Verkkokauppa.com (VERK) Q1 2024 earnings summary

Executive summary

• Q1 revenue fell 11.5% YoY to €108.0m in a weak, price-driven market; gross margin improved to 17.3% from 16.6% as the strategy prioritized profitability.

• Own-brand sales rose 7.1% to 6% of product sales; express deliveries grew 33% YoY.

Financial highlights

• Gross profit was €18.7m versus €20.2m; EBITDA was €1.3m versus €1.6m.

• Reported EBIT was -€0.4m versus €0.0m; adjusted EBIT was €0.5m versus €1.4m.

• Net loss was €1.0m versus €0.4m; basic and diluted EPS were -€0.02 versus -€0.01.

Outlook and guidance

• FY 2024 revenue is expected to remain at the 2023 level of €502.9m; comparable EBIT is expected to increase from €6.1m.

• Consumer and B2B demand is expected to remain soft at least through H1; gradual economic recovery is expected toward year-end.

• Finland’s VAT increase from 24% to 25.5% is expected to weigh on purchasing power; priorities include efficiency and online market-share gains.

• 2028 targets include revenue CAGR above 5%, EBIT margin above 5% and fixed costs below 10% of revenue.