It wasn’t a very pleasureable year for sexy times wholesaler Delecta
Health & Biotech
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It hasn’t been a very pleasureable year for sex toy wholesaler Delecta — which just reported lower revenue and a net loss.
Delecta (ASX:DLC) wholesales sex toys via its Melbourne-based adult store Calvista.
“Calvista is an adult product wholesale supplier servicing Australian, New Zealand and South East Asian retailers and industry professionals of any size, and is the founder of Adultex, Australia’s annual adult industry trade show,” the group’s website says.
The store sells lingerie from the likes of Frederick’s of Hollywood and other kinds of products with names like Electrastim, Le Wand, Lovehoney, PerfectFit and OxBalls.
Delecta blamed a poor 12-month result on the loss of distribution rights from a key supplier and a change in the group’s warehouse computer system.
The operation fell into the red with a $2.5 million loss compared to the prior year’s $1.4 million profit. Revenue fell 14 per cent to $15.8 million.
The software change was “forced upon the company at short notice” by its IT provider which caused significant delays resulting in lost sales and increased costs in the first half.
But the computer problem was now fixed and Delecta was looking for new suppliers.
Delecta also owns part-owns an oil well in Oklahoma. But it didn’t make any meaningful impact on the result and was looking like a bit of a dud.
“There is continuing uncertainty now as to whether or not the well will ever produce viable quantities of oil and gas… The group no longer anticipates this being an ongoing operation of the business and is exploring opportunities to monetise this asset as it closes out its interest in the project.”