Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q1 2022 Earnings Presentation
20 slides from Verkkokauppa.com Oyj's earnings presentation, Apr 28, 2022
Slide 1: Verkkokauppa.com's consumer sales softer than expected in the first quarter
Verkkokauppa.com Oyj Interim Report January-March 2022 Verkkokauppa.com’s consumer sales softer than expected in the first quarter 28 April 2022 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: Today's agenda
Today´s agenda Business review Q1 highlights Key financials Strategic development and market outlook Strategic cornerstones and development Business outlook for 2022 and financial targets Key takeaways 2
Slide 3: Challenging market environment
Challenging market environment Sales • Market continued challenging and consumer sales weaker than expected • Overall revenue declined by -6.9% • B2B sales continued solid and increased by +12% • Export business declined -30.5%, as we stopped all sales to Russia • Online sales declined by -4.8% foll
Slide 4: Q1/2022: revenue declining in a challenging quarter
Q1/2022: revenue declining in a challenging quarter EUR million 1-3/2022 1-3/2021 Change, % 1-12/2021 Q1 revenue declined Revenue 124.8 134.0 -6.9% 574.5 by -6.9% Gross profit 19.3 21.7 -11.4% 91.2 Operating expenses Gross margin, % 15.4% 16.2% 15.9% higher due to logistics and Personnel expense
Slide 5: Q1/2022: The consumer market continued to be challenging, B2B performed strong and grew +12%
Q1/2022: The consumer market continued to be challenging, B2B performed strong and grew +12% The consumer market continues soft Online sales1) declined slightly EUR million Revenue EUR million 200.0 120.0 -6.9.0% 169.0 -4.8% 104.3 100.0 150.0 134.0 141.0 80.3 76.4 81.5 124.8 130.5 77.9 80.0 100.0 60
Slide 6: Balance sheet & Cash flow
Balance sheet & Cash flow At the end of March 2022: • Inventories were EUR 91.4 (79.9) million • Cash flow from operating activities was EUR -16.8 (-9.1) million • Investments during Q1 were EUR 1.4 (0.4) million • Mainly related to warehouse automation investment in Jätkäsaari • Cash, EUR 16.7 (32.
Slide 7: Update on strategy execution
Update on strategy execution
Slide 8: Strategy execution – developing our operations towards our targets
Strategy execution – developing our operations towards our targets Speed & Trust Assortment Experience Flexibility Frictionless omnichannel Delivery experience fuelled by Most transparent product The widest and most exciting experience built upon inhouse highest availability and information platform
Slide 9: Next steps taken on the journey towards long term targets
Next steps taken on the journey towards long term targets Warehouse automation E-ville.com acquisition • Autostore automation in Jätkäsaari was • Acquisition significantly accelerates own finalized during the first quarter brand product development, efficient sourcing, and fast to market with new •
Slide 10: Increased interest from enterprise customer segment due to more comprehensive product & service mix
In B2B we are following our planned trajectory Increased interest from enterprise customer segment due to more comprehensive product & service mix • Good performance in B2B business • new services to new customers e.g. ‘Device as SMB Enterprise & Public a Service’ (ICT) concept Total office Best sec
Slide 11: Assortment development continuing despite challenging business environment
Assortment development continuing despite challenging business environment Assortment • Significant changes in consumer spending and buying behavior challenges us to agile and rapid commercial decisions • We continue to expand our assortment at a record pace, constantly looking into new possibilitie
Slide 12: A new payment method for our customers launched
Up to 45 days of interest-free A new payment method for and expense-free payment our customers launched period for each purchase Experience • The Verkkis-account (”Tili”) is a solution for easy transactions and payments • Tili was soft launched in mid-February and already 1,500 customers opened an a
Slide 13: Business outlook
Business outlook
Slide 14: Short-term business and market outlook
Short-term business and market outlook There is uncertainty about the The company's growth prospects The rise in inflation, as well as the future outlook in relation to for the current year are crisis in Ukraine, have further geopolitical conflicts in the world, considered challenging due to undermi
Slide 15: Consumer confidence at rock bottom in April – expectations concerning inflation highest ever
Consumer confidence at rock bottom in April – expectations concerning inflation highest ever Consumer confidence indicator • The consumer confidence indicator stood at -11.7 in April, having been -10.5 in March and 0.5 in February • Since its measuring history 1995, consumer confidence has been weak
Slide 16: Guidance for 2022, Targets by the end of 2025, Dividend policy
Guidance for 2022 Targets by the Dividend policy Updated on 23 March end of 2025 We continue to pay out a Revenue: EUR 530–590 million quarterly growing dividend (2021: EUR 574.5 million) Revenue: EUR 1 billion Comparable EBIT: EBIT margin: 5% Dividend in 2022: EUR 12–19 million Fixed costs: <10% of
Slide 17: Key takeaways from the 1st quarter
Key takeaways from the 1st quarter Soft consumer demand throughout The acquisition of e-ville.com 1 the quarter, consumer uncertainties impacting purchasing behavior 4 online store was finalized The investment on Good performance in 2 B2B sales, increase of +12.0% 5 automated Jätkäsaari logistics hu
Slide 18: More Information
More Information Investor Relations contacts: Links Marja Mäkinen Visit our Investors website: Head of Investor Relations & www.verkinvest.com Corporate Communications marja.makinen@verkkokauppa.com Join mailing list for Company releases: Financial events in 2022-23 +358 40 671 2999 www.joinverk.com
Slide 19: 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
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