Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q1 2023 Earnings Presentation
27 slides from Verkkokauppa.com Oyj's earnings presentation, Apr 27, 2023
Slide 1: Moderate revenue development in a tough environment
Verkkokauppa.com Oyj – January-March 2023 Interim Report Moderate revenue development in a tough environment 27 April 2023 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: Q1 2023 results
Q1 2023 results › Market development › Q1 2023 performance › Strategy execution › Market outlook and guidance › Key takeaways 2 5.5.2023
Slide 3: Market development
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Slide 4: Consumer confidence was very weak – slow rise in March
Consumer confidence was very weak – slow rise in March Inflation 2021-03/2023 • Consumers’ expectations concerning Finland’s economy 10.0 improved slightly and consumer trust index and sentiment 9.0 8.0 upon own economy increased during Q1. 7.0 6.0 • The time was still regarded as unfavorable for bu
Slide 5: Q1 2023 performance
Q1 2023 performance
Slide 6: Demand continued at a moderate level in both consumer and B2B segments
Demand continued at a moderate level in both consumer and B2B segments 2022 2023 Q1/2023 development Q1 Q2 Q3 Q4 Q1 Group revenue declined by 2.2% YoY and was EUR 122.0 million (124.8) 154.9 Revenue, 137.8 124.8 125.7 122.0 Customer segments EUR million 33.0 28.9 › Consumer segment declined by 4.4.%
Slide 7: Solid gross margin driven by price and campaign optimization
Solid gross margin driven by price and campaign optimization 2022 2023 Q1/2023 development Q1 Q2 Q3 Q4 Q1 Gross profit was strong, increased by 5.1% YoY, and totaled EUR 20.2 million (19.3) and 16.6% 15.4% 15.4% 14.6% 16.6% of revenue (15.4%) 14.1% Gross profit and +5.1% margin, EUR million 21.9 › E
Slide 8: Moderate top-line development while improving gross margin
Moderate top-line development while improving gross margin Q1/2023 development EUR million Q1/2023 Q1/2022 Change, % FY2022 › Positive comparable operating profit Revenue 122.0 124.8 -2.2% 543.1 development driven by gross profit improvements and continuous focus Gross profit 20.2 19.3 5.1% 80.6 on
Slide 9: Inventory value declined -16% YoY
Inventory value declined -16% YoY Balance sheet & Cash flow on 31 March 2023 2022 2023 › Group inventory declined by -16% YoY and Q1 Q2 Q3 Q4 Q1 was EUR 76.6 million (91.4) -16% › Slight increase sequentially, due to Inventories, preparation for the spring season EUR million 91.4 94.8 86.9 74.8 76.6
Slide 10: Strategy execution
«Com ’ yy | Verkkokauppa Strategy execution
Slide 11: The company is focusing on short-term profitability program, which is proceeding as planned
The company is focusing on short-term profitability program, which is proceeding as planned Profitability improvement program: Q1: On target according to plan capture full potential of core business quarterly estimate of impact timing EUR 5-8 Operational performance & Commercial excellence Actual Ta
Slide 12: Q1/2023 highlights in new strategic capabilities
Q1/2023 highlights in new strategic capabilities Highlights to follow First version of dynamic pricing solution integrated Assortment Introduced new product line of used computers Inspirational Online Experience: new online frontpage and product category pages launched Experience One-hour express ho
Slide 13: Finland’s most popular eCommerce site is evolving rapidly
Finland’s most popular eCommerce site is evolving rapidly Category page concept New features rolled out in Q1/2023: › New features and design for the front page › Most relevant accessory recommendations utilising ML and AI models Experience › New marketing concept to showcase our strong brand › Impr
Slide 14: One hour delivery service launched in February
One hour delivery service One-hour launched in February home delivery › Entire Jätkäsaari assortment available for customers in an hour for online orders › Current delivery area covers 44 postal codes with over 300,000 customers › Target to extend one-hour home delivery to all Verkkokauppa.com store
Slide 15: Trade in –service prepared for launch: major step forward within our circular economy path
Trade in –service prepared for launch: major step forward within our circular economy path › Verkkokauppa.com's new service offers a solution for easier resell of electronics - used device instantly cashed out from one’s own couch › The refund for the sold device is immediately logged into the custo
Slide 16: Market outlook and guidance
Market outlook and guidance
Slide 17: Market outlook and short-term expectations
Market outlook and short-term expectations • There is uncertainty about the future outlook in relation to geopolitical conflicts in the world and the ongoing crisis in Ukraine • Global macroeconomic factors such as inflation and financial market behavior can weaken consumer and company purchasing po
Slide 18: Financial guidance for 2023 – unchanged
Financial guidance for 2023 – unchanged In 2023, Verkkokauppa.com expects the revenue to decline and comparable EBIT to improve compared to 2022. Revenue in 2022: EUR 543.1 million Comparable EBIT in 2022: EUR 3.5 million 18 5.5.2023
Slide 19: Key takeaways
Key takeaways
Slide 20: Key takeaways from the 1st quarter of 2023
Key takeaways from the 1st quarter of 2023 › Consumers' confidence in the economy › The largest renewal of our online site is has shown a slight rise but has remained progressing well low › Strategic development work ongoing as › We completed the change negotiations planned (Trade-in, Account, Expre
Slide 21: Thank you
Thank you
Slide 22: Annual Reporting package for 2022 has been published
22 Annual Reporting package for 2022 has been published Verkkokauppa.com has published four separate reports, which together form the company’s Annual reporting for 2022 1. Company brochure 2. Report of the Board of Directors and the Financial Statements 3. Statement of non-financial information 4.
Slide 23: More information
More information Upcoming Financial Investor Relations Links events contacts Visit our Investors website www.verkinvest.com Marja Mäkinen Head of Investor Relations & Half-year financial report for January – June 2023 on 20 Corporate Communications Join the mailing list for Company July 2023 marja
Slide 24: This document is not an invitation to subscribe for or purchase any securities
This document is not an invitation to subscribe for or purchase any securities or make any investment decisions in respect of the Company or its securities. This document is not for publication or distribution, directly or indirectly, in or into Australia, Canada, the Hong Kong special administrativ
Slide 25: Appendix
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Slide 26: Quarterly Key figures
Quarterly Key figures 2023 2022 Q1-Q4 Q1 Q1 Q2 Q3 Q4 2022 Revenue, eur million 122.0 124.8 125.7 137.8 154.9 543.1 Gross profit, eur million 20.2 19.3 19.4 20.1 21.9 80.6 Gross margin-% 16.6% 15.4% 15.4% 14.6% 14.1% 14.8% EBITDA, eur million 1.6 2.0 0.5 3.2 2.2 7.8 EBITDA-% 1.3% 1.6% 0.4% 2.3% 1.4%
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