Published on October 15th, 2020 | by The GC Team0
AO half-year revenue rises 57% after strong second quarter
Online electricals retailer AO is expecting an increase of c.57% year-on-year in Group revenue for the six months ended 30 September 2020 due to a shift in consumer shopping behaviour accelerated by the coronavirus.
AO said the sales momentum during the first quarter of its half-year trading period, when lockdown was in place, continued throughout the second quarter despite the reopening of bricks & mortar stores.
“We believe we have seen a lasting step change in online penetration,” the business said.
Group revenue is expected to be in the region of £715m, a rise of c.57% year-on-year, with the UK increasing by c.54% and German revenue up c.83% on a constant currency basis.
The company said it is confident that the German business will achieve profitability on an adjusted EBITDA monthly basis as it trades through the peak period and will be profitable in FY22 and thereafter.
AO Founder and Group Chief Executive John Roberts said: “The last six months of trading have been like no other during my two decades in the business. AO was in good shape coming into this financial year and the global structural shift in customer behaviour to online, accelerated by Covid, emphasised our strengths.
“Whilst we remain mindful of the uncertain economic climate caused by the pandemic and Brexit, we are on track with plans and well set for our biggest ever peak trading period in the UK and Germany.”
AO expects to announce its interim results for the six months ended 30 September 2020 on Tuesday 24 November 2020.