Verkkokauppa.com (VERK) Q1 2021 earnings summary

Executive summary

• Solid Q1 start, with revenue growth, strong online-channel performance and record Q1 EBIT; 31st consecutive growth quarter.

• Strategy centers on expanding assortment, improving customer experience and delivery speed, and strengthening consumer trust.

Financial highlights

• Revenue grew 7% YoY, supported by favorable sales and category mix.

• Q1 EBIT reached a record EUR 5.2m, up more than 50% YoY; costs grew more slowly than revenue.

• Online-channel sales grew 33% YoY, including EUR 20m of absolute growth in consumer web-channel sales.

• Profitability improved primarily through mix effects: consumer sales outgrew lower-margin exports, while smaller categories generally carried higher margins.

Outlook and guidance

• FY revenue guidance: EUR 570m–620m; EBIT guidance: EUR 20m–26m. Financial targets and dividend policy unchanged.

• Long-term targets: EUR 1bn revenue, EUR 50m EBIT and 5% profitability; 5% profitability target set for end-2025.

• Online growth expected to continue in consumer and B2B; export expected to recover as travel restrictions ease, offsetting some normalization in domestic consumption.

• B2B growth expected to continue, with further share gains targeted among small and mid-sized businesses.