Ultimate Products reports better earnings performance across its markets

Simon Showman

Oldham consumer goods specialist Ultimate Products says it expects its underlying EBITDA will be above the market’s current expectations for its current financial year.

In an unscheduled trading update today it said since it announced its full year results on November 3, 2020, there has been continuing momentum in ts order book.

Sales to online and supermarket channels have performed particularly well, which continues the trend from recent years for these channels to account for a growing share of group revenue.

This means that Ultimate Products is increasingly well diversified across its four pillars of discounters, supermarket, online, and international retailers.

Beldray, Ultimate Products’ proprietorial brand for laundry, floor care, heating and cooling, has continued to be the standout performer from across the group’s portfolio.

Within online, the group’s enhanced capabilities in this area as a result of the investments it has made in recent years have led to exceptionally strong sales growth during the peak Autumn/Winter trading period, especially on Amazon Prime Day, Black Friday and Cyber Monday.

As a result, the group now anticipates that Underlying EBITDA will be above the market’s current expectations. A relentless focus on productivity enhancements and increased operating efficiencies has also led to an improvement in the group’s operating margin.

Chief executive, Simon Showman, said: “We are delighted with the start that we have made to our new financial year.

“Our performance with online customers in particular has been exceptionally strong, but our brands also continue to resonate well with supermarket shoppers in both the UK and Europe.

“Our offer also appeals to customers who are prioritising their spend on quality homeware products as they spend more time at home, and our cookware, laundry, cleaning, floorcare and kitchen electrical products are all trading very well.”

He added: “While market conditions remain uncertain in the short-term, the strength of our current performance and the ongoing resilience of our business model means that we remain confident in our future prospects.”

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