Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q4 2022 Earnings Presentation
22 slides from Verkkokauppa.com Oyj's earnings presentation, Feb 9, 2023
Slide 1: Financial Statements Review 2022
Verkkokauppa.com Oyj Financial Statements Review 2022 Consumer market remained challenging - revenue declined by -8% 9 February 2023 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: Q4 & FY 2022 results presentation
Q4 & FY 2022 results presentation • Market development • Q4 & Full year 2022 performance • Strategy execution • Market outlook and guidance • Key takeaways
Slide 3: Market development
Market development
Slide 4: Market during Q4 was challenging: demand kept softening
4 Market during Q4 was challenging: demand kept softening and fight for customers ascended to new hights Q4 • Consumers’ views on their own economy during Q4 were ever 10.00 Inflation 2016-2022 more pessimistic (in December -18.5%, November -16.9% and -17.6% in 8.00 October) • Purchasing intent for
Slide 5: Q4 & FY2022 performance
Q4 & FY2022 performance
Slide 6: Declined purchasing power and uncertain B2B market impacted revenue development
Declined purchasing power and uncertain B2B market 6 impacted revenue development 2021 2022 Q4/22 development Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Overall revenue declined -8.3% YoY -8% • Online sales declined -10.1%, 169.0 following dampened 154.9 discretionary shopping 134.0 130.5 141.0 137.8 124.8 125.7 Reven
Slide 7: Gross profit was impacted by unfavorable sales mix and inventory write-down
Gross profit was impacted by unfavorable sales mix 7 and inventory write-down 2021 2022 Q4/22 development Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gross profit was negatively impacted by: 16.2% 17.2% 14.8% 15.5% 15.4% 15.4% 14.6% • the sale of offers and lower 14.1% Gross profit and 26.2 price point products were 21
Slide 8: Declining volumes and additional write-down impacting earnings
Declining volumes and additional write-down impacting 8 earnings – other operating expenses down -11.3% Q4/22 development 10-12 1-12 • Main reason for lower Change, Change, profitability was declining EUR million 2022 2021 % 2022 2021 % volumes Revenue 154.9 168.9 -8.3% 543.1 574.5 -5.5% • A write-d
Slide 9: During Q4 we were able to run down the inventory, down by -21%
During Q4 we were able to run down the inventory, 9 down by -21% Balance sheet & Cash flow on 2021 2022 31 December 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Group inventory declined -15%, and was EUR 74.8 million (87.8) Investments during Q4 were EUR -21% 2.6 million and EUR 9.3 million in 87.8 91.3 86.9 94.8 2
Slide 10: 2022 Highlights
2022 Highlights Operational Highlights Financial achievements Warehouse Our product return rate Revenue Operating profit automation dropped to 0.7% EUR 543 million EUR 2.3 million investment was finalized (-5.5%) (20.3) 32 000 Investments First acquisition in Inventories declined by Tili 9.3 million
Slide 11: Strategy execution
Strategy execution
Slide 12: Robust short-term profitability improvement program
As disclosed in January, the company has built and started executing 12 a robust short-term profitability improvement program Profitability improvement program: Diversify business portfolio capture full potential of core business and develop new opportunities Operational performance & cost savings C
Slide 13: Developing capabilities to strengthen our customer value proposition
While main focus is on short term profitability, we continue to 13 develop capabilities to strengthen our customer value proposition Our purpose is to empower customers to follow their passion Speed & Trust Assortment Experience Flexibility Frictionless omnichannel Delivery experience fuelled by Mos
Slide 14: Q4/2022 highlights in new capabilities
Q4/2022 highlights in new capabilities 14 Highlights to follow Dynamic pricing technology integrations started Assortment Introduced product line of used computers Inspirational Online Experience: new online and mobile front-end Experience Improved payments and financing options, incl. leasing for B
Slide 15: Finland's most popular ecommerce site is being renewed
Finland’s most popular ecommerce site is being renewed 15 Example design concepts – not final In Q4 we have already rolled out: • Improved customer ratings with over 500 000 verified reviews (we collect 3x the number of ratings vs. industry average) Experience • New product facets for highlighting o
Slide 16: Market outlook and guidance
Market outlook and guidance
Slide 17: Market outlook and short-term expectations
Market outlook and short-term expectations 17 • There is uncertainty about the future outlook in relation to geopolitical conflicts in the world, the crisis in Ukraine and macroeconomics • The company's growth prospects for the current year are considered challenging • Finland's economy is expected
Slide 18: Financial guidance for 2023 & dividend
Financial guidance for 2023 & dividend Financial guidance In 2023, Verkkokauppa.com expects the revenue to decline (2022: EUR 543.3 million) and comparable operating profit (comparable EBIT) to improve (2022: EUR 3.5 million) compared to 2022. The Board of Directors’ dividend proposal The board of d
Slide 19: Key takeaways from the 4th quarter
Key takeaways from the 4th quarter • Soft consumer demand continued • Decision made to cut down and streamline throughout the quarter and was assortment resulted in a write-down of EUR reflected also in B2B sales 1.6 million • Weakened purchasing power postponed • We launched a profit improvement pr
Slide 20: Thank you
5 Soe 7, PROBABLY ALWAYS CHEAPER = com. Z, he
Slide 21: More Information
More Information Upcoming Financial events Investor Relations contacts Links Marja Mäkinen Visit our Investors website The Financial Statements for 2022 during the week starting Head of Investor Relations & www.verkinvest.com on 27 February in 2023 Corporate Communications marja.makinen@verkkokaup
Slide 22: 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