Victorian Plumbing Group has revealed its operating profit for the first half of the year has fallen 80% YOY to £2.7m.
The online bathroom retailer also revealed revenues for the period were down 5% year-on-year to £133.9m (H1 2021: £140.7m), lapping a “tough comparable period” resulting from market outperformance during Covid-19 related lockdowns. On a two-year basis revenues increased 39%, which the retailer said reflected “a significant increase” in its customer base.
It also confirmed its gross profit margin decreased by five percentage points to 44% (H1 2021: 49%). It said this was “largely due to continued supply chain pressures” and its “careful approach” to managing price rises during a period of inflationary cost pressures. Gross profit of £58.5m was up 43% on a two-year basis and down 15% year-on-year.
Despite this, it said revenues in H1 2022 were in line with recent guidance and reflect the lower demand compared to the same period last year when the UK was in a lockdown environment.
It added that the group focused on increasing market share and “invested more heavily” in marketing in the early part of H1 2022 to “successfully drive market share gains”.
As such, the group expects to deliver “modest” year-on-year revenue growth through the second half.
Mark Radcliffe, founder and CEO, said: “Victorian Plumbing remains the go-to online retailer for consumers who are looking for bathroom products. Our market-leading proposition and our innovative and proactive approach to marketing have enabled us to continue growing our market share, even against a challenging market backdrop.
“Following a nine-month period during which the economy was opening up after Covid-19 restrictions and discretionary spending has been more focused on leisure activities, our relentless focus on investing in quality and innovation has resulted in revenue growing 39% on a two-year basis.”
He added: “I am pleased with the progress we have made with our technological developments, and I am excited about the opportunities presented by our new website. This new platform will enable us to further penetrate our core market and provide the best possible base for us to further expand our trade and adjacent product areas.
“We continue to be focused on our long-term goals. We are making good progress on all of our strategic initiatives and are confident in the future growth prospects of the group.”