- Candlemaker Dusk (DSK) has announced another quarter of glowing sales as it steps into the final three months of the 2021 financial year
- The home fragrance specialist said sales for the March quarter were $27.7 million — over 50 per cent higher than the same time period last year
- This takes total revenue for the first nine months of FY21 to $118.7 million, underpinning earnings before interest and tax (EBIT) of $4.9 million
- Dusk said the primary driver of its earnings growth was its like-for-like sales, which grew 44 per cent over the March quarter compared to the quarter before
- In light of the steady growth, Dusk has provided full-year guidance predicting sales of between $147 million and $151 million for the 2021 financial year
- CEO Peter King says the company has a healthy inventory position leading into Mother’s Day when candle and home fragrance product sales typically soar
- Shares in DSK are up 7.28 per cent in early market action to $3.24 each
Candlemaker Dusk (DSK) has announced another quarter of glowing sales as it steps into the final three months of the 2021 financial year.
The home fragrance specialist said sales for the March quarter of 2021 were $27.7 million — up 50.5 per cent on the $18.4 million over the same time period in 2020.
The sturdy revenue growth underpinned an underlying earnings before interest and tax (EBIT) result of $4.9 million.
This takes total revenue for the first nine months of the 2021 financial year to a neat $118.7 million and underlying EBIT for the year so far to $33.2 million. For reference, revenue over the same time in the previous financial year was $77 million and EBIT was $8.7 million.
Dusk said the primary driver of its earnings growth was its like-for-like (LFL) sales, which grew 44 per cent over the March quarter compared to the quarter before.
Typically, LFL sales refer to sales of similar or comparable products. In Dusks’ case, the strong LFL growth suggests its existing product base is driving its growth as opposed to new product innovations.
In light of the steady growth, Dusk has provided full-year guidance predicting sales of between $147 million and $151 million for the 2021 financial year, with underlying EBIT expecting to land between $38 million and $40 million.
For comparison, actual revenue and EBIT for the 2020 financial year were $100.9 million and $11.9 million, respectively.
DSK chief Peter King said the quarterly results are a testament to the growing demand for the company’s product offering and an expanding customer base.
“We are pleased with the strength and consistency of our current trading and continued strong gross margins,” Peter said.
He said the company has a healthy inventory position leading into Mother’s Day, when candle and home fragrance product sales typically soar. On top of this, the company has around 10 more new stores open than it did this time last year.
“When we couple these factors with a buoyant macro environment which includes strong consumer confidence, continued re-allocation of household budgets away from international travel, low interest rates and our customers’ heightened focus on their homes, we expect to see a favourable trading environment for some time yet,” he said.
Investors seem impressed with Dusk’s quarterly growth and strong full-year predictions. Shares in DSK are up 7.28 per cent in early market action to $3.24 each. The company has a $202 million market cap.