Cellnet: Sales Down, E-Commerce Rises In Difficult Quarter
Cellnet is following what it calls “a landmark FY21 result” by continuing to make a profit in the September quarter, despite total sales dropping 20 per cent year-on-year.
The company managed to offset “challenging operating conditions” with a sturdy online presence, with e-commerce rising 47 per cent from the same period a year earlier.
The happy combination of increased online sales and higher profit margins added to the bottom end, and the company’s recent foray into the gaming and audio categories furthered this.
The company’s net profit before tax for the quarter was $286,000, while its trading margins improved 330 basis points year-on-year. Total sales were down 20 per cent year-on-year to $21.4 million.
“I am extremely pleased we continue to navigate the market headwinds, delivering a solid unaudited [September] quarter profit in
a challenging environment,” Cellnet’s Chief Executive Dave Clark, stated.
“We have capitalised on opportunities from recent brand acquisitions and continue to build out our ecommerce systems and platform.”
The company enjoyed increased revenue on its flagship Techunion ecommerce store, and expanding its third-party channels, selling through Amazon, Kogan, Catch, eBay, The Iconic, TheMarket and others.
“We look forward to restrictions easing from the [December] quarter and consumers returning to retail outlets ahead of our peak trading period,” Clark continued.
“Together with momentum from the new iPhone launch and pent-up consumer demand for new gaming consoles, we remain positive in our outlook for the year ahead.”