Verkkokauppa.com - Profits beat
Verkkokauppa.com delivered a profit beat on revenues that were as expected. Compared to our estimates the beat is fully driven by better than expected gross margin. OPEX were in line. Guidance for 2018E is kept intact.
- Q3 revenue was EUR 117m vs. EUR 117m Evli and EUR consensus. Sales grew by 11%. Wholesale volumes were broadly flat y/y. Market growth was 2% in Jul-Sep, according to GfK.
- Q3 gross profit was EUR 17.4m (14.9% margin) vs. EUR 16.5m (14.1%) Evli.
- Q3 adj. EBIT was EUR 3.4m (2.9% margin) vs. EUR 2.3m/2.0m (2.0%/1.7%) Evli/cons estimates.
- 2018 guidance intact: revenue is expected to be EUR 460-500m and adj. EBITDA between EUR 11-14m. Raisio store opening costs will mainly accrue in H1’18. Wholesale revenue in H2 is expected to be more in line with the previous year. Revenue growth and profitability will be clearly higher in H2’18 vs. H1’18.
- CEO comments: “The company expects the market to get even tougher because of flat summer sales for the whole sector.”