WHSmith has reported strong financial results, largely driven by its travel sector, despite challenges faced on the high street.
- The company’s group profit before tax rose by 16%, reaching £166 million, with a 7% increase in total revenue to £1.92 billion.
- WHSmith’s travel division excelled, with a 22% rise in trading profit to £202 million, as revenues climbed 11%.
- The UK travel segment led growth with a 25% profit increase, while high street profits dipped by 9%.
- CEO Carl Cowling expressed optimism for continued growth, highlighting international expansion and strategic store openings.
WHSmith has showcased resilience and adaptability in its recent financial performance for the year ending 31 August 2024. Despite the ongoing challenges in the high street retail environment, the company reported a significant 16% increase in group profit before tax, totalling £166 million. Moreover, group revenue saw a healthy rise of 7%, reaching £1.92 billion, demonstrating the effectiveness of its focused strategies.
A major contributor to this success was WHSmith’s thriving travel sector, which saw a substantial 22% surge in trading profits to £202 million. This division also experienced an 11% increase in revenues, totalling £1.47 billion. The UK travel market was a standout performer within this segment, posting a notable 25% increase in trading profit to £126 million. This growth was attributed to the effective implementation of their one-stop-shop concept, which has expanded profitability.
Meanwhile, the company’s operations in North America and other international markets also contributed to its robust performance. North America saw a 12% rise in trading profit, whereas operations in the rest of the world reported an impressive 38% growth, indicating strong global traction.
Conversely, the high street segment faced a decline, with trading profits falling 9% to £39 million and sales declining by 4% to £452 million. However, these results were aligned with expectations, reflecting the broader challenges faced in the retail industry.
Looking forward, CEO Carl Cowling conveyed a positive outlook for 2025, despite some economic uncertainties. He noted the early successes in the new financial year and emphasised plans for further expansion, including the opening of more than 90 new stores globally. This expansion includes 60 new locations in North America and a strategic focus on enhancing their airport presence, which includes recent wins at major airports like Dallas and Denver.
WHSmith’s strategic focus on travel retail and international growth positions it well for continued success, despite high street challenges.
