AO World sees ‘significant’ sales boosts in UK and Germany 

Francesca Morgan
Vox Newswire
09:32, 19th January 2021

In a trading update for the three months ended 31 December 2020, AO World said it saw continued ‘significant increase’ in demand for its products and services amid the pandemic.

The European online electrical retailer highlighted that 3Q21 UK revenues had jumped by 67.2% to £457.3m as the group experienced its strongest peak trading period over Black Friday and the run up to Christmas, while Germany sales were up 77.4% to €73.6m. 

AO incured ‘significantly higher costs’ as it negotiated some of the operational challenges of working in a Covid compliant environment, particularly in the reverse supply chain, it noted.

AO also saw a slightly increased rate of cancellation of individual consumers' long term contracts in mobile and warranties, ‘driven by Covid impacts on customers behavior.’

The company said it continues to invest in its infrastructure in order to deliver the current higher levels of revenue including additional staff in warehouses, vehicles and drivers. 

AO said it will continue to adapt as necessary during the lockdown and that it looks to 4Q21 and FY22 ‘with confidence’ as the structural shift to online is ‘cemented in consumers' minds by the outstanding service millions of new customers have received in 2020.’

Shares in AO World have increased by over 465% in value since the beginning of April 2020 to open 6.83% lower this morning at 352.25p following the announcement.

AO. price chart

It said this is compounded by the ongoing tailwinds it expects to be driven by working from home and associated usage and appreciation of electrical products so essential in daily life.

Founder and Chief Executive Officer of AO World, John Roberts, commented, "I believe we've seen ten years of change in ten months, and experienced our strongest ever peak trading period.” Roberts highlighted that one of the company’s biggest achievements during the trading period was to have its German business remain profitable throughout 3Q21.

He added that, "Now that customers have experienced a better, digital-first way to shop for electricals, I believe the majority will never look back. We intend to cement that change by raising the bar on our service and proposition in ways that only AO can deliver.

We'll continue to make the right decisions for our customers, partners, people and planet too.  I'm hugely proud of how AOers have responded to challenges as well as opportunities, providing amazing service to our customers during a record period. I'd like to thank the whole team for making it possible, including the 1,500 new recruits who joined us during 2020."

Follow News & Updates from AO World here: FOLLOW

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Login or register to post comments

Recent Articles