Ao World Plc · LSE:AO.

Ao World — H1 FY2025 Earnings Presentation

17 slides from Ao World's earnings presentation, Nov 26, 2024

  1. Slide 1: FY25 Interim Results

    FY25 Interim Results John Roberts, Founder and CEO Mark Higgins, Group CFO 26th November 2024 © 2024 AO World All Rights Reserved

  2. Slide 2: Forward-looking statements disclaimer

    Forward-looking statements disclaimer This presentation contains oral and written statements that are, or may be, “forward-looking statements” with respect to certain of AO World PLC’s (“AO” or "Company") plans and its current goals and expectations relating to its future financial condition, perfor

  3. Slide 3: Contents

    Contents • Welcome & Financial Performance • Strategic update • Summary • Questions 3

  4. Slide 4: Welcome

    Welcome Mark Higgins Group CFO 4

  5. Slide 5: HY25 Financial Summary

    HY25 Financial Summary • Double digit B2C revenue growth (+13%) • Adj. PBT +30% (£17.1m) • Strong Gross Margins 24.4% • Profits converting to cash –free cashflow of £14m (HY24: £3m) • EPS at 1.94 (HY24: 1.64) 5

  6. Slide 6: Revenue Highlights

    Revenue Highlights • Double digit B2C retail revenue growth • 16.4% share of the total MDA market • Continue to review unit economics - decline in B2B sales • Mobile reset ongoing Market share data source - GFK 6

  7. Slide 7: Gross Margin

    Gross Margin Gross Margin • Driving operational efficiencies HY25 24.4% • Continued review of unit economics • Mobile reset delivering HY24 23.5% improved margins • Product Protection Plans – HY23 19.5% customers continue to value 7

  8. Slide 8: SG&A costs

    SG&A costs • Inflationary increases predominantly seen in labour costs • Marketing investment focused on direct channels, away from brand • Warehousing – impacted by increased rent and inflationary impact on wages • Overheads – continue to be tightly controlled Certain financial data have been round

  9. Slide 9: Adj. PBT continuing operations

    Adj. PBT continuing operations • HY25 PBT: • £17.1m • +30% YoY • 3.3% of revenue • Profit growing faster than sales • Adjustments £0.9m for musicMagpie transaction costs 9 Adjusted PBT is defined as a profit/(loss) before tax. adjusted for any non-recurring items as defined by the board.

  10. Slide 10: Cashflow

    Cashflow • Improvement in product availability for customers • Purchase of own shares by EBT • Capex spend of £7m including refresh of delivery vehicles and purchase of extruder for recycling plant – further £4m expected in H2 • Revolving credit facility increased to £120m extended to October 2028 a

  11. Slide 11: Financial outlook

    Financial outlook FY25 Financial outlook Our current expectations are: • Group Adj. PBT £39m to £44m • Group revenue £1.09bn to £1.13bn • B2C Retail revenue growth +10% • Capex £11m Beyond FY25 • Inflationary impact of Labour Budget 11

  12. Slide 12: Strategic Update

    Strategic Update John Roberts Founder and CEO 12

  13. Slide 13: HY25 progress

    HY25 progress • Continued profit progress, double digit B2C retail revenue growth • Membership momentum continues including increased share of wallet from members • Cost and efficiency focus remains • Solid progress with Mobile which represents a significant growth opportunity • ‘New from old’ fridg

  14. Slide 14: Who do customers trust?

    Who do customers trust? 14 As at November 2024

  15. Slide 15: Summary

    Summary 15

  16. Slide 16: Questions

    Questions 16

  17. Slide 17: Slide 17

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