Furniture retailer’s profits soar

TEMPLE & Webster’s net profit growth has flatlined as the online furniture and home furnishings retailer bolstered its operations to take advantage of the rising popularity of online shopping, and directed more capital into growing its business.

Net profit rose 0.3 per cent to nearly $14m for the year ended June 30 as the group accelerated its technology investment, compared with growth of almost 270 per cent last year.

However, Temple & Webster believes its pre-tax performance is a better indication of the growth and potential in the business with the company on Monday reporting that underlying earnings more than doubled to $20.5m from $8.5m. It was fuelled by an 85 per cent jump in revenue to a record $326m as consumers flocked to online shopping. A large profit leap in 2020 of nearly 270 per cent was driven mostly by more than $8m in tax losses it was able to use. In 2019, the group swung from a loss to a net profit of $3.764m.

Chief executive Mark Coulter said 2021 was “another great year” for the company.

Temple & Webster ended the 2021 financial year with cash reserves of $97.5m.