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2025 has been another year of solid performance for Joyce Group as the Company ramped up its investment in organic growth and managed challenging trading conditions driven by cost-of-living pressures that continue to impact consumer demand.

Joyce Group recorded revenue of $148.2 million, which was up 2% from the prior year. Reported Group EBIT of $22.7 million compared to prior year of $24.5 million with an EBIT Margin of 15.3% compared to 16.8%.

The Reported NPAT attributable to Joyce Shareholders was $7.3 million, down from the $8.9 million achieved in FY24. Normalised NPAT attributable to Joyce shareholders was $8.2 million compared to $8.4 million. Normalised NPAT in FY25 included adjustments for pre-tax expenditure associated with one-off corporate activity and the closure of the Crave pilot.

Joyce Group ended FY25 with a strong balance sheet and a net cash position of $39.2 million (compared to $39.1 million at 30 June 2024), ensuring that the Company is well-positioned to navigate future challenges and continue our pursuit of organic growth where significant opportunity remains.

KWB and Bedshed continued to perform well, delivering strong operational and financial performance for the Group. There was significant showroom growth in the KWB network with five new showrooms successfully opened during FY25 (including one relocation), increasing the network footprint by 16%.  Bedshed delivered revenue growth and improved gross margins, which was pleasing in what remained a relatively difficult retail environment.

KWB achieved strong revenue of $120.4 million as new showrooms came online and generated EBIT of $24.3 million at a margin of 20.2%, driven by its highly recognised brand, unique service offering, resilient business model and continued rigorous cost control.

FY25 EBIT was naturally constrained as a result of the ramp-up of the five new showrooms added during FY25 as well as depreciation and amortisation increasing commensurate with the addition of new showrooms.

A structured leadership transition at KWB began late in the year as John Bourke, KWB Managing Director and Co-Founder commenced a phased handover to Cameron Crowell, who joined as Deputy CEO in June. Cameron brings deep retail experience and operational expertise, and I look forward to working with him as he leads KWB into its next phase of growth. I also want to thank John for his outstanding leadership of KWB over many years and his guidance and support during the transition period.

Bedshed continued to perform well, delivering revenue growth and improved gross margins, in what remained a challenging retail environment characterised by variability in sales volumes across the year and a consumer focused on the cost of their purchases .

Bedshed’s combined operations achieved a robust underlying EBIT of $4.3 million compared to $4.4 million in FY24.

Looking ahead, we remain confident in our strategy and our ability to deliver sustainable growth.

Both KWB and Bedshed have significant untapped market potential and a long growth runway ahead of them. KWB has a long-term network target of 50+ showrooms in A-grade locations (homemaker centers).

Considerable growth potential also remains at Bedshed with a long-term network target of 65+ stores and a number of strategic initiatives in place to attract high quality franchisees into the business, and to reduce the costs of entry for franchisees.

I want to express my sincere gratitude to employees within the Joyce Group, Franchise partners, and Executive teams for their dedication and hard work. Once again, your efforts and skills have been instrumental in our success.

To our shareholders, thank you for your continued support and trust in Joyce Group. FY25 has laid the groundwork for continued progress, and we remain focused on executing our vision with precision and care. Together with our talented teams and trusted partners, Joyce Group is well-positioned to deliver sustainable growth in the years ahead.

Dan Madden, CEO Joyce Corporation (Joyce Group)