Cellnet Reports Record 261% Profit Rise During Lockdowns
Brisbane based distributor Cellnet has reported a 261% increase in net profit and a 480% rise in EBITDA, the $3.81 profit after tax was achieved on group revenues of $96.1M.
CEO David Clarke said that this was the Companies strongest full-year pre-tax result in 15 years.
During the past year the business added several new clients including Poly, BlueAnt, Soul headphones and M Wave in the audio market. In n the gaming market the business picked up Nacon, Stealth, Subsonic, and My Arcade and in the mobile accessories market Zens, Fuji Films Instax and goobay.
Cellnet delivered a profit after tax of $3.81m, up $6.18m year-on-year, EBITDA was $4.37m.
As a result of the record year directors full-year dividend of $0.30 cents per share.
Currently the business has $7.0m cash on the books as of 30 June 2021
Clarke said that the Company’s strategic decision to pivot its brand portfolio to meet market demand in high growth categories, including securing new brands on improved commercial terms contributed to the higher earnings performance.
However, he did issue a warning claiming that the second half of the financial year was marked by significant challenges, including a softening of the local
retail market, international shipping delays and product shortages due to global semiconductor supply
Despite these problems the Company continued to generate additional profit, building on its strong first-half result.
He also announced that during the first-half of the financial year the Company fully repaid all its outstanding term loans, which has further strengthened Cellnet’ s financial position a move that analysts claim will help them in the 2021/2022 financial year.
Clarke said “This is an extremely pleasing full-year result and marks a significant turnaround in the business from the previous year. While our first half
performance was truly outstanding; we also navigated the second-half extremely well given the challenging headwinds”.
“During the past year the team has worked incredibly hard to establish new business and improve operating margins retaining a tight control on costs. This strong result has also allowed us to extinguish the Company’s term loans and improve our cash position to further strengthen the balance sheet. It’s an outstanding performance, that has significantly improved profitability, enabling us to deliver shareholders the best Cellnet result in 15 years.”.