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.