The Currys PLC (LON: CURY) share price fell 15% after releasing its unaudited results for the year ended 29 April 2023. The electronics retailer revealed a decline in its revenues driven by weak sales in the Nordics region that was offset by its positive performance in the UK and Ireland.
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The retailer noted that it had faced a very challenging year in the Nordics region, where for the longest time, it had been a market leader up to the current year. However, the company has taken measures to mitigate losses by acting to improve margins and reduce costs under new leadership.
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The company’s revenues dropped 6% to £9,511 million from £10,144 million in 2022, driven by declines across all the markets in which the company operates. The company’s UK & Ireland operations recorded an 8% decline, while the international market recorded a 5% decline.
Sales in the Nordics region fell by 7%, while sales in Greece grew by 15%. The company’s adjusted pre-tax profits dropped by 38% to £119 million for the year to April 29 due to the decline in most regions.
Despite the lower sales recorded in the UK & Ireland, the region contributed significantly to the company’s profits by generating an adjusted EBIT of £170 million, marking a 45% improvement from last year. The company noted that the trading environment remains uncertain.
Currys’ profits were at the higher end of its guidance but were still down £73 million compared to last year. The company reported a statutory pre-tax loss for the year of £450 million, driven by a £511 million non-cash impairment in its UK business associated with the merger of Dixons and Carphone in 2014.
Curry’s Group CEO Alex Baldock said: “We've had a very mixed year. Our strengthening UK&I performance shows our strategy is working well. But our long track record of success in the Nordics was brought to an abrupt halt. Our market has been tough everywhere, with depressed demand, high inflation and unforgiving competition. I'm proud of how our colleagues rose to this challenge, continuing to bring the benefits of technology within easy reach of millions of customers – to you all, thank you.”
*This is not investment advice.
Currys share price.
The Currys’ share price fell 15.02% to trade at 45.53p, from Wednesday’s closing price of 53.58p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.