Executive Summary
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.
Key Performance Indicators
Key Insights
Revenue: 353,737,000 TWD; YoY: 67.50%, QoQ: 0.00%
Gross Profit: 241,422,000 TWD; Gross Margin: 0.6825 (~68.25%); YoY Gross Profit: 65.53%
Operating Income: 20,662,000 TWD; Operating Margin: 0.0584 (~5.84%); YoY: -30.55%
Net Income: 11,050,000 TWD; Net Margin: 0.0312 (~3.12%); YoY: -48.80%
EPS (basic/diluted): 0.54 TWD; YoY: -49.53%
EBITDA: 40,392,000 TWD; EBITDA Margin: 0.1142 (~11.42%)
R&D: 0.413 million TWD; SG&A: 220,347,000 TWD; COGS: 112,315,000 TWD; Operating Expenses: 220,760,000 ...
Financial Highlights
Revenue: 353,737,000 TWD; YoY: 67.50%, QoQ: 0.00%
Gross Profit: 241,422,000 TWD; Gross Margin: 0.6825 (~68.25%); YoY Gross Profit: 65.53%
Operating Income: 20,662,000 TWD; Operating Margin: 0.0584 (~5.84%); YoY: -30.55%
Net Income: 11,050,000 TWD; Net Margin: 0.0312 (~3.12%); YoY: -48.80%
EPS (basic/diluted): 0.54 TWD; YoY: -49.53%
EBITDA: 40,392,000 TWD; EBITDA Margin: 0.1142 (~11.42%)
R&D: 0.413 million TWD; SG&A: 220,347,000 TWD; COGS: 112,315,000 TWD; Operating Expenses: 220,760,000 TWD
Liquidity and Leverage: Current Ratio 1.526; Quick Ratio 1.248; Cash Ratio 1.179; Debt Ratio 0.474; Debt-to-Equity 1.137; Total Debt/Capitalization 0.532; Equity Multiplier 2.40
Efficiency: Receivables Turnover 27.24x; Inventory Turnover 1.163x; Inventory Days 77.41; DSO 3.30 days; CCC 67.41 days; Asset Turnover 0.222; Fixed Asset Turnover 0.405
Cash Flow: Operating Cash Flow per Share 1.342; Free Cash Flow per Share 1.192; Cash per Share 20.39; Operating Cash Flow Sales Ratio 0.0764; Free Cash Flow Operating Cash Flow Ratio 0.888
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
353.74M |
67.50% |
0.00% |
| Gross Profit |
241.42M |
65.53% |
0.00% |
| Operating Income |
20.66M |
-30.55% |
0.00% |
| Net Income |
11.05M |
-48.80% |
0.00% |
| EPS |
0.54 |
-49.53% |
0.00% |
Key Financial Ratios
operatingProfitMargin
5.84%
operatingCashFlowPerShare
$1.34
freeCashFlowPerShare
$1.19
Management Commentary
No earnings transcript data were provided for QQ2 2025. As a result, no management quotes or call-specific themes can be quoted or analyzed from the transcript. The analysis below relies on the released financials and public disclosures.
Forward Guidance
Management did not publish explicit forward guidance in the QQ2 2025 release. Near-term catalysts could include: (1) sustained top-line momentum in Taiwan's furnishings segment supported by the World of Beds brand and multi-channel distribution (retail, department store counters, dealers, and e-commerce); (2) potential improvement in operating leverage if SG&A continues to scale sub-linearly to revenue as volume grows; (3) continued working-capital optimization given low receivables days and moderate payables. Risks include: (a) consumer discretionary softness or macro headwinds in Taiwan, (b) rising cost pressures from logistics or commodity inputs, (c) competition from online-native mattress brands and big-box retailers, and (d) reliance on domestic demand. Investors should monitor quarterly SG&A trends, capex trajectory, inventory days, and any comments on strategic initiatives such as channel expansion or product mix optimization.