National bed retailer Dreams has reported a growth in sales as turnover surpassed £400m.
According to its latest filed accounts for the year ended 24 December 2024, total sales rose 4.3% to £412.5m from £395.4m in 2023.
Underlying EBITDA increased from £58.6m to ££59.2m, while pre-tax profit resulted at £47m, slightly down from £49.3m recorded the previous year.
Stated within its report, Dreams said: “The Company reported a solid performance despite continued subdued market conditions and economic uncertainty. This success is due to the continued support from our colleagues, our suppliers, our customers and shareholders. The strength and passion of our teams have been crucial.
“The Company adapted well, grew sales and profits, and made good progress against its strategic objectives, providing confidence on future performance. The Company continued to focus on keeping retail prices low to remain competitive, and our customers remained resilient, prioritising the benefits of a good night’s sleep, as the Company outperformed the market by +8 points.
“At the year end, Dreams operated from 217 stores (2023: 210), following an opening of 11 stores (including 8 in the fourth quarter) and closing 4 stores, reflecting prudent space management and driving market share growth.
“Gross margin as a percentage of sales at 53.1% was down 0.6% points below the previous year (2023: 53.7%) in the Company’s relentless pursuit to keep prices low for its customers whilst absorbing direct wage and raw material inflation pressures from its’ suppliers and own production facility; coupled with ocean freight cost pressures.
“The Directors measure performance primarily on underlying EBITDA, which increased by 1.1% despite continued inflationary overhead costs. This was underpinned by tight cost control, efficiency programs, and continued investment in capital projects, to ensure operating improvements and long-term success.
“At the same time, we invested in retail space and we continued our investment in brand marketing through a national campaign featuring Gillian Anderson, throughout the year and during the 2024 Olympics and Paralympics in Paris.
“Her involvement significantly elevated brand visibility, contributing to increased footfall across our retail locations and measurable improvements in key brand metrics. We also utilised our status as Team GB’s Official Sleep Partner.
“Through this, we were able to further promote our brand by bringing our Team GB ambassadors and Gillian together on screen for the entire nation.
“The 4.8% decline in PBT was due to a specific resolved technology issue that accelerated the decision to cloud-base the Company’s data and operating software.
“Looking ahead, naturally there remains a degree of caution with regards to the economic challenges for the country and continued pressure on household finances; however, the Company is positioned strongly for a recovering market, continues to invest across the business and remains focused on delivering exceptional customer service through its first-class colleagues.”
On sustainability, Dreams added that it actively promotes its recycling service to customers to enable them to dispose of old mattresses when purchasing a new product. “1 in 4 of our customers currently do this. In 2024 alone, we helped customers to recycle 137,347 mattresses. The springs, once separated from the mattress, are sent to be melted down into new light iron.
“The mattress is shredded, and the mixed shredded fibre is turned into fuel pellets for energy and cement production. All our waste, across all our sites, continues to be tracked, collected, and reported by our recycling and management partner, Circom. We continue to send zero waste to landfill.
“Plastic was 1% of our total waste with a weight at 157 tonnes and 2.3% of our total recycled materials including mattresses and bed bases at 51%, with our general waste accounting for 6,621 tonnes 49%. “Over the past 12 months our company car fleet has moved from 81% to 100% hybrid/electric. We have increased our Electrical Vehicle chargers across our estate to 58 this includes 7kw, 22kw and 50kw fast chargers.”
