Sales across the Tempur Sealy business grew in the final three months of 2014, though higher than expected demand for one of its product categories impacted margin.

The bedding conglomerate — the world’s largest since Tempur-Pedic acquired Sealy to become Tempur Sealy International in 2013 — said fourth quarter revenues rose 10 per cent to $746m.

Gross margin for the quarter declined 70 basis points to 39.5 per cent. In a call to analysts, CEO Mark Sarvary said the margin drop had been partly down to it selling more adjustable bed bases than expected, which carried a lower gross margin than other product lines.

Full year pre-tax profits were up 37 per cent to $175m as sales jumped 21 per cent to $2.46bn. Both metrics were impacted by the March 2013 acquisition of Sealy, though the group said it still enjoyed growth across all its individual business units.

US headquartered Tempur Sealy is forecasting 2015 sales of between $3.05bn–$3.15bn.