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Ultimate Products' pricing strategy pays off

Retail sales were hit by inventory headwinds, but the company still delivered record results
October 31, 2023
  • Lower leverage
  • Gross margin progress

Ultimate Products (ULTP) – which changed its name in October from UP Global Sourcing Holdings and has a new ticker – has maintained its defensive position on prices in an attempt to incentivise consumer demand for its heritage brands. The evidence suggests that its strategy of "resetting" prices by introducing hundreds of new products each year is working out. The homeware company posted record annual revenues, along with its highest adjusted cash profit of over £20mn, as online sales shot up by 64 per cent.

On the other hand, excess inventory stemming from the pandemic hit sales to supermarkets and retailers. This was seen in the mixed brand performance. While sales at key brand Salter rose by 39 per cent, laundry and floorcare brand Kleeneze’s sales were up by a fifth, and German kitchen electrical brand Petra brought in over £3mn of revenue after being relaunched, the top line at the company’s other brands went backwards.

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