Profit warning: Verkkokauppa.com lowers its financial guidance for 2022 and provides preliminary information on the financial development of the third quarter of 2022
Profit warning: Verkkokauppa.com lowers its financial guidance for 2022 and provides preliminary information on the financial development of the third quarter of 2022
Verkkokauppa.com INSIDE INFORMATION 24 October 2022 at 7:45pm EEST
Weaker than expected consumer demand undermines outlook for the last quarter of 2022
Verkkokauppa.com's operating environment has continued to be challenging. The increasing inflation and rising interest rates have reduced consumers’ purchasing power. Consumer confidence is at an all-time low and in September, inflation rose further. Discretionary shopping has declined, which has resulted in a stronger than expected weakening of consumer demand and intensified price competition. In addition, the growth of B2B business has slowed down. In light of this development in the operating environment, demand and costs, the company estimates that its revenue and operating profit will fall short of its previous estimates.
New guidance for 2022:
The company expects the revenue to be between EUR 530–560 million (in 2021: EUR 574.5 million) and comparable operating profit (comparable EBIT) to be between EUR 5–9 million (in 2021: EUR 20.4 million) in 2022.
Previous guidance for 2022, published on 13 July 2022:
The company expects the revenue to be between EUR 530–570 million (in 2021: EUR 574.5 million) and comparable operating profit (comparable EBIT) to be between EUR 8–14 million (in 2021: EUR 20.4 million) in 2022.
Preliminary key figures (unaudited)
In July-September 2022, Verkkokauppa.com’s revenue declined -2.3 percent compared to the previous year, totaling EUR 137.8 million. Comparable operating profit was EUR 2.1 million.
| EUR million | 7-9/2022 | 1-9/2022 |
| Revenue | 137.8 | 388.2 |
| Operating profit | 1.7 | 1.5 |
| Comparable operating profit | 2.1 | 2.8 |
Verkkokauppa.com will publish its January-September 2022 Interim Report on 27 October 2022 around at 8.00 EEST. Verkkokauppa.com holds a silent period until the result publication, so the company does not comment on preliminary information on its result before publishing its interim report.
Verkkokauppa.com Oyj
More information:
Panu Porkka, CEO, Verkkokauppa.com Oyj
Mikko Forsell, CFO, Verkkokauppa.com Oyj
Tel. 6
Marja Mäkinen, Head of Investor Relations and Corporate Communications
Verkkokauppa.com Oyj
Tel. 9
Distribution:
Nasdaq Helsinki
Main media
Verkkokauppa.com empowers its customers to follow their passion by providing a wide product assortment of around 90,000 products. Verkkokauppa.com Oyj serves its retail and corporate customers through its webstore, megastores, 24h kiosk and network of collection points as well as fast deliveries and various services. As Finland’s most popular and most visited domestic online retailer, its deliveries cover around 75 percent of the Finnish population within the next day. The Company has four megastores: in Oulu, Pirkkala, Raisio, and Helsinki, where its headquarters is also located. Verkkokauppa.com employs more than 750 people and its shares are listed on the Nasdaq Helsinki stock exchange with the ticker VERK.
