
AO's results for the six months ended 30 September 2021 show total Group revenue of £760m, representing 6% year on year sales growth and 67% growth compared to the same period in 2019. However, logistical challenges have kept profits low with a £10million loss before tax, compared to £18m profit in the same period last year.

Financial highlights
- Group revenue growth of 67% over two-year period, including 88% revenue growth in Germany on a local currency basis
- Group EBITDA impacted in HY22 by the investments in systems and people (in particular drivers) and increased marketing costs
- Group operating loss of £11m (HY21: profit of £16m)
- Overall liquidity of £66m (HY21: £161m). Net debt at 30 September 2021 of £102.2m (31 March 2021: £28.1m; 30 September 2020: £20.7m)
Operational highlights
- Over 780,000 new customers. Reported "notable step changes in post-Covid repeat purchase rates"
- c.500 new drivers recruited to meet peak period demand, bringing our fleet up to full strength and easing the previously reported shortage of drivers
- Five new outbases opened across UK and Germany; over 300,000 sq ft new warehousing added
- Third Party Logistics revenues grew 38.5% with three new contracts in Germany
- 300,000 Trustpilot ratings, averaging an excellent 4.6 out of 5 stars and Net Promoter Scores averaging over 80
- Over 2 million fridges have now been recycled at our AO Recycling facility and we are now working with manufacturers to use our recycled plastic in new products
Outlook
- Growth in the UK has been impacted by the nationwide shortage of delivery drivers and ongoing disruption in the global supply chain
- German online market has seen significantly increased competition.
- Ongoing supply chain challenges with poor availability in certain categories, particularly in our newer products where we have less scale, experience and leverage.
- Shipping costs, material input prices and consumer price inflation remain challenging uncertainties.
- Current peak trading period is significantly softer than we anticipated only eight weeks ago.
- Expect full year Group revenue to be flat to minus 5% year on year
- Expect Group Adjusted EBITDA in the range of £10m to £20m.
Read the Statement here(Link goes to AO World website)Image credit: Michael Kramer