AO makes good first half progress
Domestic appliance retailer AO World has grown its first half revenue by 22.9% to £324.7 million as it continues to grow sales in both the UK and Europe.
AO website sales in the UK climbed by 20.8% to £259.4 million as total UK revenue rose by 18.7% to £295.1 million.
Revenue in Europe increased by 66.9% to €36.2 million.
The retailer reported a pre-tax profit of £2.3 million for the period compared to a loss of £8 million in the same period in the previous year.
In line with its expansion strategy, AO continued to invest in Germany and the Netherlands in the period.
John Roberts, AO chief executive, said: “We have made progress in our mission to become the best electrical retailer in Europe, cementing our operations in Europe with the opening of our distribution centre in Germany and launching new categories for customers in both the UK and Europe.
“Bringing our AO customers computing in the UK and A/V in Germany has been exciting and these are the natural next steps for us to take in the electricals market. We’re retailing these categories the “AO Way,” offering a simply better customer experience, executed brilliantly by a brand and team that customers and suppliers trust.”
AO said its new 35,000 square metre regional distribution centre in Bergheim is now fully operational, serving Germany and the Netherlands.
It has also launched a new audio visual category in Germany and a computing category in the UK.
Looking ahead, Roberts said: “At this mid-way point in the year we maintain our previous full year group guidance, with the continued momentum in the UK balanced with the continued investment in Europe. We remain confident that the opportunity for AO in Europe is huge and that the market dynamics are shifting in our favour as customers continue to move online. Against that backdrop we are well placed to deliver sustainable long-term growth.”
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