ProCook revenues fall 9.9% in FY23
The group attributed its performance to gross profit margins being held back by higher supply chain costs and the impact of foreign exchange rates
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Kitchenware brand ProCook has revealed that total revenues fell by 9.9% to £62.3m in the year ended 2 April, with like-for-like revenues declining by 10.7% year-on-year following outperformance by the group last year.
The group attributed its performance to gross profit margins being held back by higher supply chain costs and the impact of foreign exchange rates, which was “partly” offset.
As a result, the group’s year end net debt reached £2.8m compared with £1.8m in FY22.
However, the group’s underlying loss before tax of £0.2m, which stood at £9.5m in FY22, reflects the company’s lower sales, gross margin impacts, inflationary cost pressures, and the company’s investments into the business to drive growth.
During FY22, the company opened a new distribution centre and HQ in Gloucester, as well as achieved B Corp certification and was recognised by Which? as a ‘Recommended Provider’, ranking fourth amongst a large peer group based on customer feedback.
During the first quarter of FY24 to 26 June 2023, trading conditions for the group have remained challenging due to the continued impact of inflation and further interest rate increases.
In addition, revenue of £10.7m was 6.7% lower year-on-year, with like-for-like revenue down 7.9% due to warm weather and soft homewares’ market impact during May and June.
ProCook’s share of the market has also remained flat year-on-year during Q1.
Daniel O’Neill, CEO and founder of ProCook, said: “This year the economic backdrop has been one of the toughest I have experienced in my career. Our customers and colleagues have felt the squeeze on disposable incomes as inflation has soared upwards. We have faced challenging trading conditions before, and emerged stronger and more determined.
“I am pleased with the strong strategic progress we have made this year, despite the challenging economic backdrop. In opening our new distribution centre, simplifying our operations to focus on the UK, improving our in-store and online experience, and becoming a B Corp, while also extending and improving our product ranges, we have made significant steps forward.”
He added: “We know that our proposition continues to resonate very well with customers, and with our progress this year, we have built a better business, paving the way for improved performance and future profitable growth in the years ahead.”
