DFS struggling with supply chain disruption despite swing to £100m profit
Furniture seller DFS said this morning it is still struggling with disruption in its supply chain, even as it reported a 47 per cent jump in revenue and swung to a profit.
Revenue hit £1.1bn in the year to the end of June, up from £725m a year earlier, and even stronger than the £996m made in the year before that, prior to the pandemic.
Pre-tax profit hit £99.2m, from a loss of £81.2m a year earlier, and 55.6 per cent higher than the same point in 2019.
DFS said it has started the new financial year with “strong trading momentum” as it has a large bank of orders, but is facing demanding conditions.
“Whilst the high levels of demand are welcome, they do present substantial operational challenges for our supply chain and manufacturing teams to overcome,” it said.
“DFS preliminary results proved to be quite positive, with improvements seen across the board indicating a strong recovery from the pandemic,” commented Walid Koudmani, market analyst at financial brokerage XTB.
“The company not only saw growth in revenue from continuing operations, but also a significant boost in market share and an increase in online revenue of 184.3 per cent y/y. While it will be reinstating dividends, today’s results illustrate the resilience of DFS in a difficult environment and showed the company’s ability to remain competitive by adapting its strategy,” Koudmani added.