WH Smith PLC Trading Statement (5057A)
22 Enero 2020 - 01:00AM
UK Regulatory
TIDMSMWH
RNS Number : 5057A
WH Smith PLC
22 January 2020
22 January 2020
WH SMITH PLC
Trading update for the 20 week period to 18 January 2020
Good progress across the Group; completion of Marshall Retail
Group acquisition ahead of plan and further significant contract
wins in the US
The Group delivered a good performance in the period with total
revenue up 7% and like-for-like revenue down 1% for the 20
weeks.
In Travel, total revenue was up 19% (up 5% excluding InMotion
and Marshall Retail Group (MRG)) with like-for-like revenue up 3%.
In our UK Travel business, we saw good sales growth across all of
our key channels with strong sales per passenger driven by our
initiatives and ongoing investment. Gross margin was in line with
plan. Our store opening programme in the UK remains on track and we
expect to open around 15 to 20 new units this year, including c.8
units in hospitals. Following our successful partnership with Well
Pharmacy, we will also open, later in the year, a new flagship
pharmacy format at Heathrow Terminal 2.
Our strategy to grow our Travel business outside of the UK
continues to progress well. We completed the acquisition of MRG, a
leading and fast growing US travel retailer, ahead of plan on 20
December 2019. The store opening programme for MRG remains on track
and integration into the WH Smith Group is progressing well. Since
announcing our intention to acquire the business on 17 October
2019, we have won a further 8 units in the US, which include MRG,
WH Smith and InMotion branded stores, demonstrating the growth
opportunities we see for the Group in the US. Outside of the US, we
continue to make good progress and we have recently won a tender at
Berlin Brandenburg Airport to open 3 units, including our first
InMotion store in Germany.
Following the acquisition of MRG, WH Smith Travel operates over
600 stores outside of the UK (including over 280 stores in North
America) and over 590 stores in the UK, making a total of nearly
1,200 Travel stores across 32 countries.
In our High Street business, our strategy of actively managing
our space, gross margin growth and good cost control continues to
deliver sustainable profit and good cash generation. Total revenue
was down 5% with like-for-like revenue also down 5%. Gross margin
was ahead of plan and we have identified GBP3m of additional cost
savings which will be weighted towards the second half of the
current financial year, bringing the total cost savings for the
year to GBP12m.
Like-for-like sales are calculated on stores with similar
selling space that have been open for more than a year (constant
currency basis, includes InMotion from December 2019 and excludes
Marshall Retail Group.)
Commenting on today's announcement, Carl Cowling, Group Chief
Executive said:
"We are pleased with the progress the Group has made in the
first 20 weeks, with total revenue up 7%.
"During the period, we completed the acquisition of MRG ahead of
plan and integration into the Group is progressing well. This
acquisition is in line with our strategic focus to grow Travel,
almost doubles the size of our International Travel business and
accelerates growth in the US, the world's largest travel retail
market. Since announcing our intention to acquire the business, we
are delighted to have won a further 8 new units in the US.
"In UK Travel, we have seen continued growth across all our key
channels and we are on track to open a new flagship pharmacy format
at Heathrow Terminal 2 this summer.
"Our High Street strategy continues to deliver through continued
gross margin gains and tight cost control.
"Throughout this busy trading period, it is our colleagues,
particularly across our stores, who work tremendously hard and I
would like to take this opportunity to thank them. Without the
continued support of our fantastic team we would not be able to
achieve these results.
"Looking ahead, we are on track for the current year and as we
continue to grow our share of the global travel retail market, the
Group is well positioned for the years ahead."
Enquiries:
WH Smith PLC
Nicola Hillman Media Relations 01793 56 3354
Mark Boyle Investor Relations 020 3981 1285
Brunswick
Fiona Micallef-Eynaud / Camille Ng 020 7404 5959
Advance Notice of Interim Results
WH Smith PLC will announce its Interim Results 2020 on Wednesday
22 April 2020.
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END
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