Temple & Webster revenue nearly doubles during COVID-19 restrictions

Temple & Webster revenue nearly doubles during COVID-19 restrictions

As Australia turned to online shopping for non-essential purchases during the worst of the COVID-19 restrictions, Temple & Webster (ASX: TPW) managed to capitalise on the moment.

In a business update released this morning, the e-commerce furniture group revealed its second half revenue grew by 90 per cent, driven by strong growth in April and May.

The company says it has seen an influx of new customers who were encouraged to shop online during COVID-19 restrictions, resulting in active customer numbers rising by 68 per cent to 440,257.

This meant operating leverage has also increased, leading to a 688 per cent in EBITDA to $7.1 million.

Year-on-year revenue also rose by 68 per cent to $151.7 million. 

With cash at 31 May of $29.2 million, Temple & Webster says its financial position remains strong with the company remaining profitable and cash flow positive.

Temple & Webster CEO and co-founder Mark Coulter (pictured) says the company is well placed in the furniture and homewares market to take advantage of the structural shift from offline to online.

"As a team, we remain proud that we have played a small part in being able to help Australians set up their homes during this crisis," says Coulter.

"We remain bullish about the longer-term shift from offline to online driven by changing customer preferences and demographics.

"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 continues to resonate with our customers."

The company expects to report its FY20 results at the end of July.

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