REG - ProCook Group PLC - Fourth Quarter Trading Update

PROCOOKAnnouncement

21/04/2022 07:00

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RNS Number : 8196I  ProCook Group PLC  21 April 2022

21 April 2022

ProCook Group plc

 

Fourth quarter trading update

Continued revenue growth and market share gains

 

ProCook Group plc ("ProCook" or "the Group"), the UK's leading
direct-to-consumer specialist kitchenware brand, today reports on Q4 trading
results for the 12 weeks ended 3 April 2022 and the full year (unaudited).

 

                   Quarter Four             Full Year
 £m                FY22   YoY(1)   Yo2Y(2)  FY22   YoY(1)    Yo2Y(2)

 Revenue           14.0   11.4%     83.1%   69.2   29.5%     77.5%
 Ecommerce         6.2    (50.4%)  70.4%    32.3   (18.9%)   123.2%
 Retail            7.8    n/a      94.8%    36.8   171.9%    50.5%

 LFL Revenue(3)    10.9   7.7%     104.9%   55.0   32.1%     122.5%
 Ecommerce LFL(3)  6.2    (38.6%)  134.1%   31.0   (2.2%)    194.1%
 Retail LFL(3)     4.7    n/a      75.9%    24.0   140.7%    69.3%

 Gross margin %    69.8%  50bps             67.2%  (140)bps

 

Trading update

We are pleased with our revenue growth of +29.5% over the full year which
reflects a +77.5% two-year increase on FY20. We have attracted 723,000 new
customers who have shopped with ProCook for the first time, and have
successfully increased the rate of repeat purchase within 12 months from 18.6%
to 25.5% year on year, reflecting the strength of our kitchenware offer and
the quality of our customer base.

We have continued to grow our market share throughout the year, significantly
outperforming the UK Kitchenware market(4).

We achieved revenue growth of +11.4% in the fourth quarter which, as expected,
included a significant channel shift back to retail, as our stores were closed
for the whole of Q4 last year due to Covid restrictions. On a two-year basis,
our revenue growth in the quarter was +83.1%.

Our Ecommerce performance in the fourth quarter reflects particularly tough
comparatives from last year, where online demand during the lockdown period
was particularly strong, coupled with the impact of the strategic exit of the
Amazon UK marketplace at the end of June 2021. On a two-year basis Ecommerce
was up +70.4%, and +134.1% on a LFL basis (which excludes the impact of
Amazon).

Full year gross margin was -140%bps lower than FY21, in line with our
expectations, predominantly due to the impact of increased marine freight
costs incurred in the year. Underlying product margins have remained strong.

We anticipate full year adjusted PBT will be broadly in line with market
expectations(5).

 

Outlook

Trading conditions have become more challenging over the last quarter with a
number of well-documented pressures impacting consumer shopping habits and
operational costs. Despite a tougher consumer and macro environment, we
continue to attract new customers to the brand, are outperforming the market,
and remain confident in our value-for-money, specialist offer.

With a clear strategy for long term profitable growth, we look forward with
confidence that we can build the ProCook brand and share our passion for
cooking with more consumers both here in the UK and further afield.

 

(1) YoY reflects year on year performance between the relevant financial
periods of FY22 (52 weeks ending 3 April 2022) and FY21 (53 weeks ended 4
April 2021)

(2) Yo2Y reflects year on year performance between the relevant financial
periods of FY22 and FY20

(3) LFL reflects:

-           Retail LFL - Continuing Retail stores which were trading
for at least one full financial year prior to 29 March 2020 inclusive of any
stores which may have moved location or increased/ decreased footprint within
a given retail centre

-           Ecommerce LFL - Continuing ecommerce websites and
marketplaces that have been trading for at least one full financial year prior
to 29 March 2020, excluding the UK Marketplace which ceased trading on 28th
June 2021

(4) UK Kitchenware market growth (excluding ProCook) calculated using weekly
GfK data and management estimates

(5) Latest analyst expectations reflect adjusted PBT of £10.0m for FY22

 

 

For further information please contact:

 ProCook Group plc                                       investor.relations@procook.co.uk

 Daniel O'Neill, Chief Executive Officer & Founder

 Dan Walden, Chief Financial Officer

 

 MHP Communications (Financial PR Adviser)                                                      procook@mhpc.com

 Katie                                                                                          Tel: +44 (0)7711 191 518
 Hunt

 Catherine Chapman

 

Next scheduled event:

ProCook expects to release its FY22 preliminary results in late June 2022.

 

Notes to editors

ProCook is the UK's leading direct-to-consumer specialist kitchenware brand.
ProCook offers a direct-to-consumer proposition, designing, developing, and
retailing a high-quality range of cookware, kitchenware and tableware which
provides customers with significant value for money.

The brand sells directly through its website, www.procook.co.uk, and through
55 own-brand retail stores, located across the UK. ProCook products are also
available in Germany and France with delivery options extending to Belgium,
Austria, Luxembourg, the Netherlands, and Poland.

Founded over 25 years ago as a family business, selling cookware sets by
direct mail in the UK, ProCook has grown into a market leading, multi-channel
specialist kitchenware company, employing over 700 colleagues, and operating
from its Head Office in Gloucester.

ProCook has been listed on the London Stock Exchange since November 2021
(PROC.L) and has a current market capitalisation of approximately £135m.

Further information about the ProCook Group can be found at
www.procookgroup.co.uk (http://www.procookgroup.co.uk) .

 

Information contained within this announcement is deemed to constitute inside
information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

 

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