ProCook has reported falling fourth-quarter revenues as it dealt with “challenging and unpredictable” trading conditions.
The kitchenware brand posted a 9.7% year-on-year drop in revenue to £12.6m in the 12 weeks to April 2, which it said reflected the “ongoing uncertainty in the consumer backdrop”. Like-for-like revenue dropped 9.4%.
The decline was driven by a reduction in ecommerce revenue with retail revenue being broadly flat.
ProCook’s full-year revenue was £62.3m, which was in the middle of its expected range, decreasing 9.9% year on year, or 5% excluding the discounted Amazon channels.
It forecasts that underlying profit before tax in 2023 will break even, in line with its previous guidance.
ProCook chief executive and founder Daniel O’Neill said: “The last year has been very difficult for consumers as real disposable incomes have fallen, which is reflected in our softer sales performance against our significant growth and market outperformance last year.
“While we expect trading conditions to remain challenging and unpredictable, we continue to grow our customer base by attracting new customers to the brand and remain confident in our value-for-money, specialist offer. Certain inflationary cost pressures, including wages, remain high; however, we are seeing some easing in other areas and we expect to realise the benefits of our recent actions to reduce operating costs in the current financial year and beyond.
“In our 27-year history, we have endured difficult trading conditions before and emerged stronger. We have made good strategic progress this year, investing in areas that will strengthen our foundations and improve our customer proposition. We, therefore, look forward with confidence to building the ProCook brand, equipping more customers with the tools to enjoy everyday cooking, and returning to profitable growth.”
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