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UK’s AO World cuts profit outlook, flags product shortages -Breaking

by Mike Robinson

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© Reuters. A truck can be seen outside the Crewe, Cheshire distribution center, Britain, November 24, 2020. REUTERS/Carl recine/File photo

(Reuters) -UK online retailer AO World has cut its fiscal 2022 profit outlook citing supply chains issues. It also warned about shortages in some product categories before the critical holiday season.

For the six-months ending September 30, the company that sells printers, washing machines and mobile phones reported an operating profit of 11,000,000 pounds ($14.72m) in comparison to a profit 16 million pounds during the previous year.

AO World saw its profits rise during the pandemic but continues to experience supply chain issues with limited availability in some categories. This is especially true for products which are newer and have less scale, expertise, and leverage.

According to the company’s previous forecast, which was between 35 and 50 millions pounds in October, it expects an annual core profit of 10 to 20 million pounds.

In fiscal 2021 profits nearly tripled, to 64,000,000 pounds

($1 = 0.7472 pounds)

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