ProCook profits dip but revenues grow in maiden results
By Michele Maatouk
Date: Thursday 16 Dec 2021
(Sharecast News) - Kitchenware brand ProCook posted a drop in first-half profit as ecommerce and retail costs rose, but an increase in revenues in its first results as a listed company.
In the 28 weeks to 17 October, underlying pre-tax profit fell 11% from the same period a year ago to £3.6m, as retail costs rose by £3.5m and ecommerce costs by £1.3m. ProCook said digital marketing costs were up £1.2m, returning to more normal levels, as expected, due to unusually low costs in the comparative period as a result of exceptional online demand during Covid restrictions.
Revenue grew 34.4% to £32.1m during the period, in line with expectations. The company highlighted "very strong" growth on the ProCook.co.uk direct website against tough comparatives and said retail performed "exceptionally well", with revenue up 108.4% at £16.9m.
ProCook said it "significantly outperformed" the UK kitchenware market, by 41.9 percentage points.
Chief executive and founder Daniel O'Neill said: "In our maiden set of results as a listed business, we are pleased with our strong performance in the first half. We have made good strategic progress as we continue to share our passion for cooking; attracting more customers to experience our brand and our extensive kitchenware offer.
"The retail markets and wider markets are experiencing continued challenges and uncertainties. Whilst not immune to these, our direct-to-consumer business model provides a strong foundation. We believe we are well positioned to continue to disrupt the market with our beautiful and great value product ranges, accompanied by our excellent service proposition, and we are excited by the many opportunities ahead of us."
ProCook said its performance in the eight weeks to 12 December has been in line with its expectations.
"Customers have responded positively to our Black Friday campaign and we have recorded our strongest ever week," it said.
At 1150 GMT, the shares were up 3% at 147p.
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