Very Group full year profit improves but sales remain flat

Very UK full year revenue increased 0.7 percent to 1.84 billion pounds, while the group revenue declined by 1 percent to 2.13 billion pounds.

The company said in a release that underpinning these results were retail performances at both the Very UK and group level, reflecting strategic investments in pricing and assortment of key categories to keep us competitive in a tough market.

Commenting on the financial results, Robbie Feather, CEO at The Very Group, said: “In a challenging environment, our results reflect a resilient retail performance that remained ahead of the UK online non-food market, as well as a continued strong Very finance performance. This top line resilience coupled with our continual focus on strong cost management, has driven robust earnings growth in the year.”

The company added that pre-exceptional operating profit grew 17.1 percent to 218.3 million pounds, best result since pre-pandemic trading in FY19, driven by diligent cost management and strong Very finance contribution. EBITDA grew 8.4 percent to 267.6 million pounds.

The company reported that toys, gifts, and beauty grew 3 percent year-on-year, following a strong peak trading period. Sales across toy ranges improved by 7.7 percent and personal care by 15.5 percent.

Electrical continues to be Very UK’s largest category by retail sales, growing 0.9 percent, which is underpinned by the performances in computing, up 9.9 percent, Apple products, up 8.5 percent and mobiles, tablets and wearable tech up 7.5 percent.

The company further said that fashion and sports declined 5.5 percent year-on-year in a challenging and contracting market. However, certain categories continued to perform strongly, such as casual womenswear increased by 3 percent, watches by 3.6 percent and premium fashion by 15.5 percent.

Despite poor weather impacting sales of garden products which contracted by 16.5 percent, Very saw a slight 0.7 percent decline in its home category. The retailer saw growth in nursery, up 15.2 percent and beds, up 6.2 percent, which was offset by declines in garden, upholstery of 5.1 percent and home textiles of 2.7 percent.

Very continued to expand its retail assortment with a number of new brands such as Oakley and Veja in sports and Seasalt Cornwall and Diesel under fashion category.