Verkkokauppa.com - Profitability improved in Q3
Verkkokauppa.com’s Q3’19 revenue grew by 3% and was EUR 120.6m vs. Evli EUR 126.7m and consensus of EUR 125.8m. Gross profit was EUR 18.9m (15.7% margin) vs. EUR 18.6m (14.7% margin) Evli view. EBIT was EUR 4.3m vs. EUR 3.7m/3.0m Evli/cons. The company updated its 2019E guidance and expects revenue of EUR 500-525m and EBIT of EUR 11-15m.
- Q3 revenue was EUR 120.6m vs. EUR 126.7m Evli view and EUR 125.8m consensus. Sales grew by 3% while market growth was 2.5% (GfK estimate). Revenue growth in Q3 was boosted by successful season sales, campaigns and increased marketing.
- Q3 gross profit was EUR 18.9m (15.7% margin) vs. EUR 18.6m (14.7% margin) Evli view. The improvement was due to a positive sales mix and better terms and conditions from suppliers.
- Q3 EBIT was EUR 4.3m (3.6% margin) vs. EUR 3.7m (2.9% margin) Evli view and EUR 3.0m (2.4% margin) consensus. EBIT improvement was mainly due to higher gross margin.
- Q3 eps was EUR 0.07 vs. EUR 0.06/0.05 Evli/cons.
- 2019 guidance updated: The company expects 2019E revenue of EUR 500-525m and EBIT of EUR 11-15m.
- The company also decided on a quarterly dividend of EUR 0.051 per share.