Finance
Britain’s AO World raises annual profit outlook after first-half rise
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LONDON (Reuters) -British online electricals retailer AO World raised its annual profit outlook as it reported a 30% rise in first-half profit that reflected a return to double-digit revenue growth in its main
LONDON (Reuters) -British online electricals retailer AO World raised its annual profit outlook as it reported a 30% rise in first-half profit that reflected a return to double-digit revenue growth in its main business-to-consumer operation.
AO, a seller of washing machines, fridge freezers, cookers, TVs, laptops and mobile phones, said on Tuesday customers were “responding positively” to thousands of deals on offer for the Black Friday promotional period.
The group upgraded its guidance for 2024/25 adjusted profit before tax to between 39 million pounds and 44 million pounds ($48.9-$55.2 million) versus previous guidance of up to 41 million pounds and the 34.3 million pounds made in 2023/24.
First-half profit on the same basis was 17 million pounds on total revenue up 6% to 512 million pounds.
AO said a wet UK summer meant it sold fewer fridges and air conditioning units and more tumble driers than it had planned.
It said tax raising measures in the new Labour government’s budget last month would likely mean an additional 8 million pounds of annual costs.
Last week, dozens of UK retailers, including Tesco and Sainsbury’s, warned the budget will make both higher prices and job losses a certainty and dent investment.
($1 = 0.7964 pounds)
(Reporting by James Davey; editing by Sarah Young)
Profit before tax is a company's earnings before tax expenses are deducted. It provides insight into a company's profitability and is often used to assess financial performance.
Revenue growth refers to the increase in a company's sales over a specific period. It is a key indicator of business performance and market demand.
A promotional period is a specific timeframe during which a company offers discounts or special deals to attract customers and boost sales.
Adjusted profit is a measure of a company's profitability that excludes certain one-time expenses or income, providing a clearer picture of ongoing operational performance.
Annual costs are the total expenses a company incurs over a year. These can include operational costs, salaries, taxes, and other financial obligations.
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