Currys posts full year profit increase but warns of uncertain outlook for consumer spending
Currys has posted a full year adjusted pre-tax profit of £186 million compared to £156 million a year earlier, but has warned that inflationary pressures are likely to put pressure on consumer spending and impact sales in its new financial year.
In the 12 months to 30 April, the electrical retailer reported flat sales on a currency neutral basis as growth in its international business was offset by a declining sales in the UK and Ireland.
While sales in its Nordic and Greek businesses rose by 2% and 13% respectively on a currency neutral basis, sales in the UK and Ireland fell by 3%.
During the year, Currys benefited from £69 million worth of savings from its cost reduction programme.
Alex Baldock, Currys chief executive, said: “These strong results show the vital role that technology plays in millions of lives, and that more and more customers are turning to Currys to help them enjoy that technology to the full.”
Looking ahead, Currys said the outlook for consumer spending is uncertain and it is therefore taking a prudent view of its market. This means it now expects adjusted pre-tax profit for the year ending April 2023 to drop to between £130 million and £150 million.
Currys said it will use the expected market weakness as an opportunity to gain market share and build long term value.
The company added: “A stronger business allows us to help customers through the cost of living crisis. Our well-established price promise means customers “won’t get it cheaper. Full stop” on all products and today we’re going even further with “2021 Price Lock”, our new price freeze on dozens of great products.
“We’re doing more to help customers spread the cost, announcing “12 month Pay Delay” on every purchase over £99. And we’re doubling down on giving longer life to the technology customers already have; as leaders in protection, repair, trade-in and recycling, we’re uniquely placed to do so.”
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