Q2-24: High customer satisfaction, good cost control and progress on strategic initiatives in a challenging market
Sandefjord, 18 July 2024: The results for the second quarter were impacted by product related innovation cycles in core categories, weak markets, and strong competition, especially in Sweden. In this environment, Komplett Group succeeded in reducing its cost base, while improving liquidity and maintaining a controlled financial position.
Total operating revenue decreased by 5.9 per cent in the second quarter of 2024, from NOK 3 634 million to NOK 3 418 million. The decline was driven by weak demand in some of the group’s core categories, gaming and IT. The year-over-year impact was partly explained by the effects of fewer product launches in the first half-year period of 2024 than in 2023.
Although the group’s commercial and sourcing efforts are generating positive results, the gross margin reached 13.1 per cent in the second quarter, corresponding to a decline of 1.0 percentage points. The decline was a result of price investments campaign activities to defend market shares in a competitive market, combined with proactive inventory management.
Cost reductions more than offset the increased expenses driven by general inflation and store expansions, and the group managed to reduce its operating expenses by 7.8 per cent on a like-for-like basis in the quarter.
EBIT adj. amounted to negative NOK 38 million in the second quarter of 2024, compared with NOK 0 million in the same period of 2023.
Moving forward, the group expects continued good progress from its commercial and strategic initiatives, while competition is likely to remain intense. The positive impact from improved consumer confidence, product cycles and ongoing initiatives is expected to be gradually more supportive into the second half of the year
“The market challenges seen over the past two years, continued in the first half of 2024, accompanied by intensifying competition. These are challenges we aim to overcome as we set out on our updated strategic growth path. So far, we are making good progress, and our commercial initiatives and cost measures are being completed as planned,” says Jaan Ivar Semlitsch, President and CEO of Komplett ASA.
“We have strong commercial plans for Q3 and for Q4 and peak season, and moving forward, improved consumer sentiment is expected to gradually translate into increased demand. In parallel, the headwind from last year’s product launches is expected to ease in the second half of the year. AI led technology is also expected to gradually be a positive driver on demand over time,” Semlitsch adds.
The presentation material and report for the second quarter of 2024 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. Please use the following link to register and view the webcast:
https://channel.royalcast.com/landingpage/hegnarmedia/20240718_2/
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 and is subject to the disclosure requirements pursuant to Section 5-12 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.