Currys has reported a successful first half of the year, buoyed by the demand for AI-enabled laptops and mobile growth.
- The company’s UK and Ireland sales rose by 6%, highlighting strategic and market share achievements.
- Despite a minor decline in Nordic operations, overall revenue grew by 1% to £3,918m.
- Adjusted EBIT saw a significant leap of 52%, led by a 53% increase in UK&I profits.
- Currys is optimistic about future profit and cash flow growth, maintaining its full-year guidance.
Currys has announced a robust first half of the financial year, with significant contributions from the popularity of AI-enabled laptops and a flourishing mobile business. The electrical retailer noted a 6% increase in sales within the UK and Ireland for the six months ending 26 October. This rise is attributed to carefully planned strategic initiatives combined with gains in market share.
The group’s overall revenue reached £3,918m, marking a modest 1% increase from the previous year. This was achieved despite a 2% decline in the company’s Nordic operations. The adjusted earnings before interest and tax (EBIT) grew by an impressive 52%, with the UK and Ireland division setting the pace with a 53% profit surge.
Alex Baldock, CEO of Currys, expressed his satisfaction, stating, “We’re very encouraged by our progress. Currys’ performance continues to strengthen, with profits and cashflow growing significantly, and the Group’s balance sheet is strong.” He pointed out the company’s commanding presence in the AI laptop market, boasting over 75% of the UK market share. “AI is a trend with a lot further to run,” Baldock emphasised, underlining the future potential.
The mobile sector remained a strong performer, with iD Mobile subscribers seeing a remarkable 32% year-on-year growth, reaching a total of 2 million subscribers.
Baldock further noted, “We made big improvements to both Online and Stores channels; customers continued to take more of the solutions and services that are valuable to them and to us.” He highlighted the success of growth drivers like B2B and iD Mobile, which contributed to increased sales, market share, gross margins, and profits.
Currys was well-prepared for the peak trading period, with adequate stock and competitive deals. The company’s readiness and strategic positioning have led to trading in line with expectations, enabling Currys to uphold its full-year guidance. Continued efforts to enhance profit and cash flow growth are anticipated, with a target of at least a 3% adjusted EBIT margin for the year in spite of challenges such as inflation and shifting government policies.
Currys remains on a promising path towards sustained profit growth despite external economic challenges.
