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DFS posts record EBITDA Friday, 19th October 2012
Image courtesy of DFS
Home furnishings retailer DFS today posted a record full-year EBITDA and has said its store opening programme is right on track.
The retailer reported EBITDA of £82 million in the year to 28 July 2012 on sales of £624.7 million. Turnover was down 2.1 per cent on 2011.
In a statement, DFS said: "As we expected, the improving trend in performance during the year continued in the fourth quarter. Sales increased by 6.6 per cent in the second half year, recovering from a decrease of 10.3 per cent in the first half.
"This performance benefited from a growing sales contribution from our new stores, which also began to contribute to profit. Improved margins over the year as a whole reflected the increase in our own manufacturing capacity and our drive to improve efficiency across the business, particularly through more cost-effective media buying.
"Our record EBITDA of £82m, up 2.5 per cent, was despite the impact of £5.9m of non-recurring investment, comprising £5m in new store pre-opening and launch costs, £500,000 associated with the expansion of our UK manufacturing capacity by adding further production shifts at two of our factories, and £400,00 in website enhancement."