Adairs (ADH) H1 2025 earnings summary

Executive summary

• Group delivered strong H1 FY2025 results with sales of $310.5 million, up 6.6% year-over-year, led by Adairs (+9.3%) and Mocka (+12.4%), offsetting a 4.1% decline at Focus on Furniture.

• Underlying EBIT rose 10% to $33.0 million, with EBIT margin up 30bps to 10.6%.

• Statutory EPS increased 8.5% to 11.1 cents; interim dividend up 30% to 6.5 cents per share.

• Leadership renewal included a new CEO and key operational appointments, supporting operational improvements in warehousing and inventory.

Financial highlights

• Group sales reached $310.5 million, up 6.6% year-over-year (26-week comparison).

• Gross margin improved to $186.0 million (+5.8%), with margin expansion of 20bps; gross profit margin 47.9%.

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

• Earnings per share were 11.1 cents; interim dividend declared at 6.5 cents per share.

• Net debt reduced to $57.8 million, down $6.3 million since June 2024.

Outlook and guidance

• Group sales for the first seven weeks of H2 FY2025 up 9.2% year-over-year; Adairs up 15.2%, Mocka up 2.1%, Focus on Furniture down 5.4%.

• Adairs expected to maintain positive momentum, supported by inventory and product range improvements.

• Focus on Furniture trading to remain challenging due to geographic exposure and lower order book.

• Mocka Australia to sustain growth; Mocka New Zealand expected to remain challenged.

• FY2025 capex forecast raised to $16–18 million for additional store refurbishments and office relocations.