Australia-based Temple & Webster Group Ltd. (AU:TPW) reported strong revenue growth of 26% to AU$498 million for FY24 (ended June 30, 2024), leading to an impressive surge of more than 23% in its shares. The top-line growth was fuelled by a 31% increase in the company’s active customers to a record 1.1 million.
Temple & Webster is Australia’s top online retailer for furniture and homewares. Year-to-date, TPW stock has risen by 35%.
Highlights from Temple & Webster’s FY24 Results
In FY24, Temple & Webster’s EBITDA (earnings before interest, tax, depreciation, and amortization), excluding one-time items, declined by 11% to AU$13.1 million but was at the higher end of the company’s guidance.
Interestingly, the company introduced over 850 new private-label products in FY24. Also, its repeat customers now account for 57% of the total orders.
Additionally, Temple & Webster generated over $25 million in free cash flow, driven by its asset-light and negative working capital model. The company reported no debt and had a cash balance of AU$116 million as of June 30, 2024.
Temple & Webster Starts FY25 on a Strong Note
Along with its results, Temple & Webster also released a trading update for FY25. The company started the year on a strong note with a 26% year-on-year revenue growth over the period July 1 to August 11.
Moreover, the company is in the middle of its share buyback program of AU$30 million. It has repurchased shares worth AU$1.8 million since June 17, 2024.
The company further stated that it remains on track to achieve more than AU$1 billion in sales in the mid-term.
Is Temple & Webster a Good Stock?
According to TipRanks’ analyst rating consensus, TPW stock has received a Moderate Buy rating. The company has a total of six ratings, including four Buy and two Hold recommendations. The Temple & Webster share price target is AU$11.64, which is 2.12% below the current share price.
