Dixons Carphone PLC AGM Trading Statement 2020/21 (5429Y)

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   [phone] 
Dan Homan                 Head of Investor Relations                    [phone] 
Amy Shields               Director, External Communications             [phone] 
Tim Danaher, Sam Chiene   Brunswick Group                               [phone] 
------------------------  --------------------------------------------  ------------------- 
 

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 as such.

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September 10, 2020 02:00 ET (06:00 GMT)