Baby Bunting Group Announced FY 2019 Half-Year Results: What Market Players Need To Know

  • Feb 15, 2019 AEDT
  • Team Kalkine
Baby Bunting Group Announced FY 2019 Half-Year Results: What Market Players Need To Know

Baby Bunting Group Limited (ASX: BBN) had come forward and made an announcement about the FY 2019 half-year results. As per the press release dated February 15, 2019, the company had stated that its total sales amounted to $177.7 million which implies the rise of 17.2% on prior corresponding period. The issued release also stated that the company’s pro forma EBITDA (or earnings before interest, tax, depreciation and amortization) happens to be $11.6 million which reflects the rise of 25% on prior corresponding period. However, on a statutory basis, the company’s EBITDA amounted to $10.7 million reflecting the rise of 26.9% on prior corresponding period.

The release issued by Baby Bunting Group Limited also threw light on the Digital and online. The company stated that its online sales made up 11.5% of the total sales in the half year ended December 2018 which implies the rise of 61% as compared to the prior corresponding period. We would now be having a look at the operating expenses. The company stated that pro forma cost of doing business amounted to $49.9 million in the half-year making up 28.1% of the sales as well as a rise of 120 basis points (or bps) as compared to the prior corresponding period. The company stated that overheads (which is excluding the employee equity incentive expenses) made up 5.8% of the sales which demonstrates the deployments towards new Support Office roles to help the growth, annualising of the roles from prior year as well as one off costs which also includes consultancy work on the branding as well as loyalty initiatives and commencement of store management leadership program.

The release which was issued by the company had given the information related to the outlook. Baby Bunting Group Limited had stated that there are expectations that it would generate EBITDA between $25 million-$27 million in FY 2019 which implies the rise of approximately 34%-approximately 45%. However, it excludes employee equity incentive expenses. Moreover, the company is based on the assumption that comparable store sales growth would be mid to high single digits for the year, gross margin would be around 35% in FY 2019 as well as total six new stores would be opened for the year.

We would now be looking at how the stock of Baby Bunting Group Limited had performed today and how it has performed in the recent past. Today (i.e., February 15, 2019), the company’s stock had closed the session in red as the stock price encountered the fall of A$0.140 per share or 6.009% and closed at A$2.190 per share. The market capitalization of Baby Bunting Group Limited stood at ~$294.61 million, and the annual dividend yield stood at 2.27%. Talking about the past performance, the stock of Baby Bunting Group Limited had delivered the return of 14.78% in the span of previous three months, while in the time frame of previous one month, the stock’s return was 11.48%.


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