# AO World report 53.2% increase in revenue

- Link: https://www.directorstalkinterviews.com/ao-world-report-53.2-increase-in-revenue/412940621
- Published: 2020-11-24T08:13:54+00:00
- Author: Giles

**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 | 
| UK^(6) revenue | 616.4 | 400.6 | 53.9% | 
| Germany^(6) 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 debt^(4) | (20.7) | (82.8) | 75.0% | 
| On a constant currency basis  – €m^(9) |   |   |   | 
| 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.”

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