Shares in Baby Bunting soared after the pram and cot retailer released its annual results showing profit down by a quarter while four key competitors departed from the market.
At the close, they were up 38.5% to $2.41.
Statutory net profit after tax was down 29.1% to $8.7 million. Pro forma profit was $9.6 million, down 25.9%.
However, the retailer says Baby Bunting’s top four specialty baby goods competitors all entered external administration resulting in significant price cuts from distressed retailing.
“The past financial year has seen Baby Bunting strengthen and consolidate its market leading position as the largest specialty baby goods retailer in Australia,” says Baby Bunting’s CEO and Managing Director, Matt Spencer.
Trading at the start of the new financial year has been strong. Sales growth was 16.5% and comparable store sales growth 9.8% after the first six weeks of trading.
The company expects EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) for 2019 to be in the range of $24 million to $27 million, representing growth of around 30% to around 45%.
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