UK online electrical retailer AO's revenue surges 59% to £1.6bn

Foreign media reported that the British online electrical retailer AO said in a statement recently that the surge in online shopping during the pandemic has driven the revenue of online electrical retailer AO World to soar by 59%.

Online platform AO had revenue of about £1.4bn in the UK in the year to March 31 , while revenue for the group as a whole rose 62% to £1.6bn.

AO has welcomed more than eight million customers since its launch in 1999, with two million last year alone. The company moves around 14,000 shipments a day across the UK and Germany and has nearly one million square metres of warehousing space.

As non-essential stores were forced to close during the pandemic and many consumers turned to online shopping , the group achieved good results, breaking even last year with pre-tax profits of £1 million, which increased to £20 million this year.

"This has been a transformative year for AO , as we made significant strategic, operational and financial progress. Our early and bold investments in capacity, infrastructure and people have resulted in a 62% increase in revenue," said John Roberts, AO founder and CEO.

The bulk of AO's revenue comes from the UK , where business grew 59% . But the company said it also saw strong growth in Germany , where its market share doubled to more than 3%. In the German market, revenue grew 81% to €264 million.

The share price opened lower this morning but held steady in the afternoon, rising slightly by 0.1%, bringing its price to 253.4p per share. Basic earnings per share surged, soaring 1,676% , with earnings per share increasing from 0.21p to 3.7p in six months .

In the UK, major home appliances such as fridges and freezers grew 61% as three national lockdowns prompted consumers to reassess their living spaces. According to Chief Financial Officer Mark Higgins, the mix of high-demand products changed throughout the year. First up were freezers, which many customers bought, while later in the year gaming and consumer electronics became very popular alongside major home appliances.

Demand for small household appliances surged 103% during the period, but still lagged behind demand for electronics and gaming technology, which grew 126% and 127% respectively.

Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, said: “The company recognises that it cannot rest on its laurels in an increasingly saturated UK electrical appliance market. It has big ambitions for global expansion and, with its well-established online platform and supplier network, is well placed to take advantage of this trend as consumers around the world turn digital. ”

U.K.

AO

Online Appliances