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Frasers Group has reported that its adjusted profits-before-tax rose 13.1% to £544.8m for the year ended 28 April, hitting the top-end of its previous guidance range.
This comes despite retail revenues falling by more than £100m to £5.3bn, with overall revenues declining by 0.9% to £5.5bn.
However, the group managed to hit the top-end of its guidance thanks to the continued success of its Elevation Strategy and strengthened brand partnerships, which had a positive impact on year-on-year revenues and gross profit growth.
During the period, Frasers also completed its warehouse automation project, which increased the efficiency of its warehouse and inventory handling processes. This resulted in a 8.2% (£138.2m) reduction in gross stock holding year-on-year.
In addition, the group rolled out a new group-wide digital platform, which aimed to streamline and enhance retail operations and improve customer experience across all digital brand channels.
Frasers ended FY24 with cash inflow from operating activities before working capital movements of £834.6m, largely due to the strong trading performance at Sports Direct.
Michael Murray, CEO of Frasers Group, said: “This has been a break-out year for building Frasers’ future growth. As well as delivering a strong trading performance, particularly from Sports Direct, we made significant progress with our Elevation Strategy. We expanded our retail ecosystem, establishing valuable partnerships with new brands.
“I’m really proud of what we have achieved at Frasers this year and would like to thank all colleagues for their continued hard work and our brand partners for their support. We have built a lot of momentum this year and are entering the new financial year with many exciting growth opportunities ahead of us.”
Looking to FY25, Frasers remains confident that its strategy will “drive continued strong performance”, and expects to achieve another strong increase in adjusted profits before tax in the range of £575m to £625m.
