In a noteworthy turnaround, The Very Group has posted a pre-tax profit of £6.1 million for the 26-week period ending December 28, marking a significant recovery from a £2 million loss in the same timeframe last year. This resurgence in profitability is largely attributed to the company’s steadfast commitment to cost control, despite facing a 4.5% decline in sales.
The Group’s adjusted EBITDA saw a robust rise of 17.4%, reaching £150 million, even as total sales fell to £1.17 billion. The Very UK brand reported a sales dip of 3%, contributing to the overall decline.
Among the key categories, Very UK’s retail sales declined by 3.1%, impacted by a notable 4.5% decrease in electrical products and a 6% slump in fashion, attributed to a challenging market characterized by heavy discounting. The dip in electrical sales was particularly pronounced, as it followed a period that included substantial gaming product launches.
On a positive note, The Very Group experienced significant growth in its home and sports categories, with sales increasing by 7.3% and 18.4%, respectively.
In a statement, The Very Group affirmed its dedication to fostering higher-margin sales and maintaining cost discipline throughout the remainder of the financial year, forecasting a continued strengthening of profitability.
As The Very Group navigates these market challenges, suppliers are encouraged to stay informed about evolving trends that may impact their partnerships and product offerings.