Mothercare, the baby products brand, has reported a decrease in sales as it grapples with post-pandemic demand. However, the company believes its new partnership with Indian conglomerate Reliance will aid in its recovery.
The retailer attributed the slump primarily to "continuing challenges" in Middle Eastern markets, as reported by .
This morning, it informed markets that global retail sales had dipped by 13 per cent over the year, from £322.7m in 2023 to £280m in 2024.
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The company's profit for the year stood at £3.3m, a significant improvement from last year's loss of £0.1m, following debt refinancing. Net borrowings saw an increase of £2.3m year on year, reaching £14.7m.
Adjusted EBITDA surpassed analyst predictions, coming in at £6.9m, slightly higher than last year's £6.7m.
The firm highlighted that it had cut down its secured debt facilities to £8m and received £16m from Reliance Brands. It added that a "de-leveraged Mothercare can once more move forward with confidence and invest appropriately in the company's future development."
Clive Whiley, chair of Mothercare, commented: "We are now focused upon restoring critical mass alongside delivering our remaining core objectives. This is an exciting prospect for our partners, our colleagues and all our stakeholders alike as we finally leave behind the turmoil of recent years."
Mothercare, which retails its product lines through Boots in the 海角视频 and operates franchised stores worldwide, has been implementing a transformation plan for several years.
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The London-based company underwent a significant reorganisation at the beginning of 2020, resulting in the closure of its 79 海角视频 outlets and the loss of hundreds of jobs.
The pandemic significantly affected the group, with its franchise partners forced to clear old stock, cut costs, and reduce their investment in Mothercare.
Despite lower sales, Mothercare has continued to make job cuts. The company reported that it distributed £0.5m in redundancy payments in 2024, an increase from £0.3m the previous year.