Higher average pricing a key driver in sales growth at foam group

Flexible foam solutions provider The Vita Group has reported a growth in sales as turnover surpassed £170m.

According to its latest filed accounts for the year ended 31 December 2022, total sales rose 6.6% to £175.2m from £164.2m in 2021.

UK sales were up 3.4% to £133.3m from £128.9m, while EU sales increased 21% to £38.4m from £31.7m. Rest of the world revenues remained consistent at £3.4m.

Pre-tax profit resulted at £6m, down from £13.8m recorded the previous year.

During September 2021, Vita acquired mattress manufacturer Usleep Limited and Usleep SAS from Belfield Holdings Limited for a total sum of £12.4m, which contributed revenue of £20.1m with a net profit of £261,000 during the period. Furthermore, during June 2021, the group acquire foam conversion firm Technical Foam Services Limited for a sum of £4.2m.

Stated within its report, the group said that the increase in performance was driven by higher average pricing and the transfer of trade and assets of Usleep Limited on 2 August 2022. Underlying volumes have decreased year-on-year – a direct effect of the market conditions.

“Rising inflation, particularly on energy costs, and triggered by the outbreak of the war in Ukraine, have impacted both the company directly and demand in the market,” Vita said. “Consumer spending power has been constrained due to cost-of-living concerns, and there has been a category shift in spending for many consumers towards travel and hospitality, replacing spend on domestic items such as mattresses and furniture.”

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