Currys posts strong half year profit uplift
Currys has posted an uplift in first half profit despite a decline in sales due to supply chain disruption.
The six months to 30 October saw the electrical retailer’s pre-tax profit climb to £48 million from £45 million in the prior year, although group revenue fell by 2% to £4.8 billion.
While sales in the UK and Ireland dropped by 4% to £2.5 billion, revenue rose by 9% in Greece and was flat in the retailer’s Nordic region.
Alex Baldock, Currys group chief executive, said: “We’ve had a strong first half of the year. We grew colleague engagement and customer satisfaction, gained market share and stabilised gross margins in the UK, grew profits and generated strong cash flow.
“Technology is now more important than ever to people’s lives, and we’re best-placed to make the most of that. More and more, we are doing so.
“We have strategic clarity, aligned behind a common purpose: “We Help Everyone Enjoy Amazing Technology”. We’re a simpler, more focused business, and have completed the hardest yards of our transformation, with big legacy issues now behind us, and the pandemic so far successfully navigated . Our big international business has continued to shine, and we can now put our weight behind a single, market leading brand in every country.”
Currys said its performance in the period was hit by challenging conditions in its supply chain which was exacerbated in the last few months by issues such as oceanic freight inflation, a shortage of HGV drivers, 7.5 tonne van drivers and warehouse operatives, as well as Brexit–related teething problems with getting stock into its Irish business.
Giving an update on second half trading to date, the retailer said market demand has softened in the run-up to Christmas and that the immediate outlook has become more uncertain due to the arrival of the omicron Covid-19 variant. However, Curry’s said it remains on track to meet expectations for a full year adjusted pre-tax profit of around £160 million.
