Slide 1: Low demand and intense price competition weakened profitability
Verkkokauppa.com Oyj January–June 2024 Half-year Report Low demand and intense price competition weakened Verkkokauppa.com's profitability 19 August 2024 | Panu Porkka, CEO | Jesper Bomster, CFO | Marja Mäkinen, IR | Verkkokauppa.com Oyj
Slide 2: Q2 2024 results
Q2 2024 results › Market development › Q2 2024 performance › Strategy execution › Market outlook and guidance › Key takeaways 2 7/18/2024
Slide 3: Market development
Market development
Slide 4: Market recovery postponed
Market recovery postponed Consumer confidence indicator 5/2022-6/2024 • Consumer confidence continued on a low level, but the trend is positive. The confidence indicator stood at -7.6 in June. • Market recovery seems to be postponed and softer than expected 10/2022 11/2022 12/2022 10/2023 11/2023 12
Slide 5: Q2 2024 performance
Q2 2024 performance
Slide 6: Soft demand in all channels, revenue declined by -6%
Soft demand in all channels, revenue declined by -6% Q2/2024 development 2023 2024 Group revenue was EUR 105.5 million, declining by -6% YoY. The market has recovered slower than Q1 Q2 Q3 Q4 Q1 Q2 expected and the demand was subdued due to weak consumer confidence Revenue, 150.6 EUR million Customer
Slide 7: Gross margin impacted by price driven and campaign-oriented market
Gross margin impacted by highly price driven and campaign-oriented market 2023 2024 Q2/2024 development Q1 Q2 Q3 Q4 Q1 Q2 Gross profit totaled EUR 17.3 million and 16.4% of revenue 16.6% 16.7% 17.3% 16.4% 15.9% 15.3% › In a low demand market, active pricing decisions Gross profit and to ensure campa
Slide 8: Weak sales volume main driver for declined profitability
1 Weak sales volume main driver for declined profitability Q2/2024 development › Personnel costs increased by 11.9% during EUR million Q2/ 2024 Q2/ 2023 Change FY 2023 the quarter. Revenue 105.5 112.8 -6% 234.8 › Growth was impacted by salary Gross profit 17.3 18.8 -1.6 meur 39.1 increases due to th
Slide 9: Active inventory management continued
Active inventory management continued Balance sheet and cash flow 2023 2024 on 30 June 2024 Q1 Q2 Q3 Q4 Q1 Q2 › Inventory on a solid level, staying flat yoy, and Inventories, totaled EUR 70.5 million EUR million 76.6 70.0 72.0 69.5 70.5 › Investments during the second quarter were 62.7 EUR 0.6 milli
Slide 10: Strategy execution highlights
Strategy execution highlights
Slide 11: Our strategy for 2024-2028
11 OUR STRATEGY FOR 2024-2028 WE WILL ACCELERATE ONLINE TRANSITION WITH FOUR CORNERSTONES LEADING TO PROFITABLE GROWTH 1. FASTEST FULFILMENT • Blazing delivery speed a new norm of buying • The most effortless shopping experience • Automated product flows and intralogistics Top line growth (CAGR) of
Slide 12: One-hour deliveries expanded into all major cities in Finland
One-hour deliveries expanded into all major cities in Finland Share of fast deliveries grew The fastest deliveries in Finland by 26% Y-on-Y • In June, we expanded ultra-fast +26% One-hour deliveries to all our mega-store areas Tampere, Turku and Oulu • Significant strategic milestone achieved, makin
Slide 13: Key highlights from strategy execution
Strategy execution Key highlights from strategy execution 13 AI integrations to New growth through geographical New categories in online experience expansion Trade-in services • Piloting fast deliveries in Tallinn, • We are utilizing AI starting in July with 10,500 SKUs • The service now includes al
Slide 14: Market outlook and guidance
Market outlook and guidance
Slide 15: Market outlook and short-term expectations
Market outlook and short-term expectations › In June, consumer confidence and expectations concerning the development of general unemployment improved slightly in June but remained on a weak level › The first interest rate decline didn´t boost consumption as expected › Still, a gradual recovery in t
Slide 16: Financial guidance for 2024
Financial guidance for 2024 updated on 16 July 2024 Verkkokauppa.com expects its revenue and comparable operating result (comparable EBIT) for 2024 to be lower than in 2023 unless there is a positive market turn in the second half of the year. In 2023, revenue was EUR 502.9 million and comparable EB
Slide 17: Key takeaways
Verkkokauppa PROBABLY ALWAYS CHEAPER -Com
Slide 18: Key takeaways from Q2 2024
Key takeaways from Q2 2024 › Consumer confidence was low, and › In June, we reached a significant milestone as consumers postponed their purchasing we extended one-hour deliveries available to decisions for discretionary products more than 1.7 million customers › The market was highly campaign-orien
Slide 19: Thank you
Verkkokauppa PROBABLY ALWAYS CHEAPER -Com
Slide 20: More information
More information Upcoming Financial events Investor Relations Links contacts Visit our Investors website Investor presentation in Helsinki on 19 August, www.verkinvest.com Marja Mäkinen arranged by Nordea Head of Investor Relations & Helsinki Stock Exchange – open doors / Pörssin Corporate Commu
Slide 21: 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 22: Appendix
Appendix > Quarterly Key Figures
Slide 23: Quarterly Key Figures
Quarterly Key Figures 2024 2023 Q1 Q2 H1 2024 Q1 Q2 Q3 Q4 FY 2023 Revenue, eur million 108 105.5 213.5 122 112.8 117.4 150.6 502.9 Gross profit, eur million 18.7 17.3 35.9 20.2 18.8 18.7 23.1 80.9 Gross margin-% 17.3 % 16.4% 16.8% 16.6% 16.7% 15.9% 15.3% 16.1% EBITDA, eur million 1.3 -0.2 1.1 1.6 2.
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