Currys, the renowned retailer of technology products, took a major hit in fiscal 2023, resulting in a swing to a pretax loss. As a consequence, the company has made the decision to eliminate its dividend payout. Here are the key details:
Pretax Loss
In the year ending April 30, Currys experienced a significant swing to a pretax loss, amounting to £450 million ($571.7 million). This stands in stark contrast to the previous fiscal year, where the company achieved a profit of £126 million. Analysts surveyed by FactSet had projected a slightly lower loss of £445 million.
Revenue Decline
Currys saw a decline in revenue, with figures amounting to £9.51 billion compared to the previous year’s £10.14 billion. Although analysts had predicted revenue to reach £9.43 billion, Currys slightly surpassed these expectations according to the FactSet-compiled consensus.
Adjusted Pretax Profit
The adjusted pretax profit for Currys fell from £186 million to £119 million, which falls within the upper end of their projected guidance range (£110 million to £120 million). The FactSet-compiled forecast suggested an adjusted pretax profit of £116 million.
These recent developments have undoubtedly attracted attention and will be closely monitored moving forward.
Currys Halts Dividend Payout in Response to Economic Uncertainty
Currys, a leading electronics retailer, has made the decision to temporarily suspend its dividend payout due to an uncertain economic outlook. Alongside this, the company has implemented various strategies to maximize operating cash flow, improve margins, achieve cost savings, and reduce capital expenditure. These measures are expected to fortify Currys’ balance sheet and position the company favorably for the future.
Strategic Review of Greek Business Underway
In a recent announcement, Currys stated that it has initiated a strategic review of its Greek unit, Kotsovolos. This review has the potential to result in the divestment of the unit; however, no further details have been provided in the full-year publication.
Strong U.K. Performance Overshadowed by Nordics Headwinds
Currys’ U.K. and Ireland division has reported a noteworthy 45% increase in adjusted earnings before interest and taxes, reaching GBP170 million. This exceeds the expectations set by financial experts at Citi, who anticipated earnings of GBP165 million. However, the positive performance in the U.K. was partially offset by challenges faced in the Nordics region. Intense price competition and excess inventory have led to squeezed margins. Nevertheless, Chief Executive Alex Baldock remains optimistic about the future, stating that the company’s primary focus is to continue the impressive growth trajectory in the U.K. and Ireland while working diligently to restore profitability in the Nordics.
