Online electricals retailer AO World reported a jump in full-year profits and revenue on Thursday as it continues to benefit from a shift to online shopping since the pandemic.
In the year to the end of March 2021, pre-tax profit surged to £20m from just £1m the year before, with total group revenue up 62% at £1.6bn. UK revenues increased 59% to £1.4bn, with sales of major domestic appliances up 61%, driven by demand for larger fridges, chest freezers and other home appliances. In Germany, revenues rose 81% to £226m.
AO said group adjusted earnings before interest, tax, depreciation and amortisation were 191% higher at £64m, driven by strong product sales.
The company said: “This has been an exceptional year for our businesses. We remain firmly focused on growing our revenues and taking market share, responsibly reinvesting the benefits of operational leverage in growth and broadly maintaining the current level of profits.
“Our scale and cash generation will support this acceleration of our ambitions. In the UK, we will manage investment opportunities within a tolerance of 1% of revenue. In Germany, we will continue to grow our business as quickly as we can at roughly EBITDA break even, plus or minus 2%.”
