Verkkokauppa.com Oyj Interim Report for 1 January – 30 September 2025: Significant revenue growth and operational efficiency drove strong financial performance

Core Insights - Verkkokauppa.com Oyj experienced significant revenue growth and operational efficiency, leading to strong financial performance in the first nine months of 2025, with revenue increasing by 9.3% to EUR 358.2 million compared to EUR 327.7 million in the same period last year [5][25][32] - The company reported a notable improvement in profitability, with the operating result (EBIT) rising to EUR 12.2 million from a loss of EUR 2.3 million in the previous year, reflecting a strong recovery in its core business [5][32] - The sale of the consumer financing business contributed positively to the financial results, providing a non-recurring gain that bolstered the operating result [10][35] Financial Performance - For Q3 2025, revenue reached EUR 131.2 million, a 14.9% increase from EUR 114.2 million in Q3 2024, driven by strong online sales growth of 23.1% [4][5][17] - Gross profit for the first nine months was EUR 62.5 million, with a gross margin of 17.4%, up from 16.0% in the previous year [5][30] - The comparable operating result improved to EUR 9.1 million from a loss of EUR 1.9 million, indicating a recovery in operational efficiency [5][32] Market Dynamics - The consumer electronics market showed moderate growth, with Verkkokauppa.com leading in multiple categories, particularly in IT products due to the transition to Windows 11 [16][17] - International sales surged by 34.5% year-over-year, highlighting the company's successful expansion strategy [11][17] - Online sales accounted for 68.9% of total revenue, reflecting a continued shift towards e-commerce [19][27] Strategic Initiatives - The company focused on enhancing operational efficiency, resulting in a solid gross margin of 16.6% supported by improved commercial terms and inventory management [9][22] - Verkkokauppa.com is committed to strengthening its market position through strategic initiatives, including expanding its service offerings and enhancing delivery capabilities [12][42] - The company has signed a long-term partnership with Walley for consumer financing, which is expected to support growth and long-term objectives [37] Investment and Financial Position - Investments in IT infrastructure and operational efficiency totaled EUR 2.2 million in the first nine months of 2025, reflecting the company's commitment to enhancing its capabilities [34] - The financial position was strengthened by the sale of the consumer financing business, which provided a significant cash inflow and improved the balance sheet [10][35] - Operating cash flow for the first nine months was EUR 14.6 million, a significant recovery from a negative cash flow in the previous year [33]