- Baby Bunting (BBN) surpasses half a billion dollars in sales for the first time
- The baby goods retailer recorded $507.3 million in sales for FY22, of which 22.2 per cent came from online sales
- Amid national lockdowns in the first half, consumers made more online purchases which led the company to focus on its digital platform and the customer experience
- Baby Bunting also expanded its Australian network of stores to 65 and, subsequent to the financial year, opened its first store in New Zealand
- The company has approved a final dividend of nine cents, taking the total dividend payment for the year to 15.6 cents per share
- BBN shares dip 4.32 per cent to close at $4.65
Baby Bunting (BBN) has surpassed half a billion dollars in sales for the first time.
The baby goods retailer recorded $507.3 million in sales for the 2022 financial year, which marks an 8.3 per cent growth in year-on-year total sales.
Online sales increased by 24.2 per cent on the prior year to $112.7 million and represented 22.2 per cent of total sales.
The company said national lockdowns in the first half led to consumers making more purchases online which sparked its investment into digital customer platforms, resulting in progress for its online store and behind-the-scenes systems.
The click and collect portion of online sales were particularly strong and grew 28.2 per cent to make up 10.4 per cent of all sales. The consumer discretionary stock said the click and collect experience was a focus for the year and plans to roll it out to more stores.
Regarding expansion, Baby Bunting opened four new stores in Australia and now has 65 stores nationally. The company has already signed leases for a further five stores to open in FY23.
Subsequent to FY22, Baby Bunting has just opened its first store in New Zealand. This milestone was planned earlier, however, COVID-19 restrictions caused some delays. At this stage, BBN plans to have 10 stores in New Zealand.
In terms of profits, the baby goods company reported statutory net profit after tax (NPAT) of $19.5 million, up 14.6 per cent on the prior year.
Pro-forma NPAT was $29.6 million, representing a 13.6 per cent year-on-year increase. Due to the company targeting a dividend payment equivalent to 70 per cent of its pro forma NPAT, the board approved a final dividend of nine cents which takes the total dividend payment for the year to 15.6 cents per share.
“Our total sales exceeded half a billion dollars for the first time. We continued to grow our market share at the same time as we delivered very strong gross profit growth,” Managing Director and CEO Matt Spencer said.
“It is a tremendous result given the COVID-related lockdowns in place around Australia in the first half and the disruptions that occurred during the year.”
As for FY23, Mr Spencer said the company has started the new year in good shape and is focused on growing its market share and delivering more value to customers across Australia and NZ.
“It is an incredibly an exciting time.”
BBN shares dipped 4.32 per cent to end the day at $4.65.