Q3 2024 Verkkokauppa.com Oyj Earnings Call Transcript
Key Points
- Verkkokauppa.com Oyj (OHEL:VERK) successfully defended its market leadership position in Finland's consumer electronics sector.
- The company achieved significant growth in its own brand sales, increasing by 53% and reaching a record internal share of sales over 8%.
- B2B segment showed resilience with a 1% growth, indicating a slight recovery in this line of business.
- Fast delivery services have expanded significantly, with sales from fast deliveries growing by 34% in the third quarter.
- The company's inventory levels are healthier than in previous years, with a significant reduction in inventory levels by over EUR5 million compared to the previous year.
- Consumer confidence in Finland has declined, negatively impacting discretionary shopping and purchasing decisions.
- The overall consumer electronics market in Finland dropped by over 4%, affecting Verkkokauppa.com Oyj's sales.
- Gross margin experienced a significant drop compared to previous quarters, impacting the company's gross profit.
- Operating result was below the previous year's level, with comparable EBIT at minus EUR0.7 million.
- The market recovery is postponed, with no major changes expected in consumer confidence or economic conditions in the near term.
Good morning all, and welcome to Verkkokauppa.com Q3 presentation. Today, joining with me and available for questions, CFO, Jesper Blomster; and Investor Relations Manager, Marja Mäkinen as well.
If you have any questions during the presentation, please feel free to send them to [email protected] and questions will be answered at the end of the presentation.
So as always, I will start my presentation with the market development and business environment, then have a few highlights out of the report of this morning, after that strategy execution update, and at the end, we will have outlook on the rest of the year and key takeaways.
If we start with the market development and the business environment as such, we haven't seen major changes throughout the year and the quarters. Maybe to a small surprise, the consumer confidence slipped back into the negative trend after a few positive months behind us, and this consumer confidence starting to decline has always an immediate impact
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