AO World reported a 67.2% spike in revenue after the group saw strong demand for electricity sales over the Christmas period.
Online electricity retailer raised its third quarter revenue to £457.3 million. Sales in Germany alone increased 77% to 73.6 million euros.
AO World will invest in new staff and infrastructure to meet demand. The group hired 1,500 employees in 2020, and staffed warehouses, vehicles and drivers.
Founder and CEO John Roberts said: “I think we’ve seen the 10-year change in 10 months and have experienced the strongest peak trading period to date. We’re confidently looking forward to the last quarter and the next fiscal year as a structural change. Online. It is cemented in the hearts of consumers.”
“Now that customers have experienced a better digital-first way of buying electricity, I don’t think the majority will ever look back.”
Despite positive renewals in trading, stocks fell 7% in early trading.
A Shore Capital analyst commented: “This is a bright trading update. This is an online as physical electronics stores from other brands remain closed as they are not considered important retailers during lockdown 2.0 and currently during lockdown. It shows continuous momentum taking into account both structural shifts and profits. 3.0.”
“This is the glory of the AO world given that the online market has seen lasting structural changes by consumers. The big challenge is whether revenue momentum for the first quarter of 2022 can continue. That’s it. Business begins cycling.”
AO World Share is -5.30% trading at 357,50 (0929GMT).
