New Balance experiences significant sales growth, doubling figures in two years.
- The UK arm of New Balance shows a turnover of £882.1m in 2023.
- Pre-tax profits rise dramatically to £148.2m from £6.6m the previous year.
- Employee numbers increased as part of the company’s expansion strategy.
- Intercompany sales and financial tactics contribute to sustained growth.
The UK division of New Balance has witnessed a remarkable surge in sales, managing to more than double its figures over the past two years. This substantial increase in sales metrics is underscored by the company achieving a turnover of £882.1m for the year 2023. This marks a distinct progression from £679.7m in 2022 and £413.5m in 2021.
Moreover, New Balance’s financial performance has been reflected in its pre-tax profit, which soared from a modest £6.6m to an impressive £148.2m. This rebound underscores a successful return to profitability which the company had not experienced since 2014, highlighting effective strategic measures implemented over the year.
A key element contributing to New Balance’s growth includes the strategic increase in workforce from 690 to 738 employees. The expanding team is a testament to the company’s ongoing investment in growth within the UK and wider Europe, with UK sales alone climbing to £265.6m.
Financially astute strategies have been pivotal to this success, as illustrated by the company’s handling of intercompany sales. While these sales experienced a significant uplift, the company managed to reduce intercompany receivables by ensuring faster settlement of balances by subsidiaries. This prudent management aligns with the company’s commitment to maintaining a strong cost base while investing strategically.
Through maintaining focus on direct-to-consumer channels and pivotal sports categories such as running, football, tennis, and basketball, New Balance continues to bolster its brand strength and consumer reach. Investment in research and development for improved sportswear and footwear also underscores the company’s commitment to promoting domestic manufacturing in the UK.
New Balance’s strategic investment and focus on product categories have catalysed a significant turnaround in both sales and profitability.
