Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q3 2019 Earnings Presentation
18 slides from Verkkokauppa.com Oyj's earnings presentation, Oct 25, 2019
Slide 1: Verkkokauppa.com Q3 2019
Verkkokauppa.com Q3 2019 25.10.2019, Panu Porkka, CEO Finland’s Best and Most Popular Webstore NASDAQ FIRST NORTH GM Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Today’s Agenda
Today’s Agenda Q3/2019 Report Full Year Outlook Best Finnish Webstore Key Takeaways Q&A
Slide 3: Verkkokauppa.com Q3 2019
Verkkokauppa.com Q3 2019 Q3 revenue 121€m (+3%) Operating profit 4.3€m (+17%) Market share gains, while total market grew by 2.5%* 2019 Q3 dividend 0.051€ (2018 Q3 0.047€) *) Source: GfK
Slide 4: Income Statement Q3
Income Statement Q3 Q3 2019 Q3 2018 ch % Revenue, € million 120.6 116.8 +3% Gross profit 18.9 17.4 +9% Gross Margin 15.7% 14.9% Personnel expenses -7.6 -7.0 +8% Other opex -5.9 -5.5 +7% Operating profit 4.3 3.7 +17% Operating margin 3.6% 3.2% Net profit 3.2 2.6 +23% “Verkkokauppa.com´s year on year
Slide 5: Sales Development
Sales Development • Strong sales growth in evolving categories • TV, Computer and Phone categories continue with weak sales • Huawei/Honor sales dropped significantly • Matching the price-driven market to keep gaining market share* in a decreasing market 93 mEUR 105 mEUR 117 mEUR 121 mEUR Q3/16 Q3/1
Slide 6: Marketing Highlights in Q3 2019
Marketing Highlights in Q3 2019 • Habitare fair – smart home showcase and new customer bases • Start of brand campaign phase II • Annual Back To School & Work campaign • Strong gaming campaign in Aug - ”Build your own dream computer” gathered over 13 000 customer generated lists • Success with new b
Slide 7: Best Finnish Webstore - Award
Best Finnish Webstore - Award • Chosen by consumers as Finland’s best domestic online store* • Brand, quality, price, assortment • Customer experience • Combining e-commerce and stores to serve our customers the most efficient way ”Nevertheless we pursue to be the best ” • Launched a new cloud based
Slide 8: Balance Sheet Q3
Balance Sheet Q3 • Inventory 60.0 (51.9) million euros on 30/9/2019 • Cash flow from operating activities -2.0 (-15.4) million euros • Equity ratio 25.6% (27.8%) • Cash 34.4 (26.0) million euros, no interest bearing debt • Undrawn revolving credit facilities 20 million euros
Slide 9: Gross Margin and Fixed Costs
Gross Margin and Fixed Costs 2018 18 16 2,6 % 14 1,0 % 2,8 % 3,2 % 3,8 % 12 10 15.0% 8 12.7% 13,8 % 13,7 % 6 11,8 % 12,4 % 11 % 4 2 0 Q1 2018 (Sales +2,7 %) Q2 2018 (Sales +3,4 %) Q3 2018 (Sales +10,8 %) Q4 2018 (Sales +22,3 %) 2018 (Sales +11 %) Fixed costs % Operating margin % 2019 18 16 14 2,0 %
Slide 10: 2019 Guidance - Updated
2019 Guidance - Updated 2019 guidance revenue between €500m - €525m* (2018 €478m) and operating profit €11 - €15m**(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 quarterly dividend *) Pre
Slide 11: Outlook For Rest of the Year
Outlook For Rest of the Year • Outlook on Finnish economy changed (GDP +1.5% 2019 *) • Consumer Electronics (CE) market most likely to remain price driven and competitive, total market likely not to grow in Q4 • BF will have a big impact on total Q4 sales • New categories will continue to attract ne
Slide 12: Targets and Future Development
Targets and Future Development Target to be leading retailer in the Nordics • Continuous development of the wide and attractive assortment • Currently working on new subcategories and main categories • Keeping our customer promise “Probably always cheaper” in all major categories • Increased Private
Slide 13: Finnish eCommerce Landscape
Finnish eCommerce Landscape • Which webstores have Finnish people bought goods from during the last 6 months
Slide 14: Finnish Sales Campaign Behaviour
Finnish Sales Campaign Behaviour • During which sales campaigns have Finnish people made web purchases
Slide 15: Key Takeaways
Key Takeaways • Growth continuing due to usage of wide assortment • Market share gains in a competitive market (1-9/2019 +7%) • Record profitability in Q3 due to sales mix, better conditions and healthy stock • Financial position of the company strong • Pricing and marketing activities planned to se
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Slide 17: Thank You and Q&A
Thank You and Q&A Upcoming events in 2020: • Q4/2019, Friday 14 February 2020 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.com • Mikko Forsell, CFO,
Slide 18: 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