The UK division of US furniture and mattress components supplier Leggett & Platt has reported a slight uptick in sales, driven by growth in Europe.
According to its latest filed accounts for the year ended 31 December 2022, total sales rose 1% to £59.9m from £59m in 2021.
UK sales fell 4.2% to £52.1m from £54.4m, while EU sales rose 67.3% to £7.7m from £4.6m.
Pre-tax profit resulted at £9.9m, down from £12.4m recorded the previous year.
Stated within its report, the company said: “As a result of the cost-of-living crisis across the UK in 2022, bed manufacturers had reduced orders due from end user consumers.
“Operating profit margin was 13% compared to 21.8% in 2021. This was driven by competitive pricing in the industry and material margin compression.”
Parent company Leggett & Platt has also announced that it is implementing a Restructuring Plan primarily in its Bedding Products segment and to a lesser extent, in its Furniture, Flooring & Textile Products segment.
In response to evolving markets, the Company is taking actions to improve manufacturing and distribution efficiency, advance its product strategy, and further support customer needs. These actions are expected to generate $40 to $50 million in EBIT benefit on an annualized run-rate basis when fully implemented in late 2025.
The group said it expects to incur restructuring and restructuring-related costs of $65 to $85 million, of which approximately half are anticipated to be incurred in 2024 and the remainder in 2025.
As part of the bedding division restructure, Leggett & Platt said: “We plan to consolidate certain locations across the Bedding Products segment, reducing our manufacturing and distribution footprint of 50 facilities to approximately 30 to 35 facilities.
“Creating a new and more efficient regional distribution network will support our ability to maintain sufficient manufacturing capacity in fewer, higher-output facilities to effectively serve our customers and better align with anticipated future market demand.
“These actions should allow us to integrate our specialty foam and innerspring capabilities while maintaining market- leading service and product quality levels and improving overall efficiency.”
In Furniture, Flooring & Textile Products, the group added: “We plan to consolidate a small number of production facilities in Home Furniture and Flooring Products to better align capacity with regional demand and drive operating efficiencies.”
President and CEO Mitch Dolloff commented: “We are taking actions to create a more focused, agile organization with a portfolio of products and operating footprint aligned with the markets we serve. The bedding market has experienced unprecedented change in recent years and the competitive landscape has continued to evolve.
“Reshaping our Bedding Products strategy is expected to better position us for long-term success as the leading provider of bedding solutions across the value chain. In addition, optimizing our operating footprint in both Bedding Products and Furniture, Flooring & Textile Products will reduce complexity and enhance the efficiency of our business.
“Looking forward, we expect to advance key product growth, improve profitability, and drive enhanced value for customers and shareholders.”
