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Online electrical retailer AO World said it expected profit to be 'heavily weighed' toward the second half of the year after reporting that first-half sales were weighed down by supply chain issues.
For the six months ended 30 September 2021, Revenues increased about 5% year-on-year, and 66% when compared to the same period in 2019.
'The challenging market dynamics in both the UK and Germany resulted in lower volumes than expected which affected operational leverage, particularly in the second quarter,' the company said.
Looking ahead, the company said it expected revenue growth in the second half of the year to record a similar growth rate to the first half of this year.
Adjusted profit before tax, depreciation, amortisation, net finance costs, and other adjusting items, or EBITDA, for the full year was expected to be between £35 million and £50 million, with profits more 'heavily weighted than usual towards the second half of the year driven by the peak trading period,' the company said.
'Whilst the macro-outlook remains uncertain, we have confidence in the proven resilience of our business model and are well placed to meet customer demand in our peak third quarter sales period,' it added.
AO World will announce its interim results for the half year on Tuesday, 23 November 2021.5