DFS posts drop in profit amid 'challenging' market
Furniture retailer DFS has posted a decline in pre-tax profit in the first half of its financial year following "challenging" market conditions.
In the 26 weeks to 27 January, profit fell to £7 million from £16.7 million in the first half of the previous year after non-underlying costs of £4.6 million and the “impacts of acquired businesses”.
Group revenue rose by 4.3% to £396.1 million as the retailer increased its scale following its acquisition of Sofology. Revenue before acquisitions, however, fell by 3.5% to £366.5 million which the retailer attributed to a “challenging” marketplace.
Meanwhile, underlying EBITDA before acquisitions was £30 million compared to £32.4 million in the previous year, which was in line with expectations.
DFS chief executive Ian Filby said: “We have seen a strengthening trading performance across the first half of the financial year and through February into March.
“We therefore remain confident that, despite the current challenging market conditions, the group will deliver modest growth in EBITDA and generate strong cashflow across this financial year, in-line with our expectations.”
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