Verkkokauppa.com (VERK) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue fell 7.4% YoY to €502.9M, while comparable EBIT rose to €6.1M from €3.5M and operating cash flow reached €20.3M from €1.5M.

• Q4 revenue declined 2.8% to €150.6M, but operating profit increased to €1.8M from €0.8M as cost controls and profitability initiatives supported results.

Financial highlights

• Q4 gross profit was €23.1M versus €21.9M, with gross margin at 15.3% versus 14.1%; FY gross profit was €80.9M versus €80.6M, with margin at 16.1% versus 14.8%.

• FY operating profit was €4.7M versus €2.3M; comparable EBIT was €6.1M versus €3.5M. Net profit was €2.1M versus €0.3M, and EPS was €0.05 versus €0.01.

• Q4 comparable EBIT was €1.6M versus €0.8M; net profit was €1.2M versus €0.5M, and EPS was €0.03 versus €0.01.

• FY EBITDA was €11.1M versus €7.8M; comparable EBIT included €1.4M of adjustment items, including €1.2M in restructuring costs.

Outlook and guidance

• 2024 revenue is expected to remain at the 2023 level of €502.9M, while comparable EBIT is expected to increase from €6.1M.

• Consumer and B2B demand is expected to remain soft through at least H1 2024; efficiency and automation are intended to support growth as markets recover.

• 2028 targets include revenue CAGR above 5%, EBIT margin above 5%, fixed costs below 10% of revenue and dividend payout of 60–80% of annual net profit.

• Express delivery is planned to scale in 2024; the 2028 ambition is one-hour delivery in largest cities and next-day coverage for ~90% of Finland’s population.