Record first-half sales for Temple & Webster
Temple & Webster has posted record half-year sales as the furniture e-retailer grew market share in a declining market.
The company announced on Tuesday it made $254 million in revenue for the six months to December 31, up 23 per cent from a year ago.
The company grew earnings before interest, taxes, depreciation amortisation (EBITDA) by 2.8 per cent to $7.5 million, and made a net profit after tax of $4.1 million, up five per cent from a year ago.
“This was in the face of some of the toughest headwinds to our category we have ever seen due to the current economic condition,” said chief executive Mark Coulter.
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Overall Australian furniture sales are down six per cent, according to industry estimates, which Mr Coulter blamed on rising interest rates and cost-of-living pressures.
The company had a record 975,000 customers who had made purchases in the past 12 months at year-end, up from 841,000 a year ago.
Trading has stayed strong in the new year, with sales from January 1 to February 11 up 35 per cent compared to the same period in 2023.
Temple & Webster says 78 per cent of Australian furniture and homeware shoppers have never visited its website, giving it plenty of room to grow.
It is targeting $1 billion in sales in the next three to five years - over $800 million in its core business of furniture and homeware and more than $200 million in home improvement and business-to-business sales.
Temple & Webster finished the year with $114 million in cash and no debt, giving it a strong balance sheet to consider mergers and acquisitions.
Mr Coulter told AAP that a bolt-on acquisition would be considered but organic growth remained the company’s focus.
Mid-afternoon on Tuesday, TPW shares were up 11.1 per cent to a more than two-year high of $11.13.
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