Bedding World Co Ltd (2938.TWO) Q4 2024 Earnings Report

Bedding World reported QQ4 2024 revenue of TWD 211.19 million, marking a sharp 51.99% year-over-year decline, with a gross margin of 69.06% and a solid operating margin of 14.09%. Despite the revenue compression, the company delivered meaningful cash flow generation, including EBITDA of TWD 36.88 million and net income of TWD 21.58 million (EPS of 1.07). Free cash flow (FCF) stood at TWD 58.03 million, and cash and cash equivalents were TWD 407.09 million at period end, supporting a resilient liquidity position even as total debt remained elevated at TWD 765.83 million (net debt approximately TWD 358.74 million). The balance sheet shows healthy asset levels (Total assets: TWD 1,657.60 million) and a current ratio near 1.54x, indicating adequate short-term liquidity to navigate ongoing demand challenges. The YoY profit deterioration reflects volume weakness rather than margin deterioration, as gross margins remained exceptionally strong, suggesting pricing power and favorable product mix. Management commentary (where available) was not included in the provided data; hence, quantitative results are the primary driver of the investment thesis at this time. Investors should monitor demand recovery signals, channel mix optimization, inventory management, and the trajectory of leverage as the company pursues its omnichannel and cost-control initiatives.