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Bathroom retailer Victorian Plumbing expects to deliver full-year adjusted EBITDA in line with market expectations, as an increase in own brand product sales improved the group’s gross margins.
During the first 21 weeks of FY24, the retailer saw that customers continued to seek value by purchasing more own brand products, which has led to a 3% reduction in average order value year-over-year.
In keeping with strategy, and despite an unchanged market backdrop, the retailer has also continued to make market share gains, with year-over-year order volume increasing 4%. This has more than offset the reduction in average order value and led to a 1% rise in revenues.
The retailer also announced it has made “significant” progress towards the opening of its new distribution centre, which will address current capacity constraints, unlock growth potential and create efficiencies.
According to Victorian Plumbing, one-third of the warehouse fit-out is currently complete, with the expectation that it will be fully operational in H2 of 2024, on schedule and within budget.
Victorian Plumbing will report interim results for the six months ending 31 March on 28 May 2024.
