MULBERRY GROUP (MUL) H2 2024 earnings summary

Executive summary

• Group revenue declined 4% to £152.8m for the 52 weeks ended 30 March 2024, with a stronger first half offset by a challenging second half due to macroeconomic uncertainty.

• Underlying loss before tax was £22.6m versus a profit of £2.5m last year; reported loss before tax was £34.1m compared to a profit of £13.2m.

• Digital sales rose 4% to £50.6m, now 33% of total revenue, reflecting a permanent shift post-COVID.

• Inventory levels reduced by £15.1m through stock optimisation; international retail sales increased 8% to £50.0m.

• Sustainability initiatives advanced, including B Corp Certification and carbon reduction targets approved by SBTI.

Financial highlights

• UK retail sales fell 3% to £84.7m; Asia Pacific retail sales decreased 4% to £27.7m.

• Gross margin was 70.1%, down from 71.2% last year.

• Franchise and wholesale revenue dropped 27% to £18.1m due to strategic recategorization.

• Net working capital decreased by £14.7m, mainly from inventory reduction.

• Cash outflow of £10.5m, offset by a £16.0m working capital benefit.

Outlook and guidance

• Revenue for the 25 weeks post-period end is 18% below the same period last year; retail revenue down 14%.

• Board expects continued macroeconomic headwinds and is taking cost actions and inventory management measures.

• Increased debt facilities to £27.5m and announced a £10m capital raise to support the Group.