Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q1 2021 Earnings Presentation
21 slides from Verkkokauppa.com Oyj's earnings presentation, Apr 23, 2021
Slide 1: Revenue grew and profitability improved along the strong online sales
Verkkokauppa.com Oyj Interim Report January-March 2021 Revenue grew and profitability improved along the strong online sales 23 April 2021 | Panu Porkka, CEO, Verkkokauppa.com Oyj
Slide 2: Agenda
Agenda Business review Development in Q1/2021 Key financials Sustainability work Strategy update Business outlook for 2021 and financial targets Key takeaways 2
Slide 3: Strong start for the year
Strong start for the year Sales • Strong consumer web sales continued, online sales +33% y-on-y • Almost 3 million more visitors on our online store during Q1, around 20 million visits in total • B2B sales increased +12% • Strong performance in several evolving categories like sports, home & lightin
Slide 4: Online sales grew by +33% in Q1
Online sales grew by +33% in Q1 1) Revenue growth throughout categories and channels Online sales1) grew by +33%, online shift continuing EUR million EUR million 100.0 200 176 Y-on-y +7.0% in Q1 2021 75.0 150 125 134 123 129 100 50.0 106.4 80.3 67.7 68.6 50 25.0 60.4 0 - Q1 Q2 Q3 Q4 Q1 2020 Q2 2020
Slide 5: Income Statement Q1 2021
Income Statement Q1 2021 EUR million Q1/2021 Q1/2020 Change, % FY 2020 Revenue 134.0 125.3 7.0% 553.6 • 31st consecutive growth quarter Gross profit 21.7 19.4 11.9% 88.4 • 5th consecutive Gross margin, % 16.2% 15.5% 16.0% quarter with profit Personnel expenses -9.1 -8.6 5.0% -35.6 improvement, incre
Slide 6: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow At the end of Q1 2021: • Inventories were EUR 79.9 (61.8) million • Cash flow from operating activities was EUR -9.1 (3.7) million • Investments were EUR 0.4 (0.3) million • Cash, EUR 32.6 (45.0) million • Equity ratio 20.3% (24.5%) • Undrawn revolving credit facilities of
Slide 7: Our sustainability focus areas
Our sustainability focus areas We have defined our sustainability focus areas, covering areas from customer offering to environmental impact and community to good governance. Next steps, including: measurable and monitored goals for each focus area The main focus will be defining our emissions m
Slide 8: Strategy update
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Slide 9: We continue to develop our operations according to strategy and towards our targets
We continue to develop our operations according to strategy and 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 inf
Slide 10: The widest and most exciting assortment in chosen categories
The widest and most exciting assortment in chosen categories Assortment Verkkokauppa.com is seeking growth both within its core categories as well as constantly expanding into new products with increased online demand and attractive margin potential Transition to online is here to stay, and furt
Slide 11: Delivery experience fuelled by highest availability and convenience
Delivery experience fuelled by highest Speed & availability and convenience Flexibility Today, Verkkokauppa.com’s delivery next day network covers almost 70% of Finns We are continuously improving our delivery options further Strong growth in demand for different delivery options during Q1 • +
Slide 12: Jätkäsaari warehouse logistics automation investment
Jätkäsaari warehouse logistics automation Speed & investment Flexibility The investment will make Jätkäsaari a world-class, automated urban logistics hub Completely automated small item store, AutoStore will be delivered by Swisslog Consists of 36 robots, which can pick up and deliver up to 1,
Slide 13: Key Operational Priorities 2021
Key Operational Priorities 2021 Focus on renewed strategy and value streams to achieve long term targets First investment program starting to automate Jätkäsaari logistics for future scalability and growth Constantly new products and subcategories to provide a wide and exciting assortment Pr
Slide 14: Business outlook
Verkkokauppa | Business outlook
Slide 15: Business outlook
Business outlook The strong balance sheet Our operations are We believe to significantly enables us to expand our estimated to develop grow our market share in operations in accordance positively in the future evolving categories with our strategy COVID-19 pandemic has The pandemic may still cause W
Slide 16: Online winning footprint in B2B
Online winning footprint in B2B B2B e-commerce already makes up nearly 50% of purchases. The annual growth corresponds approximately with the projection from the last five years Today - % of e-commerce of purchases In 5 years’ time - % of e-commerce of purchases 50 70 45 60 40 35 50 30 47 40 62 25 2
Slide 17: Financial targets and dividend policy - unchanged
Financial targets and dividend policy - unchanged Guidance for 2021 Targets by the end Dividend policy Revenue: 570–620 million of 2025 Our goal is to continue to (2020: 554 million) Revenue: 1 billion euro pay out a quarterly growing Comparable operating profit: EBIT %: 5 % dividend 20–26 million F
Slide 18: Key takeaways
Key takeaways Strong performance across all We are executing our strategy 1 operations, good revenue and 4 towards set 5-year financial targets profitability improvement The online shift in retail continued, The ongoing online shift will benefit 2 our online sales increased by +33% 5 all strong e-co
Slide 19: More Information
More Information Contacts Links Visit our Investors website: Panu Porkka, CEO www.verkinvest.com panu.porkka@verkkokauppa.com Join mailing list for Company releases: Upcoming events in 2021 Mikko Forsell, CFO www.joinverk.com mikko.forsell@verkkokauppa.com Half-year report (January-June) on Friday W
Slide 20: 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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