MULBERRY GROUP (MUL) investor relations material

Executive summary

• Revenue declined 21% year-over-year to £120.4m amid a global luxury market contraction and challenging macroeconomic conditions.

• Underlying loss before tax was £23.7m, with reported loss before tax at £31.8m, both slightly improved from the prior year due to cost savings.

• Major strategic overhaul launched in January 2025, focusing on simplification, brand realignment, and customer connection, with new leadership and cost discipline.

• £20m raised via convertible loan notes from major shareholders and a retail offer of up to £1.2m to minority shareholders to fund growth and restore profitability.

• No dividend declared for the period; resources are focused on business turnaround and growth.

Financial highlights

• Group revenue fell to £120.4m from £152.8m year-over-year, with UK retail and digital revenue down 20% and North America retail revenue down 1%.

• Gross margin decreased to 66.8% from 70.1%, impacted by promotional activity and higher production costs.

• Operating expenses reduced by 17% to £107.1m, with staff costs down £5.0m due to restructuring.

• Net debt at period end was £9.4m, improved from £16.3m the previous year; available liquidity increased to £11.8m.

• Adjusted basic and diluted loss per share was (40.1p), with reported basic loss per share at (49.8p).

Outlook and guidance

• Trading in FY26 to date is in line with expectations; revenue for the nine weeks to 1 June 2025 declined 18% year-on-year.

• Medium-term targets reiterated: annual revenue over £200m and adjusted EBIT margin of 15%.

• Focus on cost control, store portfolio optimization, and digital channel growth expected to improve EBITDA by £2m.