INTERIM REPORT for 1 January –
The complete report is attached to this release and also available at https://investors.verkkokauppa.com/en
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year (reference period). Figures are unaudited.
1 January – 31 March 2021 in brief
- Revenue was
134 million euros (125) - Gross profit was
21.7 million euros (19.4) or 16.2% of revenue (15.5%) - Operating profit was
5.2 million euros (3.4) or 3.9% of revenue (2.7%) - Comparable operating profit was
5.2 million euros (3.8) or 3.9% of revenue (3.0%) - Profit for the period was
3.9 million euros (2.4) - Earnings per share was
0.09 euros (0.05) - Investments were
0.4 million euros (0.3) - Operating cash flow was -
9.1 million euros (3.7) - The Board of Directors decided, according to authorization, to pay the 1st dividend installment of
EUR 0.057 per share on4 May 2021 .
KEY RATIOS | 1-3/2021 | 1-3/2020 | Change, % | 1-12/2020 |
Eur million | ||||
Revenue | 134.0 | 125.3 | 7.0% | 553.6 |
Gross profit | 21.7 | 19.4 | 11.9% | 88.4 |
Gross margin, % | 16.2% | 15.5% | 16.0% | |
EBITDA | 6.4 | 4.6 | 38.4% | 24.6 |
EBITDA, % | 4.8% | 3.7% | 4.4% | |
Operating profit | 5.2 | 3.4 | 52.2% | 19.6 |
Operating margin, % | 3.9% | 2.7% | 3.5% | |
Comparable operating profit | 5.2 | 3.8 | 38.5% | 20.4 |
Comparable operating margin, % | 3.9% | 3.0% | 3.7% | |
Net profit | 3.9 | 2.4 | 57.6% | 14.6 |
Investments | 0.4 | 0.3 | 62.9% | 1.4 |
Operating cash flow | -9.1 | 3.7 | -348.9% | 16.9 |
FINANCIAL GUIDANCE FOR 2021 REMAINS UNCHANGED
The company expects the revenue to be between 570–620 million euros (
CEO
Verkkokauppa.com’s year kicked off strongly. Our revenue grew by 7.0 percent year on year to
Growth came from multiple sectors. B2B sales, a strategic focus area for
Verkkokauppa.com’s profitability saw strong improvement in the first quarter; gross profit increased by 11.9 percent to
We announced our refined strategy in February. The implementation of the strategy has been started during the spring and we have been concentrating on the further improving the following strategic focus areas: our efficient fulfilment processes and our excellent customer experience. The implementation of our strategy is also bolstered by the biggest investment in our history, which will raise our warehouse throughput and cost efficiency to a new level. This summer we will commence the construction of a fully automated warehouse for small items in connection with our Jätkäsaari logistics center and store. Scheduled to be completed in early 2022, the new warehouse will enable even faster deliveries and better product availability, with considerably more efficient warehouse space utilization. The logistics automation investment is on important step which support us on our journey towards our target of a revenue of
Last year, we took a major leap forward in sustainability by defining and publishing our sustainability focus areas, which include, among others, a smaller environmental impact, our community, a coaching leadership style and valuing differences. This year, we will set measurable and monitored goals for each focus area.
FINANCIAL DEVELOPMENT
REVENUE AND PROFITABILITY
January-March 2021
EUR million | 1-3/2021 | 1-3/2020 | Change, % | FY 2020 |
Revenue | 134.0 | 125.3 | 7.0% | 553.6 |
In January-
The shift of retail to online channels continued. Verkkokauppa.com’s online sales increased 33 percent year on year, already representing 61 percent of total sales (46%). Visits to the
Share of sales, %
1-3/2021 | 1-3/2020 | FY 2020 | ||||
Customer segments | ||||||
Consumer | 72% | 68% | 74% | |||
B2B | 22% | 22% | 18% | |||
Export | 6% | 10% | 8% | |||
Sales channels* | ||||||
On-line | 64% | 49% | 56% | |||
Off-line | 31% | 32% | 36% | |||
Website visits, million | 19.9 | 16.9 | 87.0 | |||
Sales includes orders and deliveries in transit. *) Online and offline sales exclude export sales. |
The company-financed customer financing proceeds were
Personnel costs increased in January-March by 5.0% to
Operating profit increased 52.2% and was
1-3/ | 1-3/ | 1-12/ | ||
EUR million | 2021 | 2020 | Change, % | 2020 |
Operating profit | 5.2 | 3.4 | 52.2% | 19.6 |
Operating margin, % | 3.9% | 2.7% | 3.5% | |
- advisory costs related to transfer to official list of Nasdaq Helsinki | 0.0 | 0.3 | -100.0% | 0.8 |
Comparable operating profit | 5.2 | 3.8 | 38.5% | 20.4 |
Comparable operating margin, % | 3.9% | 3.0% | 3.7% |
Earnings per share were
FINANCE AND INVESTMENTS
Operating cash flow was -
Ordinary seasonal fluctuations are reflected in cash and cash equivalents, cash flow and accounts payable, which usually reach the highest point at the end of the fourth quarter and the lowest point at the end of the second quarter.
Investments totaled
DIVIDEND
The Annual General Meeting 2021 resolved to pay dividend
The Board resolved on
Verkkokauppa.com’s Annual General Meeting authorized the Board of Directors to decide in its discretion on the distribution of dividends not exceeding
REFINED STRATEGY FOR VERKKOKAUPPA.COM
On
Verkkokauppa.com’s vision is to remain as a pioneer of ecommerce also in the next decades through continuous innovation and development.
SHORT-TERM RISKS AND BUSINESS UNCERTAINTIES
Verkkokauppa.com Oyj’s risks and uncertainties reflect the market and general economic trends, for example, demand for consumer electronics, wholesale trade business, the business environment and competition. The company’s business operations are also influenced by risks and uncertainties relating to, for example, business strategy, investments, procurement and logistics, information technology, and other operative aspects of the business. The aforementioned risks and uncertainties may affect the company’s operations, financial position and performance both positively and negatively. Risks and uncertainties have been presented in more detail in the Annual Report.
Uncertainty in the development of the economy and the financial markets in
BUSINESS OUTLOOK FOR 2021
Verkkokauppa.com Oyj’s business operations are estimated to develop positively in the future. The company believes that it will succeed in further growing its market share in the chosen categories. The strong balance sheet enables the company to continue expanding its operations in accordance with its strategy.
The company has benefited from the shifting consumer behavior accelerated by the COVID-19 pandemic, as the sales in the online sales channel have shown strong growth. The company expects this trend to continue the longer the COVID-19 pandemic persists.
At the same time, the COVID-19 pandemic continues to have a negative impact on spending on travel and service sectors. This has positively affected the consumer demand for goods, but on the other hand, it has limited the lower-margin wholesale business. The COVID-19 situation may have an impact on the company’s operations and its ability to safely serve customers in the brick-and-mortar stores.
The uncertainties concerning the future business outlook remain and relate to macroeconomic developments and the prevailing COVID-19 situation. The pandemic may still cause unforeseen impacts on the overall economic development, consumer demand as well as consumer purchase behavior and B2B sales in the future. Nevertheless, the company believes that it is well positioned and will be a relative winner in the “new normal” business environment of the future.
FINANCIAL GUIDANCE FOR 2021 REMAINS UNCHANGED (published on
The company expects the revenue to be between 570–620 million euros (
NEWS CONFERENCES
A press conference for analysts, investors and media will be held in Finnish by LiveStream webcast on Friday,
A press conference in English will be held by LiveStream webcast on Friday,
Presentation materials for both events are available at https://investors.verkkokauppa.com/en/presentations. For both press conferences, a LiveStream is available at www.verklive.com.
COMPANY RELEASES IN 2021
- Half-year Report January–June 2021, Friday
16 July 2021 - Interim Report January–September 2021, Friday
22 October 2021
Board of Directors
More information:
panu.porkka@verkkokauppa.com
mikko.forsell@verkkokauppa.com
Tel. +358 50 434 2516
Marja Mäkinen, Head of Investor Relations
marja.makinen@verkkokauppa.com
Tel. +358 40 671 2999
Distribution:
Nasdaq
Key media
www.verkkokauppa.com
Attachment
- Verkkokauppa.com Oyj_Interim Report January-
March 2021 Published
© OMX, source