The Very Group UK annual sales up 1.9% but profits down
The Very Group, which operates digital retailers Very and Littlewoods, has announced its full year results for the 52 weeks ended 1 July 2023.
Very UK revenue increased 1.9% to £1.82bn (FY22: £1.79bn)
Group revenue was broadly flat at £2.15bn.
Top-line performance supported by strong Very Finance revenue growth of 6.1% to £422.1m (FY22: £397.9m)
Group adjusted free cashflow increased 9.6% to £128.4m (FY22: £117.2m)
Very UK revenue increased 1.9% to £1.82bn (FY22: 1.79bn), while Group revenue was broadly flat at £2.15bn.
Robust Group adjusted EBITDA of £276.5m (FY22: £291.4m), which was impacted by pricing investment and cost inflation, and mitigated by good cost management and strong Very Finance contribution.
Group profit before tax (PBT) of £4.6m (FY22: £63.9m), impacted by the heightened cost of funding to the company. Finance costs increased 43.5% in FY23.
Compared with FY20, Group adjusted EBITDA margin was flat at 12.9% despite the inflationary pressures.
Very.co.uk category performance
Electrical, Very UK’s largest category by retail sales, was up 3.3%, underpinned by small domestic appliances such as air fryers (+52.4%), and mobiles, tablets and wearable tech (+7.0%).
Home was down 1.4% year-on-year. Within the category, strong performance in textiles (+5.3%) and upholstery (+9.6%) was offset by declines in home accessories (-6.0%) and garden (-12.7%).
Toys, gifts, and beauty grew 13.0% year-on-year, driven by toys (+20.6%) and personal care (+25.0%).
The Group expanded its own brand range, Everyday, adding 900 quality lines. Spanning women’s, men’s, and kids’ fashion, as well as homeware, 85% of Everyday fashion items are available for £30 or less.
“Despite challenging economic conditions, our adaptable business model has driven market-beating top-line growth, improved cash flow year-on-year, and our best-ever customer satisfaction score. It’s down to the investments we made in pricing and our digital customer experience, our cost discipline, and the commitment of our people in serving families in the UK and Ireland.
“In the year ahead, we will continue to deliver a combination of investment-led growth – with a clear focus on improving our digital customer experience – and diligent cost management. While the market will remain challenging, we’re confident our proven and resilient business model, which combines multicategory online retail with flexible ways to pay, will continue to deliver for our customers.”
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