Matalan revenues rise despite inflation pressures
Matalan has released its financial results for the 13 weeks ending 28 May 2022, revealing a 29.2% increase in revenue to £286.5 million.
In its latest trading update, Matalan shared the following results:
- Cost of sales increased by 32.6% to £254.1 million, compared to £191.6 million in 2021.
- Gross profit increased by 7.3% to £32.4 million, compared to £30.2 million in 2021.
- EBITDA, post adoption of IFRS16, was £44.4 million.
- Net finance costs were £24.1 million, compared to £25.1 million in 2021.
- Loss of £7.0 million, compared to £9.3 million in 2021.
Steve Johnson, Executive Chairman of Matalan, said: "Our strong sales performance for the first quarter reflects the extent to which our outstanding value continues to appeal to our extremely savvy customers. Sales grew not only when compared to last year, but also against pre-pandemic levels.
"Whilst not immune from the negative market factors facing the sector including weak customer demand, sub-optimal stock levels and global inflation pressuring margins, Matalan is well positioned to weather these conditions given our reputation not only for great prices, but also for enduring quality, extensive choice, and fantastic design. Our top-line performance shows we are landing great product and customers trust us to give them the value they need now more than ever. We will continue to play to these strengths whilst progressing our strategy into the medium term.
"As always, I am extremely grateful to our colleagues, suppliers, and partners who continue to work incredibly hard, to serve and deliver for our customers.”
Last month, Matalan announced its results for the 52 weeks ending 26 February, reporting a rise in revenues from £744.1 million in 2021 to £1.03 billion in 2022.