ProCook posts drop in fourth quarter revenue
Kitchenware brand ProCook has posted a decline in fourth quarter revenue after being impacted by ongoing uncertainty in the consumer backdrop.
In the the three months to 2 April 2023, revenue fell by 9.7% year-on-year to £12.6 million. On a like-for-like basis, revenue was down 9.4%.
While sales from retail stores were broadly flat, online sales dropped by 21.1%, or by 12.6% on a like-for-like basis when revenue from discontinued Amazon channels was excluded.
Meanwhile the retailer’s full year revenue of £62.3 million was in the middle of Procook’s expected range, declining by 9.9% year-on-year, or by 5% excluding the discontinued Amazon channels.
Daniel O’Neill, chief executive and founder of ProCook, said: “The last year has been very difficult for consumers as real disposable incomes have fallen, which is reflected in our softer sales performance against our significant growth and market outperformance last year.
ProCook opened one new store in Kingston-upon-Thames in its fourth quarter which took its total number of retail stores to 58 at the year end. It also completed the development of its new distribution centre and headquarters.
The retailer anticipates that its full year underlying pre-tax profit will be approximately breakeven, which is in line with previous guidance.
O’Neill said: “While we expect trading conditions to remain challenging and unpredictable, we continue to grow our customer base by attracting new customers to the brand and remain confident in our value-for-money, specialist offer.
“Certain inflationary cost pressures, including wages, remain high, however we are seeing some easing in other areas, and we expect to realise the benefits of our recent actions to reduce operating costs in the current financial year and beyond.”