Frasers profits nearly double amid sports retail growth
Following the strong showing of FY23 the company expects its adjusted profit before tax to be in the margin of £500-550m for FY24
Frasers group has posted profit before tax of £660.7m for the year ended 30 April 2023, nearly double the £335.6m profit it posted last year.
The company stated that this profit increase was mainly driven by a profit growth from its sports retail business from £2.64bn in 2022 to £3.08bn in 2023, an increase of 16.7%.
Alongside this, the company’s adjusted profit before tax saw an increase of 40.7% from £339.8m to £478.1m once £97.2m of exceptional items were factored in amongst other things.
Overall, the group saw its revenue jump 15.8% to £5.56bn compared with £4.80bn last year.
The company’s premium lifestyle businesses saw a 14.8% increase in revenue from £1.05bn up to £1.21bn.
Lastly, Frasers international retail businesses saw a revenue increase of 15.2% from £950.5m to £1.08bn.
Following the strong showing of FY23 the company expects its adjusted profit before tax to be in the margin of £500-550m for FY24.
Michael Murray, chief executive, said: “In my first full year as chief executive, we have delivered a strong performance across the group. We were bold in setting our full year guidance twelve months ago, before the full impact of the cost-of-living crisis was clear, but our business has remained resilient, and we have met these expectations.
“The Elevation Strategy is continuing to drive results across every segment, and I want to thank the entire company for all their hard work in delivering our vision for Frasers Group. It has been a particularly significant year for sports retail, demonstrating that elevating Sports Direct was the right strategy.”
He added: “Our investment in the store estate, our focus on strengthening key brand partnerships, and the synergies created by strategic acquisitions is now delivering very clear results. We’ve also made huge progress in the year building our sector-leading ecosystem, with Frasers Plus now successfully launched across our brands and businesses.
“We enter the new financial year in a strong position and are determined to unlock further growth, underpinned by our laser focus and acceleration of our Elevation Strategy.”
