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- Online book retailer Booktopia (BKG) updated the market on its sales for the first half of the 2022 financial year
- The company experienced record daily volumes and from November 1 to December 21, shipped over 1.49 million units at an average of more than 40,000 per day
- Based on the unaudited results for the first five months and December sales, Booktopia expects to achieve first-half revenue of more than $127 million
- However, the company expects to achieve subdued earnings of up to $4.5 million, due to COVID-19 restrictions
- Booktopia is down 13.4 per cent at market close, trading at $1.39
Online book retailer Booktopia (BKG) has updated the market on its sales for the first half of the 2022 financial year.
The company experienced record daily volumes and from November 1 to December 21, shipping over 1.49 million units at an average of more than 40,000 per day.
This is up from the 1.35 million units from the prior corresponding period (pcp).
Average daily website users were also a record — with 9.6 million visitors from November 1 to December 22, up 8 per cent on the pcp.
Average order volumes also increased 7 per cent from the same time last year.
Based on the unaudited results for the first five months and December sales so far, Booktopia expects to achieve first-half revenue of more than $127 million.
If this is reached it would represent a 13 per cent increase on the $112.6 million recorded in the pcp.
However, Booktopia expects to achieve earnings before interest, taxes, depreciation and amortisation (EBITDA) between $4 million to $4.5 million, down from the $8 million in the previous year.
This is due to the additional costs associated with the additional labour costs generated managing Sydney’s multiple COVID lockdowns, the set-up costs relating to a second distribution facility and the recruitment of new executives.
These costs have impacted Booktopia greater than what was outlined in its annual general meeting.
Additionally, the lockdowns caused bottlenecks in the unloading and shelving of stock and to protect the health of its staff, Booktopia implemented social distancing and shift separation.
Booktopia has resolved many of the issues associated with the COVID-19 outbreaks and will provide a further update in its half-year results.
Founder and CEO Tony Nash said overall he was happy with the results.
“The first half has presented a number of challenges and I am very proud of the way our team responded to ensure we were able to limit the impact, particularly on our customers,” Mr Nash said.
“The Group has strong confidence, based on current levels of demand, that the large number of customers acquired throughout 2020 and 2021 will continue to purchase through Booktopia’s online platforms, and our investments in new stock and distribution infrastructure will deliver value for the group.”
Booktopia was down 13.4 per cent at market close with shares trading at $1.39 each.
