WHSmith has announced strong financial results, highlighting significant profit growth driven by its travel sector.
- The company’s group profit has increased by 16%, reaching £166 million.
- Overall group revenue saw a substantial rise of 7%, totalling £1.92 billion.
- Travel-based trading profit notably climbed by 22%, with travel revenues up by 11%.
- Despite challenges, WHSmith’s high street profits remain steady, aligning with expectations.
WHSmith has reported exceptional preliminary financial results for the fiscal year ending 31 August 2024, largely attributed to its thriving travel business operations. The group’s profit before tax has surged by 16%, reaching £166 million, while the total group revenue ascended by 7% to £1.92 billion. These figures reflect the underlying strength of the brand, particularly in the travel sector, which continues to outperform expectations.
The travel arm of WHSmith has experienced a remarkable increase in trading profit, which climbed by 22% to £202 million. Additionally, travel revenues have grown by 11% to £1.47 billion, underscoring the division’s substantial contribution to the company’s overall financial health. Within the UK, the travel profit rose impressively by 25% to £126 million. North America and other international regions also saw growth, with profits rising by 12% and 38%, respectively.
In contrast, WHSmith’s high street operations faced a decline. The high street trading profits fell by 9% to £39 million, with sales decreasing by 4% to £452 million. Despite this downturn, the high street performance was in line with the company’s anticipations, indicating a manageable situation amidst external economic pressures.
Looking forward, WHSmith is optimistic about its future, as highlighted by CEO Carl Cowling: ‘The new financial year has started well. While there is some economic uncertainty, we are confident that 2025 will be another year of good progress for the group.’ The company has plans to further expand its global presence, with over 90 new stores in the pipeline, including 60 in North America. This strategic development is part of WHSmith’s commitment to leveraging its successful travel division, particularly within the UK, where trading profit has notably increased by 20% to £122 million.
The company is keen to advance its growth agenda in North America, having secured significant new airport store deals in Dallas, Denver, and Washington Dulles. It is also aiming to open additional stores across two major US airports, where it has been named the preferred bidder for a further 15 locations.
WHSmith’s strategic focus on travel retail has fortified its financial performance, positioning the company well for further growth in the coming year.
