AO World Plc (LON: AO) ended nearly flat on Wednesday, despite posting a 17% gain in its full-year earnings.
AO World is profitable in FY2023
The stock was relatively resilient as the electrical retailer turned to pre-tax profit as selling costs fell by around £200m year-on-year.
AO World ended its 2023 financial year with a pre-tax profit of £7.6m ($9.7m). A year earlier it had instead made a loss of £10.5m. The London-listed company attributed its gains to lower administrative costs.
Despite this, the Bolton, UK-based company posted revenues of £1.14bn in the year ended recently – a 17% drop.
At the time of writing it is British stock About 45% higher compared to the beginning of the year.
AO World’s Expectations for the New Year
In FY2024, AO World Plc confirmed that it will focus on profitable and cash-generating growth. John Roberts – its chief executive said in a statement today Press release :
The significant improvement in our revenue growth speaks for itself. We intend to continue this focus by maintaining the flexibility to drive growth through disciplined investment.
On Wednesday, the home appliance giant promised a profit margin of at least 5.0% in the new fiscal year. In comparison, its EBITDA margin was 4.0% in FY2023.
This news comes after a month Fraser’s Revealed 19% strategic stake in AO World. Wall Street currently has a consensus rating of “Overweight” on the stock.
This article was translated from English using AI tools, then checked and edited by a local translator.
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