DFS Furniture (DFS) investor relations material

Executive summary

• Achieved strong FY25 performance with 10.2% group order intake growth year on year and increased market share to 39%.

• Significant profit growth and reduced leverage, outperforming a slightly declining market.

• Delivered £53 million in annualized cost savings, surpassing the £50 million target a year ahead of plan.

• Focused on operational execution, cost control, and customer proposition, resulting in improved customer satisfaction and continued investment in technology, data, and sustainability.

Financial highlights

• Revenue grew 4.4% year on year to £1,030.3 million; gross sales up 5.8% to £1,388 million.

• Underlying profit before tax and brand amortization rose by £19.7 million to £30.2 million; reported PBT was £32.9 million, up £34.6 million.

• Gross margin improved by 70 basis points to 56.5%, with gross profit up £30.9 million to £581.7 million.

• Free cash flow increased by £72.9 million to £57.8 million, supported by strong trading and disciplined capital expenditure.

• Net bank debt reduced by £58 million to £107 million; leverage down from 2.5x to 1.4x.

Outlook and guidance

• Not expecting significant market recovery in the short term, but anticipate profit growth in FY26 through margin progression and cost management.

• Trading in the first 12 weeks of FY26 in line with expectations; comfortable with consensus PBT forecasts (£39.4 million underlying PBTU (A)).

• Medium-term targets reaffirmed: £1.4 billion revenue and 8% PBT margin.

• Plan to expand Sofology showrooms by up to 15 and target £100 million incremental revenue in home segment.

• Capital investment expected at £24–28 million in FY26, with inflationary headwinds of £15 million.