ProCook Group plc (“ProCook” or “the Group”), the UK’s leading direct-to-consumer specialist kitchenware brand, today announces its interim results for the first half of FY25 (the 28 weeks ended 13 October 2024).
o Total revenue increased by +7.5% to £28.3m and like for like revenue increased by +4.2%, outperforming the market by +5%2 and reflecting an improving trend within the period (Q2 revenue growth +8.8%, LFL: +4.7%)
o Retail revenue increased by +6.5% benefitting from like for like growth of +1.9% having now delivered five consecutive quarters of positive like for like growth, with the impact of new store openings contributing a further +4.6% points
o Ecommerce revenue increased by +9.4%, with like for like growth of +8.5%, driven by increased conversion following migration to the new website in the comparative period, alongside marketing improvements and the planned relaunch of sales on the Amazon UK marketplace to broaden our customer reach which contributed +0.9% points
• Attracting new customers by broadening brand reach and product ranges, and providing excellent service and value o 315,000 new customers (+9.8%) shopped with ProCook for the first time
o Record high L12M active customers of 1.1m (+11.7%)
- Gross margin and operating expenses in line with expectations for H1, annualising investment in pricing from H2 last year and reflecting typical seasonal H1 operational leverage
- Net debt at the end of the first half was £4.2m (H1 FY24: £3.2m), reflecting an increased inventory position as a result of prudent intake planning in response to global supply chain disruption, with available liquidity of £11.8m
- Good strategic progress to support second half weighting to the Group’s revenues and profit, and improved profitability over the medium term:
o Opened 4 new stores in H1, with committed pipeline to exceed our ambition of 10 new stores in the full year, in locations providing new access to >150m centre visitors (combined) per year
o Launched phase three of small electricals, with our fourth phase (coffee machines) ready to launch in Q4
o Driven greater brand awareness and marketing efficiency including through shifting digital channel mix and lifestyle-centred marketing campaigns
o Enhanced store customer service and online experience, improving NPS score and achieving higher conversion rates
Current trading
In the first eight weeks (ending 8 December 2024) of Q3, including Black Friday and the early part of Christmas trading:
- Total revenue increased by +7.5%, and like for like revenue grew by +0.9% reflecting continued trading momentum and market outperformance
- Retail performance was hampered by weak footfall during the early weeks of the second half, coinciding with the Budget event, but has improved since. As a result, Retail like for like revenue was -4.0%. New stores contributed a further +10.3% points to deliver total Retail revenue growth of +6.3% over the eight weeks
- Ecommerce performance continued to increase year on year with like for like growth of +7.7% and total growth of +9.3% when including revenue generated from the recently re-launched Amazon UK marketplace channel
During the eight weeks we opened five new stores as planned, taking the year to date total up to nine new stores, with two smaller garden centre stores closed during the eight weeks.
Lee Tappenden, chief executive officer, commented: “We delivered a strong performance in the first half, outperforming a subdued market, and growing our customer base whilst maintaining cost discipline. We have made good progress against our strategic priorities and continue to invest carefully in the areas that will support profitable growth in the medium term.
“We now expect to open a further three new stores in the remainder of the financial year, taking the total up to 12 new stores and, by closing two smaller garden centre stores, adding a net 10 new stores to our Retail network across the year.
“We are pleased with trading results in the first half of the year. Whilst the important Q3 trading period had a subdued start in the early weeks coinciding with the Budget event, and a later Black Friday year on year, we are well positioned to take advantage of the improved momentum we are now experiencing, supported by our Christmas campaign, new product launches and strong inventory levels.
“Notwithstanding recent continued challenging trading conditions, our expectations for the Group’s full year performance are unchanged, as we anticipate our typical second half weighting of revenue and profitability, supplemented by the actions we have taken to expand our retail network, combined with continued margin and cost discipline.
“We remain confident in delivering continued strategic progress and sustainable growth over the medium term, as we work towards our ambitions of 100 stores, £100m revenue and 10% operating profit margin.”
