Victorian Plumbing half-year profits have jumped despite its sales dipping as consumers trade down amid the cost-of-living crisis.
Gross profit for the bathroom specialist rose 8% to £72.3m in the six months to 31 March, up from £66.8m, driven in part to lower shipping costs and a shift to own brand products.
Sales slipped 1% from £146.8m to £144.6m, but on a like-for-like basis remained flat when adjusting for the impact of Easter timing.
The bathroom retailer said that its average order value had fallen by 4% to £293 as customers continue to purchase more of its own brand products, which now represents 79% of total revenue, up from 77%.
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Victorian Plumbing founder and chief executive Mark Radcliffe said: “I am pleased with the group’s performance in the first half, having increased profitability and consolidated our leading position as the UK’s number one bathroom retailer.
“At the same time, we have embarked upon a year of transformational change with significant investment in our people, technology and operations.
“Our new distribution centre, once operational, will remove space constraints, enabling us to deliver on our strategic plans in expansion categories and our trade proposition.”
Radcliffe said the group’s recent acquisition of Victoria Plum “represents another exciting strategic milestone and provides a unique opportunity to accelerate our growth”.
He added: “Continued investment in our brand, epitomised by our three-year partnership with Bolton Wanderers Football Club, alongside our unrelenting approach to online marketing and an ever-improving customer experience, provides strong foundations for the future.
“This robust first half performance, our unchanged momentum into the rest of the year and the exciting developments scheduled for H2 2024, gives the Board confidence in our profitable growth strategy as we continue to deliver long-term value for all stakeholders.”
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