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Booktopia, the Australian online bookstore, has recently reported a full-year loss of $29 million this year. The retailer calls it a challenging year, attributing the loss to the hard economic climate as well as the impacts of its transition to the new customer fulfillment center (CFC).
The online retailer reported that its revenue was down 18% in the 12 months to June 30 (FY23). The company’s income fell 23.7% during the same period. For the 12 months to June 30 (FY23), the company reported revenue of $197.6 million, which was recorded as $240.78 million last year. This is significant and truly challenging for Booktopia.
At the beginning of this year, Booktopia took many cost rationalization and margin optimization measures to address economic headwinds. The company stated that these measures were expected to boost its bottom line by $12 million and $15 million during FY23.
In its Independent Auditor’s Report, Deloitte Touche Tohmatsu cited material uncertainty will impose a new challenge if Booktopia fails to achieve its operating cash flow forecasts, resulting in Australian non-bank lender Moneytech withdrawing its trade finance facility.
Meanwhile, the company’s new CFC is reportedly making efforts to improve efficiencies, reduce operational costs, and support overall growth.
Booktopia CEO David Nenke said:
Our recent equity raise of $10.9 million has provided further working capital, helping to increase available inventory for the important Christmas period as well as contributing to the successful transition to our new CFC. We are looking forward to launching a series of additional strategic initiatives in the coming months, which will expand the unique selection we offer to readers across ANZ and improve personalization and the user experience.
Navkiran Dhaliwal is a seasoned content writer with 10+ years of experience. When she's not writing, she can be found cooking up a storm or spending time with her dog, Rain.
