Booktopia chief executive Nash resigns after earnings plunge in third quarter

Booktopia c.e.o. Tony Nash has resigned from his role after a poor third quarter saw earnings plummet at the Australian online book retailer.

Nash notified the board of his decision after financial results showed earnings before interest, taxes, depreciation and amortisation (EBITDA) in the nine months to 31st March fell 63% from the previous year to $5.5m (£3.2m). This was despite sales growth of 9% to $177.8m (£101.7m) and a 7% increase in units shipped to 6.75 million.

Nash, a co-founder of the firm, will continue as c.e.o. until a successor is appointed. He will then become a full-time senior executive and director with the company in a new position “focused exclusively on growth”.

He said the decision to step aside was in the best interests of the firm, saying: “Building Booktopia from a budget of just $10 a day in 2004 into Australia’s leading online book retailer has been an incredibly rewarding journey.

“As an entrepreneur, my natural talent is making the invisible visible. I look forward to continuing to find ways to grow the business while handing over the duties that come with being the c.e.o. of a larger and listed entity. It’s time to hand over the leadership reins to someone who is more capable than me at that job description. I am genuinely looking forward to working with, and for, the new c.e.o.”

Company chairman Chris Beare added: “Tony has an unyielding commitment to Booktopia, its staff and customers, and he has demonstrated this over the past two decades. We look forward to his enthusiasm continuing to drive the company forward in his new position.”

The company said the growth in online book sales had “moderated” since the end of lockdowns and other Covid-19 restrictions. It also partly blamed a 1% fall in revenue for the three months to 31st March 2022 on a disrupted start to the academic year, resulting in lower sales on academic books. The retailer has also faced challenges with its expanded distribution centre’s higher cost base, which continued into the second half of the year.

Booktopia added that it needed to reassess its cost base in the short term. The firm said: “The board and management are developing several initiatives that will be implemented during the fourth quarter to ensure business costs and investments are more aligned with the company’s current growth trajectory.

“These initiatives will provide the company with a solid foundation for the next financial year and beyond. They are designed to create the step-change needed to reset the business, thus allowing Booktopia to return to a sustainable level of growth and profitability as soon as possible.”

The retailer also lowered its full-year outlook, predicting total revenue of $242m (£138.4m), EBITDA of $3m to $4m and anticipating a net loss. This may also be impacted by a potential penalty from the Australian Competition & Consumer Commission, which has launched proceedings against Booktopia over allegedly false or misleading claims made to customers about refund rights.