Adairs Limited (ASX:ADH) Announces Strong 1H FY25 Results
Financial Performance
Adairs Limited reported group sales of $310.5 million for the first half of FY25, marking a 6.6% increase on a comparable basis. The underlying EBITDA rose by 11.0% to $39.1 million, while statutory NPAT increased by 9.7% to $19.4 million. The company declared an interim dividend of 6.5 cents per share, a 30% increase from the previous FY24 interim dividend.
Operational Highlights
The first half saw significant leadership changes, including the appointment of Elle Roseby as Group CEO and Managing Director. Adairs implemented a new warehouse management system in July 2024, enhancing inventory availability by 20%.
Business Performance
The Adairs brand achieved record first-half sales of $220.5 million, up 9.3%, driven by improved product ranges and higher stock availability. Mocka reported sales of $28.1 million, a 12.4% increase, supported by new product ranges and a successful re-platforming of its New Zealand website. However, Focus on Furniture experienced a 4.1% decline in sales, attributed to challenging economic conditions (especially impacting their store portfolio which is skewed to Victoria (14 of 25 stores)).
Executive Comments
Managing Director and Group CEO, Elle Roseby, stated, “The Group has delivered a strong financial performance in the first half of FY25, driven by robust sales growth from both Adairs and Mocka, and disciplined cost management across all three businesses. We have solid foundations for each of our businesses that provide a platform to move from ‘good to great’.”
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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Adairs. 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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