Verkkokauppa.com (VERK) Q4 2024 earnings summary

Executive summary

• Revenue declined 7.0% year-over-year to €467.8 million in 2024 amid weak consumer demand and a challenging economic environment.

• Q4 2024 saw significant profitability improvement: adjusted EBIT rose to €3.8 million (2.7% margin), supported by cost efficiency and reorganization.

• Gross margin improved to 16.6% in Q4 2024 (up 130bps YoY), driven by successful commercial negotiations and inventory management.

• Net result for Q4 2024 was €2.6 million (up from €1.2 million YoY); full-year net result was a loss of €0.8 million (EPS: -€0.02).

• No dividend proposed for 2024 due to negative net result.

Financial highlights

• Q4 2024 revenue: €140.2 million (down 6.9% YoY); FY2024 revenue: €467.8 million (down 7.0% YoY).

• Q4 2024 gross profit: €23.3 million (up €0.2 million YoY); gross margin: 16.6% (up from 15.3%).

• Comparable/adjusted EBIT for Q4 2024: €3.8 million (up €2.2 million YoY); FY2024 comparable/adjusted EBIT: €1.8 million.

• Operating cash flow for 2024 was €12.9 million, down from €20.3 million in 2023.

• Cash at hand increased to €35.6 million; equity ratio stable at 16.0%.

Outlook and guidance

• Revenue and comparable/adjusted operating result for 2025 expected to increase from 2024, but guidance is subject to uncertainties in consumer behavior and purchasing power.

• Market demand expected to remain cautious in H1 2025, with gradual recovery in H2 as purchasing power strengthens.

• Business remains highly seasonal.