Furniture retailer Nick Scali credits its Plush acquisition for driving sales growth – however it says widespread supply chain disruptions muted profits.
For the year to June 30, the business reported sales increased by 18.2 per cent to $441 million however its tax-paid profit fell 11.1 per cent to $74.9 million.
In November last year, the group acquired Plush from Greenlit Brands Household Goods for $102.5 million. Subsequent to the acquisition, the brand contributed $88.8 million to group revenue while also contributing to an “elevated” order bank at the end of the period.
E-commerce written sales orders contributed $37.6 million of sales – double the volume of the previous year. That helped the company overcome the closure of 55 per cent of its stores during the first three months of the financial year.
Anthony Scali, MD of Nick Scali, described the year as a “challenging period” for the business as lockdowns in sourcing countries and store closures at home impacted the business.
“Despite these challenges, the group was still able to deliver a strong result and end the year with a significant order bank which will translate to revenue in the next financial year.”
The business does not plan to provide any additional guidance for the next financial year due to ongoing economic uncertainty and inflationary pressures in the market.
