The takeover of Hobby Warehouse, the acquisition by Funtastic and the relaunch of Babies”R”Us as well as a rebranding and a move to an ecommerce only strategy have all contributed to a transformational year for Toys”R”Us ANZ.
Consolidated proforma annual revenue and gross profit reached $48.2 and $11.1 million respectively, however, the online retailer reported a consolidated proforma annual EBITDA of $0 million. Year end cash at bank stands at $17.3 million and year end net assets at $55.7 million.
“Whilst the company is cash self-sufficient should we choose to be, we plan to pursue top line growth aspirations and market share goals over the next year or two wherever suitable avenues arise,” says Dr Louis Mittoni, CEO and managing director of Toys”R”Us ANZ.
Babies“R”Us re-entered the Australian market on 11 August 2021 with the deliberate soft launch of a newly created website. The new website initially features more than 3,000 products and 62 brands such as Bugaboo, Bonds, Baby Jogger, Philips Avent and Tommee Tippee. The range is on track to grow strongly over coming weeks to more than 5,000 products including exclusive and limited release items.
Toys“R”Us delivered strong results for the fourth financial quarter despite the relocation of warehouses between 22 July and 12 August. The number of orders received via the website during FY21 Q4 was 36.6k versus 32k in the previous quarter, representing an increase of 14.8 per cent quarter-on-quarter.
The company moved to larger premises in Dandenong South and implemented a state-of-the-art warehouse management system as well as made a $2 million investment in robot technology, increasing the capacity and efficiency of logistics processes. It also secured a lease in July 2021 for a purpose built, state-of-the-art warehouse distribution centre and adjoining head office facility located in Clayton.
“The Toys“R”Us teams have worked diligently and cohesively to reduce disruptions during the recent warehouse relocation and commissioning process, and are now focused on preparations for the busy November and December trading period,” says Mittoni.
Indeed, while Toys“R”Us is planning rapid material revenue growth over the next several years, it is poised to take advantage of upcoming significant shopping events and seasons such as Christmas.
“Much of our inventory has been planned sufficiently in advance to help ensure adequate stock levels of in-demand items are available for end of year peak trading events and promotions,” says Lian Yu, chief operating officer of Toys“R”Us ANZ.
“Some categories, such as selected outdoor play products, were planned for as early as October 2020, shipped prior to any freight disruptions and have been received into our warehouses in recent weeks.”