AO World predicts 30% profit increase in 2024-25

AO World, an online retailer specializing in electrical products, expects its profits to rise by about 30% for the financial year 2024-25. The company also predicts that sales will grow by double digits in the same period. The retailer announced that it anticipates a 7% increase in like-for-like sales for the year ending March 31. Overall sales are expected to increase by around 12%. Following this news, AO World’s shares rose by 5% in afternoon trading. John Roberts, the founder and CEO, stated that AO World is now a "highly efficient growth machine." He attributed this success to the execution of their business strategy. The company expects to keep growing profits at a faster rate than sales, despite challenges from the economy and cost pressures. Last autumn, AO World reported an additional £8 million in wage costs stemming from the government's budget. Roberts indicated that the company may need to adjust prices and find savings to manage these costs. The company has been focusing on profitable sales and controlling expenses. This approach helped AO World return to revenue growth in the last quarter of the financial year 2023-24. Analysts highlighted that AO's membership program is gaining momentum, and overall trading remains strong as they enter 2025-26.