BABY BUNTING NURSES A SOLID PROFIT

Written on the 19 August 2016 by Melbourne Business News

BABY BUNTING NURSES A SOLID PROFIT

PRAMS and nappies are footing the costs associated with Baby Bunting Group's (ASX: BBN) ASX listing in October last year, delivering a profit of $81.2 million for the year ending in June.

The Melbourne-based company made sales of $236.8 million over the full year, up 31.4 per cent on the prior corresponding period, seemingly benefitting from the collapse of rival My Baby Warehouse last year.

CEO and managing director Matt Spencer says the company opened a number of new stores opened this financial year and rolled out new initiatives to improve customer service in stores and online.

"The business performed exceptionally well with comparable store sales growth of 12.5 per cent," Spencer says.

"Online sales accelerated during the second half of the year, following the launch of several initiatives including a new responsive website and 'click ad collect' to improve the customer experience.

"For the full year, sales through the company's website made up approximately 4.2 per cent of sales."

Baby Bunting currently has twice the number of stores to its next-largest competitor, Babies "R" Us.

It plans to open its 37th store this month in Victoria, and reach 80 stores nationwide with a rollout of four to eight stores per year.

Australia's largest specialty baby goods retailer boasts a network of more than 245 suppliers across third party brands, private label and exclusive products.

Shareholders can expect a final fully franked dividend of 6.3c per share to be paid on the 16th of September.

The company's shares are currently trading at around $3.

Read about Baby Bunting's maiden interim results in February 2016.
 


Author: Melbourne Business News Connect via: Twitter

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