Q3-22: Maintaining a robust position in a volatile market

Sandefjord, 25 October 2022: In the third quarter, the Group’s financial performance continued to be impacted by softer demand, especially in the consumer market. In this challenging market, the Group has succeeded with its actions to maintain its cost leadership position, ensure an attractive inventory position and improve net working capital.

The Group’s total revenue amounted to NOK 3 784 million in the third quarter of 2022, compared with NOK 2 715 million in the same period of 2021. NetOnNet’s contribution amounted to NOK 1 462 million. Despite the temporary market decline in the recent quarters, Komplett has since 2019 reached 10 per cent organic revenue CAGR.

Both the B2B and Distribution segments reported modest revenue growth. Volume decline in the B2C segment, combined with lower gross margins in all segments resulting from price pressure across the industry, resulted in a negative adjusted EBIT result for the Group of NOK 10 million.

The Group is progressing with supplier negotiations to realise synergies following the acquisition of NetOnNet. Cost synergies in the range of at least NOK 200 million on an annual basis are expected to have a full effect within 24 months of the completion of the transaction, of which an annual run rate of NOK 100 million is expected from 2023.

Komplett is dedicated to maintaining its cost leadership position and continued to demonstrate strong cost control in the quarter. This resulted in a six per cent decline in operating expenses, adjusted for M&A effects, compared with the third quarter of 2021.

In light of the volatile market conditions, the Group has implemented measures to support a healthy balance sheet. In the quarter, the Group succeeded in improving net working capital by NOK 200 million as a result of the factoring agreement announced in August. A further improvement of NOK 100-200 million is projected in the fourth quarter, and the effect is expected to increase in 2023.

The share of slow-moving stock has been reduced in the quarter, and Komplett remains committed to continuing to lower inventory and improving stock composition. For the year-to-date period, inventory has been reduced by NOK 426 million from last year’s position, including NetOnNet pro forma figures.

“Over the last few quarters, the Komplett Group has faced challenging markets, which primarily impact the B2C segment. The third quarter of 2022 has been no exception, but the Group’s strengths remain intact. Our multi-segment and scalable online-first business model have enabled us to be agile in dealing with market volatility. We are in the process of realising synergies from our latest acquisition, and our leading cost position stands firm. This is reflected in our operational costs, which have continued to decline year over year. Our online-first business model has also protected the Group against increasingly high energy costs in Europe.

“I am also pleased to report that we have continued to improve our inventory position by reducing idle stock and building up an attractive consumer offering before the peak season,” said Lars Olav Olaussen, CEO of Komplett.

The presentation material and report for the third quarter of 2022 are attached to this notice.

CEO Lars Olav Olaussen and CFO Krister Pedersen will present the results on 25 October 2022 at 09.00 CEST at Haakon VIIs gate 2, Oslo.

The event will also be available via a live webcast at the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20221025_4/

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:

Kristin Hovland, Head of Communication
Kristin.Hovland@komplett.com

Krister A. Pedersen, CFO
Krister.Pedersen@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 subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.