Verkkokauppa.com grew by 25% – need a new warehouse

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Finland’s leading e-commerce actor – Verkkokauppa.com grew significantly during 2015.

Revenues increased by 25 percent to 67.0 million Euros.

But in two years – the company needs to leave its successful Helsinki premises.

In October-December, Verkkokauppa.com Oyj’s revenue grew by 24.2% year on year, totalling 107.6 million EUR (86.6). Revenue increased particularly in mobile phones, televisions, watches both small (SDA) and major (MDA) domestic appliances.

As in the previous quarter part of the sales increase was due to good wholesale trade to abroad and B2B sales. In the latest financial report, Verkkokauppa.com says profitability is usually low, but the sales increase the company’s purchasing volumes and thus improve the company’s position in relation to its suppliers. CEO Samuli Seppälä comments that the company needs a more well-defined B2B-concept in the future.

 

The numbers means that revenue grew by 25% year on year, an increase by 67.9 million EUR, totalling 344 million EUR. At the same time demand for consumer electronics increased by 0.9% during January-December in Finland, according to GFK-numbers.

”While retail continues going online, the company needs to prepare better for the future growth. The use of the current Bunkkeri warehouse adjacent to the Helsinki megastore will end in the next 1-2 years, and the company is investigating alternative warehousing solutions in the Helsinki region. Although Verkkokauppa.com has very efficient and low cost operation, the company is continuously looking for new ways to strengthen its purchasing power. Purchasing co-operation and last year’s investment in the Swedish Vitvaruexperten.com were steps in this direction.” says Samuli Seppälä.

The warehouse has been used for the successful click and collect 24/7-service, able to deliver anything in the store within 15 minutes at the entrance kiosk at the Helsinki-store.

In the statement Seppälä also says the company will start to use its cash reserves to finance the Apuraha consumer financing service in few months’ time. Verkkokauppa will also extend the opening hours of its store, but with caution  to keep the focus on low costs and prices.

 

”Verkkokauppa.com’s revenue will continue to grow during 2016 and in the medium term, even though the general situation and demand in the retail business will remain very weak in Finland,” he says.

 

KEY RATIOS AND PERFORMANCE INDICATORS

10-12/2015

10-12/2014

1-12/2015

1-12/2014

 

 

 

 

 

Revenue, € thousands

107,573

86,622

343,682

275,784

Gross profit, € thousands

16,298

13,171

51,783

42,596

Gross margin, % of revenue

15.2%

15.2%

15.1%

15.4%

EBITDA, € thousands

5,159

2,985

8,846

8,427

EBITDA, %

4.8%

3.4%

2.6%

3.1%

EBITDA excluding non-recurring items, € thousands

5,159

2,985

12,258

8,427

EBITDA excluding non-recurring items, %

4.8%

3.4%

3.6%

3.1%

Operating profit, € thousands

4,855

2,735

7,676

7,468

Operating margin, % of revenue

4.5%

3.2%

2.2%

2.7%

Operating profit excluding non-recurring items, € thousands

4,855

2,735

11,087

7,468

Operating margin excluding non-recurring items, % of revenue

4.5%

3.2%

3.2%

2.7%

Net profit, € thousands

4,203

2,134

5,354

4,488

Net profit excluding non-recurring items, € thousands

3,759

2,134

8,814

5,985

Equity ratio, %

45.2%

48.7%

45.2%

48.7%

Return on investment, % rolling 12 months

20.9%

29.2%

20.9%

29.2%

Net gearing, %

-86.5%

-91.0%

-86.5%

-91.0%

Earnings per share (EPS) revised by share split, €

0.09

0.05

0.12

0.11

Earnings per share (EPS) revised by share split excluding non-recurring items, €

0.08

0.05

0.20

0.14

Earnings per share (EPS) revised by share split (diluted), €

0.09

0.05

0.12

0.10

Earnings per share (EPS) revised by share split excluding non-recurring items (diluted), €

0.08

0.05

0.20

0.14

Number of shares at end of period

45,065,130

7,510,855

45,065,130

7,510,855

Average number of shares at end of period revised by share split

45,065,130

45,065,130

45,065,130

42,399,765

Number of shares at end of period revised by share split

45,065,130

45,065,130

45,065,130

45,065,130

Number of personnel* at end of period

561

527

561

527