Q4 "all time record" sales for Victoria
January 14, 2021
Sales by leading flooring firm Victoria plc reached an "all-time record" in the final quarter of 2020 among strong demand from consumers to invest in their homes.
The trading update to shareholders said sales were up 10% over the same period in 2019 with UK revenues growing by more than twice than the estimated market overall. Victoria says it expects more "substantial" growth in the future.
Executive Chairman Geoff Wilding commented: "Demand for flooring product is strong from consumers' renewed focus on investing in their homes but we are outperforming the market generally and believe this to be both sustainable and on-going due to the benefits of our unique service proposition. This is a direct result of the substantial investment we made in our logistics platform during 2019.
"Undoubtedly, the UK November lockdown had some impact on our performance - we would have done even better without it - and the current lockdown may similarly impact [Q1 2021]," he said. "However, Victoria has clearly shown its operational resilience by achieving record revenues and earnings in the December quarter and the Board believes it is well placed to meet this headwind."
"Undoubtedly, the UK November lockdown had some impact on our performance - we would have done even better without it - and the current lockdown may similarly impact [Q1 2021]," he said. "However, Victoria has clearly shown its operational resilience by achieving record revenues and earnings in the December quarter and the Board believes it is well placed to meet this headwind."
The company, the UK's largest carpet manufacturer, pointed to the success of its "strategic investment in logistics and distribution in the UK, completed in late-2019, [which] has provided Victoria with a sustainable competitive advantage."
The objective of this investment was to enable Victoria's retailers to hold lower inventory levels (reducing their working capital and warehousing costs) whilst still being confident that product would be received when required for installation.
"This service level has been made possible only by Victoria's scale (the revenues and investment required precludes most competitors from independently offering the same service), is highly valued by retailers, and continues to drive an increased 'share of wallet' - as evidenced by our UK revenues increasing by more than twice the estimated growth of the market overall, says Victoria in its report to shareholders. "Despite these gains our UK residential flooring market share is currently only circa 15% and there is substantial headroom for continued growth."
Victoria confirmed all of the Group's factories remained open during the last lockdowns and will continue to do so in the first quarter of 2021.
The company generates nearly 75% of its revenues from outside the UK with more than 20 sites across the UK, Spain, Italy, Belgium, the Netherlands and Australia, employing approximately 3,400 people.
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