Q3-23: Good financial progress across all parameters and best-in-class customer ratings

Sandefjord, 26 October 2023: The macroeconomic environment and the consumer electronics retail market remained challenging through the third quarter. Komplett Group has continued its efforts to counter these externally driven challenges and has demonstrated good financial progress in the period, combined with continued solid liquidity.

In the third quarter, the group improved its operating results (EBIT adj.) by NOK 49 million on modest revenue growth. The group’s operations in Norway continued to make good progress, while the Swedish market remained more challenging, negatively affecting sales growth. All the group’s brands are either maintaining their positions or taking market share. Customer loyalty and satisfaction remained high in the third quarter, which is underlined by top-tier delivery and logistical services.

Total revenues amounted to NOK 3 874 million, up 2.4 per cent from NOK 3 784 million in the same period in 2022. The group’s gross margin continued to improve and reached 13.5 per cent in the third quarter, corresponding to an increase of 1.7 percentage points from 11.8 per cent in the same period of 2022. The higher margin is a result of improved pricing strategies, effective sourcing initiatives and healthier inventory positions. This has mitigated many of the adverse effects of higher input costs driven by cost inflation and currency effects compared to last year.

The gross margin progress was the main driver behind the improved operating results (EBIT adj.), which amounted to NOK 39 million in the third quarter, compared with negative NOK 10 million in the corresponding period last year. This resulted in a year-over-year increase in the adjusted EBIT margin of 1.3 percentage points, to 1.0 per cent in the third quarter, up from negative 0.3 per cent last year.

Looking ahead, the demand environment is likely to remain weak in the near term, despite some indications of a potentially easing macroeconomic conditions for Nordic households in the coming year. Across the Komplett Group, efforts continue to counter these externally driven challenges, and operational excellence and profitability remain a top priority.

“Despite decline in all our key markets, we have succeeded in growing our top line and in parallel continued to improve our gross margin versus last year. While we have invested in brand visibility to pave the way for growth, we have simultaneously kept good cost control and improved our financial headroom,” says Jaan Ivar Semlitsch, President and CEO of Komplett ASA.

“Moving forward, one of our key actions will be to deliver a strong promotional programme during the peak season. Along with our campaign strategy, we have built up a healthy stock composition, enabling us to provide market-leading service levels during the festive season,” Semlitsch adds.

The presentation material and report for the third 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/landingpage/hegnarmedia/20231026_5/

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.