DFS revenues up 17.4% to £561.1m
Despite Covid-related supply chain challenges impacting net margin and operating costs, the retailer added that investment in the Sofa Delivery Company and manufacturing capacity is now enabling it to support the new revenue base.
DFS has announced its revenue increased by 17.4% on the pre-pandemic two-year comparator to £561.1m, during the 26 week-period ended 26 December 2021.
The firm said this demonstrates “success in strategy” to offset and pass-through inflationary pressures.
According to the firm, the scale of its business has widened as it sits at more than 15% larger than pre-pandemic.
DFS also said it is overcoming “operational pressure” to deliver reported profit before tax in the half of £21.6m, up 35.8% on pre-pandemic levels..
Despite Covid-related supply chain challenges impacting net margin and
operating costs, the retailer added that investment in the Sofa Delivery Company and manufacturing capacity is now enabling it to “support” the new revenue base with Q2 delivered revenues up 24% compared to Q1 and momentum continuing into Q3.
Additionally, DFS said it has new ambition to expand to £1.4bn of revenues through the launch of its ‘Pillars and Platforms’ strategy, continuing to drive the “ongoing potential” for enhanced returns of capital to shareholders.
Tim Stacey, group CEO, said: “We delivered a strong performance in the first half of the year, with market share gains and strong revenue growth on the pre-pandemic comparators.
“This was in spite of significant logistics and supply chain challenges and once again I would like to thank all of our colleagues across the Group for their hard work and resilience in achieving this result.”
He added: “We will continue to invest in our digital platforms, our showrooms, our delivery
networks and our UK manufacturing capacity, as well as expansion into other home categories which we believe will continue to drive long term growth and profitability.”
