• Home
  • News
  • Business
  • Frasers Group posts increase in revenue and profit

Frasers Group posts increase in revenue and profit

By Prachi Singh

loading...

Scroll down to read more

Business

Image: Frasers Wolverhampton store

For the 26 weeks to October 23, 2022, Frasers Group revenue increased by 12.7 percent, largely due to acquisitions to 2638 million pounds.

Excluding acquisitions, disposals and on a currency neutral basis, the company said, revenue increased by 3.9 percent.

The company’s reported pre-tax profit was 284.6 million pounds, up 53 percent, adjusted PBT was 267.1 million pounds, up 38.8 percent. As a percentage of revenue, adjusted PBT was 10.1 percent, up from 8.2 percent. On a currency neutral basis, adjusted PBT increased by 53.8 percent.

Reported basic earnings per share grew by 63.5 percent to 46.1p, from 28.2p, while adjusted basic earnings per share increased by 47.9 percent to 44.8p from 30.3p.

“Whilst the macroeconomic environment is clearly challenging and the backdrop for the coming year is hard to predict with any certainty, we have strong strategic and trading momentum behind us and we remain confident in our guidance for adjusted PBT of between 450 million pounds to 500 million pounds for this financial year,” the company said in a statement.

The company’s UK sports retail revenue increased by 11.6 percent, largely due to the acquisition of Studio Retail Limited ('SRL') on February 24, 2022. Excluding acquisitions, revenue decreased by 3.1 percent largely due to a reduction within Game UK and the very strong reopening of stores after the last lockdown in March 2021 in the prior period.

The company added that premium lifestyle revenue increased by 24.7 percent, largely due to new Flannels stores and continued growth online. Excluding acquisitions, revenue increased by 22.2 percent.

International retail revenue increased by 5.8 percent, due to the acquisition of Sportmaster on May 16, 2022 and an increase in the Malaysian business, offset by the reduction in revenue following the disposal of the US retail businesses on May 25, 2022.

Frasers further said that excluding acquisitions, disposals and on a currency neutral basis, international revenue increased by 9.2 percent largely due to increases in the Malaysian business due to the prior period being impacted by Covid.

Group gross margin decreased to 42 percent from 44.7 percent in line with the guidance.

Flannels
Frasers Group