Adairs (ADH) H1 2025 earnings summary

Executive summary

• Group delivered strong 1H FY25 results with comparable sales growth of 6.6% to $310.5 million, led by Adairs (+9.3%) and Mocka (+12.4%), offsetting a decline at Focus on Furniture (-4.1%).

• Underlying EBIT rose 10% to $33.0 million, with EBIT margin up 30bps to 10.6% and statutory EPS up 8.5% to 11.1 cents.

• Interim dividend of 6.5 cents per share, up 30% from prior year, was declared post-period end.

• Leadership renewal included a new Group CEO & MD and key operational roles, supporting strategic execution and operational improvements in warehousing and inventory.

• Continued investment in technology, store refurbishments, and omnichannel capabilities supported growth.

Financial highlights

• Total sales reached $310.5 million, up 6.6% year-over-year on a comparable basis.

• Gross margin improved to $186.0 million (+5.8%), with gross profit up 7.1% and margin expansion of 20bps.

• Underlying EBIT rose 10% to $33.0 million; statutory NPAT was $19.4 million, up 9.7%.

• Earnings per share at 11.1 cents (+8.5%); interim dividend of 6.5 cents per share declared.

• Online sales mix increased to 29.2% (+120bps).

Outlook and guidance

• Group sales up 9.2% in the first seven weeks of 2H FY25; Adairs +15.2%, Mocka +2.1%, Focus on Furniture -5.4%.

• Adairs expected to maintain positive momentum; Mocka Australia to sustain growth, NZ remains challenging; Focus on Furniture trading remains difficult.

• FY25 capital expenditure guidance increased to $16–18 million due to project timing and office relocations.

• 95% of 2H FY25 USD purchases hedged at $0.67.

• Management expects to meet obligations over the next 12 months and beyond through operating cash flows and available finance facilities.