Dixons Carphone has delivered an “excellent” trading performance in its first full year as a merged business as sales and profits increased.
- Group pro forma headline pre-tax profit up 21% to £381m
- Group like-for-likes jump 6%
- UK and Ireland revenue up 7% to £6.45bn
The retailer, a result of the merger of Dixons Retail and Carphone Warehouse, reported group pro forma headline pre-tax profit up 21% to £381m. The results have been adjusted to take into account the merger of the business.
Group like-for-likes jumped 6% in the 13 months to May 2. Within that UK & Ireland was up 8% and Nordics up 4%.
Group pro forma headline revenue increased 2% to £9.94bn.
In its domestic arm revenue rose 7% to £6.45bn, while pro forma headline EBIT advanced 26% to £306m. The retailer said it “continued to gain market share with strong sales driving increased profitability”.
It said it achieved record customer net promoter scores while its pricing was at its “most competitive ever”. The peak period, which now stretches six weeks from ‘Black Friday’ into the new year, was “particularly strong with both small and large white goods, as well as large screen TVs, selling very well”.
‘Terrific first year’
Dixons Carphone group chief executive Sebastian James, who topped Retail Week’s Power List 2015, said: “This has been a terrific first year for Dixons Carphone. We have seen excellent increases in both sales and profitability and we have made very encouraging progress with the tricky job of integrating these two great companies.
“I am acutely aware that there is no room for complacency in a sector which has seen unprecedented change”
Sebastian James, Dixons Carphone
“At the same time, we have continued to generate strong customer satisfaction numbers, made significant strides in our Connected World Services business including our agreement with Sprint, and launched a brand new mobile network.
“The job is far from done. I am acutely aware that there is no room for complacency in a sector which has seen unprecedented change, bringing both opportunities and challenges.
“We have set ourselves ambitious goals, not only financial, but also in terms of driving customer happiness, building a completely integrated company and delivering a brand new global services business with CWS.
“To achieve these, we will need to exhibit creativity, energy, resilience and toughness of purpose. Nevertheless we are very optimistic about the road ahead.”
The group’s mobile arm “performed well”. Postpay volumes and market share continued to grow, driven by the exit of Phones 4U and some “very successful” product launches.
In May 2015 the group launched mobile network iD. The initial performance of iD and the customer response, so far, “has been very promising indeed”, the group said.
Revenue increased 4% to £2.71bn in the Nordics at local currency. In southern Europe, where it operates stores in Greece, sales fell 10% to £637m, pulled down by Spain.
However, despite the challenging economic environment, Greece delivered “strong” like-for-like revenue growth and the business returned to profitability.
“We do however remain very mindful of the uncertain economic and political situation in the country and the effect this may have on our business. The team have been very active in planning for every contingency,” Dixons Carphone said.
As previously stated its target of a minimum £80m synergies by 2017/18 has now been brought forward by one year to 2016/17.