Cormar grows sales against rising costs
June 27, 2023
Cormar reported growth in sales during 2022 but reduced its margins to remain competitive against a background of rising costs.
In their latest accounts filed for the year ended 30 September 2022, Cormar saw sales grow by 2.2% to £148m but profits were £5.6m, down from £11.7m in the previous year.
During 2022, the directors reported: "The business made a strong start reflecting continuing demand for our carpets and soft furnishings in the post-pandemic period."
But it cites the war in Ukraine and associated increases in energy and raw material costs compounded by inflationary pressures as unexpected chsllenges that impacted profitability across the sector.
"We made a conscious decision to absorb some of the increased cost to ensure we remained competitively priced and to protect our sales volumes and turnover," says the directors' report.
"As the inflationary spiral starts to unwind and we continue to focus on procurement and manufacturing efficiencies, we are confident that these actions will see margin improve and profitability return tomorrow normal levels," it added.
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