Victorian Plumbing expects modest second half revenue growth
Victorian Plumbing has said it expects to post modest second half revenue growth after its first half revenue fell by 5% year-on-year to £133.9 million.
The decline came after the retailer lapped a tough comparable period from the previous year when the UK was impacted by Covid-19 lockdown restrictions. However, revenue was up 39% on pre-pandemic levels two years ago.
The company’s gross profit margin fell by five percentage points to 44% in the period, which Victorian Plumbing said was mainly due to continued supply chain pressures and a careful approach to managing price rises during a period of inflationary cost pressures.
Its pre-tax profit was reduced to £2.7 million from £14,5 million a year earlier while adjusted EBITDA fell by 67% year-on-year to £6.7 million.
Mark Radcliffe, founder and chief executive of Victorian Plumbing, said: “Victorian Plumbing remains the go-to online retailer for consumers who are looking for bathroom products. Our market-leading proposition and our innovative and proactive approach to marketing have enabled us to continue growing our market share, even against a challenging market backdrop.
“Following a nine-month period during which the economy was opening up after Covid-19 restrictions and discretionary spending has been more focused on leisure activities, our relentless focus on investing in quality and innovation has resulted in revenue growing 39% on a two-year basis.”
The company’s total orders for the six months increased by 31% on pre-pandemic levels to 453,000 and were 7% down on a year earlier when the UK was under severe Covid-19 restrictions.
Meanwhile, average order value rose by 2% to £296.
Looking ahead, Victorian Plumbing said it is expecting to deliver modest year-on-year revenue growth through the second half and will continue its careful approach to price rises.
Radcliffe added: “We continue to be focused on our long-term goals. We are making good progress on all of our strategic initiatives and are confident in the future growth prospects of the group.”
