Komplett ASA

Earnings Release • Oct 25, 2024

Q3-24: Results impacted by weak trading environment, but with tangible signs of easing headwinds

Q3-24: Results impacted by weak trading environment, but with tangible signs of easing headwinds

Sandefjord, 25 October 2024: The results for the third quarter were impacted by

the prolonged market weakness from cautious consumer spending, intense

competition and limited new product launches. In this challenging market

environment, Komplett Group managed to further improve its working capital and

liquidity position, as well as making good progress on its strategic agenda.

Total operating revenue decreased by 3.1 per cent in the third quarter of 2024,

from NOK 3 874 million to NOK 3 755 million (-5.8 per cent in constant

currency). The decline was mainly driven by weak demand in the group's core

categories, gaming and IT, as a result of phasing of product cycles and

innovations as well as general market weakness.

Although the group's commercial and sourcing efforts are generating positive

results, the gross margin reached 12.7 per cent in the third quarter,

corresponding to a decline of 0.8 percentage points year-over-year. The margin

decline was impacted by campaign activities and price investments to maintain

market positions in key categories, in light of the competitive situation,

especially in the Swedish market. The margin pressure was most pronounced in the

B2C segment, and within select categories.

Most of the year-over-year increase in operating expenses was driven by currency

effects, and in constant currency, the group's operating expenses increased by

0.6 per cent. Higher expenses driven by general inflation, increased marketing

spend, and growth initiatives were largely offset by cost reductions.

EBIT adj. amounted to negative NOK 46 million in the third quarter of 2024,

compared with a profit of NOK 39 million in the same period of 2023.

At the close of the third quarter, the group's leverage ratio, defined as NIBD /

LTM EBITDA (adjusted for certain exceptional items), equalled 3.9x. This

represents a good headroom against the group's financial covenants in the

quarter. NIBD increased in the quarter, due to a reclassification of debt into

long-term liabilities, as a consequence of being granted an extended repayment

plan over 36 months on the Swedish tax deferral scheme.

Looking ahead, improved consumer sentiment and more favourable product cycles

are anticipated to gradually translate into a more positive trading environment.

Additionally, the impact of the group's commercial initiatives, including

renegotiated supplier agreements, are expected to gain importance over time. The

group expects accelerated cost benefits from consolidation and continues to

align its cost base to the ongoing market environment.

Komplett Group remains committed to maintaining an industry-leading cost

position, strong brand recognition, and to leverage the group's efficient and

scalable platform.

"Over the past quarter, we have continued to take action to address the

challenging market situation while maintaining high levels of customer

satisfaction. In parallel, we are making good progress with our strategic

initiatives to expand in selected categories and segments, with optimising our

cost base and leveraging our economies of scale in anticipation of a market

recovery," says Jaan Ivar Semlitsch, President and CEO of Komplett ASA.

The presentation material and report for the third quarter of 2024 are attached

to this notice.

Jaan Ivar Semlitsch, CEO and Thomas Røkke, CFO, will host a presentation of the

results today at 09.00 CEST at Haakon VIIs Gate 2, Oslo.

The event will also be made available via a live webcast. Please use the

following link to register and view the webcast:

https://channel.royalcast.com/landingpage/hegnarmedia/20241025_1/

Questions will be addressed towards the end of the presentation. A recorded

version of the webcast will be available shortly after the webcast has

concluded.

For further inquiries, please contact:

Thomas Røkke, CFO

Thomas.Rokke@komplett.com

Kristin Hovland, Head of Communication

Kristin.Hovland@komplett.com

About Komplett ASA

Komplett Group is a leading online-first electronics and IT products retailer,

operating in Norway, Sweden and Denmark. Serving customers in the B2C, B2B and

distribution markets, the Group is deeply focused on delivering best-in-class

customer experience, built through decades of knowhow, expertise and deep

customer commitment. Komplett Group operates an efficient and scalable business

model that supports cost leadership and enables a competitive product offering.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Elise Heidenreich, Investor

Relations adviser, at the date and time as set out above.