REG - WH Smith PLC - Pre-close Trading Update

WH SmithAnnouncement

06/09/2023 07:00

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RNS Number : 4695L  WH Smith PLC  06 September 2023

WH Smith PLC
The global travel retailer

 

Pre-close Trading Update

Strong Summer Trading - Full Year in Line with Expectations

6 September 2023

Prior to entering its close period ahead of reporting its preliminary results
for the twelve months ending 31 August 2023 on 9 November 2023, WH Smith PLC
announces the following pre-close update.

 

Full Year Result

 

WH Smith PLC expects the outcome for the year to 31 August 2023 to be in line
with the upgraded expectations which followed the third quarter trading update
on 31 May 2023.

 

Group Revenue

 

Group revenue was up 28%(1) for the year versus 2022, driven by Travel which
was up 42%(1). The shape of the sales performance in the year reflects the
much stronger passenger numbers in the second half of our 2022 financial year
compared to the first half of 2022, which included the impact from the Omicron
variant. We have seen a strong performance from Travel in the second half, as
passenger numbers continue their positive trajectory.

 

Group revenue compared to 2022 has been:

 

                 Total vs 2022(1)               LFL(2) vs 2022(1)
                 H1      H2      Full Year  H1          H2      Full Year
 Travel          75%     23%     42%            48%     15%     27%
 High Street(3)  (1)%    -%      (1%)           -%      1%      1%

 Group           41%     17%     28%            27%     11%     18%

 

Travel

 

Total revenue in Travel compared to 2022 has been:

 

                Total vs 2022                LFL(2) vs 2022
                H1     H2     Full Year  H1         H2     Full Year
 UK             66%    18%    36%            52%    17%    30%
 North America  53%    17%    31%            22%    3%     11%

 Rest of        209%   55%    98%            122%   27%    53%

 World

 Total Travel   75%    23%    42%            48%    15%    27%

 

(1) Unaudited

(2) At constant currency

(3 ) Includes internet businesses

 

Further to the Group's trading update on 31 May 2023, our Travel businesses
continued to benefit from the recovery in passenger numbers across all our key
travel markets. Our focused in-store strategy has delivered strong ATV growth
and higher penetration, driven by our enhanced ranges including food, and the
broadening of our categories, most notably health and beauty and technology.

 

In the UK, we saw continued strength in air passenger numbers in the peak
holiday season, building on the recovery in passenger numbers that we saw in
the second half of the previous financial year. Our hospital channel is
performing well, and our rail channel has been resilient in view of the
ongoing industrial action impacting rail. During the year, we opened 20 new
stores, including 8 new stores in hospitals. We anticipate opening over 15 new
stores in the financial year ending August 2024.

 

Our businesses in North America and the Rest of the World continued to show
good momentum, whilst also reflecting the strength in sterling. The North
American travel market, which recovered ahead of other markets, has returned
to normal trading patterns. At the same time, we continue to win significant
market share. During the year, we opened 43 stores in North America, and have
had further recent significant tender wins, including 4 stores at San Diego
airport. In the Rest of the World, we have opened an additional 30 stores and
have won further new business, including new stores at Budapest and Madrid
airports.

 

In the financial year ending 31 August 2024, we anticipate opening over 40 new
stores in North America and 25 new stores in the Rest of the World. Including
our UK Travel business, we therefore anticipate opening over 80 new stores
across all our Travel businesses in the financial year ending August 2024,
demonstrating the growth prospects in Travel across all our geographical
markets. We continue to be active in a number of ongoing tenders.

 

High Street

 

Our High Street business has performed well and in line with expectations. Our
strategy remains unchanged as we continue to focus on cost efficiencies and
the return on space.

 

2023 Preliminary Results

 

The WH Smith PLC preliminary results investor and analyst presentation for the
year ending 31 August 2023 will be held on Thursday 9 November 2023.

 

 

Enquiries:

WH Smith PLC

Mark Boyle
Investor
Relations
            07879 897687

Nicola Hillman                          Media Relations
                                          01793 563354

Brunswick

Tim Danaher
 
     020 7404 5959

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