WHSmith has reported strong profit and revenue growth for the year ending August 31, 2024, driven largely by its robust travel business.
- The company’s group profit before tax increased by 16% to £166 million, while total group revenue rose 7% to £1.92 billion.
- WHSmith’s travel segment showed exceptional performance, with trading profit scaling by 22% and revenues by 11%.
- High street performance declined, with trading profits falling by 9% and sales dipping 4%.
- The retailer is optimistic about 2025, with plans to expand its store presence globally, particularly in North America.
WHSmith has announced a significant rise in profits and revenue for the fiscal year ending August 2024, buoyed by its expanding travel business both domestically and internationally. The retailer’s group profit before tax has climbed 16% to £166 million, bolstered by a 7% increase in total revenue, reaching £1.92 billion.
The travel sector of WHSmith has been a pivotal contributor to this success, with trading profits soaring by 22% to £202 million and travel revenues elevating by 11% to £1.47 billion. Within the UK, the travel segment saw a remarkable 25% increase in trading profit, totaling £126 million. Meanwhile, North America and other global regions also experienced growth, with profits up by 12% and 38% respectively.
In contrast, WHSmith’s high street branches faced a downturn. Trading profits fell by 9% to £39 million, as sales decreased by 4% to £452 million. However, this performance was aligned with the company’s expectations.
WHSmith’s CEO, Carl Cowling, expressed optimism for the new financial year, noting that initial indicators show promise despite some economic uncertainties. The company plans to open over 90 new stores globally. This includes an ambitious expansion in North America, where 60 new locations are planned, along with new airport contracts in Dallas, Denver, and Washington Dulles.
Cowling highlighted the strong performance of the UK Travel business and the potential for profitability growth through the implementation of their one-stop-shop format. He also mentioned WHSmith’s success in becoming the preferred bidder for 15 additional stores across major US airports.
WHSmith remains confident about its growth trajectory, driven by robust travel sector performance and strategic expansion plans.
