|6 Months Ended|
Jul. 31, 2019
Identification of reportable operating segments
The consolidated entity’s Directors examined the group’s performance from both sales channel and geographical perspective and identified seven reportable segments being Australia Retail, New Zealand Retail, Australia wholesale, New Zealand wholesale, US Wholesale, EU Wholesale and e-commerce.
This segment covers retail and outlet stores located in Australia.
New Zealand retail
This segment covers retail and outlet stores located in New Zealand.
This segment covers the wholesale of intimates apparel to customers based in Australia
New Zealand wholesale
This segment covers the wholesale of intimates apparel to customers based in New Zealand.
This segment covers the wholesale of intimates apparel to customers based in the United States of America.
This segment covers the wholesale of intimates apparel to customers based in Europe.
This segment covers the group’s online retail activities. E-commerce revenue include revenue from a US brand called Fredericks of Hollywood for which Bendon Limited currently has a licence agreement.
These operating segments are based on the internal reports that are reviewed and used by the Chief Executive Officer (who is identified as the Chief Operating Decision Makers (‘CODM’)) in assessing performance and in determining the allocation of resources.
The CODM reviews segment EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements.
EBITDA is a financial measure which is not prescribed by IFRS and represents the profit adjusted for specific non-cash and significant items. The directors consider EBITDA to reflect the core earnings of the consolidated entity.
The information reported to the CODM is on a monthly basis.
Other Costs and Business Activities
Certain costs are not allocated to our reporting segment results, such as costs associated with the following:
- Corporate overheads, which is responsible for centralized functions such as information technology, facilities, legal, finance, human resources, business development, and procurement. These costs also include compensation costs and other miscellaneous operating expenses not charged to our operating segments, as well as interest and tax income and expense.
These costs are included within “unallocated” segment in our segment performance.
Other assets and liabilities
We manage our assets and liabilities on a Group basis, not by segment. CODM does not regularly review any asset or liability information by segment and its preparation is impracticable. Accordingly, we do not report asset and liability information by segment.
Reconciliation of segment revenue to consolidated statements of profit or loss and other comprehensive income:
Intersegment revenue is recognition of inventory moving between New Zealand and Australia
Reconciliation of segment EBITDA to the consolidated statements of profit or loss and other comprehensive income:
Management meets on a monthly basis to assess the performance of each segment. Net operating profit does not include non- operating revenue and expenses such as dividends, fair value gains and losses.
Any other reconciling items includes brand transition, finance expenses, impairment expense, depreciation and amortisation, fair value gain/loss on foreign exchange contracts, and unrealised foreign exchange gain/loss that cannot be allocated to segments.
In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers whereas segment assets are based on the location of the assets.
* Other segment expenses relate to brand management expenses and some corporate expenses.
* Other segment expenses relate to brand management expenses and some corporate expenses
The disclosure of operating segments. [Refer: Operating segments [member]]
Reference 1: http://www.xbrl.org/2003/role/disclosureRef