Strong consumer demand drives Victoria sales
The Kidderminster-based carpets and flooring group Victoria says sales are continuing to increase driven by strong consumer demand.
Its board says underlying pre-tax profit will be ahead of market expectations for the current financial year to April 2.
The UK logistics operation is going from strength to strength along with its artificial grass business.
Victoria said the demand for flooring experienced this year has primarily come from existing home owners redecorating.
The board expects demand to continue next year and beyond, due to the high level of housing transactions that has been experienced in many of the group’s key markets this year.
Housing sales are a good 12-18 month leading indicator of remodelling-led demand for flooring, which is Victoria’s core market.
With energy and other costs continuing to rise, the group will continue to actively manage input and output pricing with suppliers and customers to protect margins
The board says that with generally short and diversified supply lines, along with the group entering the current period with a greater-than-normal level of raw materials having anticipated possible supply issues, the company is not experiencing problems with production and delivery of its flooring.
Chief executive Philippe Hamers said: “Managing our way successfully and profitably through the extraordinary conditions of the last 18 months, with pandemic lockdowns followed by inflation and supply challenges, has highlighted the value of having the industry’s best management team at Victoria. The Group has achieved record operating earnings in the first half of the year and all the credit lies with the skill and dedication of the operational managers.
"The conditions we have faced in the first half will, almost certainly, continue for the rest of the year, but I am confident the group will continue to deliver for its shareholders.”
