Bedshed supplies quality bedding and home furnishings across Australia and is one of the industry’s most recognisable brands. This year Bedshed continued to grow its franchise network along with its e-commerce offering that supports our Company-owned and franchise stores.
Despite the challenging environment, our franchisees, company-owned stores, central office marketing and product management teams delivered a robust underlying EBIT of $5.4M.
The combined Bedshed Franchising and Company Store operations delivered revenue of $21.3 million, comparable to the previous year’s $21.1M. EBIT increased by 3.5% to $5.0M and the EBIT margin rose from 22.6% to 23.4%.
Bedshed further expanded its footprint in FY23 with two new store openings in Castle Hill (Sydney, NSW) and Ballarat (Regional VIC), bringing our franchise network to 37 nationwide. Bedshed is set to continue its network growth strategy, with two more stores scheduled to open, Jindalee in metro Queensland in the first quarter of 2024, and Toowoomba in regional Queensland, later in the financial year.
In the last quarter of FY23, Bedshed soft-launched an online mattress brand called Drift. This brand targets the Gen Z and Millennial market segments, offering a simplified e-commerce journey. Importantly, Drift serves as an introduction to the Bedshed brand for this customer segment, contributing to building brand presence over the longer term and enhancing the lifetime value of the Bedshed customer.
Whilst the current macroeconomic conditions have created challenges, the size and strength of the Bedshed franchise network, coupled with relatively low operating costs and high operating margins position us well to weather these tough trading conditions.
Our people, including our franchisees, continue to be the heart and soul of Bedshed. They have worked tirelessly in sometimes difficult conditions in 2023 and we thank them for their hard work and wish them well for 2024.
Gavin Culmsee, Bedshed General Manager
FRANdata Australia is the franchise industry’s number one source for objective information and analysis of Australian franchise systems. The outcome is a performance metric based on a star rating with 5 stars being the highest of ratings. This franchise star rating scale provides an independent and object tool to assist perspective franchisees, advisors and financial institutions make an independent evaluation of the franchise system.
In 2022 after months of interviews and information swapping, Bedshed achieved a 5 star rating making Bedshed the only franchise system in the bedding and home furnishing industry to achieve such a high rating.
