Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q4 2024 Earnings Presentation
24 slides from Verkkokauppa.com Oyj's earnings presentation, Feb 6, 2025
Slide 1: Significant profitability improvement in a weak demand environment
SIGNIFICANT PROFITABILITY IMPROVEMENT IN A WEAK DEMAND ENVIRONMENT Verkkokauppa.com Oyj – Financial Statements Bulletin 2024 6 February 2025 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: Q4 2024 Results
Q4 2024 RESULTS 01 Market development 02 Q4 2024 performance 03 Strategy execution 04 Market outlook and guidance 05 Key takeaways 2
Slide 3: Market development
MARKET DEVELOPMENT 3
Slide 4: Consumer confidence weakened slightly during the quarter
CONSUMER CONFIDENCE WEAKENED SLIGHTLY DURING THE QUARTER Consumer confidence in Finland Q4/2024 development • Consumer confidence weakened slightly compared to the previous year • The assessment of the current state of one's own finances deteriorated compared to the previous quarter 12/2022 1/2023 2
Slide 5: Q4 performance
Q4 PERFORMANCE 5
Slide 6: Consumer caution was reflected in the revenue
CONSUMER CAUTION WAS REFLECTED IN THE REVENUE Quarterly revenue (MEUR) -7% Q4/2024 development 150.6 140.2 122.0 112.8 117.4 108.0 105.5 114.2 • Group revenue was 140.2 MEUR (150.6) and declined by 6.9% YoY • The decline was driven by weak demand especially in discretionary categories like Televisio
Slide 7: Gross profit and margin increased compared to the previous year
GROSS PROFIT AND MARGIN INCREASED COMPARED TO THE PREVIOUS YEAR Gross profit (MEUR) +1% Q4/2024 development 23.1 23.3 20.2 18.8 18.7 18.7 17.3 16.6 • Gross profit increased to 23.3 MEUR (23.1) • Strong improvement in Gross margin, improved to 16.6% (15.3%) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2
Slide 8: Significant profit improvement driven by cost savings
SIGNIFICANT PROFIT IMPROVEMENT DRIVEN BY COST SAVINGS Key figures Q4/2024 development EUR million Q4/2024 Q4/2023 Change Revenue 140.2 150.6 -6.9% • Strong profitability improvement driven by solid Gross profit 23.3 23.1 +0.2 meur margin and cost efficiency Personnel costs 9.6 9.9 -3.1% Other operat
Slide 9: Successful inventory optimization continued
SUCCESSFUL INVENTORY OPTIMIZATION CONTINUED Inventory (MEUR) -18% 76.6 70.0 72.0 69.5 70.5 62.7 65.3 51.1 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4/2024 development • Inventory decreased to 51.1 MEUR (62.7) • 18% decrease in the inventory value compared to the previous year,
Slide 10: Strong cash flow development in the quarter
STRONG CASH FLOW DEVELOPMENT IN THE QUARTER Cash flow from operations (MEUR) +19% Q4/2024 development 21.1 17.8 • Cash flow from operating activities increased to 21.1 MEUR (17.8) 3.2 3.0 2.2 2.6 • Equity ratio remained stable at 16.0% (16.2%) -3.6 • Cash at hand increased to 35.6 MEUR (31.9) -13.0
Slide 11: FY2024 performance summary
FY2024 PERFORMANCE SUMMARY REVENUE GROSS PROFIT COMPARABLE EBIT CASH FLOW FROM OPERATIONS 467.8 MEUR 75.8 MEUR 1.8 MEUR 12.9 MEUR (502.9 MEUR) (80.9 MEUR) (6.1 MEUR) (20.3 MEUR) -7.0% 16.2% (16.1%) 0.4% (1.2%) 11
Slide 12: Strategy execution
STRATEGY EXECUTION 12
Slide 13: Accelerating online shift through fastest deliveries
ACCELERATING ONLINE SHIFT THROUGH FASTEST DELIVERIES To revolutionize retail, we will set new standards on delivery speed and effortless shopping experience and stand out in the market Quarterly volume of one-hour deliveries 2024 • Strong growth in one-hour deliveries One-hour deliveries in four maj
Slide 14: Strong growth in strategically important own brands
STRONG GROWTH IN STRATEGICALLY IMPORTANT OWN BRANDS Own brand sales (MEUR) Q4 2024 • Own brand sales grew by 19.7% compared to the previous year +20% • Sales increased to 9.5 MEUR (8.0) in the quarter • The share of own brands increased to 6.8% (5.3%) of revenue in the quarter • Growth came particul
Slide 15: Creating a platform for international growth
CREATING A PLATFORM FOR INTERNATIONAL GROWTH Q4/2024 development • EU sales increased by 2% driven by good demand in Sweden and Denmark • Promising negotiations with new partners ongoing • Tallinn piloting with wide assortment continued • Launched a new, cutting-edge platform, to serve B2B wholesale
Slide 16: Renewed sustainability program to support growth
RENEWED SUSTAINABILITY PROGRAM TO SUPPORT GROWTH CO2 emissions from own operations on the way the New climate ambition: commitment to Science- zero based targets initiative (SBTi) • Scope 1 & 2: Target to reach zero emissions in 2025 -93% 581 • Scope 3: 78%* of suppliers in terms of emissions commit
Slide 17: Market outlook and guidance
MARKET OUTLOOK AND GUIDANCE 17
Slide 18: 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 level
Slide 19: Guidance for 2025
GUIDANCE FOR 2025 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. The guidance includes uncertainties related to changes in purchasing power and consum
Slide 20: Key takeaways Q4 2024
KEY TAKEAWAYS Q4 2024 • Consumer confidence weakened further, and consumers were still cautious about purchasing discretionary products Consumer confidence weakened further, • Gross margin strengthened and consumers by successful were still cautious about commercial negotiations, a healthy inventory
Slide 21: Verkkokauppa.com
VERKKO KAUPPA COM
Slide 22: Quarterly key figures
QUARTERLY KEY FIGURES Revenue, eur million Gross profit, eur million Gross margin-% EBITDA, eur million EBITDA-% Operating result, eur million Operating margin-% ‘Comparable operating result, eur million ‘Comparable operating margin-% Net result, eur million Interest-bearing net debt, eur million In
Slide 23: More information
MORE INFORMATION Upcoming Financial events • 28 February 2025: Investor presentation in Helsinki, arranged Investor Relations contacts by SEB • During the week 11 in 2025: Annual reporting package for Tomi Lindell 2024, including the Report of the Board of Directors and the Head of Investor Relation
Slide 24: Verkkokauppa.com
VERKKO KAUPPA COM