TIDMDC.
RNS Number : 5429Y
Dixons Carphone PLC
10 September 2020
10 September 2020
AGM Trading Update for 17 weeks ended 29 August 2020
Strong sales in all markets with outstanding online
performance
-- UK & Ireland Electricals like-for-like revenue +12%
o Online sales more than tripled year-on-year while stores were
closed, and have continued at more than double last year's sales
since stores reopened
o Online market share gains every month and overall share gains
since stores reopened
o Sales down c.90% in Dixons Travel stores which mostly remain
closed, impacting UK & Ireland Electricals like-for-like and
total sales by c.5%
o Strong online sales and loss of higher margin Travel sales
have, as expected, lowered gross margin during the period
-- International like-for-like revenue +16%, Nordics +17%, Greece +12%
o Nordic online sales +49%, Greek online sales +115%
o Stores open throughout period with in-store sales growing each
month
o Grew market share in Nordics and Greece
o Gross margin down slightly given shift to online
-- UK & Ireland Mobile total revenue -56%
o Sales and cashflow in line with our plans following closure of
UK standalone stores
-- The Group is in a net cash position - which is a substantial
improvement on this time last year - and has continued access to
over GBP1.3bn of available committed debt facilities
-- Exploring listing a minority stake of our Nordics business
Alex Baldock, Group Chief Executive
"We've continued to trade strongly and safely, and that's thanks
to my colleagues: I'm full of gratitude and admiration for their
expert dedication throughout a challenging time.
Online has continued to power ahead: in the UK & Ireland
alone we grew online sales by more than GBP500m in four months,
growth that stayed strong even as stores reopened. We will continue
to help everyone enjoy amazing technology, however they choose to
shop with us, at scale and in ways that other retailers cannot
match.
We've started the year well, but nobody knows what the future
holds and, like many, we remain cautious in our outlook.
We're also in the early stages of exploring the option of
listing a minority stake of our Nordics business next year. This
would shine a light on the value of the Nordics business whilst
retaining it as part of the Group."
Like-for-like growth 8 weeks to
27 June 9 weeks to
(UK stores closed) 29 August 17 weeks to 29 August
---------------------- ------------------- ----------------------
UK&I Electricals +4% +20% +12%
- Online +218% +122% +164%
International +16%
- Online +51%
Nordics +17%
- Online +49%
Greece +12%
- Online +115%
-----------
Total Electricals +14%
- Online +124%
---------------------- ------------------- ----------- ----------------------
Online share of business 17 weeks to 24 YoY (%pts)
17 weeks to 29 August 2020 August 2019
--------------------------
UK&I Electricals* 64% 27% +37%
International 20% 15% +5%
Nordics 22% 17% +5%
Greece 8% 4% +4%
Electricals 42% 21% +21%
--------------------------
*Online share of business for the period since stores reopened
(9 weeks ending 29 August 2020) was 51%, +24%pts year on year
Outlook
We have made great progress so far this year in keeping our
colleagues safe, helping our customers and further strengthening
our financial position. We have the competitive pricing, market
leadership, strong supplier relationships and ample liquidity
needed to react to any economic outcome whilst continuing to make
good progress against our strategic priorities. Despite the strong
current trading, the economic outlook for this year remains
uncertain. We expect to provide an update on our 2020/21 guidance
at our Interim results.
Exploring a minority listing for Nordics business
Our Nordics business has performed strongly over the last decade
and has continued to grow profits and market share through
Covid-19. It is the market leader in every country in which it
operates with high levels of brand awareness and is the only
pan-Nordics specialist in consumer electronics.
Against the backdrop of strong performance and liquidity across
the Group, the Board is considering the best way to deliver value
for all stakeholders from our Nordics business. As a result, the
Board has decided to explore the option of a partial IPO in 2021. A
minority listing could further strengthen the capital structure
whilst retaining the full benefits of Nordics staying firmly as
part of the Dixons Carphone Group.
This review is in its early stages and we will consult with our
shareholders before any decision.
Next scheduled announcement
The Group is scheduled to publish its Interim results on
Wednesday 16 December 2020.
For further information
Assad Malic Group Strategy & Corporate Affairs Director +44 (0)7414 191044
Dan Homan Head of Investor Relations +44 (0)7400 401442
Amy Shields Director, External Communications +44 (0)7588 201442
Tim Danaher, Sam Chiene Brunswick Group +44 (0)207 404 5959
------------------------ -------------------------------------------- -------------------
Information on Dixons Carphone plc is available at
www.dixonscarphone.com
Follow us on Twitter: @dixonscarphone
About Dixons Carphone
Dixons Carphone plc is a leading omnichannel retailer of
technology products and services, operating through 932 stores and
16 websites in eight countries. We Help Everyone Enjoy Amazing
Technology, however they choose to shop with us.
We are the market leader in the UK & Ireland, throughout the
Nordics and in Greece, employing 24,000 capable and committed
colleagues in the UK & Ireland and 36,000 globally across the
Group. Our full range of services and support makes it easy for our
customers to discover, choose, afford and enjoy the right
technology for them, throughout their lives. The Group's core
operations are supported by an extensive distribution network,
enabling delivery to stores and homes, a sourcing office in Hong
Kong and a state-of-the-art repair facility in Newark, UK.
Our brands include Currys PC World and Carphone Warehouse in the
UK & Ireland and iD Mobile in the UK; Elkjøp, Elgiganten and
Gigantti in the Nordics; and Kotsovolos in Greece. Our Dixons
Travel brand has a presence across several UK airports as well as
in Dublin and Oslo, and our services are provided through Team
Knowhow.
Certain statements made in this announcement are
forward-looking. Such statements are based on current expectations
and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from any expected future
events or results referred to in these forward-looking statements.
Unless otherwise required by applicable laws, regulations or
accounting standards, we do not undertake any obligation to update
or revise any forward-looking statements, whether as a result of
new information, future developments or otherwise. Information
contained on the Dixons Carphone plc website or the Twitter feed
does not form part of this announcement and should not be relied on
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