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Slow start to new year for Baby Bunting

Petrina Berry  |  11 Aug 2017Text size  Decrease  Increase  |  

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BRISBANE - [AAP] Prams, cots, and car seats seller Baby Bunting (ASX: BBN) says it will still deliver mid-single digit same-store sales despite slowing in sales in the first weeks of the new financial year.

Shares in the baby goods retailer fell sharply amid wider market falls on Friday after the company reported a 47 per cent lift in full-year net profit to $12.25 million for the year to June 25, 2017, with total sales up 17.4 per cent to $278 million.

Comparable store sales, which strips out new store openings, grew 6.9 per cent in the year to June 25, with the mid-single digit growth number an expected slowdown from exceptionally strong growth of 10 per cent during the 2016 financial year.

However, the company said comparable sales in the six weeks to August 6 were down 4 per cent due to lower pram sales and changes to its promotions.

And it has forecast earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be in the range of $25.3 to $27 million, excluding employee equity incentive expenses.

Chief executive Matt Spencer said 2016/17, the group's first full year on the ASX since listing in October 2015, was another successful year for Baby Bunting.

"Our store network expanded by six stores and we achieved growth in earnings and profitability," he said in a statement.

The company plans to open four to eight new stores each year with a total target of 80 stores in its network.

The group's pro forma net profit after tax was $13 million, up 21.9 per cent on the prior year and its pro forma EBITDA hit the mid-point of its guidance range at $23 million, up 23 per cent on the 2016 financial year.

Shares in Baby Bunting were down 25 cents, or 12.8 per cent, to $1.7 cents at 1122 AEST.


* Full-year net profit up 47 pct to $12.5m

* Revenue rose 17.4 pct to $278m

* Final fully franked dividend of 4.3 cents a share, down 2 cents


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