Adairs (ADH) H1 2025 earnings summary

Executive summary

• Group delivered H1 FY2025 sales of AUD 310.5 million, up 6.6% year-over-year, with strong contributions from Adairs (+9.3%) and Mocka (+12.4%), offsetting declines in Focus on Furniture.

• Underlying EBIT rose 10% to AUD 33 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 and operational improvements, especially in warehousing and inventory, supported performance.

• Net debt reduced by AUD 6.3 million to AUD 57.8 million since June 2024.

Financial highlights

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

• Underlying EBIT rose 10% to AUD 33 million; reported NPAT was AUD 19.4 million, up 9.7%.

• Earnings per share were AUD 0.111; interim dividend declared at AUD 0.065 per share.

• Gross margin improved by 20bps to 59.9%; Adairs gross margin up 80bps, Focus on Furniture down 250bps.

• EBITDA grew 11% to AUD 39.1 million; online sales mix increased to 29.2%.

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 Victorian exposure and lower order book.

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

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