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Matalan makes "significant improvement" with EBITDA up 92%

Chloe Burney
25 June 2024

For the full-year ending 24 February 2024, Matalan has seen
"significant improvement in underlying profitability". EBITDA was up 92% to £53 million, thanks to gross margin improvements and delivery of operational improvements.

However, the retailer's revenue was down 6% to £1 billion on a like-for-like basis, impacted by strategic decisions and challenging trading and market conditions. As for its gross margin, it improved by 8% to £495 million, driven by improved buying strategies, value creation programme, product margins and lower levels of discounting.

Its closing cash position was £123 million, representing a significant improvement in liquidity position, driven by both EBITDA growth and tighter levels of stock.

Jo Whitfield, Chief Executive Officer of Matalan, said: "In the last year we have kick started the transformation of Matalan against a very challenging backdrop, resetting the foundations of the business. We delivered a significant increase in underlying profit as a result of our clear focus on growing full price sales and tight cost control.

"With a new leadership team in place, we have put the customer back at the heart of Matalan to make sure we become top of their list of go-to value retailers. We have reset our value proposition, acted decisively to improve and strengthen our online performance and worked to improve our in-store execution

"Looking ahead, we are determined to deliver better value, more choice and improved style for all our customers. It is still early days in our transformation, and while we have much more to do, with challenges ahead, we are pleased that the actions we have already taken are having an impact as we build a stronger, more modern Matalan."

This news follows the company's ongoing efforts to transform the business. Earlier this year, Matalan appointed five new leaders, spanning its marketing, e-commerce, design, buying and strategy teams.

Months prior, it was also revealed that its CFO, Stephen Hill, stepped down after 23 years in the role. Dave Williams, who was previously the Finance Director of Poundland, succeeded him.


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