Currys reports 40% UK profit decline

Currys has reported a 40 per cent year over year UK profit decline in the half year ended 28 October.

Overall group sales decreased by four per cent with a decline in all markets, with a 12 per cent revenue decline in the Nordics to around £1.6 billion from roughly £1.88 billion in the same period of 2022.

However, the electronics retailer reported an overall seven per cent profit rise and stated the UK decline was "as anticipated” since improved gross margin and cost savings of £53 million were more than offset by inflationary pressures and non-repeat of £11 million of mobile revaluations.

“In the UK&I, profits are in line with expectations, as we focus on more profitable sales and growing the services that drive margins and customer lifetime value,” explained Currys group chief executive Alex Baldock. “Credit, care & repair and iD mobile are all performing strongly, while colleague engagement and customer satisfaction continue to rise.”

Currys attributed the group revenue decrease to consumer spending remaining under pressure from persistent inflation and rising interest rates, coupled with its increased focus on more profitable sales to maximise operating cashflow.

“Our priorities this year are simple: to get the Nordics back on track, to keep up the UK&I’s encouraging momentum, while strengthening our balance sheet and liquidity,” Baldock said.

Despite the financials, Currys said trading since the period end had been consistent with the board’s expectations, with no change to previous guidance made.

Currys recently launched a “next generation” retail media network which has been joined by electronics manufacturers including Samsung and Acer.

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