The Very Group has reported notable financial growth despite a slight sales decline, thanks to effective cost management strategies.
- EBITDA increased by 8.4% to £267.6 million, with pre-exceptional operating profit seeing a 17.1% rise to £218.3 million.
- Operating costs dropped to 23.2% of revenue, marking the lowest percentage achieved by the group.
- UK sales improved by 0.7%, though overall sales decreased by 1% to £2.13 billion.
- Strategic initiatives, including technological upgrades and marketing efforts, have been pivotal in sustaining performance.
The Very Group has demonstrated commendable financial performance over the last fiscal year, despite facing a slight decrease in overall sales. This achievement is largely attributed to their stringent cost management strategies. EBITDA saw a significant rise of 8.4%, reaching £267.6 million, while the pre-exceptional operating profit increased by 17.1% to £218.3 million. Additionally, the group successfully reduced its operating costs to 23.2% of revenue, which is the lowest percentage on record for the company.
In an environment filled with challenges, CEO Robbie Feather attributed the robust earnings growth to a resilient retail performance that has outstripped the UK online non-food market. Feather said, “This top line resilience coupled with our continual focus on strong cost management, has driven robust earnings growth in the year.”
The company’s performance in the UK online market was notable, with sales experiencing a slight increase of 0.7%. However, there was a 1% decrease in overall sales, bringing the total to £2.13 billion for the period. Despite this dip, the group’s strategic focus has been instrumental in preserving its market position.
Among the strategic pillars the group has pursued are advancements in technology, having progressed with the re-platforming to a cloud-based system named Skyscape. Furthermore, they have launched a new app designed specifically for their customer base in Ireland, alongside initiating a fresh brand marketing campaign.
Additionally, The Very Group recently made headlines with a takeover proposal for N Brown, an ecommerce group. Although the proposal was submitted, N Brown ultimately accepted an offer from a member of its founding family.
The Very Group’s strategic cost management and market adaptability have effectively fostered financial growth amidst a challenging economic landscape.
