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- Homewares retailer Temple & Webster (TPW) achieves a record revenue result of $426.3 million for FY22, which marks a 31 per cent increase on the prior year
- The company says that despite domestic and global challenges, it attracted more customers with active customers totalling 940,000
- The furniture goods company reported an EBITDA margin of 3.8 per cent which was at the high end of its target
- It also announced a 14.2 per cent drop in profits but claims this reflects its reinvestment strategy, including that of its recently launched home improvement site, The Build
- On the back of today’s report, TPW shares end the day trading 29.8 per cent higher at $5.71
Homewares retailer Temple & Webster (TPW) has seen almost a 30 per cent increase in its share price after releasing its full year report.
Despite domestic and global challenges, the company achieved record revenue of $426.3 million for FY22 which is a 30.6 per cent increase on the prior year and equates to a 55 per cent compound annual growth rate (CAGR).
The online furniture retailer said the revenue growth was driven by an increase in active customers which now totals about 940,000.
Temple & Webster also reported an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 3.8 per cent which was at the high end of its two to four per cent target range.
The consumer discretionary stock reported a 14.2 per cent year-on-year (YoY) decrease in net profits after tax (NPAT) of just under $12 million, however, this represents a two-year CAGR of 29 per cent on FY20.
According to TPW, the NPAT reduction reflects the company’s reinvestment strategy for FY22 which included investing in people, technology, logistics and product.
“Despite some significant domestic and global challenges, Temple & Webster has once again bucked the trend to deliver a great set of numbers,” CEO Mark Coulter said.
“Due to careful margin and cost base management, we were able to drive an EBITDA margin result at the top end of our two to four per cent guidance, even in these challenging retail conditions, and after our investment into The Build.”
Temple & Webster launched The Build earlier this year which is a home improvement site and aligns with its strategy of accelerating its investment into markets that it believes will deliver significant growth.
The Australian home improvement market is reportedly worth $26 billion after growing 61 per cent YoY. However, the company believes this market “lags” furniture and homewares in the online space which presents it with an opportunity to capitalise on.
At the end of the financial year, Temple & Webster had $101 million in cash and no debt.
For FY23, the company has upgraded its EBITDA margin guidance from two to four per cent to the three to five per cent range. This follows its investment into The Build which shows the increasing operating leverage of its core business.
TPW shares ended the day trading 29.8 per cent higher at $5.71.
