AO World delivers profit surge
AO World has posted surging profits in the year to 31 March as it benefited from more people buying tumble dryers and air fryers, and an uplift in television sales in the run-up to the Euro 2024 football championship.
Adjusted pre-tax profit climbed by 186% to £34.3 million, although revenue fell by 9% to £1.039 billion, as expected, following the retailer’s actions to remove non-core channels and loss-making sales.
AO founder and chief executive John Roberts said: “We have made good progress on our profit performance in FY24, which is a testament to the success of our strategic pivot to focusing on profit and cash generation.
“We are now a much simpler, more efficient business and are performing better than ever for customers, with excellent and sustainable unit economics.”
Despite ongoing macro-economic challenges, AO said it expects adjusted pre-tax profit to come in at between £36 million and £41 million in its current financial year.
Roberts added: “Our focus now is on delivering profitable top line growth with an ambition for double digit revenue growth in FY25.”
