Elkjøp Group’s sales up

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The Elkjøp Group continues to be an engine in UK owner Dixons Carphone and gains market shares. Sales in Scandinavia increased nine percent like-for-like the last three months.

”The competitive environment in the Nordic business seems – possibly temporarily – to have calmed just a shade,” says Group CEO Sebastian James.

 

Pro forma Headline financials Headline revenue Headline EBIT
Q2 14/15
Like-for-like
H1 14/15
Like-for-like
H1 14/15
£million
H1 13/14
£million
UK & Ireland 11% 6% 80 61
Northern Europe 9% 6% 20 24
Southern Europe (5)% (11)% (4) (1)
Connected World Services n/a n/a 4 1
Group 9% 5% 100 85
 H1 13/14 contains 26 weeks of the Carphone Warehouse business compared with 31 weeks in H1 14/15. Q2 results reflect the 13 weeks ended 1 November 2014 for Carphone Warehouse and the 3 months ended 31 October 2014 for Dixons Retail. Northern Europe comprises operations in Norway, Sweden, Finland, Denmark, Iceland, the Netherlands and Germany.
Southern Europe comprises operations in Spain, Portugal and Greece. Connected World Services comprises the Group’s B2B operation which leverages the specialist skills, operating processes and technology of the Group to provide managed services to third parties looking to develop their own connected world solutions.

It’s the first report after the merge between Dixons and Carphone Warehouse. With optimistic numbers.

“Overall sales in the period have grown by 5% on a like-for-like basis and profit before tax has grown by 30%. Best of all, customer satisfaction continues to show good year-on-year progress across the business. The integration of our business seems to be going better than I dared hope, and our integrated stores are trading very well which augurs well for the future,” Sebastian James, Group Chief Executive, comments.

UK and Ireland, where the merge is most obvious, is also the best performer in the group. But the Scandinavian division who’s dominant in the Northern Europe-segment shows almost the same sales increase with weakening currencies. The interim report says Northern Europe reflected a very solid first half from the Nordic business with continued sales momentum across the region and
good trading across all major categories. ‘Happy or Not’ scores continue to rise and customer service remains strong.

”UK has been driven by continued improvements in price and service, competitive changes, technology launches and some recovery in the economy. We have also seen a good performance from our Nordic business where the competitive environment seems – possibly temporarily – to have calmed just a shade. Our Greek business has also had a good half and seems to be benefiting from some market recovery. Life has been tougher for our smaller European phone businesses who are strategically less able to be robust in the face of market changes and we are in the midst of restructuring and reviewing these operations,” Sebastian James comments.

In contrast, conditions are tough in Germany and the Netherlands and Dixons Carphone has taken decisions to accelerate a review and restructuring of these
businesses.

”There is a lot more of the year to go and a crucial Christmas to come, against a backdrop of big changes in how and when customers do their Christmas shopping. Black Friday was an extraordinary – and fun – day but we are all acutely aware that there is no room for complacency. Ahead of this all-important peak period we remain comfortable with market expectations for this year.”