Booktopia Begins New Chapter

Reading Time: 2 mins
By Published On: April 23, 20240 Comments

Things are looking up for the struggling book retailer with Booktopia recording a positive cashflow in Q3.

After Booktopia reported a record low for Q2 back in February, it has revealed that cash flow has been positive for the first three months of 2024. 

Despite January to March being a “relatively lean” trading period for the Group, Booktopia delivered positive operating cash inflows of $781,000 for the quarter assisted by benefits from cost-saving and efficiency initiatives as previously announced and movements in working capital balances. 

According to the Group, cash flows from investing activities continue to reflect the investment in the Company’s intellectual property ($479,000) and cash flows from financing activities reflect the cost of leases and debt facilities ($1,836,000). 

The company stated, “trading is substantially in line with the forecast for the quarter though conditions continue to remain challenging due to economic headwinds and the continued soft performance of the Australian book market.”

Last year the company forecasted an underlying EDITDA for the year of $13.5 million, this has now been downgraded to an anticipated range of $1 million – $3 million. 

On top of soft demand over the Christmas and sales period, the company incurred some temporary challenges with the transition into its new Customer Fulfilment Centre (CFC) which led to significantly reduced sales in the prior quarter.

Despite these challenges late last year, the Group continued to roll out initiatives in the CFC to improve operational efficiencies in the customer fulfilment process. 

“A continued emphasis is being placed on unlocking further cost savings including around its lease obligations and other overheads,” stated Booktopia. “The business also continues to realise savings from previous restructures which has reduced office employment costs by 34 percent or $2.2m in Q3 compared to the prior comparative period.”

Last quarter the Group announced it would be initiating a strategic review of the business to explore all options to accelerate a return to acceptable earnings, the review continues to be undertaken and is expected to be completed before the end of the fiscal year.

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

Share this story!

Leave A Comment

Heather Bone