AO World raises full year profit guidance
Online appliance retailer AO World has raised its full year guidance as actions to reduce costs and improve margins take effect.
As a result, its board now expects adjusted EBITDA to be in a range of £30 million to £40 million for the the year to March, which is ahead of a previous guidance of the top end of a £20 million to £30 million range.
AO has been prioritising more profitable cash generative sales and reducing costs in its current financial year. While UK revenue continued to be in line with expectations in the three months to 31 December with a year-on-year decrease of 17.2%, AO said initiatives to reduce costs and improve margins are gaining traction, and profitability is now running ahead of its prior forecasts.
AO said: “We remain cautiously optimistic and yet mindful of the continuing macroeconomic uncertainty and tough consumer environment, whilst also taking into account both the extent to which these and inflationary pressures can impact our contract assets.”
