Hisense: Sales surge by over £70m but brand issues warning
Sales at the UK arm of Hisense, the Chinese appliances and electronics manufacturer, jumped by more than £70m last year, it has been revealed.
The Leeds-headquartered division has reported a turnover of £373.8m for 2024, a sharp rise from the £300.4m it posted for 2023.
New accounts filed with Companies House also show that Hisense’s pre-tax profit rose from £2.8m to £3.7m.
Hisense said its sales were boosted by its move to offer customers discounts if they settled their outstanding payments before the end of the year.
But despite the division’s sales success, the company did point to the impact rising costs had on its finances during 2024.
Hisense hampered by rising costs
A statement signed off by the board said: “Against this challenging background we are faced with higher costs.
“This can be seen with administration costs increasing by 28.53 per cent which compares adversely to the 24.44 per cent increase in turnover.
“The higher administration costs were mainly driven by a rise in rental and property management expenses because of the offie relocation. Alongside the distribution cost increasing by 32.91 per cent.
“Nevertheless, the profit margin this year was 1.01 per cent in comparison to 2023 which was 0.94 per cent.”
Hisense added that its debtors decreased by more than 30 per cent to £49.8m “primarily due to efforts to accelerate customer payments before year end by offering discounts for early settlements”.
The company also said: “In previous statements we have emphasised the need for a prudent approach to expansion.
“Given the current economic uncertainties in the UK, we will maintain a cautious yet strategic growth strategy to ensure long-term sustainability.
“As traditional high street spending patterns evolve, our activities must adapt accordingly.
“To strengthen our market presence, we will continue promoting our brand both locally and internationally, ensuring that consumers seriously consider Hisense products when making purchasing decisions.”