Currys profits fall after poor performance in Nordics region
Electricals retailer Currys has posted a drop in full-year profit following a poor performance at its Nordics business.
In the 12 months to 29 April, the company’s group adjusted pre-tax profit came in at the top end of guidance at £119 million, but was down £73 million on the previous year.
Meanwhile, revenue declined by 6% to £9.51 billion across the group after like-for-like sales fell in all of its markets with the exception of Greece.
UK and Ireland adjusted EBIT came in at £170 million to mark a 45% increase year-on-year, although there were respective declines of 82% and 14% in the Nordics and Greece.
Alex Baldock, Currys group chief executive, said: “We’ve had a very mixed year. Our strengthening UK&I performance shows our strategy is working well. But our long track record of success in the Nordics was brought to an abrupt halt.
“Our market has been tough everywhere, with depressed demand, high inflation and unforgiving competition.
“Our UK&I colleagues’ great work shone through in world-class engagement scores; in another year of record customer satisfaction; in maintaining number one market share; and in more customers for life as we grew services. All this was reflected in another year of growing UK&I profits, with improving gross margins and continued cost discipline.”
The company said trading at the start of the new financial year has been consistent with board expectations, but added that it was “wary of optimism about consumer spending power” and would be prudent in its planning.
Baldock added: “Our focus is on continuing a very encouraging trajectory in the UK&I while we get the Nordics back on track, and being attentive to mitigating any downside risk. We may be cautious in our promises for the short-term, but our confidence is undimmed as we build a stronger and more resilient business that is fit to prosper in longer term.”
