AO World PLC - Bolton, England-based online electricals retailer - Launches a strategic review of its business in Germany, citing tough market conditions that saw third-quarter revenue fall by 24% on a year before there. The review will evaluate a "range of options". In the three months that ended December 31, group revenue is down 14% on a year before, but up 45% on two years before. For the UK, those comparisons are down 12% and up 47%; in Germany, they are down 24% and up 35%. For the first nine months of financial 2022, group sales are down 3% annually but up 58% from two years before, prior to the virus pandemic.
AO World says competition in the online market in Germany has intensified of late even as online penetration has returned to pre-pandemic levels. Meanwhile, digital marketing costs have increased, and the supply chain remains clogged and drivers in short supply, AO World said. The company said it is "focused on maximising shareholder value" and remains confident in the group's long-term growth prospects.
AO World will announce results for the full-year ending March 31, on June 15.
Current stock price: 108.40 pence, up 1.4% on Thursday
12-month change: down 64%
By Tom Waite; thomaslwaite@alliancenews.com
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Ao World (AO.)