WH Smith returns to profitability in 2022 as air travel recovers

By Scott Kanowsky

Investing.com -- WH Smith PLC (LON:SMWH) returned to profit in its 2022 trading year, as international travel recovered from a slowdown last winter caused by a surge in COVID-19 cases.

Headline profit before tax and non-underlying items grew to £73 million during the year ended on August 31, rebounding from a loss of £55M in 2021.

Group revenue also jumped to £1.4 billion, up by 58% annually.

The U.K.-based retailer of everything from books to sweets was aided by solid performance at its key travel business, where income climbed to £89M from the unit's prior full-year loss of £39M. WH Smith said this upturn stemmed from the loosening of COVID-19 restrictions earlier in 2022, which spurred on a renewal in passenger traffic at airports.

"In Travel, while the first half was impacted by the Omicron variant from December 2021 to February 2022, we saw thereafter a robust recovery across all our travel markets and a strong rebound in profitability," the company said in a statement.

It added that this trend has "continued into the current financial year," with revenue at 125% of pre-pandemic levels in the 10-week period to November 5.

Meanwhile, WH Smith said it would reinstate its dividend policy, purposing a final 2022 payout to shareholders of 9.1p per share next January.

In a statement, group chief executive officer Carl Cowling said the firm is "well positioned for a year of significant progress in 2023," with travel patterns continuing to show signs of improvement despite lingering macroeconomic uncertainty.

London-listed shares in WH Smith rallied in early afternoon dealmaking on Thursday.

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