Halfords has posted an increase in sales across its retail and autocentres categories as well as a rise in profit.
The motoring and cyclist specialist reported a 13.9% rise in revenue to £837.5m in the 26 weeks to September 29.
Revenues across its retail and autocentres increased 3.2% and 33.9% respectively, while underlying profit before tax rose 15.8% to £21.3m compared with the same period last year.
The group also made market share gains in all categories, but cycling is still performing below expectations due to the “well documented consumer environment.”
Underlying EBITDA also increased 11.7% to £90.9m as Halfords said the first half of FY24 showed a “period of further strategic progress and resilient financial performance.”
The group is cautious about the rest of the year as “inflationary headwinds annualise” and it has been seeing slower like-for-like sales growth during the past couple of months.
It expects underlying profit before tax to fall within a range of £48m to £53m, but is confident in its mid-term target of £90m to £110m beyond 2024.
Autocentre investment
Halfords chief executive said: “Despite the challenging and volatile trading environment and slower than expected recovery in some of our markets, we have made a good start to the year, with substantial sales and profit growth, and increased market share across the business.
“At the same time, we supported our customers through the ongoing cost-of-living crisis by delivering great value – when they need it most.
“In the face of continuing economic uncertainty, we remain fully focused on optimising every element of the business, and I’m particularly pleased with the very strong performance of Autocentres, where we are delivering significantly improved returns.
“In light of this, we are accelerating capital investment in the garage services operating model and customer experience in 10 towns in the balance of this financial year.”
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