Temple & Webster has released its cash flow statement for Q4, posting a year-on-year revenue growth of 24 percent.
In the year ended June 30, Temple & Webster closed with a cash balance of $9.9 million, reporting net cash flows of +$0.6 million from Q4 in FY18.
According to Mark Coulter, the homewares and furniture e-tailer’s CEO, these results line-up with the company’s promise to shareholders of reaching profitability by 2018.
“Two years ago we promised our shareholders we would reach profitability during calendar year 2018, without having to raise additional capital, and I am proud to say that we achieved this goal,” he said.
Coulter believes this growth, and profitability from the second half of FY18 is a result of ongoing efforts in terms of attracting new customers and balancing costs with margins.
“Our strong growth in both active customers and revenue, combined with the hard work that we have already completed on our cost base and margins, has led to the first profitable half in Temple & Webster’s short history.”
As a result of this growth, the online retailer had a profitable second half, with an EBITDA of +$0.3 million, a year-on-year revenue growth of 24 percent and increase in active customers on the online store of 25 percent, equating to 198,000 shoppers.
The company also says it has reduced its cost per acquisition of new customers, falling from $58 in the first half of FY18 to only $54 in the second half, while 44 percent of orders for the half came from repeat customers.
Monday’s results statement is consistent with the company’s Q3 earnings after it reported a 23 percent increase in gross revenue and a 20 percent jump in sales year-on-year back in April.
“Our strategy of being a category specialist, with a clear customer offering built around the largest range of furniture and homewares in the country, combined with the most inspirational content and best customer service is working. With only five percent of furniture and homewares being currently purchased online, we are well-placed for strong growth for years to come,” he said.
Final FY18 results for Temple & Webster will be reported as part of the Group’s Annual Report and Results Presentation in August.
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