Furniture retailer Temple & Webster's (ASX: TPW) online model has paid off with the company recording its first full year profit.
During FY19 the company generated $101.6 million in revenue, up 41 per cent on the prior year.
Most notably for investors who have stuck with the e-commerce furniture and homewares vendor since its December 2015 IPO, the company notched an EBITDA of $1.1 million versus a $0.7 million loss in FY18.
"I am pleased to announce our first full year profit off the back of record revenue growth," says Temple & Webster CEO Mark Coulter.
"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 the best customer service is working. Despite broader retail challenges we continue to buck the trend with record active customer growth, and our first $1 million day in June."
The group ended the year without debt and cash of $13.5 million.
It also experienced record active customer growth, with customers up 37 per cent year on year.
There are now 25 per cent more products on sale, with a total of 150,000+ products available at Temple & Webster.
In FY20 things have started well with July trading off on a strong start, with revenue growth in line with FY19.
Looking into the future the group says that it will be exploring growth opportunities like launching a mobile app and develop more private label products.
"Now is the time to reinvest, to take advantage of a once in a generation structural shift towards online," says Coulter.
"This reinvestment strategy supports Temple & Webster's stated goal of becoming the first place Australians turn to when shopping for their homes and work spaces."
Shares in Temple & Webster are up 6.99 per cent to $1.76 per share at 10.51am AEST.
Business News Australia
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