Sparks

Victorian Plumbing’s FY24 trading update highlights that the company has taken market share in what has been a challenging environment for the business. The company has reported a 1% reduction in revenue on a like-for-like basis including volume growth (+3%) offset by a reduction in average order value (-5%) as its customers continue to spend more on the own brand offering. The upside of the move to own brand is a much healthier gross margin (+300bp), albeit this is slightly below the increase in the gross margin at the time of the interim results (400 bp), giving management confidence in meeting market expectations for adjusted EBITDA for the year.

Victorian Plumbing’s ongoing investment in digital infrastructure and its commitment to customer service are helping to mitigate some of the external pressures. It will be important to monitor whether these efforts can translate into improved revenue trends over the coming quarters.