AuMake boosts profit with online transformation
AuMake made a pivot towards online sales after the COVID-19 outbreak hit, lifting digital sales by 130pc.
Shares in AuMake shot up nearly 17 per cent on Monday after the daigou company told investors that it managed to grow its annual revenue despite having to close its stores during the second half of the financial year due to COVID restrictions.
With a net loss of $4.36m, compared to a loss of more than $8m a year ago, AuMake said boarder closures in Australia and New Zealand in the second half of the 2020 financial year meant a significant reduction in Asian tourist traffic and associated revenue.
Still, the company managed to grow revenue by 35 per cent to more than $60m for the period.
AuMake, which operates 15 stores through Australia and New Zealand catering to Asian tour groups, made a pivot towards online sales after the COVID-19 outbreak hit, lifting digital sales by 130 per cent to $14.7m.
The company said that in addition to its recently enhanced digital capability through its Broadway brand, it had partnered with a leading fintech to develop a next generation online platform that will be launched in October.
“Our new online platform will not simply cater for the trading our retail products in the traditional sense but most importantly usher in a new online era in Australia by incorporating the very latest e-commerce trends from China and around the world, which blends previously separate concepts of social networks and commerce into one,” executive chairman Keong Chan said.
“The evolution of AuMake is also not just isolated to our online business but will be entirely holistic as we fully embrace a complete transformation of our business.
“We are incredibly excited for the future of AuMake and I look forward to updating our shareholders in the near future.”
The company, which was eligible for JobKeeper payments, said that the store closures allowed it to improve its in-store experience, refresh store layouts and expand product categories.
“COVID-19 has had a profound impact on AuMake,” Mr Chan said.
“Despite traditional revenue streams being impacted during the second half of fiscal year 2020, our financial performance improved significantly across all key metrics for the year.”
AuMake did not declare a final dividend, in line with prior years.
Shares in AuMake closed up 13.3 per cent at 7c each on Monday.
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