Lexington, Kentucky -- Bedding specialist Tempur Sealy projects it will save more than $100m (EUR72.8m)/year in the long term, according its latest annual financial report.
The company said it expects raw material costs savings, a streamlining of administration costs as well as revenue from new product categories and R&D innovation. The company predicts savings of $40m this year and $70m in 2016, said the report.
Tempur Sealy has also set a sales target of $3.3bn for 2016 –a figure that translates to a 10% compound annual growth rate - following a near doubling of net sales for 2013.
As previously reported, Tempur acquired Sealy in March 2013. Had the acquisition taken place at the start of 2013, Tempur Sealy sales for 2013 might have topped $2.8bn based on the company’s pro forma calculations.
Actual sales amounted to $2.4bn in 2013 compared with $1.4bn during 2012, according to the annual report.
The company – which dubs itself the “only truly global [bedding] company” in the report – netted more than 10% of the world’s wholesale mattress sales in a market estimated to be worth $21bn per year, said the report.
Most of the company’s sales were from its bedding segment (89%) and sold within the US (70%) nearly exclusively through retailer sales as opposed to direct sales.
XE Currency conversion: March 5
