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Verkkokauppa: Small beat in a tiny quarter - SEB

Verkkokauppa.com reported adj. EBIT of EUR 1.4m vs. Cons EUR -0.8m. Inventories up 2.5% qoq, but this is a normal seasonal variation in our view. Balance sheet remains solid with net debt excluding leases to 2023 EBITDA of 0.6x. Personnel costs down 2%, so Verkkokauppa.com has been able to adjust its cost base. However, wage inflation kicks in Q2. Gross margin up 100bp yoy, which came much earlier than expected. Things moving for better on multiple metrics, which is a relief.

Verkkokauppa.com reported adj. EBIT of EUR 1.4m vs. Cons EUR -0.8m. Inventories up 2.5% qoq, but this is a normal seasonal variation in our view. Balance sheet remains solid with net debt excluding leases to 2023 EBITDA of 0.6x. Personnel costs down 2%, so Verkkokauppa.com has been able to adjust its cost base. However, wage inflation kicks in Q2. Gross margin up 100bp yoy, which came much earlier than expected. Things moving for better on multiple metrics, which is a relief.
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