AO World commits to over 5.0% earnings margin in its fiscal 2024

July 05, 2023 09:11 AM PDT | By Invezz

AO World commits to over 5.0% earnings margin in its fiscal 2024 — Image source: Invezz

AO World swung to a profit in fiscal 2023

The stock remained somewhat resilient primarily because the electric appliances retailer swung to a pre-tax profit as cost of sales decline about £200 million on a year-over-year basis.

AO World ended its fiscal 2023 with £7.6 million ($9.7 million) in profit before tax. A year ago, it was in £10.5 million of loss instead. The London-listed firm also attributed its profit partially to reduced administrative expenses.

Nonetheless, the company based out of Bolton, United Kingdom reported £1.14 billion in revenue for its recently concluded year – down 17%.

At writing, the U.K. stock is up roughly 45% versus the start of the year.

AO World’s expectations for the new year

In fiscal 2024, AO World PLC confirmed that it will focus on profitable and cash-generative growth. John Roberts – its Chief Executive said today in a press release:

The significant improvement in our profit performance speaks for itself. We intend to continue with this focus whilst also retaining the flexibility to drive growth through disciplined investment.

On Wednesday, the household appliances company committed to a 5.0% earnings margin at least in its new financial year. In comparison, its EBITDA margin stood at 4.0% in fiscal 2023.

The news arrives about a month after Frasers revealed a close to 19% strategic stake in AO World. Wall Street currently has a consensus “overweight” rating on its shares.

The post AO World commits to over 5.0% earnings margin in its fiscal 2024 appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.