Mothercare posts H1 profit growth, revenues drop

For the first six months of this fiscal year, Mothercare plc said international retail sales reported by franchise partners of 137.2 million pounds, decreased 15 percent or 13 percent at constant currency.

The company attributed the decline to difficult trading conditions in the Middle East, which is down 20 percent on last year, with continuing operations excluding the Middle East down 6 percent on last year at constant currency.

Commenting on the trading update, Clive Whiley, chairman of Mothercare plc, said in a statement: "These results are testament to our continued drive to preserve the strength of the Mothercare brand in a fast changing retail and macroeconomic trading environment.”

Adjusted EBITDA for the period of 3.6 million pounds, increased by 12 percent, while group adjusted profit increased 17 percent to 3.4 million pounds. Total pre-tax group profit was 2 million pounds.

“Against significant headwinds in the Middle East, one of our core markets, we are pleased that our business model and disciplined approach to cost has resulted in an increase in profitability for the first half," added Whiley.