Home » UK Business News » AO remains upbeat on profits despite widening losses

AO remains upbeat on profits despite widening losses

By Nagasunder in UK Business News, posted November 23, 2022

AO has issued a warning about the continuing impact of the cost of living crisis but is still optimistic about its annual profit outlook.

Despite widening half-year losses, the online electricals retailer says it has made "solid progress" in its plan to prioritise profitability over growth.

AO reported a statutory pre-tax loss of £12 million for the six months that ended Friday, September 30, up from £4 million the previous year. Its operating loss more than tripled to £9 million.

However, AO remained profitable on an adjusted EBITA basis, albeit by 11 percent to £9 million.

The firm previously predicted that full-year adjusted EBITDA would be in the £20 million to £30 million range.

It now anticipates earnings at the upper end of that range.

Need Career Advice? Get employment skills advice at all levels of your career

During the cost of living crisis, consumers were more conscious of their spending, leading to "a reduction in the overall electricals market," according to AO.

As a result, AO's sales fell 17 percent to £546 million in the first six months of its fiscal year.

Source: Retail Gazette

Follow us on YouTube, Twitter, LinkedIn, and Facebook