Very Group returns to profit despite softer sales
The Very Group has returned to profitability thanks to “continued diligent cost control”, despite posting softer sales.
The Very Group has returned to profitability thanks to “continued diligent cost control”, despite posting softer sales.
The online department store swung to a pre-tax profit of £6.1m in the 26 weeks to 28 December, up from a loss of £2m the year before.
The group said its focus on cost control helped to deliver a 17.4% increase in adjusted EBITDA to £150m.
Sales slipped 4.5% to £1.17bn during the half, with revenue for its Very UK brand down 3% to £1.02bn.
Very UK retail sales declined 3.1% to £819.2m, dragged down by a 4.5% fall in electricals and 6% drop in fashion due to a “heavily discounted and contracting market”.
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It attributed the dip in electricals – its largest category – to “annualising against a quarter which included significant gaming product releases”.
Despite the softer sales, the retailer reported strong growth in its home and sports category with both up 7.3% and 18.4% respectively.
The Very Group said: “As we continue to focus on higher margin sales and cost discipline through the remainder of FY25, we expect to see a continued strengthening of the profitability of our business.”
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