Slide 1: January–September 2024 Interim Report
Verkkokauppa.com Oyj January–September 2024 Interim Report Challenging operating environment and active inventory measures weighed down third quarter profitability 24 October 2024 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: Q3 2024 results
Q3 2024 results › Market development › Q3 2024 performance › Strategy execution › Market outlook and guidance › Key takeaways
Slide 3: Market development
Market development
Slide 4: Consumer sentiment unchanged
Consumer sentiment unchanged • According to Statistics Finland, the consumer Consumer confidence indicator 10/2022-9/2024 confidence indicator dropped to -8.1 in September, down from -7.2 in both August and July. • The time was considered even more unfavorable for purchasing durable goods, and the i
Slide 5: Verkkokauppa.com continued to lead the Finnish consumer electronics retail in 2023
Verkkokauppa.com continued to lead the Finnish consumer electronics retail in 2023 Revenue, two latest published fiscal years, EUR million -7% -9% 543 503 525 478 -4% 319 305 Verkkokauppa.com Competitor #1 Competitor #2 EBIT, two latest published fiscal years, EUR million -3.4 +2.4 -7.5 5.7 4.7 2.3
Slide 6: Q3 2024 performance
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Slide 7: Despite weak demand online revenue close to PY
Despite weak demand online revenue close to PY 2023 2024 Q3/2024 development Q1 Q2 Q3 Q4 Q1 Q2 Q3 Group revenue was EUR 114.2 million, declining Revenue, by 3% YoY. The market was very price-driven, and 150.6 EUR million campaigning was intense. 122.0 117.4 114.2 112.8 108.0 105.5 Customer segments
Slide 8: Gross margin was weighed down by low-margin season sales and inventory measures
Gross margin was weighed down by low-margin season sales and inventory measures 2023 2024 Q3/2024 development Q1 Q2 Q3 Q4 Q1 Q2 Q3 Gross profit totaled EUR 16.6 million and 14.5% of revenue 16.6% 16.7% 17.3% 16.4% 15.9% 15.3% › Impacted by low-margin season sales and 14.5% Gross profit and especiall
Slide 9: Profitability decline was driven by weak demand and low gross margin
1 Profitability decline was driven by weak demand and low gross margin Q3/2024 development EUR million Q3/2024 Q3/2023 Change FY 2023 › Personnel costs increased by 5.8% during the Revenue 114.2 117.4 -3% 502.9 quarter. Gross profit 16.6 18.7 -2.2 meur 80.9 › Lower personnel costs in the comparison
Slide 10: Successful inventory management and solid cash position
Successful inventory management and solid cash position Balance sheet and cash flow 2023 2024 on 30 September 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 › Inventory on a very healthy level, declining -9% by 9 percent from the PY and totaled 76.6 70.0 72.0 69.5 70.5 EUR 65.3 million Inventories, 62.7 65.3 EUR million
Slide 11: Strategy execution highlights
Strategy execution highlights
Slide 12: Fast Deliveries continued rapid growth during Q3
Fast Deliveries continued rapid growth during Q3 Fast deliveries grew by 34% Y-on-Y Fastest deliveries in Finland during Q3/2024 • To revolutionize retail, we will set new standards on delivery speed and effortless shopping experience and stand +34% out in the market • The share of fast deliveries i
Slide 13: International expansion proceeding as planned with current & new partners and marketplaces
International expansion proceeding as planned with current & new partners and marketplaces › Markets in Sweden, Denmark and Baltics are expected to grow faster than Finland in mid-term (EU sales grew by 8% during Q3) › We are driving growth in these areas through existing partnerships and evaluating
Slide 14: The responsibility of electronics matters to consumers
The responsibility of electronics matters to consumers More than 50% of Finns feel that the responsibility of electronics matters to them, according to the Electronics Responsibility Barometer Main conclusions: 1 2 3 4 50% of Finns say they > 60% of Finns would are willing to pay more Willingness to
Slide 15: Market outlook and guidance
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Slide 16: Market outlook and short-term expectations
Market outlook and short-term expectations › Overall market demand will be impacted by continuous low consumer confidence and weak expectations concerning general unemployment development for the remaining of the year › Reflecting the Bank of Finland’s economic review, it takes time before we see th
Slide 17: Financial Guidance for 2024
Financial Guidance for 2024 updated on 24 October 2024 Verkkokauppa.com expects its revenue and comparable EBIT for 2024 to be lower than in 2023. In 2023, revenue was EUR 502.9 million and comparable EBIT EUR 6.1 million. The guidance update is based on the market development, and the outlook for t
Slide 18: Key takeaways
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Slide 19: Key takeaways from Q3 2024
Key takeaways from Q3 2024 › Consumer confidence was low, and › We strengthened our market share despite customers continued to postpone the challenging market, and the company's purchasing decisions for discretionary cash and inventory turnover developed products favorably › We took the necessary m
Slide 20: Thank you!
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Slide 21: More information
More information Upcoming Financial events Investor Relations contacts Links 25 October 2024: 3rd quarter investor presentation in Visit our Investors website Helsinki, arranged by Danske Bank www.verkinvest.com Marja Mäkinen 28 November 2024: Investor 2024 event in Head of Investor Relations &
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
Slide 23: Appendix
Appendix > Quarterly Key Figures
Slide 24: Quarterly Key Figures
Quarterly Key Figures 2024 2023 Q1 Q2 Q3 Q1-Q3 2024 Q1 Q2 Q3 Q4 Q1-Q4 2023 Revenue, eur million 108.0 105.5 114.2 327.7 122.0 112.8 117.4 150.6 502.9 Gross profit, eur million 18.7 17.3 16.6 52.5 20.2 18.8 18.7 23.1 80.9 Gross margin-% 17.3% 16.4% 14.5% 16.0% 16.6% 16.7% 15.9% 15.3% 16.1% EBITDA, eu
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