Q1-23: A well-positioned business in a challenging market
Sandefjord, 27 April 2023: During the first quarter of 2023, the industry remained challenged by low consumer sentiment, yet the pricing environment for retail showed signs of improvement. Komplett Group’s revenue amounted to NOK 3 618 million for the first quarter, compared with NOK 2 606 million in the same period of 2022. The revenue increase was driven by the acquisition of NetOnNet, which contributed NOK 1 289 million of the revenue in the period.
The group’s gross margin continued to trend positively in the period, reaching 14.1 per cent compared with 11.8 per cent in the first quarter of 2022. Overall, improved pricing conditions and a healthy inventory had a positive impact on the gross margin and partly compensated for the shortfall in sales.
In combination with good cost control, negative effects from cost inflation were partly mitigated and contributed to an adjusted EBIT result for the group of NOK 9 million, compared with NOK 37 million in the first quarter of 2022.
Following the combination with NetOnNet last year, the group has continued negotiations with suppliers, and the execution of the integration continues to progress as planned. The combination brings attractive scale benefits, and the group is well underway in reaching the expected synergies.
During the quarter, inventory levels were tuned to meet seasonality and market demand with good service levels. As a result, the group increased its inventory by NOK 200 million from year-end, but the composition remains healthy.
“Despite challenges in the past year, I see a clear and profitable route for Komplett going forward. While we continue to develop our strengths and market position, we will strive towards accelerating profitable organic growth,” commented Jaan Ivar Semlitsch, CEO of Komplett ASA.
“Our core brands, Komplett, NetOnNet and Webhallen, have strong growth potential. They are well positioned amongst a large group of consumers and have some of our industry’s highest customer satisfaction ratings. Moreover, our cost position remains solid, with the lowest cost base in the retail industry. We are confident that improved sourcing terms, increased visibility and awareness of our brands, increased customer club participation and a more solid price position will nurture future growth and higher margins moving forward. Therefore, we will, as a group, continue driving scale benefits while maintaining local ownership and execution of our brands,” Semlitsch continues.
The presentation material and report for the first quarter of 2023 are attached to this notice.
Jaan Ivar Semlitsch, CEO and Thomas Røkke, CFO, will host a presentation of the results today at 09.00 CEST at Haakon VIIs Gate 2, Oslo.
The event will also be made available via a live webcast. Use the following link to register and view the webcast and to ask questions: https://channel.royalcast.com/webcast/hegnarmedia/20230427_6
Questions will be addressed towards the end of the presentation. A recorded version of the webcast will be available shortly after the webcast has concluded.
For further inquiries, please contact:
Thomas Røkke, CFO
Thomas.Rokke@komplett.com
Kristin Hovland, Head of Communication
Kristin.Hovland@komplett.com
About Komplett ASA
Komplett Group is a leading online-first electronics and IT products retailer, operating in Norway, Sweden and Denmark. Serving customers in the B2C, B2B and distribution markets, the Group is deeply focused on delivering best in class customer experience, built through decades of knowhow, expertise and deep customer commitment. Komplett Group operates an efficient and scalable business model that supports cost leadership and enables a competitive product offering.
This information is considered to be inside information pursuant to the EU Market Abuse Regulation (MAR) Article 7 and is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Elise Heidenreich, Investor Relations adviser, at the date and time as set out above.