Currys sees trading in line as FY earnings jump 10%

(Sharecast News) - UK electricals retailer Currys said trading in the current fiscal year was in line with expectations after 2023/24 adjusted earnings rose 10% with its Nordics division starting to recover. The company, which sells everything from laptops to fridges, on Thursday said adjusted pre-tax profit of £118m, up from the £107m reported in in 2022/23. Revenue fell 4% to £8.48bn as the cost-of-living crisis continued to weigh on discretionary spending.

"We're planning prudently but confidently for the year ahead, on course to grow both profits and cashflow while carefully stepping back up to more normal investment levels," said chief executive Alex Baldock.

"Encouraged as we are by our progress, we know we can go further. For one thing, we expect artificial intelligence-powered technology to be the most exciting new product cycle since the tablet in 2010. With our partnerships, scale and expert colleagues to demystify AI, we're best-placed to benefit.

In the Nordics, consumer demand remained weak as inflation and interest rate rises impacted consumer confidence and drove a market decline of 3%. However, Currys grew market share and more than doubled profits, despite a headwind from currency translation.

UK & Ireland sales fell 2%, with market share falling as the company continued to focus on more profitable sales which helped drive the rise in earnings.

Reporting by Frank Prenesti for Sharecast.com