Booktopia CEO Tony Nash announced he will step down from the role after the Australian online bookseller saw earnings plunge, despite a growth in sales. In the nine months to March 31, sales were up 9% to AUS$177.8 million ($126.2 million), units shipped rose 7% 6.75 million, but EBITDA was down 63% to AUS $5.5 million ($3.9 million), compared to the nine-month period in the previous financial year.
Part of the decline can be blamed on the lifting of lockdowns—which had helped the online retailer grow significantly in the past two years—as well as a delay to the start of the academic year and fewer foreign students attending university in Australia. Perhaps the biggest factor overall was high costs association with the company distribution center, which it expanded in 2021 after its late 2020 IPO. The company is also battling the Australian Competition and Consumer Commission (ACCC) investigation into the company over allegedly false or misleading claims made to customers over their rights to get refunds.
Along with the announcement, Booktopia lowered its outlook for the full year, predicting total revenue of AUS $242 million ($172 million) and an EBITDA of between AUS $3 million ($2.1 million) and AUS $4 million ($2.85 million). That said, the company is anticipating an overall net loss, something which may be deeper than expected should the ACCC find the company guilty of violations and levy a fine.
In announcing his change of position, Nash defended his record. “Building Booktopia from a budget of just $10 a day in 2004 into Australia’s leading online book retailer has been an incredibly rewarding journey,” said Nash, adding. "As an entrepreneur, my natural talent is making the invisible visible. I look forward to continuing to find ways to grow the business while handing over the duties that come with being the CEO of a larger and listed entity, It's time to hand over the leadership reins to someone who is more capable than me at that job description. I am genuinely looking forward to working with, and for, the new CEO.” Nash will continue as CEO until a replacement is found.
