Mamas & Papas benefits from Mothercare woes, returns to profit
Mother-and-child products specialist Mamas & Papas has filed its annual accounts at Companies House and they showed it back in profit as it handled Covid challenges but also benefited from the problems faced by bigger rival Mothercare.
In the year to the end of March 2021, turnover rose to £71.5 million, although the comparison period only covered six months. It saw turnover of £36 million in the half-year to the end of March 2020.
But while that was more than half of the 12-month turnover for the latest year, in the more recent period, it was much more profitable.
It made a net profit of £1.14 million this time compared to a loss of £3.94 million in the earlier six-month period.
While it had to go through tough times when stores were closed due to Covid in the latest year, it had made the most of the opportunities available online and — as mentioned — the problems faced by Mothercare. Its rival had previously accounted for around £300 million worth of UK sales but had shuttered all of its UK stores and moved to a franchise model. Boots now has its UK licence but that only got going in autumn 2020.
In response, Mamas & Papas launched new products, and opened a few new stores/concessions, which added to its sales.
“The company performed very well during the Covid-19 pandemic despite its substantial impact on the financial year,” Mamas & Papas said. “Trading varied for the group, being significantly ahead of the prior year when all sales channels were open, but challenging during the six months of Covid-19 lockdown periods when the stores were temporarily closed”.
Yet the combination of changing habits and the launch of its new web platform late in the year meant e-sales took a “significant” leap.
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