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AO World Begins Strategic Review of German Business

AO delivery man hi-vis vest 725 x 500

AO World plc ("the Group"), a leading European online electricals retailer, today issues the following trading update for the period ended 31 December 2021 and announces a strategic review of its German business.

Revenue growth1

9 mths

2yoy2

9 mths

1yoy3

Q3

2yoy4

Q3

1yoy5

Group revenues

+58%

(3)%

+45%

(14)%

UK revenues

+58%

(1)%

+47%

(12)%

Germany revenues6

+67%

(8)%

+35%

(24)%

The Group confirms that current trading estimates for the full year remain in line with the guidance set out at the Interim Results on 23 November 2021. On a comparable two-year period for the nine months to 31 December, UK revenues grew 58%. On a one-year comparative, which covered the Covid-related government lockdowns in the previous year, UK revenues were broadly stable, despite supply chain constraints and driver shortages. In Germany, on a comparable two-year period for the nine months to 31 December, revenues grew 67%6.  On a one-year comparative in Germany for the same period, revenues declined 8%6.

Our German business is being significantly impacted by a number of recent material changes to the local trading environment: competition in the online market has intensified whilst online penetration has returned to pre-pandemic levels; digital marketing costs have substantially increased against pre-pandemic levels; and supply remains constrained.  We expect these trends will continue for the foreseeable future in the German market.

The Board is focused on maximising shareholder value, and as a result of the aforementioned factors, the Group has decided to commence a strategic review of its German business, which will evaluate a range of options. The results of the review will be announced in due course.

We remain confident about AO's long-term growth prospects, driven by the strength of our proven business model, the quality of our customer proposition, and the long-term market trend towards online migration. 

AO World will announce its full year results to 31 March 2022 on 15 June 2022.

Source : AO World PLC

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27 January 2022

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Thank you for the excellent presentation that you gave at Woodbury Park on Thursday morning. It was very interesting and thought-provoking for our Retail members. The feedback has been excellent.

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Martin Elliott. Chief Executive - Home Hardware.
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