Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Learn
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Slow start to new year for Baby Bunting

Petrina Berry  |  11 Aug 2017Text size  Decrease  Increase  |  

Page 1 of 1

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.

BABY BUNTING PROFIT GROWS:

* 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

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.