By Laura McGuire
Currys made a profit in its UK arm but struggled to keep up the momentum across other regions, with its full year results showing overall revenues flopped six per cent.
The electrical retailer reported a 45 per cent hike in adjusted EBIT to £170m, as a number of cost saving initiatives helped off set sales decline, however revenues were also down to £5bn compared to £5.48bn last year.
Currys blamed depressed demand, high inflation and “unforgiving competition,” for the poor performance, as international adjusted EBIT declined 73 per cent.
Its Nordic market struggled the most with revenues down seven per cent to £3.8bn as falling consumer demand was exacerbated by a “general overstocking in the market”.
“This has meant several competitors have heavily discounted products, preventing the pass-through of inflated cost of goods, resulting in lower profits,” the retailer said.
“The year has been mixed. We’ve shown, through our strengthening UK&I results, that our long-term strategy is working and is now delivering improved financial results as well as happier colleagues and customers,” Alex Baldock, group chief executive, said.
“ In the Nordics, our long track record of sales and profit growth was brought to an abrupt halt, but, as previously announced, we have taken decisive action and expect to see profits start to recover.”
More to follow
