UK-based electrical products retailer Currys has revised its full-year adjusted profits before taxes estimate for 2022-2023 to be between £110m and £120m.
Announced in the company’s trading update for the year ending 29 April 2023, the profit outlook is an improvement over the previous guidance of £104m.
The improved profits are driven by improved gross margin and focus on cost efficiencies.
The company’s year-end net debt is estimated to be £100m, against previous guidance of £100m to £150m.
The company has exceeded expectations in terms of UK and Ireland trading, particularly in the last two months of the year.
The full-year adjusted earnings before interest and taxes (EBIT) in the UK & Ireland are expected to increase more than 40% year-over-year.
Currys forecasts the international full-year adjusted EBIT to be lower than last year, driven by the challenging Nordics trading environment. It expects robust performance from its Greek operations.
The retailer is implementing structural changes to eliminate at least £25m of annual costs.
The full-year like-for-like (LFL) sales in the UK & Ireland and international markets are expected to drop by 7%.
The Nordics business is expected to witness a 10% decline in LFL sales while the business in Greece is expected to post a 12% growth in LFL sales.
Currys expects to release full-year results in July this year.
Last month, the retailer entered a five-year partnership with technology consulting and digital solutions company LTIMindtree. Under the agreement, LTIMindtree will serve as Currys’ core digital transformation partner to expedite its omnichannel transformation.
Currys is an omnichannel retailer of technology products and services. It operates online and through 826 stores in eight countries.
The company operates as Currys in the UK & Ireland, Elkjøp in the Nordics, and Kotsovolos in Greece.