Resurgent retail sales underpin 112% growth for Nuheara
Nuheara Limited (ASX: NUH) delivered strong first quarter performance: generating $1.1 million in customer receipts and $1.2 million in invoiced sales revenue. Significant quarter on quarter growth in Traditional Retail (TR) sales ensured Nuheara was well placed as retail conditions improve with the post pandemic recovery.
- Q1 FY22 customer receipts up 112% to $1.1 million (Q1 FY21: $0.5 million), supported by Traditional Retail and Direct To Consumer (DTC) cash receipts.
- Q1 FY22 invoiced product revenue down 35% to $1.2 million (Q1 FY21: $1.8 million which was inclusive of significant backorders from FY20) supported by resurgent growth in Traditional Retail (TR) sales.
- 20% increase in Average Selling Price (ASP) of IQbuds² MAX to $478 in Q1 FY22 from $405 (FY21).
- Driven by the US’ TR sales rebound, TR represented 43% ($0.5 million) of total sales in Q1 FY22 up from 19% in Q4 FY21.
- DTC sales strengthened in Australia but softened in US due to differing regional purchasing options, with US TR reopening and Australia in lockdown.
- Strong balance sheet with $3.7 million cash and no debt at 30 September 2021. A R&D tax rebate of $1.7 million is expected to be received in Q2 FY22.
- Strong inventory levels provide a solid foundation to deliver continued growth in sales during Q2 FY22, seasonally the largest quarter of the year.
- As expected, post quarter TR sales resurgence continues with October 2021 month to date invoiced TR sales exceeding total Q1 FY22 TR sales.
Nuheara Co-founder & CEO Justin Miller said:
“The first quarter has provided a solid start to the new financial year in both cash receipts and invoiced sales. This is particularly pleasing as we navigated dramatic changes in retail business conditions, particularly in our major sales region of the US.
“Nuheara’s DTC sales sites, our revenue mainstay during the depths of the COVID-19 pandemic, continue to deliver. However, the resurgent retail sales growth we are now seeing through our US retail partners re-opening highlights the benefits of our diversified sales channel growth strategy.
“We are in a strong position to continue our growth trajectory, with DTC, OEM and now TR all proving themselves at various stages over the past 18 months. As retail and supply chains return to normalcy, we look forward to all our diversified sales channels delivering within the same quarter.”
