Verkkokauppa.com Oyj

January - September 2021 Interim Report

Strong growth in online and corporate sales

Investor presentation, arranged by Nordea

25 October 2021 | Panu Porkka, CEO | Mikko Forsell, CFO | Verkkokauppa.com Oyj

January-September 2021 results

Business review

  • Development in Q3 and January - September 2021
  • Key financials

Strategic overview

  • Strategic cornerstones
  • Trust, assortment & experience - our value proposition
  • Business outlook for 2021 and financial targets
  • Key takeaways

2

Solid 3rd quarter

Sales

  • On-linesales continued to grow, +18.7% y-on-y
  • Robust B2B sales with increase of +22.0%
  • Good performance in core categories, such as TV and computers
  • Also growth in several evolving categories like gaming, sports, toys and home & lighting
  • Export sales turned back to growth path and increased by +4.5%
  • Our sales in GfK reported categories grew by 13.4%, while market grew
    by 3.7% (GFK data per July-Sep 2021)

Profitability

  • Tight competitive environment along with sales mix in favor of lower margin categories having an impact on gross margin
  • Operating profit declined by EUR 0.9 million totaling EUR 4.7 million (5.6)
  • Verkkokauppa.com's Board of Directors has decided today to pay fourth dividend instalment of 0.059 euros per share on 2 November

3

GfK is an independent intelligence platform and consulting service for the consumer products industry (www.gfk.com).

In Q3/2021, on-line sales1) grew by +18.7%

Market share gains in a competitive market

EUR million

Revenue

+9.1%

200

176

150

134

131

141

125

123

129

100

50

0

Q1

Q2

Q3

Q4

2020

2021

Robust growth in B2B sales

EUR million

B2B sales

+22.0%

28.5

30.8

30.0

27.9

27.5

25.5

20.2

22.6

20.0

10.0

-

Q1

Q2

Q3

Q4

4

22.10.2021

2020

2021

Online shift continues

EUR million

Online sales

120.0

+18.7%

106.4

100.0

81.5

80.3

77.9

80.0

67.7

68.6

60.4

60.0

40.0

20.0

-

Q1

Q2

Q3

Q4

2020

2021

Fixed cost2) to revenue ratio, targeting <10% by 2025

Fixed costs

11.6%

11.5%

12.6% 12.6%

12.0 %

11.0% 10.8%

11.0%

Target <10%

  1. %
  1. %
  1. %

Q1

Q2

Q3

Q4

  1. Without Export
  2. Excluding advisory costs related to listing

Q3/2021: Robust revenue growth

EUR million

7-9/

7-9/

Change, %

1-9/

1-9/

Change, %

FY 2020

2021

2020

2021

2020

Revenue

141.0

129.3

9.1%

405.6

377.6

7.4%

553.6

Gross profit

20.9

20.9

-0.3%

65.0

61.8

5.3%

88.4

Gross margin, %

14.8%

16.2%

16.0%

16.4%

16.0%

Personnel expenses

-8.5

-8.1

4.5%

-26.9

-25.1

7.0%

-35.6

Other operating expenses

-6.8

-6.1

10.5%

-20.2

-19.9

1.5%

-28.8

Operating profit

4.7

5.6

-17.0%

15.0

13.4

11.8%

19.6

Operating margin, %

3.3%

4.3%

3.7%

3.5%

3.5%

Comparable operating profit

4.7

5.6

-17.0%

15.0

14.2

5.5%

20.4

Comparable operating

3.3%

4.3%

3.7%

3.8%

3.7%

margin, %

5

Net profit

3.5

4.2

-17.9%

11.1

10.0

11.5%

14.6

  • 33rd consecutive growth quarter
  • Robust revenue growth of 9.1%
  • Gross margin decreased due to market environment
  • Quarterly growing dividend of EUR 0.059 per share

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Verkkokauppa.com Oyj published this content on 25 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2021 12:53:01 UTC.