Verkkokauppa.com issues a positive profit warning and provides preliminary information on its second-quarter revenue and comparable operating profit

Verkkokauppa.com Oyj Insider information July 21, 2020 at 18:50 EET

Verkkokauppa.com issues a positive profit warning and provides preliminary information on its second-quarter revenue and comparable operating profit

Verkkokauppa.com Oyj amends its guidance for revenue and comparable operating profit, issued on 14 February 2020. The Company now estimates the revenue to be between 520-545 million euros and comparable operating profit to be between 13-18 million euros for 2020. Earlier, the company estimated the revenue to be between 510-530 million euros and comparable operating profit to be between 12-15 million euros for 2020.

In the second quarter of 2020, revenue totaled approximately 123 million euros (4-6/2019: 108 million euros) and the comparable operating profit totaled approximately 4.8 million euros (4-6/2019: 0.2 million euros). The comparable operating profit increased especially due to better than expected sales and sales margin during the second quarter. The figures are based on preliminary unaudited financial information for the three–month period ended 30 June 2020. Verkkokauppa.com Oyj will publish its half-year financial report for the period ended 30 June 2020 on 24 July 2020.

Guidance upgrade rationale

The changes to the guidance is based on, on the one hand, stronger than expected development of revenue/sales and comparable operating profit during the spring and summer and, on the other hand, the change in the Company’s estimate of the development of demand during the latter second part of the year. Sales and the consumer demand have developed better than anticipated during the exceptional circumstances surrounding the COVID-19 pandemic. The Company believes that the impact of the COVID-19 pandemic on the demand may not be as large as previously anticipated and that as a result the consumer demand may continue or not significantly decrease during the second half of the year, supported partly by shifting consumption patterns and shifting consumer behavior.

Nevertheless, the uncertainties included in the business outlook have increased significantly especially due to macroeconomic developments. Although conditions surrounding the COVID-19 pandemic have currently improved in Finland, it is still early and difficult to estimate its impact on the economy as well as consumer behavior, B2B sales and wholesale. As the implications of forecasted development in economy and consumer behavior remain uncertain, the company expects that the second half of the year could be more challenging and unpredictable.

The previous guidance for 2020, issued on 14 February 2020, was as follows:

“The company’s outlook for 2020 expects revenue to be between 510–530 million euros (2019: 504 million euros) and comparable operating profit to be between 12–15 million euros (2019: 11.3 million euros).”

For more information, please contact:

Panu Porkka
CEO
panu.porkka@verkkokauppa.com
Tel. +358 10 309 5555

Mikko Forsell
CFO
mikko.forsell@verkkokauppa.com
Tel. +358 10 309 5555

Distribution:

Nasdaq Helsinki
Principal media
www.verkkokauppa.com

Verkkokauppa.com in short

Verkkokauppa.com is Finland’s most popular and most visited Finnish online retailer, with the aim to sell to products to its customer at probably always cheaper prices. Depending on the season, the Company markets, sells, and distributes some 60,000–70,000 products in 26 different main product categories through its webstore, retail stores, and network of pick-up points. The Company has four megastores: in Oulu, Pirkkala, Raisio, and Helsinki, in addition to which products can be collected at more than 3,000 pick-up points. Verkkokauppa.com was founded in 1992 and it is headquartered in Jätkäsaari, Helsinki. The Company’s shares are listed on the official list of Nasdaq Helsinki under the ticker symbol VERK.