AO World continues launch plans in France, Italy and Spain after seeing sales of wine coolers and TVs explode ahead of the euro
- AO World’s revenue has jumped 62% to £ 1.7bn in the past year, new figures show
- Online retailer wants to expand operations in Europe
- Sales of products like wine coolers and televisions increased ahead of Euro 2020
AO World is on a mission to grow across Europe as its profits and sales skyrocket.
The online electrical retailer wants to expand its business in France, Italy and Spain as part of a five-year plan to double the size of its business.
The group, which already operates in the UK and Germany, reported a pre-tax profit of £ 20.2million for the year ended March 31, up from £ 600,000 the year before, as revenue was jumped 62% to £ 1.7 billion.
Ambitious plans: AO World boss John Roberts wants to expand operations in Europe
FTSE 250-listed group boss John Roberts said sales of QLED TVs and wine coolers climbed 161% and 126% year-over-year as the Euro football tournament approached. 2020 last month.
AO World said sales growth had slowed slightly since the end of the year, after seeing exceptional sales during lockdowns, with people buying items like chest freezers and laptops while they were out. stuck at home.
The group said it remained “cautiously optimistic” about further “double-digit” sales growth this year.
Mr Roberts said shoppers would not go back to their old ways after the move online seen over the past year, when working from home and home schooling became the norm.
He said: “It’s going to stick – when customers find a better way to do something, they rarely come back.
“This (the pandemic) has given a boost to what has happened over the past 20 years.”
He said the group had attracted more than two million new customers in the past year, adding a “ton of fuel to the fire.”
The group expanded into Germany in October 2014 and said the company broke even in the third quarter.
Takeover: TV and wine cellar sales via AO World dramatically increased ahead of Euros 2020 football tournament
Today he pledged to increase his investments in the group, with an additional £ 30million earmarked for digital and marketing content and £ 30million to upgrade his support systems as he seeks to expand its European footprint.
“The investments we are making this year underpin these ambitions and ensure that our business is fit for continued growth, with a view to more than doubling the size of the Group during this period,” said AO World.
AO World shares are currently down 0.4% or 1.00p to 252.00p. A year ago, the retailer’s share price was 145.40 pence, which means it has risen about 73% in one year.
Keith Bowman, Equity Analyst at Interactive Investor, said: “Online electricity retailer AO World is definitely a winner in a pandemic.”
He added: “These latest results follow a meteoric rise in AO’s share price from pandemic market lows. Despite a significant drop in 2021, AO shares are still up more than 400% since then. March 2020, compared to a gain of just over 70% for the larger FTSE 250 index.
“The shares of other electrical retailers Carphone Dixons and Amazon are 89% and 81% respectively during this period.
“Overall, the uncertainties associated with both the pandemic and the economic outlook cannot be forgotten. Unlike rival Dixons, AO has yet to pay a dividend, while the significant rise in AO’s share price relative to current estimated future earnings leaves its valuation significantly higher than Dixons Carphone. ‘