Joyce Group Posts $148M Revenue, 20% KWB Network Growth in FY25
Joyce Group reported solid FY25 results with strong revenue growth and a 20% expansion in KWB showrooms, alongside a key leadership transition at KWB.
- FY25 revenue of $148.2 million and net profit of $8.2 million
- KWB showroom network expanded by 20% with five new locations
- Full-year fully franked dividend of 27.5 cents per share including a special dividend
- Leadership succession underway with Cameron Crowell appointed Deputy CEO at KWB
- Bedshed achieved record sales of $161 million despite challenging retail conditions
Solid Financial Performance Amid Economic Headwinds
Joyce Group has delivered a robust operating performance for the fiscal year 2025, navigating a cautious consumer environment marked by rising interest rates and cost-of-living pressures. Despite reduced showroom traffic, the company leveraged its strong brands and capital-light model to generate $148.2 million in revenue and a normalized net profit after tax of $8.2 million. The group’s net cash position of $39.2 million provides a comfortable buffer to manage future uncertainties and invest in growth opportunities.
KWB Group Drives Growth with Network Expansion
The KWB Group, Joyce’s market-leading kitchen and wardrobe renovation business, was a standout contributor. It installed over 4,100 kitchens and 2,000 wardrobes during the year, earning top industry awards for the fourth consecutive year. Notably, KWB expanded its showroom footprint by 20%, opening five new locations across Sydney, Brisbane, Gold Coast, and Adelaide, bringing the total to 30 showrooms nationwide. This expansion fueled record order volumes of $128.7 million and sustained a strong EBIT margin of 20%, despite upfront costs associated with new showroom openings.
Leadership Transition Signals New Chapter
In a significant leadership development, KWB’s co-founder and Managing Director John Bourke has begun a phased transition out of his executive role, with seasoned retail executive Cameron Crowell appointed Deputy CEO. Crowell’s extensive experience in strategic growth and operational excellence positions him well to take the helm by the end of FY26. The board expressed confidence in this succession plan, highlighting Bourke’s transformative impact on KWB’s growth from 11 to 30 showrooms since 2012.
Bedshed Navigates Retail Challenges with Record Sales
Bedshed, Joyce’s specialty bedding and bedroom furniture retailer, demonstrated resilience in a tough retail environment. Despite consumers’ heightened value-consciousness, Bedshed achieved record business written sales exceeding $161 million, supported by successful promotional campaigns and strategic franchise expansions. The network added new franchise stores in Caringbah and Ellenbrook, with further growth planned. Bedshed’s EBIT remained steady at $4.3 million, with management focused on improving profitability and margin expansion in FY26.
Outlook Focused on Organic Growth and Strategic Discipline
Looking ahead, Joyce Group remains committed to organic growth, leveraging large untapped markets for both KWB and Bedshed. The company plans disciplined expansion of its showroom and franchise networks while maintaining prudent capital management. The board will consider non-organic growth options only if they align strategically and add clear value. Early FY26 trading data indicates continued strong demand, with KWB and Bedshed maintaining healthy order books and sales momentum.
Bottom Line?
Joyce Group’s strategic showroom expansion and leadership renewal set the stage for sustained growth, but execution in FY26 will be critical.
Questions in the middle?
- How will Cameron Crowell’s leadership impact KWB’s growth trajectory and culture?
- What specific strategies will Bedshed employ to improve profitability amid competitive pressures?
- Could Joyce Group pursue acquisitions to accelerate growth, or will it remain focused on organic expansion?
