Although profits at Card Factory dropped 43.3% year-on-year in the first half, the retailer reported an increase in sales of party items.
For the six months ended 31 July, 2024, Card Factory reported a 5.9% increase in sales to £233.8m, but its EBITDA fell 11.4% to £45.3m, and profit before tax dropped 43.3% to £14m.
Gifts and celebration essentials saw a growth of 6% like-for-like sales and was the key driver of revenue growth as the retailer continues to introduce new products and expand existing gifting categories.
Cardfactory.co.uk revenue growth was 8.8%, which continues to build on the traction seen in H1.
The retailer said the drop in profit was due to increases in the National Living Wage, as well as freight inflation and phasing of strategic investments.
Looking ahead, Card Factory’s expectations for the full year remain unchanged. For the medium term, the board remains confident in seizing the growth opportunity for the business, which will help deliver on its FY27 targets, which remain unchanged.
Darcy Willson-Rymer, ceo, commented: ““I am delighted to be reporting further progress against our growth strategy with this resilient underlying performance in the first half of the year. We continue to deliver against our strategic priorities at pace thanks to the commitment and dedication of our colleagues.
“During the period, we continued to see strong performance across our growing store estate, with gifts and celebration essentials now a core driver of revenue growth, building on our strength in greetings cards. Together with the exciting partnership initiatives we are announcing today, we are helping more customers in more places celebrate life’s moments.
“As we move into the second half of the year and the important Christmas trading period, our expectations for the full year are unchanged and we continue to focus on managing inflationary pressures within the business. Our strategic growth ambitions are underpinned by a robust balance sheet and strong cash flow, alongside our disciplined approach to managing working capital and focus on driving efficiencies and productivity across the business. Moving forward, we believe we are well placed with a strong proposition that resonates with a broad customer base and delivers an unrivalled quality, value and choice offering.”
