Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q1 2025 Earnings Presentation
22 slides from Verkkokauppa.com Oyj's earnings presentation, Apr 24, 2025
Slide 1: Operational Efficiency Led to Significant Profit Improvement
OPERATIONAL EFFICIENCY LED TO SIGNIFICANT PROFIT IMPROVEMENT Verkkokauppa.com Oyj – January-March 2025 Interim report 24 April 2025 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: Q1 2025 Results
Q1 2025 RESULTS 01 Market development 02 Q1 2025 performance 03 Strategy execution 04 Market outlook and guidance 05 Key takeaways 2
Slide 3: Market Development
MARKET DEVELOPMENT 3
Slide 4: No Significant Changes in the Operating Environment
NO SIGNIFICANT CHANGES IN THE OPERATING ENVIRONMENT Consumer confidence in Finland Q1/2025 development • Consumers’ confidence in their own economy remained low and the time was regarded unfavorable for large purchases • The outlook for general unemployment trends was bleak, and the threat of unempl
Slide 5: Q1 Performance
Q1 PERFORMANCE 5
Slide 6: Back to Growth in the First Quarter
BACK TO GROWTH IN THE FIRST QUARTER Quarterly revenue (MEUR) Q1/2025 development • The first quarter of the year started strong with group +2.4% revenue reaching 110.5 MEUR (108.0) marking a 2.4% 110.5 108.0 YoY increase • Revenue grew particularly in the company’s strategic focus areas in online ch
Slide 7: Successful Margin Improvement
SUCCESSFUL MARGIN IMPROVEMENT Gross profit (MEUR) +11% Q1/2025 development 20.8 18.7 • Continuation of clear improvement in gross profit • Gross profit was 20.8 MEUR (18.7) and increased by 2.1 MEUR compared to previous year • Gross margin improved to 18.8% (17.3%) Q1 2024 Q1 2025 Gross margin % The
Slide 8: Significant Profitability Improvement Continued
SIGNIFICANT PROFITABILITY IMPROVEMENT CONTINUED Key figures Q1/2025 development EUR million Q1/2025 Q1/2024 Change Revenue 110.5 108.0 +2.4% • Strong profitability improvement driven by sales Gross profit 20.8 18.7 +2.1 meur increase, solid margin and cost efficiency Personnel expenses 8.8 9.0 -2.7%
Slide 9: Successful Inventory Optimization
SUCCESSFUL INVENTORY OPTIMIZATION Inventory (MEUR) -5% 69.5 70.5 65.3 65.9 51.1 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1/2025 development • Inventory level decreased to 65.9 (69.5) MEUR which was 5% lower than previous year • Inventory on a healthy and lower level compared to previous year • High-
Slide 10: Preparation for the Upcoming Summer Season Impacted Cash Flow in Q1
PREPARATION FOR THE UPCOMING SUMMER SEASON IMPACTED CASH FLOW IN Q1 Cash flow from operations (MEUR) Q1/2025 development • The cash flow from operations totaled -14.7 million euros (-13.0) • Equity ratio improved to 17.9% (16.7%) -13.0 • Cash at hand was 19.6 MEUR (16.8) at the end of March -14.7 20
Slide 11: Strategy Execution
STRATEGY EXECUTION 11
Slide 12: Fast Deliveries Continued on a Steady Growth Track
FAST DELIVERIES CONTINUED ON A STEADY GROWTH TRACK To revolutionize retail, we will set new standards on delivery speed and effortless shopping experience • One-hour deliveries continued to grow, Quarterly volume of one-hour deliveries 2025 deliveries were up by 21% compared to One-hour deliveries i
Slide 13: Growth in the Sales of Own Brands
GROWTH IN THE SALES OF OWN BRANDS Own brand sales (MEUR) Q1 2025 • In line with our strategy, we aim to grow in our +36% own brands and aiming to increase overall 7.4 gross margin • Our goal during the strategy period is to increase the share of own brands in revenue 5.5 to 10 percent by end of 2028
Slide 14: New Markets Development Continues in Line with Our Strategy
NEW MARKETS DEVELOPMENT CONTINUES IN LINE WITH OUR STRATEGY Q1/2025 development • International sales grew by 38% YoY • We continued to expand our international partnerships and announced a collaboration with Amazon in Sweden, expecting growth in the medium term • We established a new significant in
Slide 15: Market Outlook and Guidance
MARKET OUTLOOK AND GUIDANCE 15
Slide 16: Market Outlook
MARKET OUTLOOK • The general market demand is expected to remain cautious in the first half of the year due to low consumer confidence • In the second half of the year, private consumption is forecasted to recover as purchasing power strengthens. Purchasing power is supported by rising income levels
Slide 17: Guidance for 2025 - Unchanged
GUIDANCE FOR 2025 - UNCHANGED Verkkokauppa.com expects its revenue and comparable operating result for 2025 to increase. In 2024, the company's revenue was EUR 467.8 million and comparable operating result was EUR 1.8 million. Guidance includes uncertainties related to changes in purchasing power an
Slide 18: Key Takeaways Q1 2025
KEY TAKEAWAYS Q1 2025 • Despite the challenging market environment, Consumer confidence weakened further, the first quarter of the andyear startedwere consumers strong stillwith group cautious revenue returning to growth, about increasing purchasingby 2.4% YoY products discretionary • Significant pr
Slide 19: Verkkokauppa.com
VERKKO KAUPPA COM
Slide 20: Quarterly Key Figures
QUARTERLY KEY FIGURES Revenue, eur million Gross profit, eur million Gross margin-%6 EBITDA, eur milion EBITDA-% Operating result, eur milion Operating margin-% ‘Comparable operating result, eur million Comparable operating margin-% Net result, eur million Interest-bearing net debt, eur million Inve
Slide 21: More Information
MORE INFORMATION Upcoming Financial events • 24 April 2025: Interim report for Investor Relations contacts January – March 2025 Jesper Blomster, CFO • 17 July 2025: Half-year financial jesper.blomster@verkkokauppa.com report for January – June 2025 • 23 October 2025: Interim report Panu Porkka, CEO
Slide 22: Verkkokauppa.com
VERKKO KAUPPA COM