Demand strong, inflation managed - says Victoria
Europe's largest carpet manufacturer, Victoria plc, is reporting robust demand across retail flooring and a resurgence in contract sectors which will lift its financial performance beyong market expectations.
The Kidderminster-based quoted company issued a full year trading update to shareholders today saying it expected sales to be in excess of £970 million for the year ended 2 April 2022, compared to £662.3m last year. EBITDA profits will be over £155 million (2021: £127.4m).
"Heading into the new financial year, demand for the Group’s products remains robust across our markets, with consistent demand from consumers driving our retailer channels. Furthermore, the Group is also witnessing a strong resurgence in commercial demand (hospitality, offices, leisure, home construction)," the company said in its City statement.
"As with all industries, inflation is self-evidently an important feature of the current operating environment, but Victoria continues to have the ability to increase selling prices quickly (and is doing so) to mitigate the impact of inflationary pressures on profits. The Group remains competitively very well placed in its markets to defend its position or capitalise on opportunities where gaps appear," it said.
Victoria also commented that it had invested heavily in raw materials and continuity of operations last year to ensure production schedules and normal product availability were maintained, despite the global supply chain disruptions. "This established Victoria as a reliable partner to our customers, when many alternative suppliers had extended delivery periods (or even no delivery at all)," it said.
Victoria has operations in carpet, vinyl and ceramic flooring in the UK, Spain, Italy, Belgium, the Netherlands, Turkey, the United States and Australia and employs approximately 4,500 people across 30 sites.
