UK-based electrical retailer AO World has reported revenues of €1.13bn ($1.22bn) in fiscal year (FY) 2023, down 16.8% from €1.36bn in FY22.

During the period ending 31 March 2023, the retailer's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 102% to £45m with an adjusted EBITDA margin of 4.0%.

AO World returned to profit in FY23 with an operating profit of €13m over the year against an operating loss of €8m in FY22.

It also registered a profit before tax of €8m in FY23 compared to a loss before tax of €11m a year ago and basic earnings per share (EPS) of €1.13.

AO World founder and chief executive John Roberts said: "We are delighted with the demonstrable progress that we've made with the strategic realignment of AO towards profitability and cash generation.

"The significant improvement in our profit performance speaks for itself and has been achieved by focusing on our core strengths and simplifying our operations while still delivering the outstanding customer service for which we're famous.

"Looking ahead, we intend to continue with this focus whilst also retaining the flexibility to drive growth through disciplined investment at the right pace and at the right time."

The electrical retailer accounted for 16% total market share and a 30% online share in UK's Major Domestic Appliances (MDA).

Over the year, AO World served more than 800,000 new customers.

Roberts added: "Over five million new customers experienced the AO Way over the last three years, during which time we've maintained our "excellent" Trustpilot rating from more than 400,000 Trustpilot reviews, making AO the most trusted electricals retailer in the UK."

In FY24, the retailer aims to deliver an EBITDA target of 5% in the short term.

Last month, UK-based sportswear and fashion retailer Frasers Group acquired an 18.9% stake in AO World.