Victoria targets £80m in savings with major reorganisation and upgrades

Europe’s largest carpet manufacturer is undertaking significant reorganisation and upgrades to make £20m of savings this year.

After a challenging period of ‘soft sales’ that included issuing a profit warning, Victoria achieved £12m in fixed-cost savings during the first half of 2024. It is now on track to deliver an additional £20m in savings during 2025 and has forecasted more than £80m in cumulative savings by the end of 2027.

Key initiatives include reorganising its Balta and Cali divisions, integrating UK distribution and underlay operations, and upgrading its Spanish ceramics equipment.

These measures, combined with a recent uptick in housing transactions, a leading indicator of future flooring demand, are expected to deliver a “sharp earnings increase”.

In a Q3 trading update, Victoria said that “while consumer demand remains subdued, we continue to expect H2 trading to be stronger driven by management actions alongside a small improvement in demand, with full-year FY2025 earnings expected to be in line with consensus market expectations”.

Victoria is Europe’s largest carpet manufacturer and the second largest in Australia, employing more than 6,000 people.