Booktopia Group are aiming for a comeback, saying it has “all the building blocks” required to return to growth, following a rough patch.
Many cost rationalisation and margin optimisation measures were put in place this year by the company, in order to manage economics and reset cost base.
Some were; a new purpose built Customer Fulfilment Centre (CFC) in Sydney, optimisation of freight recovery costs, strategic inventory and pricing initiatives, and rationalisation of lease obligations. These are expected to boost earnings by a minimum of $12 million.
David Nenke, Chief Executive claimed 2023 – 2024 was about heading “back to basics. We believe we have all the building blocks in place to return the business back into profitability and growth.”
“We have stability of senior leadership, our new CFC is operational which will reduce costs and support our growth aspirations. We have forecast an underlying EBITDA of $13.5m in FY24 off the back of volume growth, cost reduction initiatives as well as the CFC’s improved costs and efficiency.”
The company recently reported a net loss after tax of $29 million, compared to the $15.1 million loss in 2021 – 2022, and noted revenue was down 18% to $197.6 million.
There were also reports underlying EBITDA was down 173% to a loss of $4.6 million. Average customer spend remained almost unchanged at $134.13, 20.3% higher than 2019 – 2020.
Amortisation and depreciation increased for the year, thanks to company entering into a new lease in South Strathfield, Sydney, which accelerated $10.3 million of depreciation for certain assets.
Its shares within the last year have fallen by nearly 58%, currently resting at 11 cents, up 4.74% for the day.
Chief Executive and Co-Founder Tony Nash was dropped last year due to his criticisms of the board. He remained as a non-executive director.
Last September, the four independent directors quit, now replaced, with Peter George installed as chairman, and Mr Nenke appointed in early 2023.
Towards the beginning of this year, the company completed a $10.9 million equity raise, in an effort to increase available inventory for the Christmas period, and contribute to a transition to the new CFC.
Mr Nenke continued, “This is a key milestone for the business and will set us up to achieve operational efficiencies, which will ultimately help to transform the shopping experience we offer to our customers.”
“We are looking forward to launching a series of additional strategic initiatives in the coming months, which will expand the unique selection we offer to readers across ANZ (Australia and New Zealand), improve personalisation and user experience.”
