AO World raises guidance
Online electricals retailer AO World has upped its profit guidance for the 12 months to March 2023 as it continues to benefit from actions taken to reduce costs and improve margins.
Price increases across mobiles have also been slightly higher than forecast.
In a statement, the retailer said adjusted EBITDA is expected to be in a range of £37.5 million to £45 million for the period, which is an increase on the guidance of £30 million to £40 million given in January.
AO said: “Margin improvement initiatives coupled with a continued resilient underlying customer base has driven higher retail gross margins than previously expected and we anticipate that this will continue for the remaining five weeks of the financial year. The steps we have taken to simplify the business and become more efficient have outperformed expectations and been delivered quicker than expected.”
The retailer expects to publish a full year post close trading statement on 14 April 2023.
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