UK's Very Group's profit at $961 mn in FY24, gross margin 35.6%

The group’s sales in FY24 were £2,125.3 million (~$2,696.6 million), a decline of 1.0 per cent from £2,147 million in last fiscal. Within this, Very UK’s revenue increased 0.7 per cent year-on-year (YoY) to £1,836.9 million (2023: £1,824.1 million), Very Ireland saw a decline of 5.1 per cent to £65.6 million from £69.1 million in FY23, and Littlewoods sales declined 12.2 per cent YoY to £222.8 million, the company said in a press statement.

Distribution expenses of the company improved by £12.0 million, down to £202.4 million in FY24 from negative £214 million in FY23, administrative expenses reduced by £11.1 million to £290.1 million, and depreciation and amortisation expenses fell significantly by 18.4 per cent to £49.3 million.

The operating profit before exceptional items increased by 17.1 per cent to £218.3 million (~$276.99 million), up from £186.5 million in FY23. Profit before tax (PBT) and exceptional items declined by 56.6 per cent YoY to £13.5 million, primarily due to a 31.8 per cent rise in net finance costs to £204.8 million. Overall, the group recorded a pre-tax loss of £15.8 million, compared to a profit of £4.6 million in FY23.

The total retail sales of the group amounted to £1,662.4 million, a decrease of 2.3 per cent YoY. Segment-wise, Fashion & Sports category declined by 6.5 per cent YoY to £496.6 million. Other retail income saw a strong growth of 23.5 per cent, increasing to £27.9 million from £22.6 million in FY23. This brought the total retail revenue to £1,690.3 million, down by 2.0 per cent YoY.

Very UK’s revenue for Fashion & Sports category declined 5.5 per cent in a heavily promotional environment, which represents a slowing of the decline seen in previous years, said the statement.

In FY24, the company reported an operating profit of £189.0 million, an 18.1 per cent increase compared to £160.0 million in FY23.

Pre-depreciation and amortisation adjustments of £49.3 million (FY23: £60.4 million) resulted in a pre-exceptional EBITDA of £267.6 million, reflecting an 8.4 per cent increase from £246.9 million in FY23.

“While FY24 proved to be a challenging year, our strong governance helped to deliver a resilient performance. I am confident our strong management team will continue to deliver our strategy and drive sustainable growth,” said Nadhim Zahawi, non-executive chair of Very Group.

“Our unique and resilient business model, combining multi-category digital retail with flexible ways to pay continues to prove relevant for our customers in light of the ongoing cost of living crisis. Faced with higher costs, we know they have been more careful about how and where they spend their money. By keeping our customers at the centre of everything we do, we continue to meet their needs, whether through enhancing our digital customer experience, adding further flexibility to our payment methods, or building even stronger relationships with brands to offer the best range of products for our families. We will manage the cost of interest in FY25 by continuing to focus on investment-led growth, effective working capital management, and considered cost reduction,” said Robbie Feather, chief executive officer (CEO) of Very Group.

Fibre2Fashion News Desk (SG)