2. Performance

2.1 Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the Board of Directors. The

Board of Directors is the chief operating decision maker and is responsible for allocating resources and assessing

performance of the operating segments and they delegate that authority through the Group Chief Executive Officer.

The Board of Directors considers the business from both a product and geographic perspective as follows:

Hallensteins (Hallensteins Ltd (New Zealand) and Hallensteins Australia Pty Limited (Australia))

Glassons Limited (New Zealand)

Glassons Australia Pty Limited (Australia)

Hallenstein Properties Limited - Property (New Zealand)

Hallenstein Glasson Holdings Limited - Parent (New Zealand)

The reportable segments derive their revenues primarily from the retail sale of clothing. The revenues from external parties

reported to the Board of Directors are measured in a manner consistent with that in the consolidated statement of comprehensive

income. There are no material revenues derived from a single external customer.

9

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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

Segment results

Glassons

New

Glassons

For the year ended 1 August 2025

Zealand

Australia Hallensteins Property

Parent

Total Group

$000's $000's $000's $000's $000's $000's

INCOME STATEMENT

Segment Revenue

123,487 252,849

108,632

1,142

486,110

lntercompany Segment Revenue

(11,575) (1,325) (1,328)

(1,142)

(15,370)

Sales Revenue from External Customers

111,912 251,524 107,304

470,740

Cost of Sales

(48,679) (96,839) (45,958)

(191,476)

Finance Income

379

946 564

146

2,035

Finance Expense

(1,360) (2,058) (1,242)

(29)

(4,689)

Depreciation and Amortisation

(11,338)

(19,127)

(9,527)

(525)

(112)

(40,629)

Profit/(Loss) before Income Tax

19,162

34,217

4,755

324

(80)

58,378

Income Tax (Expense)/Benefit

(5,719) (11,742) (1,451)

(23)

18

(18,917)

Net Profit/(Loss) after Income Tax

13,443

22,475

3,304

301

(62)

39,461

STATEMENT OF RNANCIAL POSITION

Current A5sets

27,998 35,834 21,090

6,659

3,832

95,413

Non-Current A5sets

40,427

46,943

28,144 20,289

135,803

Current Liabilities

18,328

34,876

15,499

316

342

69,361

Non-Current Liabilities

15,773 19,946

14,241

49,960

Purchase of Property, Plant and Equipment and

Intangible A5sets

4,509 7,037

4,214

70

15,830

Glassons

New

Glas sons

For the year ended 1 August 2024

Zealand

Australia

Hallensteins

Property

Parent

Total Group

$000's $000's $000's $000's $000's $000's

INCOME STATEMENT

Segment Revenue

120,303

219,440

108,359

1,002

449,104

lntercompany Segment Revenue

(10,241)

(1,317)

(909)

(1,002)

(13,469)

Sales Revenue from External Customers

110,062 218,123

107,450

435,635

Cost of Sales (49,191)

(83,862)

(43,851)

(176,904)

Finance Income

348

721

718 170

1,957

Finance Expense

(1,415)

(1,625) (1,105)

(23)

(4,168)

Depreciation and Amortisation

(11,143)

(16,593)

(10,166)

(524)

(90)

(38,516)

Profit/(Loss) before Income Tax 15,039 29,466

7,479

258

(157)52,085

Income Tax(Expense)/Benefit

(4,255)

(9,969)

(2,141) (1,278)

44

(17,599)

Net Profit/(Loss) after Income Tax

10,784 19,497

5,338

(1,020) (113)

34,486

STATEMENT OF FINANCIAL POSITION

Current A5sets

24,170 26,072

22,052

6,010

3,507

81,811

Non-CurrentA5sets

40,704

53,510

22,253

20,737 137,204

Current Liabilities

16,600

30,969 15,360

396

(10)

63,315

Non-Current Liabilities

17,535

25,785

9,173

52,493

Purchase of Property, Plant and Equipment and

Intangible A5sets

3,774

8,029

4,131

10

15,944

10

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HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

2.2 Income and expenses

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services, excluding

Goods and Services Tax, net of rebates and discounts and after eliminating sales within the Group.

Revenue is recognised as follows:

Sales of goods -retail

Sales of goods are recognised when a Group entity has delivered a product to the customer. For in-store sales, control

passes to the customer at the point of sale. For online sales, the order and the delivery to the customer are considered to

comprise a single performance obligation, therefore control passes to the customer when the goods are delivered. Retail

sales are usually in cash, credit card, debit card or by various pay later services. The recorded revenue is the gross amount

of sale (excluding GST), including credit card fees and service fees payable for the transaction. Such fees are included in

selling expenses.

The Group offers customers the option of purchasing gift cards. This is considered deferred revenue until such time where

the customer redeems the gift card on future purchases. A contract liability for the purchase of a gift card is recognised at the

time of the sale. Revenue is recognised when the gift card is redeemed, or, for the portion not expected to be redeemed

(breakage), in line with expected redemption patterns, with any remaining balance recognised when they expire.

As at 1 August 2025, the gift card liability balance recognised under "Other payables" was $2.47M (2024: $2.22M, 2023:

$2.61M).

Interest income

Interest income is recognised using the effective interest method.

Rental income

Rental income from operating leases (net of any incentives) is recognised on a straight-line basis over the lease term.

11

--

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

Income and expenses

Profit before income tax includes the following specific income and expenses:

Other Operating Income

Rental Income

Insurance Proceeds

Expenses

Occupancy Costs

Auditor's Remuneration

Audit of Financial Statements - PwC New Zealand

Other Services - Performed by PwC Australia

1

Directors' Fees

Wages, Salaries and other Short Term Benefits

Depreciation of Property, Plant & Equipment

Depreciation of Right of Use Assets

Amortisation of Software

Total Depreciation and Amortisation

Net Fair Value Loss on Investment Property

Interest on Leases

Gain on Termination of Lease

Loss/(Gain) on Disposal of Property, Plant and Equipment

1

Amount paid in respect of tax compliance and tax advisory services provided in Australia.

12

Group

2025

$000

231

244

9,514

337

718

85,305

11,504

28,526

599

40,629

60

4,689

2

2024

$000

248

105

9,355

249

18

698

80,753

11,415

26,604

497

38,516

128

4,168

(112)

528

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

2.3 Dividends

Provision is made for the amount of any dividend declared on or before the balance date but not distributed at balance date.

2025

cents per

Share

Final dividend for the year ended 1 August 2024

26.50

Interim dividend for the year ended 1 August 2025

24.50

Final dividend for the year ended 1 August 2023

Interim dividend for the year ended 1 August 2024

Total

51.00

2024

cents per

Share

24.00

24.00

48.00

2025

$000's

15,806

14,614

30,420

2024

$000's

14,316

14,316

28,632

Dividends paid were partially imputed. Supplementary dividends of $244,972 (2024: $177,160) were paid to shareholders not

resident in New Zealand for tax purposes for which the Group received a foreign investor tax credit.

2.4 Earnings per share

Basic and diluted earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the

weighted average number of ordinary shares outstanding during the period, adjusted for bonus elements in ordinary shares

issued during the period.

Basic

Basic earnings per share is calculated by dividing the profit after tax of the Group by the weighted average number of ordinary

shares outstanding during the year.

Diluted

Diluted earnings per share is calculated by adjusting profit after tax and the weighted average number of ordinary shares

outstanding to assume conversion of all dilutive potential ordinary shares. The Group has granted shares under a Long-Term

Incentive Plan (L TIP) during the financial year. These are considered potential ordinary shares and included in the calculation

of diluted earnings per share. The impact of these potential shares is to increase the weighted average number of shares

outstanding by 36,873 in 2025 (2024: Nil). Subsequent to the end of the financial year, these L TIP shares have lapsed and will

not result in the issuance of ordinary shares.

Profit after tax

Weighted average number of ordinary shares outstanding

Basic earnings per share (cents per share)

Effect of L TIP share scheme diluted weighted average number of shares

Diluted earnings per share (cents per share)

13

2025

2024

$000's

$000's

39,461

34,486

59,649

59,649

66.2

57.8

37

66.1

57.8

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

3. Working Capital

3.1 Cash and cash equivalents

Cash and cash equivalents include cash at bank, cash on hand, EFTPOS (electronic funds transfer point of sale)

transactions which have not been cleared by the bank at balance date, deposits held at call with financial institutions,

other short-term highly liquid investments with original maturities of three months or less that are readily convertible to

known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.

Consolidated Statement of Cash flows

The following are the definitions of the terms used in the consolidated statement of cash flows:

(I.) Cash comprises cash and cash equivalents.

(II.) Investing activities are those activities relating to the acquisition, holding and disposal of property, plant and equipment,

investments and employee advances.

(Ill.) Financing activities are those activities which result in changes in the size and composition of the capital structure of

the Group. This includes lease payments, equity and debt not falling within the definition of cash. Dividends paid are

included in financing activities.

(IV.) Operating activities include all transactions and other events that are not investing or financing activities.

Cash and cash equivalents

2025

2024

$000's

$000's

Cash at Bank

56,641

44,470

Short Term Bank Deposits

1,604

1,364

Cash on Hand

88

81

Total Cash and Cash Equivalents

58,333

45,915

The carrying amount of cash and cash equivalents equals the fair value.

3.2 Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average method

and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. Net

realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses,

excluding borrowing costs. The Group assesses the likely net residual value of inventory. Stock provisions are recognised for

inventory which is older than two years and for inventory which is expected to sell for less than cost. Management will also

use their judgement to assess whether any further provisions are required based on style performance, current trends and

specific product information from buyers.

2025

2024

$000's

$000's

Finished goods

31,479

27,659

Inventory adjustments

(

205

)

(175)

Net inventories 31,274

27,484

Inventory adjustments are provided at year end for stock obsolescence within cost of sales in the Consolidated Statement of

Comprehensive Income. The cost of inventories recognised as an expense and included in cost of sales amounted to

$189,677,388 (2024: $176,649,177).

14

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

4. Long term Assets

4.1 Leases

Right-of-use assets and lease liabilities arising from a lease are initially measured on a present value basis. Lease liabilities

include the net present value of the remaining lease payments.

Right-of-use assets are initially recognised on commencement of lease at cost, comprising the initial amount of the lease

liabilities less any lease incentives received. Right-of-use assets are subsequently depreciated using the straight-line method

from the commencement date to the end of the lease term.

The Group leases retail stores under non-cancellable operating leases expiring within one to six years. There is a small

portion of lease contracts which contain renewal rights. In considering the lease term for these contracts, the Group has

determined that rights of renewals are not reasonably certain to be exercised due to the nature and location of the stores and

the changing retail environment. It is the Group's strategy to renegotiate the terms of all leases at their expiry instead of

exercising renewal rights. This agile strategy is enabled by having stores relatively small in size and not highly customised,

and therefore relatively straight forward to move locations. In addition, with the current retail market uncertainty the Group

needs to maintain a degree of flexibility.

Both right-of-use assets and lease liabilities are discounted applying the interest rate implicit in the lease. If that rate cannot

be determined, the lessee's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow

the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

Short term leases where the Group is the lessee

Leases in which a material portion of the risks and rewards of ownership are retained by the lessor are classified as operating

leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the profit or

loss in the Consolidated Statement of Comprehensive Income on a straight line basis over the period of the lease.

The Group is the lessor

Assets leased to third parties under operating leases are included in Investment Property in the Consolidated Statement of

Financial Position. Rental income (net of any incentives given to lessees) is recognised on a straight line basis over the lease

term. Lease receivables are disclosed under Note 4.3.

The following tables show the movements and analysis in relation to the right-of-use assets and lease liabilities.

Right-of-use assets

Opening net book value

Depreciation

Modifications and additions

Lease Terminations

FX impact

Carrying

amount

Lease liabilities

Opening lease liabilities

Lease modifications and additions

Interest for the period

Lease payments made

Lease Terrrinations

FXimpact

Closing Lease liabilities

15

2025

$000

67,029

(

28,526)

25,267

15

6

3

,785

2025

$000

79,184

27,619

4,689

(

3

4,8

3

0)

{22}

76,640

2024

$000

65,285

(26,604)

30,253

(2,104)

199

67,029

2024

$000

76,325

32,724

4,168

(32,064)

(2,216)

247

79,184

--

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

Lease liabilities maturity analysis for the year ended 1 August 2025

Due within one year

One to two years

Two to five years

Later than five years

Total

Current

Non-current

Total

Lease liabilities maturity analysis for the year ended 1 August 2024

Due within one year

One to two years

Two to five years

Later than five years

Total

Current

Non-current

Total

Minimum

lease

payments

$000'5

30,427

22,309

30,014

2,737

85,487

Minimum

lease

payments

$000's

30,354

24,640

30,225

2,267

87,486

Lease related expenses included in the consolidated statement of comprehensive income:

Depreciation

Rent on short-term leases

Gain on lease termination

Interest on leases

Total

Lease payments included in the consolidated statement of cash flows:

Interest paid on leases (operating activities)

Payments for lease liabilities principal (financing activities)

Total cash outflows from leases

Lease commitments

Present

Interest

value

$000'5 $000'5

(3,747) 26,680

(2,446)

19,863

(2,368)

27,646

(286)

2,451

(8,847)

76,640

26,680

49,960

76,640

Interest Present value

$000's $000's

(3,663)

26,691

(2,413)

22,227

(2,143)

28,082

(83)

2,184

(8,302)

79,184

26,691

52,493

79,184

2025

2024

$000

$000

28,526

26,604

9,514

9,355

(112)

4,689

4,168

42,729

40,015

2025

2024

$000

$000

4,689

4,168

30,141

27,896

34,830

32,064

The Group currently has no non-cancellable short-term operating lease agreements as at 1 August 2025 (2024: $Nil).

16

--

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

4.2 Property, plant and equipment

Recognition and measurement

Land and buildings located in Napier were valued on 1 August 2025 by CBRE Limited, Land and buildings located in East Tamaki

and Christchurch were valued on 1 August 2024 by Fordbaker Valuation Limited and Colliers International respectively,

(collectively "the valuers"), who are independent registered valuers and associates of The New Zealand Institute of Valuers. The

valuers have recent experience in the location and category of the item being valued. The fair values of the assets represent

the estimated price for which a property could be sold on the date of valuation in an orderly transaction between market

participants.

The adopted valuation has been assessed within a range indicated by two valuation approaches: Income capitalisation approach

and discounted cash flow analysis. These valuation approaches and the key assumptions used by the valuers to arrive at fair

value have been summarised in Note 4.3.

At each reporting date, where an external valuation report is not obtained the most recent valuation reports are reviewed by the

management team. Valuations are performed with sufficient regularity to ensure that the fair value does not differ materially from

its carrying amount. Confirmation was obtained from the valuers that the valuations from 1 August 2024 were still appropriate as

at 1 August 2025.

Land and building measurements are categorised as Level 3 in the fair value hierarchy. During the year there were no transfers

between levels of the fair value hierarchy.

Both the income capitalisation approach and discounted cash flow analysis contain unobservable inputs in determining fair

value. These have been disclosed in the 2024 Annual Report which can be accessed via the website:

https://www.hallensteinglasson.co.nz/annual-report

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it

is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be

measured reliably.

Increases in the carrying amount arising on revaluation of land and buildings are credited to other comprehensive income and

shown as an asset revaluation reserve in shareholders' equity. Decreases that offset previous increases of the same asset are

charged in other comprehensive income and debited against the asset revaluation reserve directly in shareholders' equity; all

other decreases are charged to the profit or loss in the consolidated statement of comprehensive income.

All other property, plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost

includes expenditure that is directly attributable to the acquisition of the items. This cost includes labour attributable to bringing

the assets to the location and working condition for its intended use.

Depreciation

Land is not depreciated. Depreciation on other assets is calculated using the straight line method to allocate their cost, net of

their residual values, over their estimated useful lives, as follows:

Buildings

Plant & equipment

Furniture & fittings

67 years

2 - 5 years

5 - 10 years

The assets' residual values and useful lives are reviewed, and adjusted if appropriate at each balance date.

Impairment

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than

its estimated recoverable amount. Assets that are subject to depreciation are reviewed for impairment whenever events or

changes in circumstances indicate that the carrying amount may not be recoverable, for example a planned store closure,

withdrawal from a business segment, or assessment of loss-making stores. Assets are grouped at the lowest levels for which

there are separately identifiable cash flows; a store's assets is the relevant cash generating unit. If, in a subsequent period, the

amount of the impairment loss decreases and it can be related objectively to an event occurring after the impairment was

recognised, the reversal of the previously recognised impairment loss is recognised in the consolidated statement of

comprehensive income.

17

--

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

Impairment (continued)

The value in use calculation evaluates recoverability based on the stores' forecasted discounted cash flows, which incorporate

estimated sales, margin & expense growth based upon current plans for the store. Key assumptions in the determination of

recoverable amount are:

• the estimate of future cash flows of the store incorporating reasonable sales growth and margin improvement; and

• the discount rate incorporating the rates of return based on the risk and uncertainty inherent in the forecast cash flows.

The Group has performed an assessment to determine whether there is any sensitivity to changes in key assumptions.

As a result of the sensitivity analysis and impairment testing performed, it was determined that no material risks of impairment

existed as at 1 August 2025 (2024: $Nil).

Disposal

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the

Consolidated Statement of Comprehensive Income.

Year ended 1 August 2025

Land at fair

Buildings at

Fixtures &

Plant&

$000's

value

fair value Fittings

Equipment

TOTAL

Opening NBV 11,235

18,636

22,353

6,555

58,779

Additions

70

9,735

5,108

14,913

Disposals

(65)(60)

(125)

Depreciation

(615)(7,725)

(3,164)

(11,504)

Revaluations

(28)(28)

FXlmpact

89

31

120

Closing NBV 11,235

18,063

24,387

8,470

62,155

CosWaluation

11,235

18,616

82,536

33,840

146,227

Accumulated depreciation

(553)

(58,238)

(25,401)

(84,192)

FXlmpact

89

31

120

Closing NBV 11,235

18,063

24,387

8,470

62,155

Year ended 1 August 2024

Land at fair

Buildings at

Fixtures &

Plant&

$000's

value

fair value

Fittings

Equipment

TOTAL

Opening NBV

11,025

20,138 19,789

5,415

56,367

Additions

10,562

4,593

15,155

Disposals

(308)

(354)(662)

Depreciation

(626)

(7,690)

(3,099)

(11,415)

Revaluations

210

(876)

(666)

Closing NBV

11,235

18,636

22,353

6,555 58,779

CosWaluation

11,235

18,636

76,709

29,630 136,210

Accumulated depreciation

(54,356)

(23,075)

(77,431)

Closing NBV 11,235

18,636

22,353

6,555

58,779

18

--

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

If land and buildings were stated on a historical cost basis, the amounts would be as follows:

Land

Buildings

Cost

Accumulated depreciation

Net book amount

4.3 Investment Property

Recognition and measurement

2025

$000's

4,270

12,862

17,132

{3,250)

13,882

2024

$000's

4,270

12,792

17,062

(2,993)

14,069

Investment property consists of a portion of land and buildings for the purpose of retail. Land and buildings were valued on 1 August

2025 by Telfer Young (Hawkes Bay) Limited ("the valuer'') who are independent registered valuers and associates of The New

Zealand Institute of Valuers. The valuer has recent experience in the location and category of the item being valued. The fair

values of the assets represent the estimated price for which a property could be sold on the date of valuation in an orderly

transaction between market participants.

The adopted valuation has been assessed within a range indicated by two valuation approaches: Income capitalisation approach

and discounted cash flow analysis.

The following table summarises the valuation approach and key assumptions used by the valuers to arrive at fair value.

Valuation aooroach

Description of the valuation aooroach

Income Capitalisation

A valuation methodology which determines fair value by capitalising a property's

Approach

sustainable net income at an appropriate, market derived capitalisation rate (yield).

Unobservable inputs within the income capitalisation approach include:

a) Net Market Rent which is the annual amount for which a tenancy within a

property is expected to achieve under a new arm's length leasing transaction

after deducting a fair share of property operating expenses.

b)

Capitalisation Rate (yield) which is the rate of return, determined through analysis

of comparable, market related sales transactions which is applied to a property's

sustainable net income to derive value.

Discounted Cash Flow analysis

With the discounted cash flow analysis, a cash flow budget is established for the property

over a ten-year time horizon. Within the cash flow an allowance is made for rental growth

as well as deducting costs associated with property ownership. A terminal value is also

estimated and the cash flows are discounted at a market rate to arrive at a net present

value.

Unobservable inputs within the discounted cash flow analysis include:

a) The discount rate which is the rate determined through analysis of comparable

market related sales transactions which is applied to a property's future net cash

flows to convert those cash flows into a present value.

b)

The terminal capitalisation rate which is the rate which is applied to a property's

sustainable net income at the end of an assumed holding period to derive an

estimated market value.

c)

Rental growth rate which is the annual growth rate applied to market rent over an

assumed holding period.

d)

Expenses growth which is the annual amount applied to property operating

expenses over an assumed holding period.

The loss of $60,000 on the fair value revaluation of Investment Property was recognised as an operating expense in the

Consolidated Statement of Comprehensive Income (2024: $128,000). Subsequent revaluation surpluses or losses will be

recognised through the Consolidated Statement of Comprehensive Income.

19

--

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

Land and building measurements are categorised as Level 3 in the fair value hierarchy. During the year there were no transfers

between levels of the fair value hierarchy.

Both the income capitalisation approach and discounted cash flow analysis contain unobservable inputs in determining fair value.

These are summarised in the table below:

Range of significant unobservable inputs

Class of property

Land and Buildings -

Retail and Investment

Property

Inputs used to measure

fair value

Net Market Rent

Rental growth rate

Capitalisation rate (yield)

Discount Rate

Terminal Capitalisation Rate

Expenses growth

2025

$327 per m2

1.50% -2.00%

6.97%

7.92%

6.72%

1.80% -2.0%

2024 Sensitivity

$355 per m2

2.00% -2.50%

6.76%

7.89%

7.50%

The higher the market rent

and growth rate, the higher

the fair value

The higher the capitalisation

rates and discount rate, the

lower the fair value.

The higher the expenses, the

2.0% -3.0%

lower the fair value.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is

probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured

reliably.

Investment Property

2025

2024

$000's

$000's

Opening balance

3,080

3,208

Net loss from fair value adjustment

(60)

(128)

Closing balance

3,020

3,080

Lease receivables:

The Group owns rental property that it leases under non-cancellable operating lease agreements to external parties. Leases reflect

normal commercial arrangements with varying terms and renewal rights.

The future minimum rental payments receivable under these leases is as follows:

Due within one year

One to two years

Two to five years

Total lease receivables

20

2025

$000's

150

150

374

674

2024

$000's

83

83

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

5. Equity

5.1 Share capital

Ordinary shares are classified as capital, net of treasury stock.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from

the proceeds.

Treasury stock

Under the legacy executive share scheme, shares purchased on-market were initially recognised as treasury stock at cost. On

vesting to employees, treasury stock was credited to equity and an employee loan was recorded, initially at fair value and

subsequently measured at amortised cost.

As at 1 August 2025, the scheme has no treasury stock remaining, with employees continuing to repay outstanding loans

through the application of dividends on the shares held.

No treasury stock is held in relation to the current Long-Term Incentive Plan, as equity awards are satisfied through an award

of new shares if certain performance conditions are met.

Reserves

The asset revaluation reserve records revaluations of land and buildings classified as property, plant and equipment, net of tax.

The cash flow hedge reserve records the fair value of derivative financial instruments, net of tax that meet the hedge accounting

criteria. The Share Option reserve is used to record the accumulated value of unvested share rights arising from the executive

share scheme which have been recognised in the consolidated statement of changes in equity. The foreign currency translation

reserve is used to record foreign currency translation differences arising on the translation of the Group entities results and

financial position. The amounts are accumulated in other comprehensive income until disposal of the foreign operation.

Contributed Equity

Balance at beginning of year

Sale of Treasury Stock

Dividends

Share Options Exercised

Loss/(Gain) on sale of Treasury Stock transferred to Retained

Earnings

Balance at end of year

Representing:

Share Capital

Treasury Stock (net of Dividends)

Total

All shares are fully paid and rank equally.

2025

Shares

59,649,061

59,649,061

59,649,061

59,649,061

21

2024

Shares

59,452,061

25,000

172,000

59,649,061

59,649,061

59,649,061

2025

$000's

29,279

29,279

29,279

29,279

2024

$000's

28,140

141

29

948

21

29,279

29,279

29,279

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

5.2 Executive Share Scheme

Equity-settled share-based compensation benefits were historically provided to certain employees under the Group's executive

share scheme. The fair value of share rights granted was recognised as an employee benefit expense with a corresponding

increase in equity, measured at grant date and expensed over the vesting period using a Black Scholes pricing model.

The scheme involved the purchase of shares on-market funded by limited recourse, interest-free loans provided by the

Company. Shares were held by directors as custodians and dividends on the shares were applied to repay the loans. Shares

vested after three years, subject to continued employment. On vesting, the share option reserve was transferred to retained

earnings.

This scheme is now closed to new participation, with no treasury stock remaining. Employees continue to repay outstanding

loans through dividends on the shares held. No shares were issued during the 2025 financial year (2024: Nil).

Current Long-Term Incentive Plan {L TIP)

During the current year, the Group established a new Long-Term Incentive Plan. The Plan provides for both cash-settled

phantom shares and equity-settled awards:

Phantom shares are cash-settled, with entitlements determined by the Company's share price at vesting, based on the volume

weighted average price over a chosen period.

Equity-settled awards are measured at grant-date fair value and recognised as an expense on a straight line basis over the

vesting period. The awards are satisfied through a capital issue of new shares after a three-year vesting period, subject to

performance and service conditions. The issue of new shares results in potential dilution for existing shareholders.

The L TIP is accounted for in accordance with NZ IFRS 2 Share-based Payment.

Cash-settled awards are recognised as a liability and remeasured to fair value at each reporting date, with changes recognised

in the profit or loss in the Consolidated Statement of Comprehensive Income. Equity-settled awards are measured at grant date

fair value and expensed over the vesting period, with a corresponding credit to the Share Option Reserve.

For the year ended 1 August 2025, the Group recognised costs in relation to the Long-Term Incentive Plan (L TIP) in

accordance with NZ IFRS 2 Share-based Payment.

An amount of $37,000 has been recognised as a provision for incentive with a corresponding charge to employee benefits in

respect of cash-settled awards.

In addition, $37,000 has been recognised as a credit to the Share Option Reserve in respect of equity-settled awards, with a

corresponding charge to employee benefits. This reflects the expected settlement of awards through the issue of new shares,

subject to vesting conditions.

Legacy Executive share scheme

Balance at beginning of financial year

Forfeited during the year

Exercised during the year

Balance at end of financial year

22

Year ended 1 August 2025

Year ended 1 August 2024

Average

exercise

Number of price per

shares share option

Average

exercise price

Number of per share

shares

option

197,000

(25,000)

(172,000)

$6.74

$5.62

$6.65

--

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

In accordance with NZ IFRS 2 Share-based Payment, the below amount represents the fair value of equity instruments granted,

measured at the grant date. The total long-term performance right of $222,344 has been determined based on 36,873 shares

granted at a grant date fair value of $6.03 per share.

Long-Term Performance Rights

Grant date Opening balance

2/08/2024

6. Taxation

6.1 Income tax expense

Granted during the

Vested during the Lapsed during the

year

year

year

222,344

Closing balance

222,344

The income tax expense or revenue for the period is the tax payable or receivable on the current period's taxable income

based on the notional income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities

attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial

statements and unused tax losses.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets

are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each

jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to

measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial

recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences

if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either

accounting profit or taxable profit or loss.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future

taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases

of investments in operations where the company is able to control the timing of the reversal of the temporary differences and

it is probable that the differences will not reverse in the foreseeable future.

Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

Goods and Services Tax {GST)

The Consolidated Statement of Comprehensive Income and the Consolidated Statement of Cash Flows have been prepared

so that all components are stated exdusive of GST. All items in the Consolidated Statement of Financial Position are stated net

of GST, with the exception of receivables and payables, which indude GST invoiced.

23

--

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

Income tax expense

The tax expense comprises:

Current tax expense

Prior period adjustment

Deferred tax expense (note 6.2)

- Future tax expense current year

- Prior period adjustment

Total income tax expense

Reconciliation of income tax expense to tax rate applicable to profits

Profit before income tax expense

Tax at 28% (2024: 28%)

Tax effect of:

- Income not subject to tax

- Expenses not deductible for tax

-Adjustment due to different rate in different jurisdictions

- Utilisation of taxlosses by group companies

- Prior period adjustment

- Removal of tax base on buildings

Total income tax expense

The effective tax rate for the year was 32.4% (2024: 33.8%).

2025

2024

$000's

$000's

16,920

17,567

(67)

1,077

128

459

1,936

(1,504)

18,917

17,599

58,378

52,085

16,346

14,584

35

247

245

614

605

(

159)

1,869

(427)

2,557

18,917

17,599

During the financial year, upon re-domiciliation the Group's Australian subsidiaries ceased to be members of the New Zealand

consolidated tax group and are now accounted for as separate subsidiaries. As a result, Australian tax losses became available to

offset against the taxable profits of those subsidiaries. These losses were fully utilised during the year ended 1 August 2025.

Accordingly, no tax losses remain available to carry forward at year end (2024: Nil), and the Group has no unrecognised temporary

differences (2024: Nil).

The tax (charge)/credit relating to components of other comprehensive income are as follows:

2025

2024

$000's

$000's

Before

Tax

Tax

charge

After Tax

Before Tax Tax charge

AflerTax

Fair Value (Loss)/Gains (net of tax) on Revaluation of Land and

(28)

8

(20)

(666)

245

(42

1

)

Buildings

FairValue (Loss)/Gain (net oftax) in Cash Flow Hedge Reserve

(8

9

2)

257

(63

5)

(

91

)

28

(63)

24

--

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

6.2 Deferred tax

Amounts recognised in profit or loss

Depreciation

Provisions and accruals

Right of use assets

Lease liabilities

Amounts recognised directly in equity

Asset revaluation reserve

Cash flow hedges

Total amount recognised

Movements

Balance at beginning of year

Credited/

(

Charged

)

to the Income Statement

Prior period adjustment

Charged to equity

FXimpact

Balance at the end of the year

6.3 Imputation credits

Imputation credits available for subsequent reporting periods

2025

$000's

349

3,376

{20,179)

22,139

5,685

8

(123)

5,570

7,323

(128)

{1,936)

265

46

5,570

2025

$000's

3,592

The above amounts represent the balance of the imputation account as at the end of the reporting period, adjusted for:


Imputation credits that will arise from the payment of the provision for income tax;


Imputation debits that will arise from the payment of dividends recognised as liabilities at the reporting date; and


Imputation credits that will arise from the receipt of dividends recognised as receivables at the reporting date.

25

2024

$000's

2,5

8

3

3,042

(

2

1

,

1

45

)

22,979

7,459

245

(

3

81)

7,323

6,005

(

459

)

1

,504

273

7,323

2024

$000's

3,69

1

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

7. Other

7.1 Employee benefits

Wages and salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be

settled within 12 months of the reporting date are recognised in other payables in respect of employees' services up to the

reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for

non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.

Holiday pay accrual and other benefits

7.2 Contingencies

2025

$000's

9,877

2024

$000's

8,928

Contingent liabilities under contracts, guarantees and other agreements arising in the ordinary course of business on which no

loss is anticipated are as follows:

Bank guarantee provided to the New Zealand Stock Exchange Limited

Letters of Credit

2025

$000's

75

2024

$000's

75

Bank letters of credit issued to secure future purchasing requirements are matched to a contingent asset of the same value

representing inventories purchased.

7.3 Capital expenditure commitments

Commitments in relation to store and distribution centre fitouts

7 .4 Related party transactions

2025

$000's

1,863

2024

$000's

986

During the year, the Company advanced and repaid loans to its subsidiaries by way of internal current accounts. In presenting

the financial statements of the Group, the effect of transactions and balances between fellow subsidiaries and those with the

Parent have been eliminated.

The Group undertook transactions with the related interests of the majority shareholder as detailed below:

TC Glasson

Rent payments on retail premises

Balance as at year end - lease liabilities

26

2025

$000

1,478

4,955

2024

$000

1,373

4,143

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

The following Directors received Directors' fees and dividends in relation to shares held personally as follows:

Directors' fees

Dividends

2025

2024

2025

2024

$000

$000

$000

$000

Ms J Appleyard

86

86

MrWJ Bell

145

141

Ms K Bycroft

102

99

Mr M Ford

112

106

5

4

Mr J C Glasson

224

41

Mr TC Glasson

86

86

4,78

9

5,338

Mr G Popplewell

101

94

85

91

Ms S Vincent

86

86

24

22

718

698

5,127

5,496

During the financial year, consulting fees of $14,000 (2024: $10,000) were paid to Karen Bycroft. There was no balance

outstanding as at 1 August 2025 (2024: $Nil).

Total remuneration of $988,000 was paid by the Company to close family members of the Board of Directors for individuals that

were either employed or engaged as consultants by the Company in the year ended 1 August 2025 (2024: $702,000).

Key management compensation was as follows:

Short term employee benefits

Share Scheme Benefit

2025

2024

$000

$000

3

,77

9

74

3,864

43

The Company operates a long-term incentive scheme and previously operated a legacy employee share scheme for certain senior

executives as outlined in Note 5.2.

27

--

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

7.5 Financial risk management

Fair value estimation

Fair value estimates are classified in a hierarchy based on the inputs to valuation techniques used to measure fair value.

The different levels have been defined as follows:

Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 ).

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that

is, as prices) or indirectly (that is, derived from prices) (Level 2).

Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).

The Group's policy is to recognise transfers into and out of fair value hierarchy levels as of the date of the event or change in

circumstances that caused the transfer.

The Group has financial instruments that are classified as Level 2 within the fair value hierarchy. The fair value of financial

instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using

valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely

as little as possible on entity specific estimates. If all material inputs required to fair value an instrument are observable, the

instrument is included within Level 2. Under Level 2 the Group holds forward foreign exchange contracts. The fair value of

these forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the

resulting value discounted back to present value. Refer to note 7.5.4.

The Group's land and buildings within property, plant and equipment and investment property are classified as Level 3 in the

fair value hierarchy as one or more of the material inputs into the valuation are not based on observable market data. Refer

to notes 4.2 and 4.3 for more information.

Derivatives

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re­

measured to their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is

designated as a hedging instrument, and if so, the nature of the item being hedged. The company designates certain

derivatives as either; (1) hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge);

or (2) hedges of highly probable forecast transactions (cash flow hedges).

The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items,

as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also

documents its assessment, both at hedge inception and on an ongoing basis, whether the derivatives that are used in

hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of

hedged items.

Cash flow hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is

recognised in equity in the cash flow hedge reserve. The gain or loss relating to the ineffective portion is recognised

immediately in the profit or loss in the Consolidated Statement of Comprehensive Income.

Amounts accumulated in equity are recycled in the Consolidated Statement of Comprehensive Income in the periods when

the hedged item will affect profit or loss (for instance when the forecast sale that is hedged takes place). However, when

the forecast transaction that is hedged results in the recognition of a non-financial asset (for example, inventory) or a non­

financial liability, the gains and losses previously deferred in equity are transferred from equity and included in the

measurement of the initial cost or carrying amount of the asset or liability.

When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge

accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast

transaction is ultimately recognised in the Consolidated Statement of Comprehensive Income. When a forecast transaction

is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the profit

or loss in the Consolidated Statement of Comprehensive Income.

Derivatives that do not qualify for hedge accounting

Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of these derivative instruments

are recognised immediately in the profit or loss in the Consolidated Statement of Comprehensive Income.

28

--

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

7 .5.1 Financial risk factors

The Group's activities expose it to various financial risks including, liquidity risk, credit risk, and market risk (including currency

risk and cash flow interest rate risk). The Group's risk management strategy is to minimise adverse effects on the Consolidated

Statement of Comprehensive Income. Derivative financial instruments are used to hedge currency risk.

7.5.2 Liquidity Risk

Liquidity risk is the risk that the Group will be unable to meet its financial obligations as they fall due. The Group's approach to

managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under

both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.

The Group manages liquidity risk by maintaining adequate reserves, and by regularly monitoring cash flow.

At balance date, the Group had $58.333 million (2024: $45.915 million) in cash reserves and accordingly, management consider

liquidity risk to be relatively low.

The table below analyses the Group's financial liabilities and gross-settled derivatives into relevant maturity groupings based on

the remaining period from the Consolidated Statement of Financial Position to the contractual maturity date. The cash flow hedge

"outflow" amounts disclosed in the table are the contractual undiscounted cash flows liable for payment by the Group in relation

to all forward foreign exchange contracts in place at balance date. The cash flow hedge "inflow" amounts represent the

corresponding inflow of foreign currency back to the Group as a result of the gross settlement on those contracts, converted using

the spot rate at balance date. The carrying value shown is the net amount of derivative financial liabilities and assets as shown in

the Consolidated Statement of Financial Position. Trade payables are shown at carrying value in the table. No discounting has

been applied as the impact of discounting is not material.

As at 1 August 2025

Trade and other payables

Forward foreign exchange contracts

Cash flow hedges:

- outflow

- inflow

- Net

/>6 at 1 August 2024

Trade and other payables

Forward foreign exchange contracts

Cash flow hedges:

-

outflow

-inflow

- Net

29

Less than 3

months

$000's

29,789

29,789

(34,983)

35,198

215

Less than 3

months

$000's

25,228

25,228

(24,318)

25,038

720

3-12

months

$000's

(49,675)

50,162

487

3-12

months

$000's

(40,613)

41,176

563

Total

$000's

29,789

29,789

(84,658)

85,360

702

Total

$000's

25,228

25,228

(64,931)

66,214

1,283

Carrying

value

$000's

29,789

29,789

(84,658)

85,081

423

Carrying

value

$000's

25,228

25,228

(64,931)

66,246

1,315

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

7.5.3 Credit Risk

Credit risk is the risk of the failure of a debtor or counterparty to honour its contractual obligations resulting in financial loss to the

Group. The Group incurs credit risk from trade receivables and transactions with financial institutions. The Group places its cash,

short-term investments, and derivative financial instruments with high credit quality financial institutions. Retail sales are

predominantly settled in cash or by using major credit cards. 0.1 % (2024: 0.0%) of sales give rise to trade receivables. This

maximum exposure to credit risk is the carrying amount of trade receivables.

Concentration of credit risk with respect to debtors is limited due to the large number of customers included in the Group's customer

base.

The Group does not require collateral or other security to support financial instruments with credit risk.

7 .5.4 Market Risk

Foreign exchange risk

The Group is exposed to foreign exchange risk arising from currency exposure predominantly with the US dollar with the purchase

of inventory from overseas suppliers.

The Board has established a Treasury Risk Policy to manage the foreign exchange risk. The policy is reviewed on a regular basis,

and management report monthly to the Board to confirm policy is adhered to. All committed foreign currency requirements are fully

hedged, and approximately 50% (2024: 50%) of anticipated foreign currency requirements are hedged on a rolling twelve month

basis.

The Group uses forward exchange contracts with major retail banks only to hedge its foreign exchange risk arising from future

purchases.

Forward exchange contracts -cash flow hedges

These contracts are used for hedging committed or highly probable forecast purchases of inventory. The contracts are timed to

mature during the month the inventory is shipped and the liability settled. The cash flows are expected to occur at various dates

within one year from balance date.

When forward exchange contracts have been designated and tested as an effective hedge the portion of the gain or loss on the

hedging instrument that is determined to be an effective hedge is recognised directly in equity. These gains or losses will be released

in the profit or loss in the Consolidated Statement of Comprehensive Income at various dates over the following year as the hedged

risk crystallises.

At balance date the Group had entered into forward exchange contracts to sell the equivalent of NZ$84.658 million (2024:

NZ$64.931 million), primarily in US and AU Dollars. At balance date these contracts are represented by net assets of $0.423 million

(2024: assets of $1.315 million). When foreign exchange contracts are not designated and tested as an effective hedge, the gain

or loss on the foreign exchange contract is recognised in the profit or loss in the Consolidated Statement of Comprehensive Income.

At balance date there are no such contracts in place (2024: Nil).

Interest rate risk

The Group has no interest bearing liabilities. Exposure to interest rate risk arises only from the impact on income from operating

cash flows as a result of interest bearing assets, such as cash deposits.

30

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

Sensitivity analysis

Based on historical movements and volatilities and management's knowledge and experience, management believes that the

following movements are 'reasonably possible' over a 12 month period:


Proportional foreign exchange movement of-10% (depreciation of NZD) and +10% (appreciation of NZD) against

the USO, from the year end rate of $0.5881 (2024: $0.5949).


Proportional foreign exchange movement of -10% (depreciation of NZD) and +10% (appreciation of NZD) against

the AUD, from the year end rate of $0.9139 (2024: $0.9151).


A parallel shift of +2% / -2% in the market interest rates from the year end deposit rate of 3.0% (2024: 5.5%) .

If these movements were to occur, the post-tax impact on profit or loss and equity for each category of financial investment:

As at 1 August 2025

Carrying

Interest rate

Foreign exchange rate

amount

-2%+2%

-10% +10%

Profit

Equity

Profit

Equity

Profit

Equity

Profit

Equity

$000's $000's $000's $000's $000's $000's $000's $000's $000's

RNANCIAL ASSETS

Loans and receivables

Cash and cash equivalents

58,333

(1,167) (1,167) 1,167 1,167

3,473

3,473

(2,841) (2,841)

/>.ccounts receivable

366

/>.dvances to Employees

732

Derivatives used for Hedging

Derivatives designated as cash flow hedges (forward foreign exchange

contracts)

423

6,829

-

(5,587)

RNANCIAL LIABILITTES

Liabilities at amortised cost

Trade and other payables

29,789

-

(1,997)

(1,997)

1,634 1,634

TOTAL INCREASE/DECREASE

(1,167) (1,167)

1,167 1,167

1,476

8,305

(1,207)

(6,794)

As at 1 August 2024

Carrying

Interest rate Foreign exchange rate

amount

-2% +2% -10% +10%

Profit Equity

Profit

Equity Profit Equity Profit Equity

$000's $000's $000's $000's $000's $000's $000's $000's $000's

RNANCIAL ASSETS

Loans and receivables

Cash and cash equivalents

45,915

(918) (918)

918 918 2,365 2,365

(1,935)

(1,935)

/>.ccounts receivable

407

/>.dvances to Employees

847

Derivatives used for Hedging

Derivatives designated as cash flow hedges (forward foreign exchange

contracts)

1,315

5,297

(4,334)

RNANCIAL LIABILITIES

Liabilities at amortised cost

Trade and other payables 25,228

(1,541) (1,541)

1,261 1,261

TOTAL INCREASE/DECREASE

(918) (918)

918 918 824 6,121

(674)

(5,008)

31

pwc

HALLENSTEIN GLASSON HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 AUGUST 2025

7 .5.5 Capital risk management

The Group's objectives when managing capital are to maximise the value of shareholder equity and ensure that the Group continues

to safeguard its ability to continue as a going concern. Group capital consists of share capital, reserves and retained earnings. In

order to meet these objectives, the Group may adjust the amount of dividend payment made to shareholders. The Group has no

specific banking or other arrangements which require that the Group maintain specific equity levels.

7.6 Events subsequent to balance date

Subsequent to year end, the Board has resolved to pay a final dividend of 30.5 cents per share (partially imputed at 56.5%)

(2024: 26.5 cents partially imputed 75.6%). The dividend will be paid on 12

th

December 2025 to all shareholders on the

Company's register as at 5:00pm, 5

th

December 2025.

7.7 Standards, amendments and interpretations to existing standards

Certain new accounting standards, amendments to accounting standards and interpretations have been published that are

mandatory for the 1 August 2025 reporting period have been adopted by the Group and have no material impact. There were

also certain new accounting standards, amendments to accounting standards and interpretations that have been published

which are not mandatory for the 1 August 2025 reporting period and have not been early adopted by the Group. These

standards, amendments or interpretations are yet to be assessed for the disclosure impacts for the future reporting periods.

32

pwc

PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, www.pwc.co.nz

Independent auditor’s report

To the shareholders of Hallenstein Glasson Holdings Limited

Our opinion

In our opinion, the accompanying consolidated financial statements (the financial statements) of

Hallenstein Glasson Holdings Limited (the Company), including its subsidiaries (the Group), present

fairly, in all material respects, the financial position of the Group as at 1 August 2025, its financial

performance, and its cash flows for the year then ended in accordance with New Zealand Equivalents

to International Financial Reporting Standards (NZ IFRS) and International Financial Reporting

Standards Accounting Standards (IFRS Accounting Standards).

What we have audited

The Group's financial statements comprise:

•the consolidated statement of financial position as at 1 August 2025;

•the consolidated statement of comprehensive income for the year then ended;

•the consolidated statement of changes in equity for the year then ended;

•the consolidated statement of cash flows for the year then ended; and

•the notes to the consolidated financial statements, comprising material accounting policy

information and other explanatory information.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs

(NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are

further described in the Auditor’s responsibilities for the audit of the financial statements section of our

report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis

for our opinion.

Independence

We are independent of the Group in accordance with Professional and Ethical Standard 1

International Code of Ethics for Assurance Practitioners (including International Independence

Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards

Board and the International Code of Ethics for Professional Accountants (including International

Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA

Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Certain partners and employees of our firm may deal with the Group on normal terms within the

ordinary course of trading activities of the business. Other than our capacity as auditor, we have no

other relationship with, or interests in, the Group.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in

our audit of the financial statements of the current year. These matters were addressed in the context

of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not

provide a separate opinion on these matters.

PwC
Description of the key audit matter How our audit addressed the key audit matter

Inventory valuation

As at 1 August 2025, the Group held

$31.3 million of finished goods, net of

inventory adjustments of $0.2 million.

Given the size of the inventory balance,

and the estimates and judgements

described below, the valuation of

inventory required significant audit

attention and is a key audit matter.

As disclosed in note 3.2, inventories are

held at the lower of cost and net realisable

value. At year end, the valuation of

inventory is reviewed by management and

its cost is reduced where inventory is

forecasted to be sold below cost.

The inventory adjustment is determined

based on various factors including

historical data, inventory ageing, current

trends and specific product information

from buyers. Determining the appropriate

level of provisioning involves judgement

and the application of assumptions

including management's estimation of

future selling prices.

Our audit procedures included:

•testing, on a sample basis, the accuracy of

inventory costing to supporting documentation and

calculations;

•considering the level of aged inventory, inventory

turnover levels and enquiries with management;

•performing analytical procedures on balances

supporting inventory provisions to assess their

reasonableness and that the provision amounts

were within expectations;

•considering the results of our testing and in

conjunction with management enquiries

determined whether any specific write downs were

required; and

•reviewing the appropriateness of disclosures in the

financial statements.

Our audit approach

Overview

Overall group materiality: $2.9 million, which represents approximately

5% of Group profit before tax.

We chose Group profit before tax as the benchmark because, in our

view, it is the benchmark against which the performance of the Group is

most commonly measured by users, and is a generally accepted

benchmark.

Our Group audit scoping focussed on those components that are

financially significant to the Group. Specified audit and/or analytical

procedures were performed over certain residual components.

As reported above, we have one key audit matter, being inventory

valuation.

PwC
As part of designing our audit, we determined materiality and assessed the risks of material

misstatement in the financial statements. In particular, we considered where management made

subjective judgements; for example, in respect of significant accounting estimates that involved

making assumptions and considering future events that are inherently uncertain. As in all of our audits,

we also addressed the risk of management override of internal controls, including among other

matters, consideration of whether there was evidence of bias that represented a risk of material

misstatement due to fraud.

Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain

reasonable assurance about whether the financial statements are free from material misstatement.

Misstatements may arise due to fraud or error. They are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on

the basis of the financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality,

including the overall Group materiality for the financial statements as a whole as set out above. These,

together with qualitative considerations, helped us to determine the scope of our audit, the nature,

timing and extent of our audit procedures, and to evaluate the effect of misstatements, both

individually and in the aggregate, on the financial statements as a whole.

How we tailored our group audit scope

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an

opinion on the financial statements as a whole, taking into account the structure of the Group, the

accounting processes and controls, and the industry in which the Group operates.

Other information

The Directors are responsible for the other information. The other information comprises the

information included in the Annual Report and the Climate-Related Disclosures, but does not include

the financial statements and our auditor’s report thereon. The Annual Report and the Climate-Related

Disclosures are expected to be made available to us after the date of this auditor’s report.

Our opinion on the financial statements does not cover the other information and we will not express

any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained in the audit, or otherwise appears to be materially

misstated.

When we read the other information not yet received, if we conclude that there is a material

misstatement therein, we are required to communicate the matter to the Directors and use our

professional judgement to determine the appropriate action to take.

Responsibilities of the Directors for the financial statements

The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of

the financial statements in accordance with NZ IFRS and IFRS Accounting Standards, and for such

internal control as the Directors determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to

continue as a going concern, disclosing, as applicable, matters related to going concern, and using the

going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease

operations, or have no realistic alternative but to do so.

PwC
Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements, as a

whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a

guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a

material misstatement when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located at the

External Reporting Board’s website at:

https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/

This description forms part of our auditor’s report.

Who we report to

This report is made solely to the Company’s shareholders, as a body. Our audit work has been

undertaken so that we might state those matters which we are required to state to them in an auditor’s

report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our

audit work, for this report, or for the opinions we have formed.

The engagement partner on the audit resulting in this independent auditor’s report is Indumin

Senaratne (Indy Sena).

For and on behalf of

PricewaterhouseCoopers Auckland

26 September 2025

---

26 September 2025

HALLENSTEIN GLASSON HOLDINGS LIMITED


RESULTS FOR FULL YEAR ENDED 1 AUGUST 2025

The Company advises that Group sales for the 12 months to 1 August 2025 were $470.7 million,

an

increase of 8.1% on the prior year ($435.6 million).

Gross margin at 59.3% was consistent with the

59.4% realised in the prior year despite a continued challenging foreign exchange rate for inventory

purchases, which was lower than the prior corresponding period.

The audited net profit before tax for the 12 months was $58.4 million, an increase of +12.1% on the prior

corresponding period ($52.1 million).

Group audited net profit after tax was $39.5 million, an increase of +14.4% on the prior corresponding

period ($34.5 million).

The Group maintains a strong balance sheet and working capital position.


Glassons

Australia

Sales in Australia were $251.5 million which was an increase of +15.3% on the prior corresponding period

inclusive of sales from new and refurbished stores. Net profit before tax was $34.2 million, an increase of

+16.1% on the prior year ($29.5million).

Two new stores were opened during the year. A store in Sunshine Coast, Queensland, and Harbour Town

Adelaide opened in March 2025. Throughout the year, the Werribee store in Victoria was relocated and

expanded, and the Northland store in Victoria was refurbished. In total we now have 40 stores in

Australia, and we continue to explore new store opportunities in the Australian market when the right

opportunities arise. Glassons Australia is currently working with its landlord on a new purpose-built

larger warehouse with improved automation which will ensure the business is prepared for future

growth. The warehouse is expected to be ready in the second half of the 2026 financial year.

New Zealand

Sales in New Zealand for the year were $111.9 million, an increase of +1.7% on the prior corresponding

period. Net profit before tax was $19.2 million, an increase of +27.4% on the prior corresponding period

($15.0 million), continuing on from the foundations set in the first half.



Over the year, the Lynn Mall, Shirley and Queen Street stores were refurbished to ensure the look of the

stores represented the brand through consistency with the rest of the store network. A new store was

opened at the Manawa Bay Outlet Centre near Auckland Airport in September, and a new store was

opened in Frankton, Queenstown in July 2025. The Timaru store was closed at the end of August 2024.

Post year end, the Hamilton central store has been refurbished and has reopened in late August.

Hallensteins

Sales for the 12-month period of $107.3 million (including Australia), were flat on the prior corresponding

period. Net profit before tax was $4.8 million, a decrease of -36.4% on the prior corresponding period

($7.5 million). While a challenging year for the brand, the second half saw encouraging improvements on

the prior corresponding period.

During the year, a new store concept design was rolled out in the new Silverdale store in Auckland in

November, and a new store was also opened in Manawa Bay Outlet Centre in September. Our Queen

Street store has moved to an improved location and reopened in October. At the end of July 2025, the

Upper Hutt store in Wellington was closed. Post year end, our Hamilton central store was refurbished

and reopened in September, and our Lynn Mall store will be refurbished prior to Christmas to ensure

they maintain brand standards. In Australia, the Robina pop-up store has closed post end of year but will

be replaced by a larger permanent site in November 2025. We continue to look for further opportunities

as they arise in Australia.

E-Commerce and Digital

Digital sales represented 18.0% of Group revenue for the year, broadly in line with the prior period, with

overall online sales growing +6.7% year-on-year. Customers continue to embrace a true omni-channel

approach — browsing, buying, and engaging seamlessly across both physical stores and digital platforms.

The Group remains focused on delivering a connected, frictionless experience across all channels.

Looking ahead, we remain committed to adopting new technology and optimising our digital platforms to

ensure an industry-leading experience across desktop, mobile, and in-store touchpoints.

Dividend

The Directors have declared a final dividend of 30.5 cents per share (partially imputed at 56.5%) (26.5

cents per share partially imputed at 75.6% last year) to be paid on 12th December 2025. Together with

the interim dividend of 24.5 cents per share that was paid on 17th April 2025, the full year dividend is

55.0 cents per share. The dividend payment has grown as the Company’s balance sheet continues to

remain strong, and inventory levels are well controlled.




Future Outlook

The first seven weeks of the new financial year have delivered a solid start, with Group sales up +12.9%

on the prior corresponding period, driven primarily by the Australian market and the ongoing

contribution from stores opened or refurbished in FY2025. Current trading performance should not be

seen as indicative of results through the key trading months in the lead up to Christmas.

In New Zealand, trading conditions remain mixed, with cost-of-living pressures continuing to impact

discretionary spend across both brands despite some moderate signs of improvement.

A further update will be provided at the Annual Meeting of Shareholders in December 2025.


Warren Bell

Chairman

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

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