N Brown Group has made a notable recovery, reporting a profit of £5.3m after last year’s significant loss of £71.1m.
- Despite a 9.8% fall in group revenue, the focus on profitable sales and cost management resulted in a stronger financial performance.
- The adjusted EBITDA took a hit, but the adjusted profit before tax saw a notable increase of 171.4%.
- Key product lines were developed, and strategic expansion partnerships were formed during the year.
- CEO Steve Johnson highlighted the resilience and strategic achievements amidst challenging economic conditions.
N Brown Group has shown resilience by reporting a profit before tax of £5.3 million for the year ending March 2, a significant turnaround from the previous year’s loss of £71.1 million. This improvement was largely attributed to the company’s focus on profitable sales and reducing adjusting items, which cushioned the impact of declining revenue.
The company witnessed a 9.8% drop in group revenue to £601 million, with a 10.6% decrease in product revenue. Despite these declines, N Brown’s strategic emphasis on profitable sales and cleaner year-end stock positions helped improve the adjusted profit before tax, which rose by an impressive 171.4% to £13.3 million.
The adjusted EBITDA decreased by 12.5% year over year to £47.6 million, reflecting the ongoing market challenges. However, N Brown’s full-year adjusted gross profit margin increased by 1.5 percentage points to 47.7%, bolstered by an improved product margin and a reduction in freight rates.
In terms of product development, JD Williams launched its premium line ‘Anthology,’ and Jacamo expanded its smart casual, denim, and footwear offerings, enhancing N Brown’s product portfolio. Simply Be also collaborated with the sportswear brand Tala and began offering select lines at Sainsbury’s stores, showcasing strategic expansions.
CEO Steve Johnson stated, “We have delivered against our strategic and financial objectives this year. We have kept to our transformation plans, despite the macro-economic backdrop, whilst building resilience through our strong balance sheet, and achieving adjusted EBITDA above market expectations.” This statement underscores the company’s solid financial position and forward-thinking strategy amidst economic adversities.
N Brown Group has effectively leveraged strategic initiatives to achieve a profitable outcome, underscoring its resilience and adaptability in challenging market conditions.
