AO benefits from strong demand for online shopping
Appliance retailer AO World has said it has benefited from a significant uplift in demand for online shopping from the start of the Covid-19 UK lockdown, although the crisis did lead to some increased costs.
Reporting on its annual results, the retailer also said total revenue climbed by 15.9% to £1.05 billion in the 12 months to 31 March after UK revenue increased by 20.3% to £901.6 million.
However, sales in Europe dropped by 4.6% to €165.4 million due to the closure of its Netherlands website in the period.
Meanwhile, group adjusted EBITDA climbed by 53.6% to £19.6 million.
Now that shops have reopened following the easing of lockdown restrictions, AO said demand remains strong even though shoppers have more options to purchase their appliances offline.
John Roberts, AO founder and chief executive, added: “I’m pleased that we have made substantial progress, closing the year in good shape after getting AO fit and focused on the future. Covid-19 has accelerated a shift in customer behaviour towards online shopping and we now need to cement that change. In short, we must drive forward so those customers never look back.”
