Cellnet On A Roll Sales Up 18%, Profits 410% As Demand For Accessories & Gaming Soar
Brisbane based distributor Cellnet has reported an 18% jump in revenues driven by COVID-19 and demand for smartphone accessories, profit is up 410% year on year.
The turnaround comes after the business moved to rationalise brands, take on new capital and expand their product portfolio.
In October, the business had revenues of revenue $12.6m, up 18% year-on-year, October net profit before tax was $1.05m, up $1.02m year-on-year. YTD net profit before tax was up 410% on the same period last year.
Contributing to the Companies revenue growth is the surge in demand for Apple’s new iPhone’s with retailers and carriers stocking up on the latest in accessories.
Another contributor has been the growth in demand of gaming accessories a category that Cellnet has invested in as part of their restructure.
Commenting on the result, Cellnet’ s Chief Executive, Dave Clark, stated, “Our October result is a real testament to the dedication and hard work that the team has put in to make this iPhone launch our most successful yet. Our revenue and profit for October surpassed all expectations, delivering one of the best monthly results Cellnet has ever produced. I am extremely proud of the team for this achievement, and grateful to our loyal vendors and stable of brands. Cellnet is well placed as we move into the high velocity Christmas trading period.”.
Cellnet’ s success comes as several distributors struggle with supply and product shipping problems
Clarke believes that gaming will continue to perform strongly, delivering positive earnings for the Company going forward.
“This, coupled with recent brand acquisitions and an ongoing focus on operating costs, have also been significant contributors to the strong result in October”.
In an exclusive interview with ChannelNews Cellnet CEO David Clarke said that he was confident the growth the Company is currently experiencing will continue.
“we are in the right categories and we have the product range to deliver a return on investment for retailers who are witnessing demand for audio, gaming products and accessories as Australia comes out of COVID-19 lockdowns.”
Among the products delivering results are Rigg headsets, the Companies own 360 brand and Blue Ant audio speakers.
The Company is also making a move into IT Accessories and have recently picked up new brands in this category.
Among the brands doing well for Cellnet is their new Soul audio, Goodbay and Wave.