Baby Bunting (ASX:BBN) - Managing Director and CEO, Matt Spencer
Managing Director and CEO, Matt Spencer
Source: Matt Spencer/LinkedIn
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  • Baby Bunting (BBN) reports a 15.6 per cent year-on-year increase in sales bringing the total to $468.4 million for the 2021 financial year
  • Statutory net profit after tax rose 76 per cent to $17.5 million, while earnings before interest, tax, depreciation and amortisation was $43.5 million — up 29.2 per cent
  • The maternity and baby goods retailer has paid a fully franked dividend of 8.3 cents per share compared to 6.4 cents in FY20
  • Online sales grew 54.2 per cent to $90.8 million which the company attributes to a greater investment in the digital customer experience
  • Company shares are down 4.68 per cent to trade at $5.70 at 12:18 pm AEST

Baby Bunting (BBN) has announced a 15.6 per cent year-on-year increase in sales bringing the total to $468.4 million for the 2021 financial year.

The company released its full year results which it described as a “tremendous year delivering great growth”.

The Australian maternity and baby goods retailer also made $173.7 million in gross profit for the year which marks an 18.3 per cent increase on the prior corresponding period.

In terms of net profit, Baby Bunting reported statutory net profit after tax (NPAT) of $17.5 million which is up 76 per cent. On a pro-forma basis, NPAT grew 34.8 per cent to $26 million and pro-forma earnings before interest, tax, depreciation and amortisation (EBITDA) was $43.5 million — a 29.2 per cent increase.

The company announced a fully franked dividend of 8.3 cents per share compared to the 6.4 cents paid in FY20. With the FY21 interim dividend of 5.8 cents per share, the total dividend for FY21 is 14.1 cents per share which marks a 34.1 per cent year-on-year increase.

Baby Bunting also experienced positive growth in online sales (including click and collect) which totalled $90.8 million and is a notable 54.2 per cent rise. Click and collect also rose 110 per cent and made up 57 per cent of all online sales.

CEO and Managing Director Matt Spencer commented on the full year results.

“Our brand has gone from strength to strength and is now the most recognisable brand in this category, and this is converting into stronger brand preference and engagement,” Mr Spencer said. “As we expand our network of stores and our range and services, we expect our growth to continue.”

While BBN experienced growth on many fronts, COVID-19 caused some delays including the roll-out of its first store in New Zealand. The store is now expected to open in the first half of next year.

However Baby Bunting’s stores remained open during the lockdowns across Australia as it’s considered an essential goods and services provider.

As a whole, online sales now make up 19.4 per cent of total sales. The company attributes the growth in online sales to investing in improved digital commerce experiences.

The consumer stock has around 1.1 million loyalty members, 600,000 active members and about 30 million website sessions during the year which the company considers a strong indicator for ongoing growth.

“While FY22 may have more surprises, our operating strength in our category and our transformation plans should see us well placed in the period ahead.”

Company shares are down 4.68 per cent to trade at $5.70 at 12:18 pm AEST.

BBN by the numbers
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