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