• Louis Mittoni - Funtastic CEO
    Louis Mittoni - Funtastic CEO

Funtastic has reported increased revenue and gross profit for November following the acquisition of Toys R Us Australia and Hobby Warehouse Group. 

Releasing a statement to the ASX, the business reported a 60% increase in consolidated revenue to $7.1 million in November versus the prior comparable period (pcp). 

Funtastic also reported that consolidated gross profit was up 78% to $2 million in November. 

Meanwhile, the business also reported that consolidated revenue for Q1 FY21* was $14 million, generating a consolidated gross profit of $3.6 million for the quarter. 

The business reports that the Toys R Us website also delivered strong results in November, reporting that total organic and direct sessions (excluding paid search) increased by more than 200% versus pcp.

Toys R Us' organic google search impression increased by more than 360% in November versus pcp, while the average cost per conversion via paid click advertising (excluding organic conversion) decreased to a low of $6.30. 

Funtastic CEO and MD Louis Mittoni said that these results foreshadow what the business expects to achieve as it continues its growth and expansion. 

"We are very pleased with the performance of the Company during this period.

"It is indicative of the solid teamwork within our business divisions and the strong connection between shoppers and our brands.

"Our eCommerce channels contributed the larger proportion of the gross profit and the results are a prelude to what we anticipate in the next several years, with the continued relaunch of Toys R Us, the launch of Babies R Us and continuation of our digital-first eCommerce road map," he said. 

As the business continues its integration following the acquisition, it will review all product ranges, customer segments and operations.

Investment to build capacity and scale will also be implemented in the coming months, aligned with the planned growth of the company.

This will include the introduction of automated supply chain capabilities to increase warehousing capacity and further investment in marketing of brands and product portfolios. 

*The financial year for Funtastic Limited extends from August to July, with Q1 represented by August to October.

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