Cellnet Reports Loss After Sales Fall 13% Now Moving To Sell Direct Online
Queensland based distributor The Cellnet Group have reported a $1.96M loss after sales fell 13%.
The Company who recently took on several new brands including budget Soul headphones and Otter Box Covers as well as Stealth headphones saw revenues fall from $110M to $96.2M in July 2020.
The Company that does little if any marketing for their brands is looking to the launch of the new iPhone 12 and the roll out of new consoles by Microsoft and Sony to lift sales in 2021.
Currently the Company has $6.9M at the bank and have told shareholders that they have witnessed a rebound in sales following the outbreak of COVID-19 earlier this year.
The Company is also expanding their direct sell model after COVID-19 accelerated online growth for the business to “unprecedented levels” claim directors.
They also claim that the transition of Smart Wireless headphones into ‘Hearables’ will help the Company going forward.
Other new brands bought on board recently include gaming accessories brand Subsonic and My Arcade, BlueAnt in the portable audio market, as well as 9oobay an IT accessories Company.
In a report to the ASX the Company said that ‘Own Brand’ audio business was now turning over $10 Million and that they have sold over $200M dollars’ worth of Own Brand products since launch.
The Company said that recent acquisition of Performance Distribution had delivered ‘knowledge, experience and infrastructure to accelerate online growth’
The Company is now looking to online to deliver 10% of consolidated revenue within 2 years. They claim that by going direct they will increase Cellnet trading margins with increased direct to consumer sales.
They said that they are currently developing the Cellnet TechPlayground online platform for all categories carried by the distributor who while competing with retailers is looking to grow their share of the consumer electronics market via retailers.