6 days ago
Turnaround drive lifts Creightons' yearly results with return to profit, slender sales gains
As turnaround plans go, Creighton's has made 'significant progress' in repositioning the British-based beauty and wellness business, turning last year's red ink into a light black colour for the fiscal year ended 31 March.
Post-tax profit increased to £2.5 million following last year's loss of £3.5 million, as operating profit (before exceptional items) leapt 129.6% to £3.5 million, driven by higher revenue and improved gross profit margins. And of course, cost-cutting played a major part with Creigtons citing cost mitigation measures, labour shift rationalisation, manufacturing efficiencies, and reduced distribution costs.
Revenue increased 1.6% to £54.1 million, that was driven by private label sales growth, up to £29.2 million from £23.8 million a yer ago, offsetting declines in branded product sales (to £18.2 million from £21 million), and contract manufacturing sales (£6.7 million from £8.4 million).
It said revenue had grown 'despite a difficult market environment, where challenges faced by certain customers have had an adverse effect on overall revenue performance'.
In addition, 'a competitive market for high-quality sales and marketing personnel resulted in redirecting resources to capitalise on immediate opportunities with existing customers.
'This highlights the strength of our multi-sales stream approach where resources were directed to maximise the opportunities arising in a fast-changing retail environment'.
It added: 'We have demonstrated the ability to deliver results in an increasingly fast-paced and competitive sector, where flexibility and adaptability are essential. The capacity to respond to market dynamics while maintaining high standards of execution remains a key strength. Our diversified yet complementary revenue streams continue to serve the business well in navigating the ongoing challenges of both UK and global retail environments. Looking ahead, the focus remains on broadening these streams further to reinforce and enhance the resilience of the business'.
