BABY Bunting Group (ASX:BBN) has posted its maiden interim results, since listing on the ASX last year.
The Dandenong-based baby furniture and accessories business recorded a 23 per cent decline in net profit to $2.26 million, following expenses relating to the IPO.
The opening of new stores drove strong sales growth, with a 30 per cent lift in revenue to $108.2 million compared to the previous period.
Baby Bunting CEO and managing director Matt Spencer says the results confirm the company's expansion strategy.
"We are delighted to report our first result as an ASX-listed company and to welcome our new shareholders," Spencer says.
"Baby Bunting had a successful period across the business including strong comparable store sales growth, opening four new stores and increased EBITDA margin.
"This result is a credit to the Baby Bunting team across all of our 35 stores, in our distribution centre and support office."
EBITDA for the half year was up 50 per cent at $7.8 million, compared to the previous period.
New stores were opened in Booval, North Lakes and Burleigh Waters in Queensland, as well as Campbelltown in New South Wales.
Growth in the business is expected to continue, with sales in FY16 forecast to be between $225 million and $235 million. EBITDA is expected to be in the range of $16.5 million and $18.5 million.
Spencer says store sales growth will moderate in the second half, based on earlier trading patterns.
"We are pleased with both the current trading performance of the business and the progress being made in expanding our capabilities to support future growth," he says.
Baby Bunting plans to open one to two new stores during the second half of FY16.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support