In the face of formidable challenges, the Very Group has demonstrated unwavering resilience throughout the year. While reported revenues remained steady and pre-tax profits dipped by nearly £50 million, a positive £4.6 million was maintained. But the numbers only tell part of the story.
For the fiscal year ending on July 1, the digital retail giant, home to renowned brands such as Very and Littlewoods, continues to shine with a relentless focus on market-beating top-line growth.
While Very UK achieved a 1.9% revenue increase, reaching £1.82 billion, the group’s revenue held steady at £2.15 billion. This stability was, in part, attributed to the outstanding performance of Very Finance, where revenue growth soared by over 6%, achieving an impressive £422 million.
The significant pre-tax profit dip was largely attributed to the escalating funding costs, which surged by an eye-catching 43.5% in FY23.
Despite these challenges, group adjusted EBITDA remained robust, experiencing only a marginal decrease to £276.5 million from £291.4 million the previous year. This dip was primarily the result of strategic pricing investments and cost inflation, which were adeptly mitigated by prudent cost management and the substantial contribution from Very Finance.
Furthermore, the group’s adjusted free cash flow exhibited healthy growth, increasing by 9.6% to reach £128.4 million.
It is worth noting that Very Group managed to outpace the online non-food retail market, showcasing its market share growth during this period.
When assessing performance, the fashion and sports segments witnessed an overall decline of 8.2% year-on-year in what was deemed a promotional market. Nevertheless, within this segment, casual womenswear registered a robust 4.8% growth, while casual menswear saw a commendable 1% uptick, both performing remarkably well.
The beauty sector, increasingly influential, reported an outstanding 13% year-on-year growth, driven by strategic pricing investments. Additionally, personal care enjoyed an impressive surge of 25%.
The success in the beauty segment was attributed to proactive investments in pricing and assortment. A significant mention was made of the «Everyday» value-focused own-brand range, which introduced 900 quality product lines for women, men, and children. Notably, 85% of Everyday fashion items are now available for £30 or less.
Further elevating the customer experience, the group achieved its highest-ever net promoter score at 35.9, a remarkable increase of 8.2 points.
The company’s commitment to technology transformation was also emphasized, including ongoing efforts to migrate systems to a new e-commerce platform and the introduction of AI-powered product discovery features across Very’s website and app.
Looking ahead, Group CEO Lionel Desclée expressed confidence in the business model’s resilience, emphasizing a strategy of investment-led growth and rigorous cost management. Although challenges may persist in the market, Very Group’s multi-category online retail approach, combined with flexible payment options, positions it well to continue delivering for its customers.
The results were met with a positive reception from analysts at GlobalData, who commended Very’s increased investment in AI as a pivotal tool for future growth. They lauded the company’s adept navigation of the challenging market and anticipated that AI investments would not only boost group revenue but also enhance profit margins and the overall shopping experience.
