WHSmith has reported a slight increase in profit, supported by robust travel sales.
- The group achieved a pre-tax profit of £46 million for the year ending 31 August 2024.
- Overall group sales increased by 7%, largely driven by a 10% boost in the travel segment.
- While travel arm profits rose, high street operations saw a decline in performance.
- The company plans to expand its collaboration with Toys “R” Us in the coming months.
In a slight uptick, WHSmith reported a group pre-tax profit of £46 million for the fiscal year ending 31 August 2024, marking an increase from the prior year’s £45 million. This increase is primarily attributed to the surge in travel sales, which rose by 10% and significantly contributed to the overall group sales increase of 7%.
Despite these gains in the travel sector, WHSmith’s high street operations faced challenges, with profits from this segment decreasing from £24 million to £22 million. This indicates a shifting focus and success predominantly concentrated in the travel outlets.
WHSmith remains optimistic about future growth, with CEO Carl Cowling noting a strong financial position aligned with expectations and significant improvements in its travel businesses. Acknowledging the UK division’s robust performance during the peak summer trading period, he stated, “We have ended the financial year in a strong position, delivering a performance in line with our expectations with good growth across our travel businesses.”
The retailer is committed to extending its retail offerings by introducing 30 Toys “R” Us shops within its stores, with an additional 37 planned by December 2024, totalling 76 across the UK. This strategic partnership aims to leverage the iconic toy brand to attract a broader customer base.
WHSmith’s strategic emphasis on expanding its travel and retail partnerships is evident amidst mixed results in its diverse operations.
