Temple & Webster Group Limited (ASX:TPW) Announces Strong H1 FY25 Financial Results
Financial Performance
Temple & Webster Group reported H1 FY25 revenue of $314 million, marking a 24% increase compared to H1 FY24. EBITDA surged to $13.2 million, a 76% rise year-over-year, with the EBITDA margin expanding to 4.2%. The company generated $33 million in free cash flow, up 61% from the previous comparable period. The cash balance as of 31 December 2024 stood at $139 million, reflecting a $32 million increase from FY24.
Market Share and Strategic Goals
The company’s share of the Australian furniture and homewares market reached a record 2.9%, a 23% increase year-over-year. Temple & Webster is on track to achieve its mid-term goal of exceeding $1 billion in annual revenue, demonstrating effective execution of its strategic objectives.
Marketing and Brand Investment
Temple & Webster continued to optimise its marketing strategy with a focus on brand investment, allocating approximately $5 million to brand marketing in H1 FY25. Branded searches increased by 24% compared to the previous comparable period. Revenue from exclusive products accounted for around 45% of total revenue, up from 37% in H1 FY24.
Outlook
The company expects continued revenue growth, supported by sustained market share gains into H2 FY25. EBITDA margin guidance for FY25 remains at 1-3%, with the company maintaining its trajectory toward the $1 billion+ annual revenue target. Temple & Webster’s share buy-back program will continue until June 2025 to enhance shareholder returns.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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