Verkkokauppa.com (VERK) Q2 2022 earnings summary

Executive summary

• Q2 revenue fell 3.7% YoY to €125.7m amid weak consumer demand; comparable EBIT was -€0.2m, net loss €1.1m, and B2B sales grew 12.6%.

• H1 revenue declined 5.3% to €250.4m; comparable EBIT was €0.7m versus €10.3m a year earlier, and net loss was €0.9m.

• Strategy execution continued through warehouse automation, e-commerce platform renewal, and assortment expansion.

Financial highlights

• Q2 gross profit was €19.4m versus €22.4m; gross margin fell to 15.4% from 17.2%.

• Q2 reported EBIT was -€0.9m versus €5.1m; EBITDA was €0.5m versus €6.3m, and EPS was -€0.02 versus €0.08.

• H1 gross profit was €38.6m versus €44.2m; reported EBIT was -€0.2m versus €10.3m, and EPS was -€0.02 versus €0.17.

• H1 comparable EBIT was €0.7m versus €10.3m; net loss was €0.9m versus net profit of €7.6m.

Outlook and guidance

• FY22 guidance, revised 13 July, targets revenue of €530–570m and comparable EBIT of €8–14m, versus prior ranges of €530–590m and €12–19m.

• Consumer demand and business were expected to remain subdued in H2; online shopping migration and share gains in selected categories remained opportunities.

• 2025 targets: revenue €1bn, EBIT margin 5%, and fixed costs below 10% of revenue. 2022 dividend planned at €0.246 per share.