Mothercare Plc (MTC.L), a British retailer of products for children below eight years, said on Friday that it has registered a decline in preliminary full-year net retail sales by franchise partners. However, it expects a rise in annual adjusted EBITDA.
The company cited current global economic uncertainties and the impact of Covid-19 that limited the demand for its products as the main reasons for decreased retail sales. The retailer said that its Middle East continued to be the most challenging, particularly in the latter part of the financial year.
For the full-year to March 25, net worldwide retail sales by franchise partners were 281 million pounds, lesser than 323 million pounds, recorded for the previous year.
In line with market expectations, excluding items, EBITDA was marginally above the 6.7 million pounds recorded in the previous year.
Looking ahead, Mothercare Plc, said: "We expect these factors will continue to impact the Group results in FY25, notwithstanding ongoing improvements in product and service, although our medium-term guidance is unchanged for the steady state operation in more normal circumstances. We continue to believe our continuing franchise operations remain capable of exceeding £10 million operating profit and maintain our focus on accelerating our growth in both existing and new markets."
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