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Verkkokauppa: Q4 profit warning comes with large cost saving programme - SEB

Consumer electronic markets continue weak, which has pushed Verkkokauppa.com to launch a new saving programme followed by a third profit warning for the year. FY2022 landed at a sales decline of 6% but adj. EBIT plummeted to EUR 3.5m vs. EUR 19m in 2021. Verkkokauppa has launched personnel negotiations, which will reduce the number of employees by 110 max. (14% of workforce). All eyes on dividends, which we believe could be scrapped all-together from 2022. We remain cautious.

Consumer electronic markets continue weak, which has pushed Verkkokauppa.com to launch a new saving programme followed by a third profit warning for the year. FY2022 landed at a sales decline of 6% but adj. EBIT plummeted to EUR 3.5m vs. EUR 19m in 2021. Verkkokauppa has launched personnel negotiations, which will reduce the number of employees by 110 max. (14% of workforce). All eyes on dividends, which we believe could be scrapped all-together from 2022. We remain cautious.
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