2015 Annual Report

Through Abano’s investment in Bay International, we have two audiology networks. Our primary network is in the sophisticated Australian market and we have a very small group of stores in South East Asia, where we are testing the opportunity.

We have a retail model, with our audiology stores located in high traffic shopping malls and retail locations. The Australian management team, led by Eron Plumb, has extensive retail experience and this is reflected in the business’ improving performance.

Our proprietary self test touch screen hearing test is an important lead generator for the business and allows our team to conduct hearing tests offsite and refer customers back to a Bay Audio store if further diagnosis or assistance is required.

In Australia, we are now generating an average of 5,500 self test touch screens per month from locations as diverse as the Royal Easter Show and Bathurst, as well as through our partnerships with Terry White Chemists and Quality Pharmacy Group.

FY15 was a ground breaking year for Bay Australia as we achieved three record breaking months and a maiden net profit after tax.

Asia is an immature market in regards to hearing care and the retail audiology model is a new one for the region. Our first challenge is to educate consumers about hearing care and solutions and then encourage them to visit our stores. The business now reports to the experienced Australian management team and we are focused on achieving a breakeven at EBITDA for this business.

In FY16, we expect to see continued improvements from Bay Audio Australia, with continuing double digit revenue growth and a full year profit. A further three greenfield stores are planned to open in the first half FY16.

ADVANTAGES
Bay Audio Australia
  • Appealing retail environment
  • Indepth industry knowledge
  • Innovative marketing and sales strategy
  • Proprietary mobile touch screen testing technology

Bay Audio Asia
  • Introducing a new way for consumers to access hearing health in Asia
  • Industry knowledge and experience
  • Independent of manufacturing chains
  • Local teams in each market

HIGHLIGHTS FY15

  • Australian same store growth of 22% in local currency
  • Australia: Opened three new greenfield stores and relocated two non-retail stores into retail centres
  • Partnered with Quality Pharmacy Group as their hearing health partner for their group of pharmacies in Victoria, Australia
FOCUS FY16
  • Continued growth by delivering great customer service
  • Improve business productivity
  • Open additional greenfield stores in Australia
  • Asia: Focus on breakeven performance at EBITDA