The Very Group has returned to profitability thanks to “continued diligent cost control”, despite posting a drop in sales.
The online department store swung to a pre-tax profit of £6.1m in the 26 weeks to 28 December, up from a loss of £2m the year before.
The group said its focus on cost control helped to deliver a 17.4% increase in adjusted EBITDA to £150m.
Sales slipped 4.5% to £1.17bn during the half, with revenue for its Very UK brand down 3% to £1.02bn.
Very UK retail sales declined 3.1% to £819.2m, dragged down by a 4.5% fall in electricals and 6% drop in fashion due to a “heavily discounted and contracting market”.
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It attributed the dip in electricals – its largest category – to “annualising against a quarter which included significant gaming product releases”.
Despite the softer sales, the retailer reported strong growth in its home and sports category with both up 7.3% and 18.4% respectively.
The Very Group said: “As we continue to focus on higher margin sales and cost discipline through the remainder of FY25, we expect to see a continued strengthening of the profitability of our business.”
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