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In a challenging economic environment marked by high interest rates, inflation, and rising living costs, Joyce Group has achieved impressive results, including record revenue and robust profits, alongside a healthy dividend for our shareholders.

“For the financial year ending June 30, 2024, the Group reported steady revenue of $145.5 million. Our EBITDA reached $32.0 million, reflecting a 3% increase, which contributed to a Group NPAT of $17.5 million—up 7% from the previous year. The NPAT attributable to Joyce shareholders was $8.9 million, a notable increase from $7.9 million in 2023.

We remain debt-free, closing the financial year with a net cash balance of $39.1 million, down from $46.1 million in June 2023.

KWB continued its upward growth trajectory, achieving record-breaking EBIT of $25.2 million. Revenue reached $121.3 million, slightly lower than $123.4 million from a reduced network of 25 showrooms. The order book at the financial year’s end stood at $37.4 million, underscoring strong demand for our unique product offerings. Following the surge in demand during COVID, lead times have normalised, aligning orders with revenue and standard operating conditions.

We are excited about the continued expansion of our KWB network. In July 2024, a new Kitchen Connection store was opened in Alexandria, recommencing our footprint growth. A new flagship showroom at Bundall in Gold Coast, Queensland is scheduled for opening later in the 2024 calendar year, which will replace the existing Ashmore showroom. Plans are in place for further Sydney store openings, demonstrating our commitment to strategic expansion at tier one locations in key markets.

Despite a market characterised by softer foot traffic and tougher trading conditions, Bedshed demonstrated continued resilience. The franchising business generated $5.8 million in revenue, an increase from $5.6 million in FY23, with an improved EBIT margin of 54%, up from 47% last year, resulting in EBIT of $3.2 million compared to $2.7 million in FY23. Our company-owned stores also performed well, achieving $17.3 million in revenue, up from $15.7 million, while maintaining a strong gross margin of 47.5%.

During the financial year, Crave generated $1.1 million in revenue. Although it approached break-even on an EBITDA basis, performance was slightly below initial expectations due to contractions in the housing market in FY24 and FY23.

We continue to take a disciplined and prudent approach to the operation of Crave. At this stage, while current market conditions persist, we have no near-term plans for expansion either in Western Australia or to the East Coast and Crave continues to remain in pilot status.

KWB and Bedshed continue to showcase resilience and value for our shareholders. Our business model, characterised by low capital intensity and strong cash flow, positions us well for the future.

Looking ahead, the Group ended the year with a strong balance sheet, providing us with the flexibility to manage a volatile environment and consider strategic growth options where appropriate.

I extend my heartfelt gratitude to all our employees and business partners for their contributions. Together, I am confident we will continue to achieve sustainable and profitable growth for Joyce Corporation.”

Dan Madden, CEO Joyce Corporation (Joyce Group)