Barbour revenue jumps, profits take slight hit

Outerwear specialist Barbour reported its financials for the year to the end of April, during which time its revenue saw a slight jump, despite profits being lower than the year prior.

While turnover rose to 342.1 million pounds, up from 286.5 million pounds and boosted by a rising cost of sales, the company’s gross profit jumped from 128.8 million pounds to 149.4 million pounds.

Operating profit fell from 40.3 million pounds to 34.3 million pounds, taking a hit on overall profit, which dropped to 36.3 million pounds from 40.5 million pounds. Net profit for the year decreased from the previous 33.8 million pounds to 28.1 million pounds.

Barbour noted in the filing, made with the UK’s Companies House, that cost and pricing pressures had remained “relentless across all markets globally” and it was “investing heavily in multiple areas to maintain service to [its] customers, in these uniquely difficult circumstances”.

Its net profit, meanwhile, represented a “strong performance” and its “ability to manage [the] business closely” during the “challenging macroeconomic climate”, with the revenue increase further illustrating a strong recovery following the impact of Covid-19.

Balance sheet remains ‘strong’ despite macroeconomic challenges

It added: “In a post-Covid world, the uncertainty and economic challenge presented by the cost-of-living crisis and the war in Ukraine, presenting numerous challenges to margins across all channels and markets, reducing gross margin by 1 percent, with absolute margin increasing 21 million pounds.

“Despite these considerable cost pressures, we wanted to remain good value for our consumers and did not increase our prices in line with the cost increases suffered. With uncertainty across global markets and competition for volatile demand remaining high, navigating profitability has been a challenge, with cost pressures intense and exchange rate pressure very evident throughout 2022-23.”

While this may be the case, Barbour said that its balance sheet remained “strong”, with cash held in the business totaling 106.4 million pounds, up from 58.4 million pounds in 2022, allowing for the company to focus on long-term investments.

As such, Barbour said it would continue to fund its people, systems and service, among other areas, while working through “structural changes to mitigate the negative impact of Brexit”.

It noted that the EEA remained an important market for the company, and that it would continue to invest and grow partnerships in this region over the long term.