AO World PLC (LSE:AO.) posted revenues and profits significantly below the previous guidance and blamed the UK delivery driver shortage and supply chain issues, while some shoppers have gone back to their old bricks and mortar shops.
Revenues for the online electrical retailer of £760mln for the six months ended 30 September were still up 6% year-on-year, though nothing like the double-digit growth it had once hoped.
UK revenues grew 7% to £661mln, while Germany revenues fell 2% to £99mln.
Group underlying earnings (EBITDA) tumbled to £5mln from £28mln, which translated to an operating loss of £11mln versus the lockdown-boosted profit of £16mln last year.
As industry-wide issues relating to supply chain disruption continue, AO's management now expects revenue to be flat at best or down 5% at worst, with group adjusted EBITDA in the range of £10mln-£20mln.
John Roberts, founder and chief executive, said: "Our results over this period have inevitably been affected by the constraints and uncertainty seen across our industry...We're working hard to solve some of the current challenges that our industry is facing. We've recruited c.500 new drivers and are working closely with our manufacturer partners so that customers can get what they need."