WH Smith PLC (LSE:SMWH) returned to profit with post-pandemic “recovery well underway” and with the company confident it is ready to capitalise on further opportunities despite global economic uncertainty.
Chief executive Carl Cowling said WH Smith continues to invest in areas where it sees “attractive growth opportunities" and that it is “well-positioned” to benefit from the return of passenger numbers as the travel market recovers.
Looking forward, a key summer travel period gives the board confidence in its outlook for the remainder of the financial year, the company said in a statement.
That is despite “uncertainties in the broader global economy” with the stationery and newspaper retailer confident it can “take advantage of the many opportunities ahead”.
Profit before tax for the six months ending 28 February 2022 was £18mln, an increase from the £38mln loss made in the same period a year ago.
Performance was boosted by the travel part of the business as Covid restrictions eased and consumers returned to airports, with travel revenues up 125% to £338mln like-for-like.
WH Smith has opened 74 travel stores since the start of the financial year, with more opportunities expected as markets recover, especially in North America.
The high street business delivered a “resilient and profitable performance” despite some challenges, such as a return to Covid measures over the Christmas period.
Current inflationary pressures are being "managed well" due to the company's cheaper products and strong supplier relationships, according to the statement.
WH Smith also said it expects Funky Pigeon, its greeting and gift card subsidiary that was at the receiving end of a cyber-attack recently, to be live imminently.