N Brown Group has announced a profit before tax of £3.6 million in its half-year results, marking an increase from £0.1 million the previous year.
- Adjusted EBITDA increased by 7.4% year-on-year to £18.8 million, with a rise in EBITDA margin by 0.9 percentage points to 6.8%.
- Group revenue declined by 6.7% year-on-year to £277.7 million, and product revenue fell by 7.9% to £172.7 million, attributed to unseasonable weather and a soft market.
- The company launched a new JD Williams website and a product information management system, aiming to enhance the customer experience.
- Trading in the first five weeks of Q3 has been encouraging, with product revenue trajectory improving by -2% year-on-year.
During the 26 weeks ending 31 August 2024, N Brown Group reported a significant rise in profits. N Brown Group has announced a profit before tax of £3.6 million in its half-year results, compared to £0.1 million the previous year. This improvement reflects the company’s focused approach to maximising profitable sales.
Adjusted EBITDA for N Brown Group showcased a 7.4% rise year-on-year, amounting to £18.8 million. The EBITDA margin also saw an increase of 0.9 percentage points, reaching 6.8%. This highlights the company’s effective management of its cost base amidst a challenging trading environment.
Despite these gains, the group experienced a downturn in revenue. Revenue decreased by 6.7% on a year-on-year basis to £277.7 million, while product revenue saw a 7.9% decline, standing at £172.7 million. The company attributed these declines to unseasonable weather and a generally soft market, which affected sales.
In its strategic initiatives, N Brown Group launched an improved JD Williams website and rolled out a new product information management system across its strategic brands. These advancements are part of the company’s transformational priorities aimed at enhancing the customer experience and are supported by strengthened marketing efforts.
Steve Johnson, interim executive chair and chief executive, noted that the company remains on track to achieve its full-year adjusted EBITDA expectations, with an encouraging start to Q3. Trading in the initial weeks of Q3 showed an improved product revenue trajectory with only a -2% decline year-on-year, suggesting a positive trend for the period ahead.
Overall, N Brown Group demonstrates resilience through its strategic focus and improved profitability despite market challenges.
