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Victoria's margin pressure forces further de-rating

Victoria's margin pressure forces further de-rating

Spending on expansion has come at the expense of margins for flooring maker Victoria (VCP). The company warned that margins are expected to fall short of consensus expectations by 1 to 1.5 percentage points by the full year, although will be ahead of last year. The board reiterated its stance that spending to increase market share is the “correct strategy” for the company, despite admitting to tough market conditions. Revenue is anticipated to beat expectations, and margins should recover over the next 12 months, management said. 

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