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Temple & Webster Reports “Another Great Year” for FY21
Temple & Webster’s share prices have soared as it revealed its FY21 results, which have smashed expectations and is ‘another great year’ for the retailer.
The online furniture retailer reported an 85 percent increase in revenue to $326.3 million and a 141 percent lift in EBITDA to $20.5 million. Its revenue for the final quarter of FY21 is up 26 percent pcp, compared to Q4 FY20, which saw massive growth of 130 percent YoY.
Revenue per active customer for Temple & Webster increased by 12 percent YoY, with active customers growing by 2 percent to 778,000. Its net profit also hit a record of $14 million, up 165 percent on the previous year, signalling strong growth for the retailer moving forward.
Its B2B division also recorded an increase in revenue of 110 percent, following a launch of new service models for the residential property development market and an expansion of installation and fit-out capabilities.
Currently, its private label accounts for 26 percent of total sales with a gross margin percentage increase, primarily driven by this growth. Its marketing ROI remains ‘healthy’ as 2.3x, despite significant investment into TV to build further brand awareness.
In July 2020, Temple & Webster performed a $40 million capital raise to bolster its growth fuelled by the pandemic. In addition to its record profits, the retailer is ending the fiscal year with a positive cash flow of $97.5 million, a 156 percent increase from FY20.
The start of FY22 has begun strongly for the retailer, with sales up 49 percent on the previous period last year. CEO Mark Coulter explained that while the business doesn’t ‘take for granted’ the ability to trade during lockdowns, Temple & Webster understands that the pandemic accelerated the online shift.
“We remain focused on giving our customers a great experience, and hopefully having them enjoy their homes, even just a little bit more, during these tough times,” he said. The priorities for Temple & Webster at the start of FY22 include strengthening its customer proposition, improving customer experience and curating ‘inspirational’ content.
Moreover, Temple & Webster will further invest in its tech to expand and integrate AI interior design and augmented reality for its customers.
After the results were shared, its share prices skyrocketed 10.56 percent to $14.34, despite tapering slightly around midday. It then held strong, closing out the day at $14.34 a share, which has been a 58 percent gain for shareholders over the last 12 months.