Temple & Webster Group Ltd – 2025 Interim Results Summary
https://www.templeandwebster.com.au/
Overall Tone
The financial results for Temple & Webster Group Ltd (TPW) for the half-year ended 31 December 2024 indicate a strong and positive performance. The company has achieved robust revenue growth, significantly improved profitability, and strong cash flow generation. Operational efficiency gains, strategic investments in AI, and an increase in exclusive product offerings have contributed to the better-than-expected financial performance.
Key Financial Metrics
| Metric | H1 FY25 (31 Dec 2024) | H1 FY24 (31 Dec 2023) | Change (%) |
|---|---|---|---|
| Revenue ($’000) | 313,710 | 253,827 | +24% |
| EBITDA ($’000) | 13,168 | 7,473 | +76% |
| EBITDA Margin (%) | 4.2% | 2.9% | +130bps |
| EBT ($’000) | 12,466 | 6,428 | +94% |
| NPAT ($’000) | 8,980 | 4,125 | +118% |
| Operating Cash Flow ($’000) | 35,064 | 21,906 | +60% |
| Net Tangible Assets per Share (cents) | 81.3 | 64.25 | +27% |
Performance Analysis
Revenue
- TPW achieved $313.7 million in revenue, representing a 24% increase YoY.
- Growth was driven by record active customers (~1.2 million) and an increase in revenue per active customer (+2%).
EBITDA
- EBITDA surged 76% to $13.2 million, reflecting margin expansion to 4.2% (vs. 2.9% YoY).
- This was aided by cost discipline, AI-driven efficiencies, and improved gross margins.
Operating Cash Flows
- Operating cash flow improved 60% to $35.1 million, showing strong cash conversion.
- Free cash flow was $32.5 million, highlighting TPW’s capital-light business model.
Earnings Before Tax (EBT)
- Pre-tax earnings almost doubled (+94%) to $12.5 million, demonstrating strong operational leverage.
Net Profit After Tax (NPAT)
- NPAT more than doubled to $9.0 million (+118%), significantly outpacing revenue growth.
Outlook Commentary
- TPW remains on track to achieve its mid-term goal of $1 billion+ in annual revenue within 3-5 years.
- Expansion in exclusive products (45% of revenue) and further AI-driven efficiencies expected to drive margin expansion.
- Market share increased by 23% to 2.9%, reinforcing TPW’s growing dominance in the online furniture and homewares segment.
Guidance Statements
- No formal guidance was provided for FY25.
- The company maintains a strong balance sheet with $139.3 million in cash, positioning it well for further growth initiatives.
Market Expectation vs. Actual Performance
- Given the strong revenue growth, significant profit expansion, and high cash flow conversion, TPW’s results likely exceeded market expectations.
- The company’s ability to scale efficiently while improving profitability is a positive surprise.
- If the market expected a more moderate earnings growth, these results may lead to a positive share price reaction.
Per Share Analysis
| Metric | H1 FY25 | H1 FY24 | Change (%) |
|---|---|---|---|
| Earnings per Share (EPS) | 7.57 cents | 3.45 cents | +119% |
| Diluted EPS | 7.20 cents | 3.30 cents | +118% |
| Net Tangible Assets per Share | 81.3 cents | 64.25 cents | +27% |
Conclusion
Temple & Webster delivered a standout H1 FY25 performance, with strong revenue growth, significant margin expansion, and robust cash generation. AI-driven efficiencies and increasing penetration of exclusive products provide a clear path to further earnings growth. The company’s market share gains and disciplined cost structure position it well for continued outperformance.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Quick Take: H1FY25 ASX:TPW