Verkkokauppa.com (VERK) Q1 2025 earnings summary

Executive summary

• Revenue grew 2.4% year-over-year to €110.5 million in Q1 2025, driven by online, B2B, and new market expansion, as well as strategic focus areas and commercial actions.

• Significant profitability improvement with net result at €2.0 million versus a €1.0 million loss in Q1 2024.

• EBIT improved to €3.2 million from -€0.4 million, with comparable EBIT also at €3.2 million (0.5 million in Q1 2024).

• Strategy execution advanced with strong growth in one-hour deliveries, own brand sales, and international markets.

• Operational efficiency measures and cost reductions contributed to margin improvements.

Financial highlights

• Gross profit increased 11% to €20.8 million; gross margin improved to 18.8% from 17.3% year-over-year, supported by efficient inventory turnover and dynamic pricing.

• EBITDA reached €4.9 million (4.4% margin), up from €1.3 million (1.2% margin) year-over-year.

• Operating result (EBIT) rose to €3.2 million (2.9% margin) from -€0.4 million (-0.4% margin) in Q1 2024.

• Cash flow from operations was -€14.7 million, impacted by seasonal inventory build-up.

• EPS was €0.04, compared to -€0.02 in Q1 2024.

Outlook and guidance

• Revenue and comparable operating result for 2025 expected to increase from 2024, with guidance unchanged.

• Market demand expected to remain cautious in H1 2025 due to low consumer confidence; recovery anticipated in H2 as purchasing power strengthens.

• Business remains seasonal, with Q4 being critical for annual performance.

• Guidance subject to uncertainties in consumer purchasing power and behavior.