Unaided by JobKeeper, Baby Bunting turns $10 million profit
14 August 2020, Written by Paris Faint
Baby Bunting (ASX: BBN) has pulled its weight through FY20, despite a series of financial impairments and a lack of COVID-related government assistance which impacted the bottom line.
The baby goods retailer didn't qualify for JobKeeper support, yet still managed to make a $10 million profit and meet its guidance.
On this news, BBN shares spiked more than 13 per cent during early trade (10:25am AEST) at $4.27.
Its profit was a 14 per cent fall from the prior year. However, the result was followed up with a pro forma profit of $19.3 million.
This adjusted figure reflected the $9.3 million impact of non-cash expenses including equity incentives, transformation projects and write-offs of old digital and branding assets.
Overall revenue was up 11.8 per cent at $405.2 million, leading CEO and managing director Matt Spencer to declare a solid performance by the company.
"This year has been anything but normal and in that context Baby Bunting's performance has been very pleasing," says Spencer.
"I thank our team and our supplier partners for their efforts in a time when supporting new and expectant parents was more important than ever."
Spencer says while the pandemic has presented some "unexpected challenges", the company remains focused on growth moving forward.
He also announced the expansion of Baby Bunting's store network plan to reach more than 100 locations.
"We have plans to continue to expand our private label products," Spencer explains.
"We have commenced shipping to customers in New Zealand and are undertaking an assessment of that market. Our website and digital performance has been strong and our investments in digital will continue."
"We are all adapting to the current circumstances as new issues arise. However, we continue to look at the bigger picture."
Spencer's praise of Baby Bunting's online performance considers a 39.1 per cent increase in digital sales, which made up up 14.5 per cent of total sales during the year.
BBN declared a fully franked final dividend of 6.4 cents per share, taking full dividends for the year to 10.5 cents per share.
Business News Australia
Author: Paris Faint