Verkkokauppa.com Oyj: Strong performance in a cautiously recovering market

Core Insights - Verkkokauppa.com Oyj reported strong performance in a cautiously recovering market, with significant revenue growth and improved profitability metrics in the first half of 2025 [1][7][8] Financial Performance - Revenue for Q2 2025 was EUR 116.5 million, a 10.4% increase from EUR 105.5 million in Q2 2024 [4][5] - For the first half of 2025, revenue reached EUR 227.0 million, up 6.3% from EUR 213.5 million in the same period last year [4][5] - Gross profit for Q2 2025 was EUR 19.9 million, with a gross margin of 17.1%, compared to EUR 17.3 million and 16.4% in Q2 2024 [4][5] - The operating result (EBIT) improved to EUR 1.8 million in Q2 2025 from a loss of EUR 2.0 million in Q2 2024, representing an operating margin of 1.5% [4][5] - Comparable operating result for Q2 2025 was EUR 2.0 million, up from a loss of EUR 1.7 million in Q2 2024 [4][5] - The result for the period was EUR 1.0 million, compared to a loss of EUR 2.1 million in Q2 2024 [4][5] Market Dynamics - The electronics market showed signs of recovery, with increased sales in key categories such as IT and entertainment, driven by successful commercial actions and the transition to high-definition broadcasts [7][15][16] - Online sales increased by 16.0% to EUR 80.6 million, accounting for 69.2% of total revenue in Q2 2025 [18][24] - International sales grew robustly, increasing by 40.5% in Q2 2025 [16] Strategic Developments - The company signed an agreement to sell its consumer financing business to Norion Bank AB for approximately EUR 34 million, expected to improve the balance sheet structure significantly [11][45][47] - The strategy implementation is progressing as planned, focusing on enhancing online sales and fast delivery capabilities [10][35] Operational Efficiency - Systematic efforts to enhance operating efficiency led to a decrease in comparable fixed costs by 5% from the previous year [9][21] - The gross margin remained strong due to effective assortment management and improved commercial terms [20][27] Future Outlook - Verkkokauppa.com expects revenue and comparable operating results to increase in 2025, despite uncertainties related to consumer behavior and purchasing power [6][11]