New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Briscoes Group (BGP) reported 3Q26 sales down -2% year on year as the company pulled back on promotional activity to protect gross margins.</li><li>BGP reiterated its guidance of NPAT of NZ$60m for FY26; albeit we think performance needs to improve in 4Q26 to achieve this target, and there may be some downside risk to earnings with the arrival of IKEA in December and continued promotional pricing pressure.</li><li>Trading on a 12-month forward PE of ~19x on our revised estimates, we continue to view the risk-reward as skewed to the downside.</li></ul>

Briscoes Group (BGP) reported 3Q26 sales down -2% year on year as the company pulled back on promotional activity to protect gross margins.BGP reiterated its guidance of NPAT of NZ$60m for FY26; albeit we think performance needs to improve in 4Q26 to achieve this target, and there may be some downside risk to earnings with the arrival of IKEA in December and continued promotional pricing pressure.Trading on a 12-month forward PE of ~19x on our revised estimates, we continue to view the risk-reward as skewed to the downside.

Briscoe Group 3Q26 Trading Update—Balancing Act