Baby Bunting Group (ASX: BBN) plans five new store openings in FY24

4 min read | November 29, 2023 10:44 AM AEDT | By Team Kalkine Media

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Baby Bunting Group (ASX: BBN) plans five new store openings in FY24 — Image source: Mr Adi@Shutterstock

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Highlights

Baby bunting is a specialty retailer of baby products with stores throughout New Zealand and Australia

In FY23, the company witnessed 1.7% YoY rise in revenue to AUD 515.80 million

AustralianSuper has the highest stake in BBN with a shareholding of around 13.13%

Baby Bunting Group Limited (ASX:BBN) is one of the biggest specialty retailers of baby products, which offers products for children from newborns up to three years of age and parents-to-be.

In the financial year 2023 (FY23), the company registered around 1.7% YoY growth in revenue to AUD 515.80 million, underpinned by improvement in sales in the last three weeks of June 2023 as customers showed a positive response towards the promotional offers. Furthermore, the revenue growth was supported by the opening of seven new stores in FY23.

However, during the reported period, the company saw increase in costs and worsened trading conditions, primarily due to increase in interest rate and inflation.

In FY23, the company reported a 38.20% YoY fall in pro forma EBITDA to AUD 31.20 million and 51.01% YoY fall in pro forma net profit after tax to AUD 14.5 million.

The company shared that in the first six weeks of FY24, total sales dropped by 4% and comparable store sales were negative 9%.

Top 10 shareholders of BBN
The top 10 shareholders of BBN have nearly 49.29% shareholding in the company, while the top four have around 35.62% shareholding. The highest stakes are held by AustralianSuper and Bennelong Australian Equity Partners Pty. Ltd. with a shareholding of ~13.13% and ~9.11%, respectively.

Recent business update

Through an ASX filing dated 23 October 2023, the company informed that 2.36 million share rights were ceased as exercise conditions were not met.

On 10 October 2023, the company shared the results of 2023 annual general meeting. In the meeting, all the five ordinary resolutions listed for shareholders’ approval in the AGM were passed with the desired votes.

Outlook

In FY24, the company intends to open five new stores, two in Australia and three in New Zealand. For the upcoming financial year, the company has identified multiple initiatives to decrease operating costs by AUD 6 million to 8 million.

By the end of FY24, the company plans to make available 20,000 SKUs, an increase from 5,000 SKUs at the end of FY23, on BBN marketplace.

Share performance of BBN

BBN shares closed 0.57% higher at AUD 1.765 apiece on 28 November 2023. Including today’s gain, BBN shares registered a fall of 31.32% in the last 12 months, and a fall of 15.55% in the last three months.

The 52-week high of BBN is AUD 3.1, recorded on 13 January 2023, and the 52-week low is AUD 1.135, recorded on 27 June 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 28 November 2023. The reference data in this report has been partly sourced from EODHD/Others.

Disclaimer

This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.

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