Komplett Group (KOMPL) Q2 2024 earnings summary

Executive summary

• Revenue declined 5.9% year-over-year to NOK 3,418 million in Q2 2024, mainly due to weak demand in core gaming and IT categories and intensified competition, especially in Sweden.

• Gross margin fell by 1.0 percentage point to 13.1%, impacted by price investments, increased campaign activity, and strong competition.

• Cost-saving measures reduced operating expenses by 7.8% like-for-like, partially offsetting lower sales and margins.

• Adjusted EBIT was negative NOK 38 million, reflecting lower sales and margins despite cost controls.

• Financial position remains controlled, with improved liquidity, revised covenants, and increased headroom.

Financial highlights

• Q2 2024 revenue: NOK 3,418 million (down from NOK 3,634 million in Q2 2023); gross profit: NOK 447 million; gross margin: 13.1%.

• Adjusted EBIT: NOK -38 million (Q2 2023: NOK 0–38 million); EBIT margin (adj.): -1.1%.

• Net loss for Q2: NOK 67 million (Q2 2023: NOK 27 million); YTD loss: NOK 139 million.

• Operating costs reduced by NOK 27 million year-over-year.

• Liquidity reserve at NOK 1,000 million, up NOK 153 million since Q1.

Outlook and guidance

• Improved consumer confidence and upcoming product cycles expected to support demand in H2 2024.

• Negative impact on gross margin expected to ease as competitive pressure relaxes.

• Commercial initiatives and sourcing terms anticipated to positively impact margins and product availability.

• Market recovery timing remains uncertain, but innovation and replacement cycles should drive gradual improvement.