Cellnet’s decision to build its own brand portfolio has been a bright spot in a year where COVID played havoc on the company’s financials.

Cellnet own brands, which include 3sixT, Powerguard, Impact Zero, Goobay, and Wave Audio bucked this trend, performing well in all channels, and increasing sales by 12 per cent compared to the same period last year.

Cellnet has growth these brands to $30 million over the past three years.

In addition, online sales from Cellnet managed websites and marketplace stores continued to experience strong growth, up 27 per cent year-on-year.

 

This wasn’t enough to stem the impacts from COVID, however.

Cellnet reported an overall EBITDA loss of $373,000, as total sales decreased 18 per cent year-on-year.

Increased costs of goods, logistics and freight, coupled with the adverse impact of further COVID-19 restrictions on the retail sector, saw Cellnet take a hit, overall.

In addition, COVID-19 impacted the gaming industry at large, resulting in software publishers delaying a number of major titles due to the disruption. Although this impacted Cellnet’s FY22, most of this delayed titles are now set for release in 2023 – which bodes well for FY23.

The company also boasts a strong balance sheet with $6.5 million cash at bank as of 30 June 2022, and net tangible assets of 7.5 cents per share.

Cellnet opened its own distribution centre on August 1, in a move to optimise and consolidate its Australian warehousing and logistics operations.

“The strategic direction to take its supply chain in-house was driven by a desire to further enrich customer experience, and offer customised business partner solutions, comprehensive digital channel fulfillment and 3PL services,” Cellnet explained of a  3,600m2 Melbourne office and distribution facility.

“This is an extremely exciting step in our supply chain evolution. The need to unify logistics across the group and have direct relationships with freight carriers became more evident during the pandemic. The team are excited to provide our brand and customer partners an enhanced fulfillment experience.” says Dave Clark, Cellnet Chief Executive.

Commenting on the results, Clark added: “We acknowledge it has been a challenging year, but we believe we have now taken appropriate steps to ensure we have the right team in place with a real competitive advantage, underpinned by our new distribution centre and market leading brand portfolio.”