Booktopia’s 1st results since listing are out and investors think it’s a great read

Booktopia Group (ASX: BKG) saw revenue jump by more than 50% in the second half of 2020, while earnings rose by more than 500%.

The e-commerce retailer, which listed on the ASX in December at $2.30 a share, posted 52% increase in revenue first half to December 31, 2020 to $113 million (H1 FY20: $74.5 million);  while EBITDA rose 506% (adjusted for IPO costs) to $8 million (H1 FY20: $1.3 million).

The company’s share price has jumped more than 11% in early trade on Wednesday to $2.955.

Booktopia had the strongest December in its 16-year history with approximately 728,000 units shipped during the month alongside 4.2 million units shipped in the first half (H1 FY20: 3.0 million), with the company saying recent investment in additional automation and the increased capacity of its distribution centre providing the foundation for a record month and a record half year.

The first stage of the $20 million expansion plan at the western Sydney distribution centre doubled capacity to 60,000 units a day.

Booktopia CEO Tony Nash said the unaudited results indicated the business was trading well and take advantage of the shift to online shopping.

“We are confident the momentum and growth we experienced in 2020 should continue throughout the year and beyond and as a result the business is on track to meet forecasts provided in the company’s prospectus,” he said.

The company will release its full audited results for the six months to December 31, 2020, on February 22.