UK's Mothercare's international retail sales at £137.2 mn in H1 FY24

24 Nov '23

2 min read

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Mothercare reported a 15 per cent YoY decline in international retail sales, totalling £137.2 million in H1 FY24, with a significant 20 per cent downturn in the Middle East.
Excluding this region, the company's sales were down by 6 per cent at constant currency.
Despite these challenges, Mothercare's adjusted EBITDA rose by 12 per cent to £3.6 million.

Mothercare plc, a leading UK-based retailer for parents and young children, has reported a 15 per cent year-on-year (YoY) decline in international retail sales by franchise partners in the first half of fiscal 2024 (H1 FY24), reaching £137.2 million. This downturn is primarily attributed to challenging trading conditions in the Middle East, which saw a 20 per cent decline from the previous year. Excluding Middle Eastern operations, the company’s international retail sales saw a smaller decline of 6 per cent at constant currency.

Despite these challenges, Mothercare has reported an increase in its adjusted EBITDA, which rose by 12 per cent to £3.6 million, up from £3.2 million in the first half of FY23. This improvement is largely due to tighter cost control measures implemented by the company, Mothercare said in a press release.

The group’s adjusted profit before taxation from operations saw a 17 per cent increase, reaching £3.4 million, compared to £2.9 million in H1 FY23. Additionally, the total group profit before taxation also showed significant growth, standing at £2 million, a substantial increase from the £0.8 million reported in the same period last year.

"These results are testament to our continued drive to preserve the strength of the Mothercare brand in a fast-changing retail and macroeconomic trading environment. Against significant headwinds in the Middle East, one of our core markets, we are pleased that our business model and disciplined approach to cost has resulted in an increase in profitability for the first half," said Clive Whiley, chairman of Mothercare.

Fibre2Fashion News Desk (DP)

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