Verkkokauppa.com - Restrictions boosted Q2 result
Verkkokauppa.com’s Q2’20 result was extremely strong. The report did not offer surprises as the company issued a positive profit warning and released preliminary information on April-June figures earlier this week. Revenue grew by 14.1% and was EUR 123m. Gross profit was EUR 21.4m (17.4% margin) vs. our EUR 20.2m (16.4% margin). Adj. EBIT was EUR 4.8m (3.9% margin). 2020E guidance: The company expects revenue to be EUR 520-545m and comparable operating profit to be EUR 13-18m.
- Q2 revenue grew by 14% to EUR 123m. Revenue growth in Q2 was driven by strong online sales, positive performance in mid-sized and evolving categories, and successful marketing that resulted in increased online traffic.
- Q2 gross profit was EUR 21.4m (17.4% margin) vs. EUR 20.2m (16.4% margin) Evli view. Gross margin improved due to good sales improvement in higher margin categories, improvements in category management and declining sales in lower margin wholesale.
- Q2 adj. EBIT was EUR 4.8m (3.9% margin) and improved as a result of strong sales and improved gross margin.
- Verkkokauppa.com updated its guidance on 21 July 2020, and estimates 2020E revenue to be between 520-545 million euros and comparable operating profit to be between 13-18 million euros.