- Online furniture seller Temple & Webster (TPW) has experienced a 50 per cent revenue increase for the first half for the 2020 financial year
- The company had an increased revenue of $74.1 million and EBITDA of $2.3 million
- The first half for TPW ended cash flow positive and with no debt
- CEO Mark Coulter credits the growing revenues with an increase in customers with more than 330,000 shopping with the company in the last 12 months
- TPW’s share price is currently up a significant 23.7 per cent with shares trading for $3.50 apiece
Temple & Webster (TPW) has experienced a 50 per cent revenue increase for the first half of the 2020 financial year.
The company had a revenue of $74.1 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.3 million, also an increase from last year’s $1 million.
The first half for TPW was cash flow positive, ending it with $15.7 million in cash and no debt.
“Temple & Webster has had another amazing half, with revenue growing 50 per cent year on year,” CEO Mark Coulter commented.
“This was primarily driven by an increase in active customers, with more than 330,000 Australians shopping with Temple & Webster in the last 12 months,” he added.
The company also had a 45 per cent growth in active customers year on year.
TPW credits the significant increases to the record weekend driven by Black Friday and the shift of retail spend into November, and the shift to online driven by demographic changes.
“As market leader we remain in the best position to take advantage of the continued shift from offline to online driven by changing customer preferences and demographic shifts,” Mark stated.
These increases come during an unstable retail market with the likes of big name stores such as Jeanswest, Harris Scarfe and Bose closing stores.
The first half of the 2020 financial year also saw the beta launch of TPW’s mobile app.
According to the company, the content rich homepage, high resolution images and fast shopping experience helps customers with their shopping experience.
TPW is now planning to grow its dominance in the B2C (business-to-consumer) furniture and homeware market.
This will be achieved by adding depth and breadth across its core categories of DIY and private label offering, increasing brand awareness from 31 per cent to more than 80 per cent through digital and non-digital channels, and adding design help for customers.
For the second half TPW will be reinvesting short term operating leverage into growth initiatives such as technology and data, mobile app, trade and commercial, logistics, and private label – all while remaining profitable.
TPW’s share price is currently up a significant 23.7 per cent with shares trading for $3.50 apiece at 3:45 pm AEDT.