Investing.com - In a surprising turn of events, home furnishings digital retailer Temple & Webster Group witnessed a dip in their annual sales by 7.2%, amounting to approximately $609.5 million AUD ($395.5 million USD). This resulted in an over 30% drop in the net earnings, settling at around $8.3 million USD, even though they managed to hit their projected profit margins.
The company's pre-tax profits for the fiscal year also took a hit, showing a decrease of 9.7%, equating to about $12 million USD - this was influenced by tax adjustments made during the financial year of 2022 when consumers invested more into enhancing bedrooms and work-from-home spaces.
However, as Australia’s premier online-only furniture and homewares seller, Temple & Webster did observe some recovery in trade during the latter half of 2023 which carried on through Q4 and onto the new fiscal year with revenue growth marking an increase of 16% up until August 13th.
The Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) over this period amounted to roughly $14.8 million USD – that’s an increase of about 3.7%. The figures were within predicted ranges falling between three percent and five percent; surprisingly though EBITDA was significantly higher —80%—in H2 compared with earlier periods due largely to improved delivered margins coupled with superior cost administration strategies.
According to Mark Coulter—the CEO at Temple & Webster—the company has kicked off well into its new financial journey despite no dividends being distributed so far.