Victorian Plumbing on track for full year EBITDA outcome
Victorian Plumbing has said it is on track to deliver full year adjusted EBITDA in line with expectations as it continues to see an increase in customers buying its own-brand products due to the increased cost of living.
In a trading update ahead of its AGM today, the bathroom retailer said the trend has led to a 3% reduction in average order value year-on-year in the first 21 weeks of its financial year, although it has resulted in an improvement in gross margin.
Despite a difficult market backdrop, Victorian Plumbing said it continued to make market share gains in the period, with order volume increasing by 4%. This means its revenue edged up 1%.
Victorian Plumbing said the improved gross margin and control of marketing spend means it remains confident in delivering full year adjusted EBITDA in line with market expectations.
The retailer said it is making good progress towards the opening of its new distribution centre which will address current capacity constraints. With one-third of the fit-out now complete, the warehouse is expected to be fully operational in the second half of 2024, on schedule and within budget.
Looking ahead, Victorian Plumbing said: “We continue to focus on our long-term goals, notably in gaining market share, and we are making good progress across our strategic growth areas.”
