Wilko profits tumble as sales fall in year of ‘difficult trading’

The homeware and garden retailer’s pre-tax profit for the year to February 21, 2021 stood at £4.4m, down 61.4% year-on-year.

EBITDA during the financial period was broadly flat year-on-year at £48.3m, marking a slight drop of 0.4%.

Wilko’s 414 stores remained open during the coronavirus restrictions as an essential retailer.

The brand experienced an overall sales decline of £107.2 million in 2020 to £1.36bn, a 7% fall from the previous financial year. The decrease was mainly attributed to a reduction in footfall during the pandemic. The retailer noted that its shopping centre and high street stores were the hardest hit, with footfall dropping 40% year-on-year.

Wilko’s digital sales increased by 89% during the same time period. Wilko own-brand products also proved popular with a recorded sales participation of 54% .

Energy and fuel consumption down across the stores

The retailer stated that it did not participate in the government’s furlough scheme throughout the pandemic. The company also completed early repayment of the VAT payment deferral scheme.

Wilko reported a £31.8m investment across supply chain, IT and brand development in 2020. Sustainability was a priority, with the retailer signing the UK Plastic Pact. 

The value retailer also recorded a 7% reduction in property energy and 11% fall in fuel consumption during the year as a result of “efficiency improvements” in-store and within its logistic planning.

Speaking about the results, Wilko’s chief executive Jerome Saint-Marc said: “There’s no escaping the impact the pandemic has had on us all and that traditional British retail has been particularly badly affected.  Our focus has remained on further developing our omni-channel offer, controlling cash, developing great product and investing in our future and given all the challenges of such difficult trading circumstances the directors are satisfied with the 2021 results.”