Booktopia 'eclipses expectations' as sales rise 35%

Revenue at Australian online book retailer Booktopia Group Limited has grown by 35% this year, soaring to $223.9m (£119m) from last year's $165.7m (£88m) and beating its forecasts for the full year to 30th June 2021. 

The increase comes in at 10% above the $204.5m (£108.7m) forecast in the company’s November 2020 prospectus, and underlying EBITDA was $13.6m (£7.2m), up 125% on the previous year's $6m (£3.2m) and 45% above prospectus forecasts of $9.4m (£5m).

The company has also shipped a record 8.2 million units this year compared with 6.5 million in 2020. The current financial year sees July and August track above the same period last year, despite lockdowns in Sydney and Melbourne. 

The full-year result was achieved on a 27% increase in total units shipped to 8.2 million, calculating an average annual spend per customer of $126.85 (£67.40), up on last year's $111.43 (£59.20).

Booktopia c.e.o. Tony Nash said the company’s first full-year results as a listed company had laid the foundation for the next phase of growth. “Our prospectus set some very ambitious targets for our first year as a listed company and I am very happy to report we have been able to eclipse those expectations,” he said. “Our focus has now shifted to executing our multi-pronged growth strategy that will see us ramp up our market penetration, expand our reach within the book industry and lock in new earnings accretive partnerships and acquisitions.”

“Our team’s performance over the past 12 months, the strength of the Booktopia brand and our ability to adapt quickly to a rapidly changing external environment leaves us confident we can continue to grow at or above what we have achieved over the past few years.”

Established in 2004, the company has now built a database of more than five million customers with 1.8 million active customers in 2021, a growth of 19% on the previous year. During the financial year the company finalised deals with Australian publisher Brio Books, edtech provider Zookal, and teamed up with UK publisher Welbeck for a new joint venture in Australia and New Zealand.

Nash said the company was actively pursuing several new bolt-on opportunities to leverage the company’s infrastructure and systems and enhance growth. “Bolt-on opportunities, whether through acquisition or partnership, provide a clear path to supercharging our growth over the next few years and if we see an opportunity that provides the right benefits, at the right price, we will pursue it.”

“While our immediate focus is on Australia and New Zealand, we will look at opportunities in other markets if we believe there is attractive, medium-term, growth potential.” 

Booktopia is also investing in the growth of its publishing arm and publisher services operations that will give customers access to more titles, more quickly. The publishing division uses BPS to distribute its books to retailers and resellers across Australia and New Zealand. The company said it had invested more than $20m in the automating of its 14,000 sq m distribution centre at Lidcombe in Sydney west resulting in a doubling of capacity that allows the company to ship 60,000 books across 145,000 different tiles per day.

“The Australian book industry is forecast to generate more than $2.6bn in sales this year and we want to be at the very core of that industry to ensure our customers are getting the best deals on the best books,” Nash said.