Temple & Webster Reports 6.5% Increase in First-Half Profit

Australian furniture retailer Temple & Webster has announced a 6.5% rise in first-half profit, driven by strong sales growth. The company reported a net profit of A$4.1 million for the six months ending in December, compared to A$3.9 million the previous year. Revenue also surged by 23% to A$253.8 million.

Temple & Webster is making significant progress towards its goal of achieving A$1 billion in annual sales within the next three to five years. Despite facing challenging market conditions, including inflation and higher interest rates, the company recorded its highest-ever half-year revenue.

According to Chief Executive Mark Coulter, the online market in Australia still has untapped potential, and Temple & Webster is well-positioned to take advantage of the ongoing shift to online shopping. The company saw a 35% increase in sales revenue at the start of the current fiscal year and currently boasts over 1 million active customers.

Temple & Webster's earnings margin for the first half was 2.9%, and it expects this figure to be between 1% and 3% for the full year. The company is reinvesting its margin gains into marketing campaigns to drive future revenue growth.

During the first half, Temple & Webster successfully reduced fixed costs as a percentage of sales to 11%, down from 12% in the previous fiscal year.