Integrated Bedding

Integrated Bedding

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The integrated bedding division is a leading manufacturer of sleep products in southern Africa, producing its Restonic, Green Coil and iDream brands, and house brands for major furniture and bedding retailers.

We also manufacture technical foams for the sleep and lounge furniture sectors under the Vitafoam brand, and produce speciality mattress fabrics under the DesleeMattex brand. In addition, we manufacture non-woven products for the furniture, hygiene, and agricultural sectors, and recycle fabrics used in the furniture and automotive sectors.

Our industry-leading focus on sustainable practices, which include the procurement and integration of recyclables and the recycling of factory offcuts to reduce waste and limit the consumption of new raw materials, gives our products a distinct competitive advantage. We also aim to use new technologies and international best practices to reduce energy usage, water consumption, and carbon emissions.

restonic-new2-01
bed-logos-01
bed-logo-04
bed-logo-03

The integrated bedding division is a leading manufacturer of sleep products in southern Africa, producing its Restonic, Green Coil and iDream brands, and house brands for major furniture and bedding retailers.

We also manufacture technical foams for the sleep and lounge furniture sectors under the Vitafoam brand, and produce speciality mattress fabrics under the DesleeMattex brand. In addition, we manufacture non-woven products for the furniture, hygiene, and agricultural sectors, and recycle fabrics used in the furniture and automotive sectors.

Our industry-leading focus on sustainable practices, which include the procurement and integration of recyclables and the recycling of factory offcuts to reduce waste and limit the consumption of new raw materials, gives our products a distinct competitive advantage. We also aim to use new technologies and international best practices to reduce energy usage, water consumption, and carbon emissions.

Revenue

R1 731 million

up 35%

Operating profit

R254 million

up 49%

Operating margin

14.7%

Customer value proposition

The promotion of consumer health and well-being through the supply of high-quality sleep-related products, which offer added value through innovation, market-focused customisation, and a strong focus on environmentally sound practices

Revenue

R1 731 million

up 35%

Operating profit

R254 million

up 49%

Operating margin

14.7%

Customer value proposition

The promotion of consumer health and well-being through the supply of high-quality sleep-related products, which offer added value through innovation, market-focused customisation, and a strong focus on environmentally sound practices

“Research conducted by institutions around the world shows that a good night’s sleep is very important for general health and well-being. At Restonic, we are passionate about providing high-quality products that help users to get a good night’s sleep – every night.”

Mike Metz

Chief executive officer, Integrated Bedding

“Research conducted by institutions around the world shows that a good night’s sleep is very important for general health and well-being. At Restonic, we are passionate about providing high-quality products that help users to get a good night’s sleep – every night.”

Mike Metz

Chief executive officer, Integrated Bedding

Michael Metz, CEO | Integrated Bedding

Michael studied furniture design at Wits Technikon, but being an entrepreneur at heart, he entered the furniture manufacturing sector in 1980 when he acquired a small factory. Metz Bedding was established in 1981, followed by the opening of Metz Transport and Metz Industrial Holdings in 1982. By 1989, the company turned its focus specifically to bedding and this led to the divestment of Metz Furniture and the establishment of Basemakers and Bedding Component Manufacturers. International Wire Convertors and Buffalo Freight Systems were established in 1999 and Buffalo Textiles in 2002. Following the acquisition of the Metz Bedding Group by KAP, Michael was appointed as the executive of KAP’s Integrated Bedding division in January 2015.

Operational review

Operating environment

The sleep sector has proven to be stable over time and has shown exceptional resilience during economic cycles. This is largely due to the fact that a bed is an essential household item and is usually the first piece of furniture a person buys when moving out of home. In addition, approximately 30% of South Africa’s population is aged between 18 and 34, which supports demand for this important first purchase.

During the reporting period, this general demand curve was enhanced by a consumer focus on making the home environment secure and comfortable in response to ongoing Covid-19 restrictions. Buoyed by repeat customers, who are very brand loyal, robust demand and a strong operational performance led to exceptional growth in revenue and market share.

Our facilities operated at full capacity throughout the year, successfully navigating Covid-related restrictions. We leveraged off recent investments in production automation, while investments in logistics enabled us to operate efficiently at all times. This, together with a high level of backward integration, enabled us to provide a sustainable supply to our customers despite major operational disruptions.

We also continued to capitalise on our backward integration and recycling activities in order to pursue new markets outside of the sleep sector, which supported our revenue growth and increased margins.

Value added

Our established and integrated value chain gives us a unique competitive advantage, enabling us to respond rapidly to changing market trends and conditions. We also bring the value of well-established and respected brands to the market, which creates consumer demand and supports sell-through.

Our world-class technology provides for continuous product innovation, with the new iDream range being an example.

In addition, we have a unique capability to scale up rapidly in order to produce bespoke products that have been designed and developed according to customer specifications and which enhance both their value propositions and markets. As there is concerted market pressure for retailers to offer products with a higher percentage of recycled material, we continue to innovate in this area. We have, for instance, recently developed a recycled denim yarn, which has been very well received by our customers.

Finally, our national manufacturing footprint makes it possible to service all of our customers with wellestablished and respected brands reliably and cost effectively.

Highlights of 2021

We recovered rapidly after the Level 5 lockdown, grew our market share significantly, and improved our brand recognition.

We developed the iDream brand and product range, which will be launched in FY22 to complement our existing brands.

A strategic and management restructure was concluded to create two operational units that will focus on the sleep sector and new markets respectively.

We successfully entered new markets in both the agricultural and hygiene sectors.

We developed a new recycled and fire-retardant insulation fibre in order to enter new markets outside of the sleep sector.

Operational review

Operating environment

The sleep sector has proven to be stable over time and has shown exceptional resilience during economic cycles. This is largely due to the fact that a bed is an essential household item and is usually the first piece of furniture a person buys when moving out of home. In addition, approximately 30% of South Africa’s population is aged between 18 and 34, which supports demand for this important first purchase.

During the reporting period, this general demand curve was enhanced by a consumer focus on making the home environment secure and comfortable in response to ongoing Covid-19 restrictions. Buoyed by repeat customers, who are very brand loyal, robust demand and a strong operational performance led to exceptional growth in revenue and market share.

Our facilities operated at full capacity throughout the year, successfully navigating Covid-related restrictions. We leveraged off recent investments in production automation, while investments in logistics enabled us to operate efficiently at all times. This, together with a high level of backward integration, enabled us to provide a sustainable supply to our customers despite major operational disruptions.

We also continued to capitalise on our backward integration and recycling activities in order to pursue new markets outside of the sleep sector, which supported our revenue growth and increased margins.

Value added

Our established and integrated value chain gives us a unique competitive advantage, enabling us to respond rapidly to changing market trends and conditions. We also bring the value of well-established and respected brands to the market, which creates consumer demand and supports sell-through.

Our world-class technology provides for continuous product innovation, with the new iDream range being an example.

In addition, we have a unique capability to scale up rapidly in order to produce bespoke products that have been designed and developed according to customer specifications and which enhance both their value propositions and markets. As there is concerted market pressure for retailers to offer products with a higher percentage of recycled material, we continue to innovate in this area. We have, for instance, recently developed a recycled denim yarn, which has been very well received by our customers.

Finally, our national manufacturing footprint makes it possible to service all of our customers with wellestablished and respected brands reliably and cost effectively.

Highlights of 2021

We recovered rapidly after the Level 5 lockdown, grew our market share significantly, and improved our brand recognition.

We developed the iDream brand and product range, which will be launched in FY22 to complement our existing brands.

A strategic and management restructure was concluded to create two operational units that will focus on the sleep sector and new markets respectively.

We successfully entered new markets in both the agricultural and hygiene sectors.

We developed a new recycled and fire-retardant insulation fibre in order to enter new markets outside of the sleep sector.

Products and services

Sleep products

Mattresses and base sets

Foam products

Flexible polyurethane foam

Mattress ticking

Knitted and woven fabrics for use in the sleep sector

Non-woven spunbond

Non-woven fabric for various household, industrial, and hygienic applications

Recycled products

Conversion of textile waste into fibres, primarily for use in the bedding, automotive, and construction sectors

Products and services

Sleep products

Mattresses and base sets

Foam products

Flexible polyurethane foam

Mattress ticking

Knitted and woven fabrics for use in the sleep sector

Non-woven spunbond

Non-woven fabric for various household, industrial, and hygienic applications

Recycled products

Conversion of textile waste into fibres, primarily for use in the bedding, automotive, and construction sectors

How we add value

  • We work closely with our customers to develop bespoke sleep products for a range of consumer markets, and we manufacture to the highest international quality standards.
  • Our integrated supply chain, which includes nationwide delivery using our own fleet, enables us to offer security of supply to our customers during both promotional peaks and seasonal low periods.
  • We constantly innovate to improve the quality of our product ranges and to enhance value for money for our customers.
  • Our patented technology is a significant product differentiator, providing comfort and support – and enhancing the consumer’s quality of sleep.
  • We have an industry-leading environmental programme and we use recycled materials in many of our products to reduce our environmental impact.

How we add value

  • We work closely with our customers to develop bespoke sleep products for a range of consumer markets, and we manufacture to the highest international quality standards.
  • Our integrated supply chain, which includes nationwide delivery using our own fleet, enables us to offer security of supply to our customers during both promotional peaks and seasonal low periods.
  • We constantly innovate to improve the quality of our product ranges and to enhance value for money for our customers.
  • Our patented technology is a significant product differentiator, providing comfort and support – and enhancing the consumer’s quality of sleep.
  • We have an industry-leading environmental programme and we use recycled materials in many of our products to reduce our environmental impact.

Innovation

Innovation continues to be a key focus for the business and this is a significant differentiator in a rapidlyevolving market environment.

Having identified new opportunities both within the bedding sector and beyond, we are in the process of developing a number of new materials for use in the bedding, furniture manufacturing, automotive, and agricultural sectors. We have, for instance, recently submitted a new recycled fire-retardant insulation fibre to the SABS for testing and certification, which will enable the business to enter new markets.

At product level, we have recently made significant improvements to some of our existing ranges and continue to produce products with a high level of recycled inputs.

Certification and accreditation

  • Restonic’s Marvellous Middle® and iDream product ranges are endorsed by the Chiropractic Association of South Africa (‘CASA’).
  • Vitafoam’s product range is SABS approved.
  • iDream and DesleeMattex have products that are certified by SEAQUAL®. SEAQUAL® Yarn is a highquality 100% post-consumer recycled polyester yarn containing upcycled marine plastic, which contributes to cleaner oceans and the preservation of natural resources.
  • DesleeMattex products have an ISO 9001: 2015 certification.

Looking ahead

The civil unrest in South Africa and eSwatini post the reporting period caused extensive damage to retail stores and warehouses in both countries. We anticipate a degree of market instability as retail stores and distribution centres are refurbished and restocked.

As economic growth is likely to remain constrained throughout FY22, consumers are expected to remain extremely price conscious and to take advantage of retail promotions. With our integrated business model, the bedding business is perfectly poised to scale up quickly in order to meet these trends, especially the spikes in promotion-driven demand. We have a strong capability to quickly redesign and re-engineer products to meet retailers’ specific requirements and price points which, in turn, enables them to be very responsive to their own market segments.

Further, the health benefits of sleep are becoming more and more evident. Multiple research studies show that restful sleep is associated with greater concentration, the ability to maintain a healthy weight, lower levels of stress, and greater longevity. Findings like these will continue to stimulate consumer demand for high-quality bedding, which is very positive for our business. We have the knowledge, technology, manufacturing capability, and flexibility to be at the forefront of meeting this increase in demand.

The division has also identified opportunities in other sectors, such as the geo-technical, agricultural, and hygiene industries, and we have configured our operations to expand our reach into these areas without losing focus on our core sleep business. A successful management restructuring process during the reporting period has supported this. This will enable us to continue growing market share across both existing and new markets.

Key facts

937 793 bedding units produced

8.47 million linear metres of mattress ticking produced

7 960 tonnes of recycled waste fabric converted to fibre

map-bedding-new-22-01

Innovation

Innovation continues to be a key focus for the business and this is a significant differentiator in a rapidlyevolving market environment.

Having identified new opportunities both within the bedding sector and beyond, we are in the process of developing a number of new materials for use in the bedding, furniture manufacturing, automotive, and agricultural sectors. We have, for instance, recently submitted a new recycled fire-retardant insulation fibre to the SABS for testing and certification, which will enable the business to enter new markets.

At product level, we have recently made significant improvements to some of our existing ranges and continue to produce products with a high level of recycled inputs.

Certification and accreditation

  • Restonic’s Marvellous Middle® and iDream product ranges are endorsed by the Chiropractic Association of South Africa (‘CASA’).
  • Vitafoam’s product range is SABS approved.
  • iDream and DesleeMattex have products that are certified by SEAQUAL®. SEAQUAL® Yarn is a highquality 100% post-consumer recycled polyester yarn containing upcycled marine plastic, which contributes to cleaner oceans and the preservation of natural resources.
  • DesleeMattex products have an ISO 9001: 2015 certification.

Looking ahead

The civil unrest in South Africa and eSwatini post the reporting period caused extensive damage to retail stores and warehouses in both countries. We anticipate a degree of market instability as retail stores and distribution centres are refurbished and restocked.

As economic growth is likely to remain constrained throughout FY22, consumers are expected to remain extremely price conscious and to take advantage of retail promotions. With our integrated business model, the bedding business is perfectly poised to scale up quickly in order to meet these trends, especially the spikes in promotion-driven demand. We have a strong capability to quickly redesign and re-engineer products to meet retailers’ specific requirements and price points which, in turn, enables them to be very responsive to their own market segments.

Further, the health benefits of sleep are becoming more and more evident. Multiple research studies show that restful sleep is associated with greater concentration, the ability to maintain a healthy weight, lower levels of stress, and greater longevity. Findings like these will continue to stimulate consumer demand for high-quality bedding, which is very positive for our business. We have the knowledge, technology, manufacturing capability, and flexibility to be at the forefront of meeting this increase in demand.

The division has also identified opportunities in other sectors, such as the geo-technical, agricultural, and hygiene industries, and we have configured our operations to expand our reach into these areas without losing focus on our core sleep business. A successful management restructuring process during the reporting period has supported this. This will enable us to continue growing market share across both existing and new markets.

Key facts

937 793 bedding units produced

8.47 million linear metres of mattress ticking produced

7 960 tonnes of recycled waste fabric converted to fibre

map-bedding-new-01

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