Baby Bunting’s online sales lift first-half profits
Baby goods retailer, Baby Bunting, has lifted pro-forma half-year profit by 22.5 per cent to $5.7 million on the back of higher sales driven by an increase in online vending.
Sales revenue on a pro-forma basis rose 18 per cent to $135 million for the 27 weeks to January 3, compared to the prior corresponding period which included Baby Bunting’s debut on the Australian Securities Exchange.
Statutory net profit more than doubled to $5.2 million, up from $2.26 million in the 26 weeks to December 27 in the 2015/16 financial year.
Comparable store sales growth was up 8.2 per cent.
Baby Bunting said online sales had nearly doubled, growing 94.7 per cent on the previous year, and now accounted for 5.9 per cent of sales.
The company said growth was also helped by the opening of four new stores, bringing the total number of Baby Bunting outlets to 40, and said it planned to grow its network to 80 stores, with between four and eight new stores each year.
Australia’s largest specialty baby goods retailer anticipates the opening of three new stores in the second half and expects sales growth will be in line with historical trends.
Baby Bunting reported an interim dividend of 2.9 cents per share, fully franked.
BABY BUNTING’S HALF YEAR RESULTS AT A GLANCE:
* Pro-forma net profit up 22.5 per cent to $5.7 million
* Sales up 18 per cent to $135 million
* Dividend of 2.9 cents per share, fully franked, vs none