Victorian Plumbing hit by inflationary pressures
Online bathroom product retailer Victorian Plumbing has said it expects its gross profit margin and adjusted EBITDA margin to be slightly lower than previously expected in the second half of 2022 as it faces ongoing inflationary cost pressures.
In an AGM trading update, the retailer also said it anticipates making a return to modest year-on-year growth in the period.
Victorian Plumbing said it is continuing to trade in line with the dynamic set out in its full year results on 9 December and added that trading has been encouraging despite a backdrop of lower customer demand. Revenue for the four months to 31 January 2022 was down 3% year-on-year, but up 38% on the same period two years ago,
Looking ahead, it said: “We are acutely aware that our customers are also managing inflationary pressures and will adopt a careful approach to price rises, which means we are choosing to temporarily absorb some additional costs.
“We remain confident in our ability to continue to take market share and in our long term growth plans.”
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