Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Investor Presentation (June 2024)
28 slides from Verkkokauppa.com Oyj's investor presentation, Jun 5, 2024
Slide 1: Verkkokauppa.com will change the retail in Finland
Verkkokauppa.com Oyj VERKKOKAUPPA.COM WILL CHANGE THE RETAIL IN FINLAND 5 June 2024 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: Company update
Company update › Market outlook › Q1 2024 performance shortly › Strategy execution › Market outlook and Key takeaways 2 6/4/2024
Slide 3: Market outlook
MARKET OUTLOOK
Slide 4: Headwinds in the market environment
Headwinds in the market environment Subdued economic growth, Weak consumer confidence Despite the challenges in the signs of potential turnaround restraining spending on market, signs of a potential are visible later in the year1 discretionary goods1 turnaround are emerging later in the year as inte
Slide 5: Market & consumer tailwinds contributing to future growth and strengthening our position
Market & consumer tailwinds contributing to future growth and strengthening our position Company’s addressable market continues transitioning online, cannibalizing traditional brick & mortar Fast and convenient shopping becoming a new norm for buying New ways of buying and owning becoming more relev
Slide 6: Retail in Finland is steadily transitioning to online
Retail in Finland is steadily transitioning to online Consumer electronics is one of the top-selling categories online and is experiencing fastest shift to online Total addressable ONLINE market size (meur) and Consumers preferring to buy electronics development, Finland 2023-2028 online rather than
Slide 7: Fast deliveries are growing globally at a significant pace
Fast deliveries are growing globally at a significant pace Fast deliveries are a top priority for customers, but Finland lags many other countries in this area Top preference drivers* Global same-day delivery market size The availability of fast delivery forecast 2021-2027, BN$ increases the prefere
Slide 8: Circular products becoming more important
Circular products becoming more important Finland is one of the world’s leading countries in second-hand purchasing Market size of global refurbished phones 2022-2028 Majority of Finnish consumers would buy used electronics CAGR 2021- 2028 $110Bn +11.8% $98Bn $88Bn $78Bn “I could buy reliable and se
Slide 9: Q1 2024 performance in short
Q1 2024 performance in short
Slide 10: 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 11: 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 12: 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 13: 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 14: Strategy execution
iw Verkkokauppa IBABLY ALWAYS CHEAPER Com
Slide 15: Our strategy for 2024-2028 to create a new norm for buying and owning
OUR STRATEGY FOR 2024-2028 WE WILL ACCELERATE ONLINE TRANSITION WITH FOUR CORNERSTONES LEADING TO PROFITABLE GROWTH 1 FASTEST FULFILMENT 2 CURATED ASSORTMENT 3 NEW BUSINESS MODELS 4 OPERATIONAL EXCELLENCE • Blazing delivery speed a new norm • First one to introduce latest • New subscription-based se
Slide 16: Capitalizing on our unique position in the market
Capitalizing on our unique position in the market: seizing growth opportunities within categories and online market expansion 1 Market offering moderate growth 2 Online growth supporting strong growth opportunities 3 Opportunity in total potential market Total potential market Finland Online address
Slide 17: We will make fast deliveries the new norm in Finland
We will make fast deliveries the new norm in Finland 2024 YTD 1-hour deliveries 2028 1-hour deliveries across Finland in available 24/7 in capital largest cities using cost effective region covering >13% of micro fulfilment centres Finnish population 1-HOUR DELIVERIES Store as delivery hub and Store
Slide 18: Providing distinct value and maintaining a leading position
Providing distinct value and maintaining a leading position Our distinctive competitive advantages Our four customer value propositions Annual top line growth Finland´s fastest deliveries with Fastest fulfilment & low costs (CAGR) of more than 5%, ultimate convenience outgrowing the market + + EBIT
Slide 19: Market outlook & key takeaways
Market outlook & key takeaways
Slide 20: 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 21: Key takeaways
Key takeaways 1 Verkkokauppa.com has built up a robust business model to outstand competition and market headwinds 2 Market & consumer tailwinds contributing for future growth We have a clear strategy on how to scale our business and provide future 3 growth 4 Accelerating online transition through f
Slide 22: Thank you
Verkkokauppa PROBABLY ALWAYS CHEAPER Com
Slide 23: Verkkokauppa.com Capital Markets Day
Verkkokauppa.com Capital Markets Day was held on 30 May 2024 Check the presentation recording and materials at investor website, https://investors.verkkokauppa.com/en/investors/cmd_2024
Slide 24: 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 25: 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 26: Appendix
Appendix > Quarterly Key Figures
Slide 27: 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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