Jojo Maman Bébé Dips in Sales But Boosts Profitability Through Online Growth

Jojo Maman Bébé, the established specialist in maternity, baby, and toddler products, has released its annual accounts for the financial year ending January (FY25), revealing a slight dip in total turnover alongside significant improvements in key profitability metrics. The company's total turnover for the period reached £62.2 million, a marginal decrease from £62.6 million reported in the preceding year. Despite this slight reduction in top-line revenue, the detailed figures point towards a strategic shift and a healthier financial trajectory.

A closer examination of the financial performance shows a notable increase in gross profit, rising to 59% from 58.4% in the prior year. More strikingly, the adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) saw a substantial turnaround, moving from a loss of £0.9 million in the previous year to a positive £1.2 million in FY25. While this latest EBITDA figure still trails those recorded in both 2023 and 2022, the year-on-year improvement signals a positive shift. This enhanced profitability was primarily attributed to effective cost management, including a reduction in fixed store costs, coupled with the growing profitability of sales generated through the Next online platform.

The company also reported a reduction in its loss before tax, which stood at £3.7 million this year compared to an equivalent loss of £4.8 million in the previous year. It's important to note that the prior year's loss was significantly impacted by one-off expenses totaling £3.9 million. However, the current year's pre-tax profit was adversely affected by substantial onerous lease provisions linked to its physical store estate, a direct consequence of declining profitability within its retail portfolio. This highlights the ongoing challenges faced by traditional retail channels.

Indeed, the performance across different sales channels presented a clear contrast, with online operations demonstrating robust growth while physical stores experienced a decline. The business observed lower like-for-like sales within its brick-and-mortar stores, a trend successfully mitigated by expansion in its online and B2B (Business-to-Business) channels. Online sales now represent a significant 63% of the company's total revenue, a notable increase from 59% in the previous year, with sales specifically via the Next website exhibiting particularly strong growth, underscoring the success of their integrated digital strategy.

Looking ahead, the company is poised for further growth, building on investments made by its new owners. These investments are designed to enhance the commercial proposition for customers and leverage the significant economies of scale offered by Next's extensive UK-wide distribution network and store footprint. Having established a robust foundation for future expansion during the previous year — including the launch on Next Total Platform, a strategic move to the Next warehouse, forging new B2B partnerships in both the UK and US, and a comprehensive rebranding effort — the board expresses strong confidence that Jojo Maman Bébé is exceptionally well-positioned to achieve its strategic objectives and deliver continued success.