Verkkokauppa.com (VERK) Q2 2024 earnings summary

Executive summary

• Q2 revenue fell 6.5% YoY to €105.5m amid weak consumer confidence, low demand and intense price competition; comparable EBIT was -€1.7m.

• H1 revenue declined 9.1% to €213.5m; comparable EBIT was -€1.2m and net result was -€3.1m.

• Online and own-brand sales outperformed the broader business; one-hour delivery reached over 1.7m customers.

Financial highlights

• Q2 gross profit was €17.3m vs €18.8m; net loss was €2.1m vs €0.2m profit, and EPS was -€0.05 vs €0.00.

• H1 gross profit was €35.9m vs €39.1m; net loss was €3.1m vs €0.2m, and EPS was -€0.07 vs -€0.01.

• Q2 EBITDA was -€0.2m vs €2.3m; H1 EBITDA was €1.1m vs €3.9m.

• Q2 personnel costs rose 11.9% to €9.3m; other operating expenses were €8.2m, broadly level YoY.

Outlook and guidance

• FY2024 revenue and comparable EBIT are expected below FY2023 levels (€502.9m and €6.1m), unless markets turn positive in H2.

• Gradual recovery is expected toward year-end, later and slower than previously expected; electronics replacement demand may improve in H2.

• Short-term efficiency and cost adjustments are planned through H2 while strategic growth projects continue.

• Guidance remains exposed to purchasing-power and consumer-behavior changes; Q4 seasonality is significant for full-year sales and earnings.