The Very Group reports a significant increase in profit despite flat overall revenue.
- Annual earnings before interest, taxes, depreciation, and amortisation increased by 8.4%.
- Despite a slight revenue increase in Very UK, group revenue saw a marginal decline.
- Non-food market performance and Very Finance segment showed resilience.
- Leadership changes and strategic investments mark a pivotal year for the company.
The Very Group has reported its annual results for the year ending 29 June 2024, revealing a notable 8.4% increase in EBITDA to £267.6 million, compared to £246.9 million in the previous year. This achievement highlights a robust financial performance amidst challenging market conditions.
Revenue for Very UK saw a modest rise of 0.7% to £1.84 billion, whereas the overall group revenue experienced a 1% decline, dropping to £2.13 billion. Despite this, the company’s finance arm, Very Finance, recorded a revenue growth of 3.1%, amounting to £435 million. This demonstrates the strength and resilience of the financial services offered by the group.
However, the fashion and sports segment faced a 5.5% decline, attributed to a contracting market landscape. Within this sector, certain categories showed promising growth, such as casual womenswear and watches, both rising by around 3%, and premium fashion which soared by 15.5%. These figures indicate selective consumer spending trends that favour premium and niche products.
The company managed to grow its pre-exceptional operating profit by 17.1% to £218.3 million, achieving the highest level since the fiscal year 2019. The firm cites ‘resilient top line and careful cost management’ as pivotal factors in attaining such operational efficiency, with operating costs as a percentage of revenue at an all-time low of 23.2% despite inflationary pressures.
Robbie Feather, CEO of The Very Group, attributed these results to a ‘resilient retail performance that remained ahead of the UK online non-food market’ and the continued success of its finance division. Earlier in the year, the company announced a £125 million investment and in September, appointed Nick Beighton, former boss of Asos, as a non-executive director, marking strategic shifts in leadership and investment.
The Very Group demonstrates robust financial management and strategic adaptation amidst market challenges, signifying a sound operational milestone.
