WHSmith profits and revenues soar as travel business takes off

In its preliminary results for the year ended August 31, 2024, WHSmith reported a 16% increase in headline group profit before tax up 16% to £166m and a 7% jump in total group revenues to more than £1.9bn.

Total travel trading profit jumped to £202m, group profit from trading operations increased to £241m, while group profit before tax slipped to £106m - down £4m year-on-year.

By region, WHSmith’s travel UK trading profits increased to £126m, from £101m; north America jumped to £58m from £52m and the Rest of the World edged up to £18m from £13m.

Total travel revenues increased 11% to over £1.4bn.

By comparison, high street trading profits for the period retreated £4m to £39m, while sales dipped 4% to £452m.

WHSmith said it had a new store pipeline of over 90 stores around the world yet to open, including c.60 in North America, of which the brand expects to open 40 net stores this financial year in travel.

Group CEO Carl Cowling said: “The Group has delivered an excellent performance throughout the year, particularly over the key summer trading period.

“Our Travel divisions are trading well with a particularly strong performance from our UK Travel business, with trading profit up 20% to £122m. We are making excellent progress in the UK as we continue to benefit from the rollout of our one-stop-shop format which is creating significant opportunities to further grow profitability.

“Our most exciting opportunity for growth is in North America. We are very pleased to have recently won some significant new airport business, including wins at Dallas, Denver and Washington Dulles airports, and we are the preferred bidder for a further 15 stores across two major US airports. Our store opening programme is on track and we have a new store pipeline of c.60 stores already won.

“In addition to the £50m share buyback announced in September, the Board is today proposing a final dividend of 22.6p, making a total of 33.6p for the year reflecting current trading and the significant medium- and long-term prospects for our global travel business.

“This set of results would not be possible without the ongoing efforts and dedication of the entire team across the globe, and I am extremely grateful for their support.

“The new financial year has started well. While there is some economic uncertainty, we are confident that 2025 will be another year of good progress for the Group.”