Bedding World Co Ltd (2938.TWO) Q2 2025 Earnings Report

Bedding World reported QQ2 2025 revenue of 353.7 million TWD, representing a 67.50% year-over-year increase with flat sequential growth. The quarter delivered a robust gross margin of approximately 68.25%, underpinned by favorable product mix and pricing, yielding a gross profit of 241.4 million TWD. Operating income stood at 20.66 million TWD (5.84% operating margin), while net income was 11.05 million TWD (3.12% net margin) and basic EPS of 0.54 TWD. Despite topline strength, year-over-year profitability declined meaningfully as operating expenses rose (Selling and Marketing 175.15m, G&A 45.20m; total operating expenses 220.76m) and higher tax outlays reduced net income growth, contributing to a -30.6% YoY swing in operating income and a -48.8% YoY decline in net income. The company maintained solid short-term liquidity with a current ratio of 1.53 and a quick ratio of 1.25, but balance-sheet risk remains elevated given a debt ratio of 0.47 and a debt-to-equity ratio of 1.14. Cash per share is strong at 20.39 TWD, and operating cash flow per share was 1.34 TWD, suggesting adequate cash generation to support working capital needs. The contrast between a high gross margin and a heavier expense base implies potential for operating leverage if demand remains resilient and SG&A efficiency improves. Absent a public forward guidance, the near-term trajectory will hinge on seasonal demand, channel mix, and cost control, with the stock trading on a multiple framework (P/E 16.0x, P/B 1.07x, EV/EBITDA not provided) that remains reasonable given the margin structure and growth profile relative to peers in the consumer furnishings space.