UK's Very Group posts profit growth despite 9M FY25 revenue dip

The gross profit of the company stood at £563.1 million (~$760.19 million), with a statutory gross margin improvement of 0.3 percentage points to 35.1 per cent. A 0.1 percentage point reduction in the bad debt ratio also supported margins.

Very UK, the group’s flagship brand, contributed 88 per cent of total sales with revenue falling 2.5 per cent to £1,405 million, while Littlewoods UK and Very Ireland generated £148.1 million and £50.6 million, respectively—both registering YoY declines in line with expectations.

By geographical location, £1,553.1 million of the group’s revenue came from UK and £50.6 million from the Republic of Ireland.

The group retail sales dropped 3.9 per cent YoY to £1,261.5 million, with Very UK retail sales down 2.4 per cent to £1,082.6 million. Despite the overall decline, the company achieved strong performance in key strategic categories.

The operating profit for 9M period was £148.5 million—£144.7 million from the UK and £3.8 million from Ireland—slightly up from £147.2 million in the prior year.

On the cost side, the group’s operating cost base, excluding depreciation, amortisation, and exceptionals, decreased to 21.8 per cent of revenue from 23.1 per cent a year earlier.

The distribution expenses fell by £28.9 million to £127.4 million, or 7.9 per cent of revenue, driven by ongoing logistics and fulfilment optimisation, and administrative costs were also reduced by £6.4 million to £222.6 million, reflecting continued cost-saving initiatives across the business.

These efficiencies contributed to an 8.9 per cent increase in pre-exceptional EBITDA to £214.9 million, with the EBITDA margin reaching a record 13.4 per cent. Adjusted EBITDA rose 11.4 per cent to £215.4 million, with the margin improving from 11.6 per cent to 13.4 per cent.

ALCHEMPro News Desk (SG)