The Temple & Webster Group Ltd (ASX: TPW) share price is rocketing today amid the company's FY22 results.
The company's share price is currently trading at $5.31, a 20.68% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.9% at the time of writing.
Let's take a look at what Temple & Webster reported to the market.
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Temple & Webster reports
Highlights of Temple & Webster's results presentation include:
- Revenue lifted 31% on last year to $426.3 million
- EBITDA margin of 3.8%, towards top end of guidance
- EBITDA of $16.2 million
- Net profit before tax of $13.2 million, down 31% on FY21
- Cash balance of $101.1 million
The online furniture and homeware company's revenue growth was driven by higher customer numbers and more revenue per active customer.
The EBITDA margin of 3.8% was towards the top end of the 2-4% guidance provided for FY22.
The FY22 EBITDA, although down on FY21, equated to a compound annual growth rate (CAGR) of 38% on a two-year basis.
Active customers jumped 21% to 940,000, while revenue per active customer lifted 6%.
The company's trade and commercial division grew 39% compared to the previous financial year, while the home improvement category experienced 61% growth.
Management commentary
Commenting on the results, the chief executive officer Mark Coulter said:
Despite some significant domestic and global challenges, Temple & Webster has once again bucked the trend to deliver a great set of numbers.
Due to careful margin and cost base management, we were able to drive an EBITDA margin result at the top end of our 2-4% guidance, even in these challenging retail conditions, and after our investment into The Build.
We believe our flexible business model, our proposition around a great quality range at affordable prices, and our commitment to customer satisfaction and happiness will resonate even more strongly with customers during these tougher times
What's ahead
Temple & Webster is forecasting an EBITDA margin of between 3-5% in FY23. This is an upgrade on the FY22 guidance.
The company has fast-tracked some margin optimisation and cost management programs due to FY23 cyclical headwinds.
Temple & Webster is predicting a return to double-digit growth in FY23.
Temple and Webster's new headquarters in the inner-west of Sydney will be ready in the first half of FY23.
The company stressed "we remain committed to our profitable growth strategy", adding:
We're confident we have the people, platforms, brand and business model to achieve our goal of becoming Australia's largest retailer of furniture and homewares.
Temple & Webster share price snapshot
The Temple & Webster share price has fallen 56% in the past year, while it has lost nearly 50% year to date.
However, in the past month, Temple & Webster shares have jumped 57%.
For perspective, the ASX 200 index has lost nearly 6% in the past year.
