Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q1 2020 Earnings Presentation
25 slides from Verkkokauppa.com Oyj's earnings presentation, Apr 24, 2020
Slide 1: Nasdaq First North GM
NASDAQ FIRST NORTH GM Panu Porkka, CEO 24 April 2020 Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Today's Agenda
Today’s Agenda • Key Figures Q1/2020 • Sales and Profitability Development • Competitive Advantage’s • Market Outlook 2020 • Key Takeaways • Q&A
Slide 3: Income Statement Q1
Income Statement Q1 EUR million Q1/2020 Q1/2019 Change, % “ Revenue 125.3 115.8 +8% Gross profit 19.4 17.4 +12% • 25th consecutive growth quarter Gross margin 15.5% 15.0% +3% Personnel expenses -8.6 -7.8 +11% • Operating profit increased by +63% Other opex -6.3 -6.3 -1% • Quarterly dividend Operatin
Slide 4: Sales Development in Q1
Sales Development in Q1 • Positive sales development in all major categories • Sales channel development driven by strong web sales • Web visitors +30% since mid March • Strong performance in several evolving categories • Sports +90%, Home +20%, Grilling +28% 100.0 mEUR 102.7 mEUR 115.8 mEUR 125.3 m
Slide 5: Profitability Development in Q1
Profitability Development in Q1 • Sales mix having a positive impact on gross margin • Share of mid size and small categories increasing • Healthy stock and turnover in big categories • Improved category management and optimized supply chain management • Reduction of slow movers, optimizition of sto
Slide 6: Balance Sheet 31.3.2020
Balance Sheet 31.3.2020 • Inventory 61.8 (66.7) million euros on 31/3/2020 • Cash flow from operating activities +3.7 (-11.2) million euros million • Cash 45.0 (42.5) million euros • Undrawn revolving credit facilities 20 million euros • 24.5% (23.4%) equity ratio Comparison 31.12.2019, except Cash
Slide 7: 2020 Guidance - unchanged
2020 Guidance - unchanged Revenue Operating profit €510m - €530m €12m- €15m (2019 €504m) (2019 €11 m) Medium-term targets: Sales growth 10 - 20% per year, growing operating profit and operating margin of 2.5 - 4.5% Policy of paying out growing quarterly dividend
Slide 8: Our Competitive Advantage's
Our Competitive Advantage’s
Slide 9: Vision: a Nordic leader in retail
“ Verkkokauppa.com’s vision is to be a Nordic leader in retail through cost-efficiency, brand image, own ecosystem and scalable business model
Slide 10: Strong Market Position as Retail Goes Online
Strong Market Position as Retail Goes Online • Uniquely positioned brand in e-commerce in Finland • Verkkokauppa.com continues to strengthen it’s top-of-mind position among customers • Cornerstone in Finnish retail, agile to changing environment • Strong company values drive our development
Slide 11: Fast and Seamless Customer Experience
Fast and Seamless Customer Experience • Transparency and fairness are driving forces behind our development in customer experience • Almost 300k product reviews and transparency regarding returns and service levels • Latest and ongoing developments: • Cloud based web site to support future demand •
Slide 12: Wide Assortment, Best Availability and Delivery Options
Wide Assortment, Best Availability and Delivery Options • Ongoing development of wide and attractive assortment up to 70.000 SKU • Focus on latest technology and high quality products in best possible prices, multiple and fast delivery options • Strong local inventory to maximise availability • Late
Slide 13: Price Leadership
Price Leadership • Keeping our customer promise “Probably always cheaper” in all major categories • Competitive prices enabled by the leanest operating model on the market • Low prices and low costs mentality across the organization • Latest and ongoing developments: • Increase the share of Private
Slide 14: Agile and Scalable Business Model
Agile and Scalable Business Model • Agile and Tech-driven business model effectively combines webstore and four megastores • In-house developed IT infrastructure built for omnichannel and online since day one • Scalable operating model with low relative fixed cost base enables profitable growth • La
Slide 15: Key Priorities 2020
Key Priorities 2020 • Maintain safety, secure operations and react to changing market situation due to Covid-19 • Continue brand marketing to increase awareness and top-of- mind to secure future growth • New category launch in Home & Garden to support customer acquisition and assortment diversity •
Slide 16: Market Outlook
Market Outlook |
Slide 17: Global Development
Global Development • The worldwide restrictions on movement are having an adverse E-commerce share of all impact on trade in goods around the globe* retail sales** million • In 2020 world trade is estimated to decrease by 5%* • In 2019, e-retail sales accounted for 14 percent of all retail sales wor
Slide 18: Covid-19 Measures
Covid-19 Measures 1. Safety: • Numerous actions made to ensure the safety of our staff and customers 2. Continuity: million • Measures taken in all critical parts to maintain operations 3. Supplychain: • Utilizing sourcing capabilities to meet the high demand in certain categories 4. Customer experi
Slide 19: Market Outlook
Market Outlook • COVID-19 pandemic limiting mobility and accelerating shift towards online • Completely new customer groups introduced to e-commerce bringing a permanent shift • Uncertainty in Finnish economy effecting purchasing power in H2 • Finnish GDP forecast -5.5% to -12% depending on Covid-19
Slide 20: Key Takeaways
Key Takeaways
Slide 21: Key Takeaways
Key Takeaways • Focus on profitability • Development work for future improvement showing positive growth and better scalability effect • Financial situation solid with • Business model well adaptable strong cash position enabling to quick changes in market and a growing dividend environment • Main f
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Slide 23: Thank You!
THANK YOU! Time for questions
Slide 24: More Information
More Information Upcoming events in 2020: Links: Contacts: Q2/2020, Friday 24 July 2020 Investors site Panu Porkka, CEO www.verkinvest.com panu.porkka@verkkokauppa.com Q3/2020, Friday 23 October 2020 Company Releases mailing list Mikko Forsell, CFO www.joinverk.com mikko.forsell@verkkokauppa.com Com
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