WHSmith profits rise 16% to £166m in FY24
The retailer said to have seen ‘strong momentum’ across its travel markets over the peak summer trading period and this has continued into the new financial year
WHSmith has seen its profit before tax increase 16% to £166m in its preliminary results for the year ended 31 August.
Total group revenue for the year was up 7% at £1.9bn, with a “strong” performance across the retailer’s travel, air, hospital and rail segments.
The retailer said to have seen “strong momentum” across its travel markets over the peak summer trading period and this has continued into the new financial year.
In the travel arm, revenue increased 11% to £1.4bn, with the UK segment amounting to £795m.
During the year, WHSmith opened 14 new stores in the UK, including 3 at airports, 6 in hospitals and 5 in rail. It now expects to open 10 to 15 new stores and close 7.
In the air segment, total revenue was up 11% and LFL revenue also up 11% on the prior year. The retailer said that the development of its “one-stop-shop” for travel essentials format in the UK is delivering “strong” results, driving profitability, and highlighting significant opportunities for the future.
The hospital channel, its second largest channel in Travel UK by revenue, continued its “very strong” growth with total revenue up 14% and LFL revenue up 12% in the year. Meanwhile in the rail segment, total revenue up 13% and LFL revenue up 11%.
However, high street profits for the retailer fell 9% to £39m, which the group said was “in line” with expectations. By the end of the year, the high street business operated from 500 stores, with 14 store closures.
In the second half of the year, WHSmith opened 30 Toys “R” Us shops in shops and following their success, the retailer is now in the process of opening a further 37 ahead of Christmas.
Carl Cowling, group chief executive, said: “Our travel divisions are trading well with a particularly strong performance from our UK Travel business, with trading profit up 20% to £122m. We are making excellent progress in the UK as we continue to benefit from the rollout of our one-stop-shop format which is creating significant opportunities to further grow profitability.
“This set of results would not be possible without the ongoing efforts and dedication of the entire team across the globe, and I am extremely grateful for their support. The new financial year has started well. While there is some economic uncertainty, we are confident that 2025 will be another year of good progress for the group.”
