Verkkokauppa.com (VERK) investor relations material

Updated Financial Targets and Strategy

• Financial targets for 2028 focus on profitable growth, maintaining a revenue CAGR above 5% for 2026–2028, an EBIT margin above 5% by 2028, and a dividend payout of 60–80% of net profit in growing quarterly dividends.

• The fixed cost target was removed to allow greater strategic flexibility, with profitability now driven by revenue growth, gross margin improvement, and operational efficiency.

• Strategy centers on fast deliveries, curated assortment, new business models, and operational excellence, with significant progress in one-hour delivery and international expansion.

• Asset-light, scalable operations and advanced AI integration underpin efficiency, margin expansion, and market leadership.

• International sales, B2B, value-add services, and retail media are key growth areas, with Sweden as a primary focus and a replicable model for other markets.

Operational and Business Model Developments

• Fast deliveries now account for 30% of online sales, with one-hour delivery available to 2 million Finns and next-day delivery covering up to 90% of the population, both ahead of 2028 targets.

• Customer base is growing, with double-digit growth, a 32% increase in repeat purchasers, and a 23% rise in customer lifetime value since the strategy period began.

• AI and automation are deeply embedded, driving a 30% productivity boost in software development, a 90% reduction in marketing asset creation costs, and a 22% increase in revenue per employee.

• Retail media revenue is on track to double by 2028, and international revenue has more than doubled in two years, with all channels profitable.

• The assortment is optimized for fast delivery, with 34,000 SKUs available for immediate shipment, and own brands targeted to reach 10% of revenue by 2028.

Financial Performance and Outlook

• 2025 saw a revenue increase to €527M and a jump in comparable EBIT from €1.8M to €14.8M, outpacing market growth and reflecting structural recovery.

• Gross margin is targeted to rise to ~18% by 2028, driven by commercial excellence, supplier consolidation, retail media, and own brands.

• Operating costs as a percentage of revenue are set to fall below 12% by 2028, supported by AI-driven efficiency and a lean, scalable model.

• The business model is resilient to market cycles, with broad assortment, agile sourcing, and strong partnerships mitigating supply and demand shocks.

• Capital allocation prioritizes core business growth, new business models, international expansion, and shareholder returns, supported by a strong balance sheet and low leverage; share buybacks have commenced.