Amidst a challenging market, The Very Group reports significant profit growth and operational cost efficiency.
- Despite a decrease in sales, strategic cost management led to an 8.4% increase in EBITDA.
- The group’s operational expenses were reduced to historic lows, improving to 23.2% of revenue.
- UK sales showed a modest increase while overall sales saw a slight decrease.
- CEO Robbie Feather highlights the group’s resilience in outperforming the UK online non-food market.
In a year marked by economic challenges, The Very Group achieved noteworthy financial outcomes through meticulous cost management strategies. Despite facing a 1% decline in overall sales, the group managed to enhance its financial performance significantly. This was achieved through an 8.4% growth in EBITDA, reaching £267.6 million for the year ending 29 June.
A key factor contributing to this financial vitality was the group’s achievement in reducing operating costs to their lowest percentage of revenue, now standing at 23.2%. This represents a 0.8 percentage point decrease, reflecting the group’s strategic efficiency in managing expenses amidst a fluctuating market landscape.
The Very Group experienced a slight uptick in its UK sales by 0.7%, a modest advancement amidst broader declines. CEO Robbie Feather noted that the company’s resilience and strategic initiatives have enabled it to remain ahead of the UK online non-food market, a testament to its robust retail strategies and effective cost management.
This positive financial trajectory aligns with The Very Group’s ongoing implementation of its strategic pillars, which include technological advancements such as the transition to the Skyscape platform, introduction of a new app for Irish customers, and a refreshed brand marketing approach. These steps highlight the group’s commitment to enhancing customer experience and operational efficiency.
In addition to its financial strategies, The Very Group recently made headlines with its preliminary proposal to purchase the listed ecommerce group, N Brown. Although the bid was ultimately outbid by a founding family member’s deal, this move signifies The Very Group’s strategic ambition to expand within the ecommerce sector.
The Very Group’s strategic cost management and operational advancements underscore its financial resilience and market leadership.
