SYDNEY, AAP – Online furniture trader Temple & Webster has soared on the Australian stock market after first-half sales rocketed by 46 per cent.
Investors sent shares higher by about 11 per cent after the earnings report showed how lucrative the east coast lockdowns of late 2021 were for businesses in the home improvement area.
It reported record revenue of $235.4 million for the six months to December 31.
RBC analysts said the sales were helped by TV advertising.
Company CEO Mark Coulter said customers were shopping more often at Temple & Webster and spending more money.
Top Australian Brokers
- eToro - Social and copy trading platform - Read our review
- IC Markets - Experienced and highly regulated - Read our review
- Pepperstone - Trading education - Read our review
The business has more than tripled in two years.
Earnings before interest, tax, depreciation and amortisation improved by five per cent, more than the targeted range of two to four per cent.
Investors overlooked net profit after tax falling by 40 per cent to $7.2 million. This was blamed on the recognition of deferred tax assets.
Trade has also been strong at the start of the second half of the financial year.
Sales were up 26 per cent from January 1 to February 6 compared to the same period last year.
RBC analysts Wei-Weng Chen and Chami Ratnapala said continued renovation trends should help the business.
However, consumers could also redirect some of their spending to travel since the lockdowns ceased.
Temple & Webster also has a trade and commercial division that targets corporate and hospitality customers, and offers design services. This grew by 49 per cent in the first half.
The company joined the exchange in 2015. Like many technology providers in their formative years, Temple & Webster is yet to pay dividends to shareholders.
Shares were higher by 11 per cent to $8.93 at 1143 AEDT.
