By Anthony O. Goriainoff
AO World PLC said Friday that it expects to report revenue for fiscal 2022 fell around 6% due to the exceptionally strong comparatives with fiscal 2021, and that it was confident of its long-term prospects despite current challenges.
The London-listed online electrical-goods retailer said that for the year ended March 31 it expects to report revenue of 1.56 billion pounds ($1.94 billion), compared with GBP1.66 billion for fiscal 2021. The company said that there had been robust growth in online purchasing during the pandemic in 2020-21 due to Covid-19-related restrictions.
The company said that its online market share in major domestic appliances continued to grow and rose to 54% from 43% prependemic.
AO World said that UK revenue remained resilient in the first half despite driver challenges and continuing supply-chain shortages.
The company said that adjusted earnings before interest, taxes, depreciation and amortization–a metric which strips out exceptional and other one-off items–are expected to be around GBP8 million. This is due to the effect of lower sales volumes and the higher costs incurred at its UK logistics operations, driver shortages, and significantly higher marketing costs in Germany.
The company said its strategic review of its German business was continuing and that the board was considering a number of options.
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