Join our daily newsletter At The Bell to receive exclusive market insights
- Baby Bunting (BBN) has seen its online sales double and click and collect orders quadruple over FY21’s first half
- The stork delivered $217.3 million in sales in the consumer stock’s latest interim report — up 16.6 per cent compared to the same time last year
- As a result of the sales surge, Baby Bunting’s net profit after tax spiked 43.5 per cent to $10.8 million
- The results mean BBN holders will be rewarded with a 5.8-cents-per-share interim dividend — up on FY20’s 4.1-cent interim return
- On the back of the robust financials, Baby Bunting is preparing to deliver its first New Zealand-based store in FY22
- Moving forward, the retailer intends to open at least 10 retail stores in NZ following the launch of its online sales program in the region last July
- Following today’s report, however, investors were reluctant to buy into BBN
- Baby Bunting stock closed down 6.58 per cent, trading at $5.25 right before the weekend
Baby Bunting (BBN) has seen its online sales double and click and collect orders quadruple over FY21’s first half.
The stork delivered $217.3 million in sales in the consumer stock’s latest interim report — up 16.6 per cent compared to the same time last year.
Nowadays, roughly one-fifth of BBN’s sales are made online, bringing in a further $42.3 million for the baby goods retailer. Still, around 90 per cent of all transactions are made or completed in-store — meaning brick-and-mortar spaces are still integral to Baby Bunting’s commercial success.
As a result of the sales surge, Baby Bunting’s net profit after tax spiked 43.5 per cent to $10.8 million. The result means the company’s earnings per share have also risen to 8.4 cents per share — up 41.9 per cent on the prior corresponding period.
BBN’s earnings before interest, taxes, depreciation and amortisation also grew 29.7 per cent over FY21’s first half, bringing its earnings margin up to 8.3 per cent.
The results mean BBN holders will be rewarded with a 5.8-cents-per-share interim dividend — up on FY20’s 4.1-cent interim return.
On the back of the robust financials, Baby Bunting is preparing to deliver its first New Zealand-based store in FY22.
Moving forward, the retailer intends to open at least 10 retail stores in NZ following the launch of its online sales program in the region last July. In today’s investor presentation, the company outlined an NZ$450 million (approximately A$419.31 million) market opportunity in the region.
Looking ahead, BBN is also gearing up to open a new distribution centre in Melbourne during FY21’s second half. The 24,000-square-metre hub is set to increase the consumer stock’s stock availability and decrease its rent by roughly 15 per cent.
Speaking to today’s results, Baby Bunting Managing Director and CEO Matt Spencer couldn’t be prouder.
“Our strong comparable store and total sales growth performance demonstrates that we continue to deliver on our strategy of growing market share,” he stated today.
“The Baby Bunting Team has done tremendously well servicing new and expectant parents in what can only be described as an unusual and difficult time.”
Citing continued economic uncertainty and the COVID-19 pandemic, the retailer’s chief executive opted not to provide financial guidance for the remainder of the financial year.
Following today’s report, however, investors were reluctant to buy into BBN. Baby Bunting stock closed down 6.58 per cent, trading at $5.25 right before the weekend.
