REG - WH Smith PLC - Trading Statement

WH SmithAnnouncement

07/09/2022 07:00

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RNS Number : 4903Y  WH Smith PLC  07 September 2022

 
                           WH Smith PLC

Pre-close Trading Update

Strong Q4 Performance - Full Year in Line with Expectations

7 September 2022

Prior to entering its close period ahead of reporting its preliminary results
for the twelve months ending 31 August 2022 on 10 November 2022, WH Smith PLC
announces the following pre-close update.

 

We have continued to see a strong performance from Travel in the second half,
with Group revenue comfortably in excess of pre-Covid levels.

 

Total Group revenue as a percentage of 2019 total revenue has been:

 

                 % of 2019 Revenue(1)
                 H1      15 weeks to  11 weeks to  26 weeks to

                         11 June      27 August    27 August

                         2022         2022         2022
 Travel          82%     123%         135%         129%
 High Street(2)  86%     79%          82%          80%

 

 Group  84%  107%  117%  112%

 

WHSmith Travel

 

Total revenue in Travel as a percentage of 2019 total revenue has been:

 

                       % of 2019 Revenue(1)
                       H1      15 weeks to  11 weeks to  26 weeks to 27 August 2022

                               11 June      27 August

                               2022         2022
 UK                    71%     104%         112%         108%
 North America(3)      91%     111%         116%         113%
 Rest of the World(4)  44%     88%          118%         103%

 

 Total Travel(5)  82%  123%  135%  129%

( )

(1) Equivalent month in 2019; (2) Includes internet businesses; (3) Proforma,
constant currency; (4) Constant currency; (5) As reported

 

Further to the Group's trading update on 15 June 2022, despite some ongoing
disruption, our Travel businesses have continued to benefit from the recovery
in passenger numbers across all our key travel markets.

 

As passenger numbers continue to recover, we have delivered strong ATV growth
and higher penetration, driven by our ongoing strategy to significantly
enhance our ranges and develop our categories, such as health and beauty and
technology.

 

In the UK, our business is performing strongly and similarly North America
continues to show good momentum. Rest of the World has been slower to recover
but we are now seeing good growth across all our markets, with the strongest
recovery in Europe and, more recently, notable improvements in Australia and
Asia.

We continue to make good progress with our store opening programme and we
remain in a strong position to benefit from the significant growth
opportunities across the global travel retail market. We have over 130 stores
won and yet to open and there are a number of ongoing tenders across our
markets. More recently, we are pleased to have won a further 6 new stores in
Brussels airport and further significant wins in North America including at
Salt Lake City and Los Angeles International airports. These new store wins
demonstrate the capability of the business to win new stores across different
formats in a range of geographies.

WHSmith High Street

 

Our High Street business is performing in line with expectations. Sales in the
second half were adversely impacted following the previously announced
disruption to our online greeting card business, funkypigeon.com. In our High
Street business, we continue to focus on cost efficiencies and the return on
space. We have identified further significant cost saving opportunities, most
notably through reductions in rent.

 

Full Year Result

 

WH Smith PLC expects the outcome for the year to 31 August 2022 to be in line
with the upgraded expectations which followed the third quarter trading update
on 15 June 2022.

 

2022 Preliminary Results

 

The WH Smith PLC preliminary results investor and analyst presentation for the
year ending 31 August 2022 will be held on Thursday 10 November 2022.

 

 

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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