UK's The Very Group posts record earnings; EBITDA surges 15.9% in FY25

The company saw robust performance across both retail and financial services operations, along with strict cost discipline. Adjusted EBITDA surged 15.9 per cent to £307.1 million (~$356.24 million), driving the adjusted EBITDA margin to a record 14.7 per cent.

Region-wise, Very UK’s revenue remained broadly stable at £1.83 billion, down just 0.2 per cent. Despite modest top-line movement, profitability improved significantly, supported by a one per cent rise in gross margin to 36.6 per cent, driven by stronger financial services performance and a favourable retail mix, notably a 9.9 per cent growth in the home category.

Operating costs, excluding fair value adjustments, were reduced by £36.4 million, lowering costs as a percentage of revenue to 22.3 per cent—the lowest in the group’s history. These efficiencies, alongside an improved sales mix and prudent credit management, underpinned a record financial year for the digital retailer, The Very Group said in a press release.

The group’s adjusted free cash inflow improved by over £155 million to £147.6 million, supported by EBITDA growth and favourable working capital dynamics. It also completed a successful refinancing of senior secured notes and its revolving credit facility, ensuring medium-term financial stability.

Bad debt as a percentage of the average debtor book improved by 80 basis points YoY, reflecting continued rigour in credit risk management. Very Finance revenue dipped marginally by 0.3 per cent to £433.6 million, though interest income yield increased by 0.4 per cent, offsetting the smaller book size.

Fashion and Sports fell 3.7 per cent due to intense discounting pressures. The company further enriched its portfolio by onboarding premium brands such as New Balance, Decathlon, and Sweaty Betty.

The group continued its multi-year technology transformation by migrating infrastructure to the cloud and upgrading its web platform. This modernisation aims to enhance collaboration with technology partners and deliver a superior retail experience.

Personalised in-app offers, richer product content, and improved navigation contributed to the company’s highest-ever net promoter score of 42, up 2 points YoY, underscoring improved customer satisfaction.

The Very Group relaunched its retail media network as Very Media Group, harnessing its deep consumer insight to help brand partners engage the Very audience more effectively and at scale. It also launched HelloStudio—a multi-channel creative service that leverages data-led creativity and insights to deliver content for both internal and external brands. HelloStudio uses emerging technologies, including AI-assisted design, to accelerate production and enhance creative storytelling.

“FY25 was a year of real progress for Very. As a multicategory digital retailer and flexible payments provider, we have a unique business model which continues to resonate with the families we serve. Our customers are at the heart of everything we do and this focus, combined with the passion of our colleagues, has helped us achieve our best-ever customer satisfaction score,” said Robbie Feather, CEO at The Very Group.

“Despite a challenging economic backdrop, we are delighted with our performance, driven by our unrelenting focus on improving all aspects of our offer and customer experience. We ensured we had the right products at the right time, at the right prices, and with the right payment options. Together with disciplined cost control we were able to deliver significant earnings growth across the year,” added Feather.

ALCHEMPro News Desk (SG)