Baby Bunting full year earnings jump

Baby Bunting shares are up almost 10 per cent after the baby goods retailer said its full-year earnings were up 22 to 25 per cent from the past year.

The baby retailer released unaudited figures on Wednesday showing it earned between $33 million and $34 million before interest, tax, depreciation and amortisation (EBITDA) in fiscal 2020,.

Net profit after tax was up 29 to 35 per cent to between $18.5 million and $19.5 million.

Total sales were up 12 per cent to about $405 million, with same store-sales up 4.9 per cent, Baby Bunting said on Wednesday.

“These are very positive results, in particular given the impact of the COVID-19 pandemic on communities in Australia,” said chief executive Matt Spencer.

All of its stores remaining open during the lockdowns and the team worked “incredibly hard to adapt,” Mr Spencer said.

Baby Bunting ended the year with zero debt and $13 million in the cash, he said.

“To finish the year the way we did in a difficult environment shows the strength of the brand and the dedication of our team,” Mr Spencer said.

The company recently began shipping to customers in New Zealand via its website and plans to soon open a new store at Westfield Knox in Melbourne and in other locations in NSW, he said.

Trading in fiscal 2021 has so far been positive, he added.

The company will release unaudited figures on August 14.

At 1119 AEST, Baby Bunting shares were up 9.8 per cent to $3.46, their highest level since late February.

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