Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q1 2019 Earnings Presentation
18 slides from Verkkokauppa.com Oyj's earnings presentation, May 10, 2019
Slide 1: Verkkokauppa.com Q1 2019
Verkkokauppa.com Q1 2019 10.05.2019, Panu Porkka, CEO Finland’s most popular webstore NASDAQ FIRST NORTH Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Agenda
Agenda • Q1/2019 report • 2019 summary • 2019 guidance and outlook • Market development and trends • Key takeaways • Q&A
Slide 3: Verkkokauppa.com Q1 2019
Verkkokauppa.com Q1 2019 Q1 revenue 116€m (+13%) Operating profit 2.3€m (-14%) Strong market share gains, Verkkokauppa.com only one out of top-3 consumer electronics retailers to grow during 2018 ** 2019 Q1 dividend 0.049€ (2018 Q1 0.045€) *) Comparable EBITDA **) Source: GfK
Slide 4: Verkkokauppa.com Q1 2019 Income Statement
Verkkokauppa.com Q1 2019 Income Statement Q1 2019 Q1 2018 ch % Revenue, € million 115.8 102.7 +13% Gross profit 17.4 16.7 +4% Gross Margin 15.0% 16.3% Personnel expenses -7.8 -7.4 +5% Other opex -6.2 -5.4 +15% Operating profit 2.3 2.7 -14% Operating margin 2.0% 2.6% Net profit 1.5 1.8 -16% “Verkkoka
Slide 5: Verkkokauppa.com Q1 2019 sales drivers
Verkkokauppa.com Q1 2019 sales drivers • Benefiting from the strong momentum from Q4 (+22%) IFRS • Renewed marketing mix incl. nationwide TV- advertising continuing • Matching the price driven market to keep gaining market share* • Increased marketing budget to secure customer FAS FAS flow to web si
Slide 6: Verkkokauppa.com 31/3/2019 Balance Sheet - IFRS
Verkkokauppa.com 31/3/2019 Balance Sheet - IFRS • Inventory 59.2 (49.2) million euros on 31/3/2019, change +19% • Cash flow from operating activities -11.2 (-20.7) million euros • Investments 1-3/2019 was 0.1 (0.6) millions euros • Equity ratio 26.5% (29.9%) • Cash 34.6 (28.0) million euros, no inte
Slide 7: Highlights in Q1 2019
Highlights in Q1 2019 • Succesful product category specific campaigns across all marketing platforms • Raisio megastore birthday campaign lasted 3 weeks • Strong marketing presence nationally on TV, Radio, Leaflet, Out of home (OOH) and different online medias
Slide 8: Verkkokauppa.com´s gross margin and fixed costs
Verkkokauppa.com´s gross margin and fixed costs 20% 15% 2.0% 10% 15.0% 13.0% 5% 0% Q1 2019 (sales +13 %) Q2 2019 Q3 2019 Q4 2019 2019 Gross margin % Fixed costs % Operating profit 20% 15% 2.6% 1.0% 2.8% 3.2% 2.8% 10% 16.3% 14.7% 14.9% 13.7% 11.7% 14.7% 15.1% 12.3% 13.7% 11.9% 5% 0% Operating profit
Slide 9: Verkkokauppa.com´s business model with lower fixed costs
Verkkokauppa.com´s business model with lower fixed costs 35% 30% 29.3% 25% 26.2% 25.9% 25.0% 20% 20.9% 20.6% 20.6% 18.9% 15% 15.0% 15.1% 10% 13.0% 12.3% 5% 0% Retail in Finland (w/o cars) Verk.com Q1 2019 Verk.com 2018 Gigantti 2017/2018 Power Finland 2017 Amazon EU SARL 2016 2017 (sales +13%) (sale
Slide 10: Verkkokauppa.com 2019 guidance - unchanged
Verkkokauppa.com 2019 guidance - unchanged 2019 guidance revenue between €500m - €550m (2018 €478m) and operating profit €11 - €17m (2018 €13.3 m). Medium-term targets sales growth between 10-20% per year, growing operating profit and operating margin of 2.5-4.5%. Policy of paying out growing, quart
Slide 11: Outlook for 2019
Outlook for 2019 • Consumer Electronics (CE) market expected to remain price driven and competitive • Outlook on Finnish economy (GDP +1.7% 2019 *) • New categories will boost sales • Increasing market shares in existing categories • Strong focus on season sales • Start of brand advertising to attra
Slide 12: Verkkokauppa.com´s targets and category developments
Verkkokauppa.com´s targets and category developments Continuous and systematic expansion into new categories that are fully suitable for low-cost online model and efficient logistics • New category ball sports launched in 2019 (over 1300 sku´s) • Search for new categories for 2020-2021 ongoing • “Pr
Slide 13: Future of online shopping
Future of online shopping Percentage of purchases made on a mobile phone. * Age groups 16 to 89. • Shopping online on a mobile phone 30% has multiplied in the past decade 25% in Finland 20% • In 2018 almost one-half of people 15% aged 16 to 45 used mobile phone 10% for online shopping* 5% • Verkkoka
Slide 14: Web visits last 12 months (desktop and mobile)
Web visits last 12 months (desktop and mobile)
Slide 15: Key takeaways
Key takeaways • Verkkokauppa.com only one out of top-3 CE-retailers to grow during 2018 • Strong revenue growth continues in Q1 2019 (+13%) • Aggressive market share growth in a price driven market • Raisio megastore contributing in sales growth • Main focus is growth also for the future • Faster th
Slide 16: GZR Pedelec Fat 4.0 "Dozer"
GZR Pedelec Fat 4.0 "Dozer" -sdhk6py6ra Ninebot by Segway Kickscooter ES2 -sahképotkulauta Apurahalla 37,00/kk (24 kk)
Slide 17: Thank you and Q&A
Thank you and Q&A Upcoming events: • Q2/2019, Friday 9 August 2019 • Q3/2019, Friday 25 October 2019 Links: • Investors site - www.verkinvest.com • Company Releases mailing list - www.joinverk.com • Company Investor Webcasts - www.verklive.com Contacts: • Panu Porkka, CEO panu.porkka@verkkokauppa.co
Slide 18: This document is not an invitation to subscribe for or purchase any securities or
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