ProCook losses narrow as HY revenues jump 20% to £34m
Like-for-like sales grew 8.1% across the half, with revenue momentum strengthening in the second quarter when sales rose 25.1% and like-for-like growth reached 12.2%
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ProCook has reported that operating losses narrowed by 17.8% to £1.5m in the 28 weeks to 12 October, having achieved a 20.6% rise in revenues to £34.1m during the period.
According to the kitchenware retailer, it had outperformed the wider kitchenware market in the UK by 16%.
Like-for-like sales grew 8.1% across the half, with revenue momentum strengthening in the second quarter when sales rose 25.1% and like-for-like growth reached 12.2%.
ProCook’s gross margin also increased by 130 basis points as a result of tighter promotional controls, pricing work and sourcing gains.
Meanwhile, EBITDA more than doubled year-on-year to £2.3m. The operating loss narrowed to £1.5m, an improvement of 17.8% on the underlying loss a year earlier, partly offset by a £0.6m impact from investment in new stores. Net debt was £4.1m after £2.3m of capital spending on store openings.
ProCook opened six new shops during the half and four more early in the second half, taking its estate to 71 sites. A refreshed store format launched at Birmingham Bullring is designed to improve product visibility and customer experience.
The company said social marketing activity had driven significant traffic growth and attributed revenue growth of more than 150% year-on-year. Around 360,000 customers shopped with the brand for the first time, while the number of active customers over the past twelve months rose to 1.2 million. Sales of its small kitchen electricals range increased about 80% year-on-year.
Early peak trading has been “strong”, with Black Friday and early Christmas performance ahead of last year. Four new-format stores opened ahead of Black Friday are performing in line with expectations.
Lee Tappenden, chief executive of ProCook, said: “Our momentum has continued to build, with record numbers of customers discovering the brand for the first time and enjoying our award-winning quality products and service, and our growing active customer base generating higher repeat purchases.
“This progress, demonstrated by our results, reinforces our confidence in delivering our medium-term ambition of 100 UK retail stores, £100m revenue and 10% operating profit margin, and underpins our confidence in delivering a strong full year performance, in line with market expectations.”
