The Very Group has demonstrated resilience and strategic financial acumen in a challenging market.
- Despite a minor decline in sales, operating profits have seen significant increases due to effective cost management.
- While overall sales dipped, UK sales showed marginal growth, highlighting domestic resilience.
- The group’s strategic initiatives, including digital upgrades and brand campaigns, have paid off.
- A potential takeover bid illustrates The Very Group’s ambitions for expansion in the ecommerce space.
The Very Group has successfully navigated a difficult market, showcasing a robust financial performance despite a slight dip in sales. Operating profits experienced a substantial rise, attributed to the company’s focus on meticulous cost management. The group recorded a remarkable 8.4% increase in EBITDA, reaching £267.6 million, and a 17.1% rise in pre-exceptional operating profit, amounting to £218.3 million.
The group’s operating costs, expressed as a percentage of revenue, dropped to an unprecedented low of 23.2%. Although there was a 1% decline in overall sales, the UK segment saw a 0.7% growth. This result underscores the effectiveness of the strategies employed to maintain competitiveness and profitability amidst challenging conditions.
Strategic developments have played a crucial role in The Very Group’s performance. Their ongoing re-platforming to a cloud-based Skyscape platform, alongside the launch of a new app for Irish customers, represents significant steps towards digital transformation. Additionally, a new brand marketing campaign further reinforced their market positioning.
In a bold move, The Very Group has also put forth a takeover proposal for N Brown, indicating their intent to grow and diversify within the ecommerce sector. Although N Brown accepted an offer from one of its founding family members, this action signals The Very Group’s strategic aspirations.
CEO Robbie Feather remarked on the strength of the company’s performance in a tough environment, stating, “In a challenging environment, our results reflect a resilient retail performance that remained ahead of the UK online non-food market, as well as a continued strong Very finance performance.”
The Very Group’s strategic approach to cost management and digital transformation has underpinned its profitable performance amidst market challenges.
