Q2 2024 Verkkokauppa.com Oyj Earnings Call Transcript
Key Points
- Verkkokauppa.com Oyj (OHEL:VERK) slightly increased its market share in the Finnish consumer electronics market despite challenging conditions.
- The company's own brands performed well, with a 12% increase in sales, achieving a record high internal share of sales at 8% of total revenue.
- Fast delivery services have been expanded, now reaching 1.7 million Finnish customers within one hour, enhancing customer loyalty and sales.
- The company has successfully integrated AI and dynamic pricing tools to optimize product offerings and protect margins in selected categories.
- Operations have expanded into Estonia, offering over 10,000 SKUs to a significant customer base, potentially opening new growth and profitability streams.
- Overall revenue declined by 6% due to low consumer confidence and unfavorable conditions for discretionary shopping.
- Margins were negatively impacted by heavy price competition and increased logistics costs, including container expenses.
- Personnel costs have increased due to collective agreements affecting salary levels in Finland.
- The company reported a negative result of EUR 1.7 million compared to a positive result of EUR 1 million in the previous year.
- Market recovery has been postponed, with expectations of a slower and milder recovery than initially anticipated, affecting revenue and profit forecasts.
Good morning, everybody. And welcome to Verkkokauppa.com Q2 results presentation. If you have any questions during the presentation, please feel free to send them to [email protected], and all questions will be then answered at the end of the presentation.
Today, joining with me and also available for questions, CFO, Jesper Blomster; and Investor Relations Manager, Marja Makinen. As always, I will start my presentation with highlights out of the interim report published this morning. Then, I will shed you some light on company strategy execution going forward. And at the end, then our outlook and guidance accordingly towards the end of the year.
But if I start with the operating environment, it stayed pretty much the same it has been, throughout the year and previous years as well. The consumer is very hesitant at the moment, consumer confidence is low, although slightly picking up, but there's not a huge change what we have seen before. The consumer tends to see this time extremely
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