What has driven Temple & Webster’s (ASX:TPW) shares over 9% higher today?

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Highlights

  • Temple & Webster’s shares are soaring over 9% today (30 November 2022).
  • Earlier this morning, the company had released its AGM 2022 results.
  • The group generated revenue of AU$426.3 million in FY22.

Shares of Australian homewares retailer Temple & Webster Group Ltd (ASX:TPW) were trading 9.956% stronger on the ASX today (30 November) as of 11:03 AM AEDT. At the time of writing, one share of Temple & Webster was valued at AU$5.080.

Today’s significant rise in the share price of Temple & Webster appears to be following the company’s recently announced annual general meeting (AGM) results for FY22. Earlier this morning (30 November), the business published its AGM presentation alongside the chairman and CEO’s address on the ASX.

During its AGM, Temple & Webster indicated to have successfully met FY22 financial objectives of delivering a high-growth and profitable business.

Meanwhile, Temple & Webster’s shares have dropped in value by 0.79% in the last five trading sessions while gaining 14.09% in the previous six months. On the contrary, its share value has shed 10.36% in a month, 53.48% on a year-to-date (YTD) basis, and 52.86% over the course of year as of 11:03 AM AEDT, 30 November.

What happened during Temple & Webster’s AGM?

During AGM 2022, Temple & Webster group shared its operational and financial updates for FY22, alongside the FY23 outlook. Let’s look at the highlights below:

FY22:

  • The group generated revenue of AU$426.3 million for the year ended 30 June 2022. This was a 55% increase over a two-year compound annual growth rate (CAGR).
  • The company’s EBITDA for FY22 was AU$16.2 million, up 38% on a two-year CAGR.
  • EBITDA margin for Temple & Webster for FY22 was 3.8%, closer to the anticipated range of 2-4%.
  • At the end of FY22, the company had AU$101 million cash in hand while remaining debt free.
  • Temple & Webster’s total addressable market value increased to AU$30 billion in FY22. Out of AU$30 billion, the company’s furniture and homewares market is of AU$16 billion annually.
  • The number of active customers has increased by 21% year-on-year (YoY), with a 6% increase in revenue per active customer.
  • 55% of the total Temple & Webster’s customers became returning customers during FY22.
  • During FY22, T&W’s home improvement category grew by 61%.
  • The company’s trade and commercial category increased 39% YoY.

FY23 Outlook:

  • For the first quarter of FY23, T&W saw a 14% decline in revenue.
  • The company recovered slightly in the second half of FY23; revenue was only 3% down compared to Q2 FY22.
  • For FY23, the business has anticipated its EBITDA margin to stay between 3-5%.
  • In Q2 FY23, Temple & Webster moved its operations to a new 6,200 m2 headquarter in Inner West.


 


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