The Very Group, known for its digital retailers, Very and Littlewoods, has published its annual results, indicating a mixed financial performance in challenging conditions.
- Despite a marginal revenue dip, the group reported an 8.4% increase in earnings before interest, taxes, depreciation, and amortization, amounting to £267.6m.
- Revenue for Very UK experienced a slight increase of 0.7%, despite an overall group revenue decline of 1% to £2.13bn.
- The finance sector of the group outperformed others, with a notable growth in revenue by 3.1% to £435.0m.
- Operational efficiency led to a rise in pre-exceptional operating profit by 17.1%, reaching £218.3m, the highest since FY19.
The financial landscape for The Very Group reflects resilience and strategic management amidst a volatile market environment. Earnings before interest, taxes, depreciation, and amortization rose by 8.4%, reaching £267.6m, signaling effective financial tactics despite revenue being largely unchanged.
The retail giant’s UK operations showed modest growth, with Very UK’s revenues slightly edging up by 0.7% to £1.84bn. Conversely, the overall group revenue saw a 1% decline, now standing at £2.13bn, underscoring the challenges in the broader market.
Notably, Very Finance emerged as a strong performer within the group, recording a 3.1% revenue increase to £435.0m. This segment’s robust growth stands in contrast to the general retail sector, which saw declines, particularly in fashion and sports.
The group experienced a contraction in the fashion and sports category by 5.5% due to market challenges, yet certain areas bucked this trend: casual womenswear grew by 3%, watches by 3.6%, and premium fashion surged by 15.5%.
Emphasizing cost-effective strategies, The Very Group achieved its highest pre-exceptional operating profit since fiscal year 2019, posting a 17.1% increase to £218.3m. This was achieved in the face of inflationary pressures, with operational costs at the lowest percentage of revenue ever recorded by the company.
Robbie Feather, CEO of The Very Group, noted, “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.”
The Very Group’s financial results highlight both significant achievements and areas requiring strategic attention amidst a contracting market.
