The Very Group has posted a rise in full-year profitability despite falling sales, as the etailer hailed the impact of “diligent cost management” in a “challenging market”.
The etailer posted a 2.2% uptick in pre-tax profit to £63.9m in the 52 weeks to July 2. That total included exceptional items of £41.5m.
Underlying group EBITDA slipped 3% to £291.4m compared to the previous year.
Very said group revenue fell 7.3% to £2.1bn, while sales made through its core Very econmmerce business dropped 4% to £1.7bn.
Despite the contraction in its top line, Very grew profitability by keeping a close eye on its cost base. Costs as a percentage of revenue fell 1.6 percentage points year-on-year to 23.2%.
By categories, The Very Group reported a 6% jump in fashion and sports sales, driven in particular by an 87% increase in “women’s high street brands” and a 50% increase in sales of “designer brands”. Sales of personal care products also jumped, up 15.2%.
By contrast, with the cost-of-living crisis continuing unabated and customers increasingly feeling the pinch, sales in electricals and homewares fell by 12.7% and 22.3% respectively.
Very said it had also made “significant progress with our multi-year tech investment roadmap” in the period, and that its AI-powered chatbot Very Assistant had experienced a 38% increase in handling queries.
The group also took strides in the period to make its stock fulfillment processes more flexible, adding six more brands (Berghaus, Speedo, Quiz, Ann Summers, Lacoste and Kickers) to its stockless fulfilment model following a successful trial with Adidas and Reebok.
Very Group chief financial officer Ben Fletcher said: “I am pleased to report another robust performance, driven by ongoing structural growth in the Very brand, our integrated business model – which continues to prove resilient as we adapt to changing customer behaviour – and, of course, our amazing people.
“We also successfully managed costs, achieving a reduction relative to revenue despite inflationary pressures.
“Throughout the year, we were there for millions of families who benefited from our combination of leading brands and flexible payment options, from the return of fashion for the whole family to entertaining the kids, updating homes, and accessing the latest games consoles and TVs.
“We did that while investing in our digital customer experience, modernising our technology, strengthening our Very Pay platform and increasing our product assortment through stockless fulfilment.
“While the rising cost of living and other economic conditions present challenges for all retailers, we’re confident in our resilient and adaptable business model – which combines multi-category online retail with flexible ways to pay. We now turn our attention to delivering an amazing Christmas for the families we serve.”
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