As Procook exited its second quarter in October, it had been encouraged by an improved trading run, but is now expecting profit for the full year to be breakeven. The decrease in estimation is due to a combination of weaker sales, higher costs, additional marketing activity and an increased investment in operational teams.
The brand now expects full year revenue will come in at between £60 million and £65 million due to softer consumer demand during difficult trading conditions. Increased costs have also hit the company due to shipping costs and foreign exchange rates.
In order to combat the challenges, Procook said it has agreed cost reductions with suppliers and reduced operating costs by £3 million.
The company said: “We are confident this plan will enable us to emerge stronger from this difficult trading environment to become the customers’ first choice for kitchenware.
“The group remains well placed to capture increased share of the large kitchenware market and deliver long term growth and value to all stakeholders.”
