Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q1 2024 Earnings Presentation
27 slides from Verkkokauppa.com Oyj's earnings presentation, Apr 25, 2024
Slide 1: Verkkokauppa.com focused on profitability in a declining market
Verkkokauppa.com Oyj January – March 2024 Interim Report VERKKOKAUPPA.COM FOCUSED ON PROFITABILITY IN A DECLINING MARKET 25 April 2024 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: Q1 2024 results
Q1 2024 results › Market development › Q1 2024 performance › Strategy update › Market outlook and guidance › Key takeaways 2 4/24/2024
Slide 3: Market development
Market development
Slide 4: Consumer confidence remained unchanged and weak in March
Consumer confidence remained unchanged and weak in March Consumer confidence • The consumer confidence indicator stood at -9.4 in Consumer confidence indicator 04/22-03/24 March. Views concerning consumer's own economy at 0 present were very weak -2 -4 -6 • In March, expectations concerning the gene
Slide 5: Q1 2024 performance
Verkkokauppa _ PROBABLY ALWAYS CHEAPE! R -Com
Slide 6: Weak top-line development due to a soft market
Weak top-line development due to a soft market Q1/2024 development 2023 2024 Group revenue was EUR 108.0 million and it declined Q1 Q2 Q3 Q4 Q1 by -11.5% YoY. Revenue, 150.6 Customer segments EUR million 122.0 112.8 117.4 › Consumer sales accounted for 65% of product sales 108.0 and declined by -13.
Slide 7: Gross margin impacted by price driven market
Gross margin impacted by price driven market 2023 2024 Q1/2024 development Q1 Q2 Q3 Q4 Q1 Gross profit totaled EUR 18.7 million and 17.3% 16.6% 16.7% 17.3% of revenue 15.9% 15.3% Gross profit and › Gross margin was positively impacted by good margin, EUR million 23.1 demand of own brand products and
Slide 8: Weak demand resulted in low sales and declining profitability
1 Weak demand resulted in low sales and declining profitability Q1/2024 development EUR million Q1/2024 Q1/2023 Change 2023 › Personnel costs declined by -9.5% as a result of the change negotiations Revenue 108.0 122.0 -11.5% 502.9 executed during the previous year Gross profit 18.7 20.2 -1.6 MEUR 8
Slide 9: Successful inventory management continued
Successful inventory management continued Balance sheet and cash flow on 31 March 2024 2023 2024 › Inventory on a healthy level, declined by -9% YoY, and totaled EUR 69.5 million. Q1 Q2 Q3 Q4 Q1 › Investments during January-March were Inventories, -9% EUR 0.3 million (1.0). There were no major EUR m
Slide 10: Update on our sustainability work
Update on our sustainability work • Verkkokauppa.com’s Sustainability Report 2023 was published in April. The report extensively discusses the company's sustainability work and its progress, including emissions calculation • The double materiality analysis is ongoing and serves as a basis for report
Slide 11: Strategy execution highlights
Strategy execution highlights
Slide 12: Our strategy for 2024-2028
12 OUR STRATEGY FOR 2024-2028 WE WILL ACCELERATE ONLINE TRANSITION WITH FOUR CORNERSTONES LEADING TO PROFITABLE GROWTH 1. FASTEST FULFILMENT • Blazing delivery speed a new norm of buying • The most effortless shopping experience • Automated product flows and intralogistics Top line growth (CAGR) of
Slide 13: Strategic focus areas in 2024
OUR STRATEGY 2024-2028 STRATEGIC FOCUS AREAS IN 2024 13 WE WILL ACCELERATE ONLINE TRANSITION WITH FOUR CORNERSTONES SUPPORTED BY OUR STRONG LEADING TO PROFITABLE GROWTH • Blazing delivery speed a new norm of buying CONCRETE 1. FASTEST FULFILMENT • The most effortless shopping experience ACTIONS TO F
Slide 14: Fastest deliveries creating a new norm in Finland
Fastest deliveries creating a new norm in Finland The fastest deliveries in Finland Fast deliveries grew by 33% y-on-y • Today, more than every fourth Verkkokauppa.com customer order is fulfilled through express delivery in the service area +33% • We are reinforcing Verkkokauppa.com’s brand for fast
Slide 15: We went strongly online in circular economy
We went strongly online in circular economy Verkkokauppa.com’s Trade-in Service is evolving as planned • Trade-in service has now been live for one year and its quickly become established as part of the company’s service offering • We are the only operator with a fully online service for consumer cu
Slide 16: Market outlook and guidance
Market outlook and guidance
Slide 17: Market outlook and short-term expectations
Market outlook and short-term expectations › Geopolitical uncertainty remains high and the current state of the economy is still estimated to be weak › Employment has remained robust concerning the economic conditions, and inflation has also slowed down and is expected to decline during 2024 › A gra
Slide 18: Financial guidance for 2024 - intact
Financial guidance for 2024 - intact Verkkokauppa.com expects revenue for 2024 to remain at the 2023 level and comparable EBIT to increase from 2023. In 2023, revenue was EUR 502.9 million and comparable EBIT EUR 6.1 million. 18 4/24/2024
Slide 19: Key takeaways
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Slide 20: Key takeaways from Q1 2024
Key takeaways from Q1 2024 › Consumer confidence continued weak › Fast deliveries and next-day deliveries during the quarter continue to rise - express home deliveries increased by 33 percent › The consumer electronic market declined and remained tough and highly › We are confident that our focus on
Slide 21: Verkkokauppa.com's Capital Markets Day on 30 May 2024
Save the date for Verkkokauppa.com’s Capital Markets Day on 30 May 2024
Slide 22: Thank you
Verkkokauppa PROBABLY ALWAYS CHEAPER Com Thank you
Slide 23: More information
More information Upcoming Financial Investor Relations Links events contacts Visit our Investors website www.verkinvest.com CAPITAL MARKETS DAY on 30 May 2024 Marja Mäkinen Half-year financial report for January – June 2024 Head of Investor Relations & on Thursday 18 July 2024 Corporate Communic
Slide 24: Disclaimer
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
Appendix > Quarterly Key Figures
Slide 26: Quarterly Key Figures
Quarterly Key Figures 2024 2023 Q1 Q1 Q2 Q3 Q4 Q1-Q4 Revenue, eur million 108.0 122.0 112.8 117.4 150.6 502.9 Gross profit, eur million 18.7 20.2 18.8 18.7 23.1 80.9 Gross margin-% 17.3% 16.6% 16.7% 15.9% 15.3% 16.1% EBITDA, eur million 1.3 1.6 2.3 3.7 3.5 11.1 EBITDA-% 1.2% 1.3% 2.1% 3.1% 2.3% 2.2%
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