Price increase fuels sales growth at fittings supplier

The UK division of German furniture components and fittings supplier Hafele has reported a growth in sales.

According to its latest filed accounts for the year ended 31 December 2022, total sales rose 3.9% to £116m from £111.6m in 2021. Pre-tax profit resulted at £14m, slightly down from £15.4m recorded the previous year.

Stated within its report, the company said that the Russian invasion on Ukraine hindered confidence following a strong start to year, but despite it, turnover reached record levels.

“Revenue growth was largely borne from price increases rather than volume growth, driven by unprecedented vendor cost increases and record high sea freight costs, which were impossible to absorb.

“That said, where we were able to, cost increases were not passed on in full and as a result, gross margin percentage fell in 2022.”

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