AO World plc (LON:AO.), a leading European online electrical retailer, has announced its unaudited interim financial results for the six months ended 30 September 2020.
BUSINESS OVERVIEW
Financial performance
· Strong revenue growth with total revenue for the period increasing 53.2% to £717.0m (2019: £468.0m2) demonstrating our ability to deliver sustained growth in demand in the UK and Germany
· Increase in Group Adjusted EBITDA3 to £28.8m (2019: £1.0m); EBITDA margin increases to 4.0% (2019: 0.2%) reflecting our ability to leverage efficiencies with scale
· Group Profit Before Tax increased to £18.3m from a loss of £5.9m in the prior year period
· Cash generated during the period of £78.4m (2019: cash utilised of £5.3m)
Operational highlights
· We continue to delight our customers in this period of step change increases in volumes and Covid-19 operational challenges; Net Promoter Scores at consistently high levels of over 80 in the UK5 and Germany
· Resilient operational performance; ongoing significant investment in our people and infrastructure ensures we are well equipped to serve the step change in online penetration
· AO Germany on track to achieving monthly profitability on an adjusted EBITDA basis during our peak trading period and expect to be profitable from FY22
· Implementation of the One AO approach continues and will allow us to scale efficiently
· AO Culture remains strong; ambitious Value Creation Plan launched to all employees giving every AOer the chance to share in exceptional growth
Financial Summary
£(m) | HY21 | HY20 | % Mvmt |
| UK6 revenue | 616.4 | 400.6 | 53.9% |
| Germany6 revenue | 100.6 | 54.3 | 85.2% |
| Total revenue (excluding impact of NL operations in HY20) | 717.0 | 454.9 | 57.6% |
| UK Adjusted EBITDA | 32.6 | 13.6 | 140.1% |
| Germany Adjusted EBITDA | (3.8) | (9.9) | 61.6% |
| Group Adjusted EDITDA (excluding impact of NL operations in HY20) | 28.8 | 3.7 | 686.1% |
| Group Operating profit / (loss) | 16.8 | (10.6) | 259.8% |
| Profit before tax | 18.3 | (5.9) | 417.1% |
| Basic earnings / (loss) per share (pence)8 | 3.45 | (1.00) | 442.8% |
| Cash generated / (utilised) | 78.4 | (5.3) | 1,579% |
| Net debt4 | (20.7) | (82.8) | 75.0% |
| On a constant currency basis – €m9 | |||
| Germany Revenue | 112.1 | 61.5 | 82.2% |
| Germany Adjusted EBITDA losses | (4.2) | (11.3) | 62.4% |
AO World Founder and Chief Executive, John Roberts, said: “This has been a half year like no other. I believe our market has changed as a result, forever. Online is now the dominant retail channel for customers and manufacturers alike and I am delighted by how our AOers have risen to the challenge of this structural shift in behaviour.
“We have grown share across all categories and the results we’re announcing today give huge confidence that our business is well set for the future to cement the changes. Our growth rates have increased from Q2 to Q3 as we unlock capacity constraints.
“We have taken huge strides forward on our commitment to fix all the fundamentals of our European business and we now have a profitable platform from which to accelerate our growth in Germany and beyond.
“I would like to thank all AOers and all our trading partners for making such structural change possible in such a short period of time. It has been an incredible team effort to serve customers, existing and new, in their moments of need that I believe they will repay us with loyal custom for years to come.
“Now really is our time and we are investing to win and cement the change.”
