The Very Group has delivered an ‘improved performance’ as profit grows but revenue dips

In the 26 weeks to December 28, the retailer recorded a 4.5% decrease in total group revenue to £1.17bn, down from £1.22bn in the same period last year. It cited “ongoing economic pressures” as a factor of the decline.

Very Group said despite this, it saw an “improved performance” due to its focus on cost control, which helped deliver a 17.4% year-on-year growth in adjusted EBITDA to £150m.

Profit before tax reached £6.1m compared to a £2m loss during the same period last year, while operating profit reached £105m, up from £95m last year.

Group retail sales fell by 4.4% year-on-year to £953m, with Very UK retail sales declining by 3.1% to £819m.

Electricals, which is its largest category, decreased by 4.5% across Very UK which is said was a result of “annualising against a quarter which included significant gaming product releases”.

Toys, gifts and beauty performed strongly during peak, but it declined by 0.6% during this period. However, toys grew by 3.1% and beauty increased by 6.3%.

Home grew by 7.3% thanks to Very Group “prioritising higher margin sales”, and fashion and sport slipped by 6%. Excluding the impact of Nike, fashion grew by 1.7% and sport increased by 18.4%.

The Very Group said: “As we continue to focus on higher margin sales and cost discipline through the remainder of FY25, we expect to see a continued strengthening of the profitability of our business.”