Komplett ASA

Earnings Release • Jul 20, 2023

Q2-23: Improved profitability for Komplett Group in a challenging market

Q2-23: Improved profitability for Komplett Group in a challenging market

Sandefjord, 20 July 2023: The second quarter of 2023 was characterised by

continued weak demand, with reduced consumer sentiment across all key markets.

Komplett Group actively mitigates these externally driven challenges through

careful investments in brand building and product availability, and demonstrated

good margin control in the quarter.

The group's B2C operations in Norway made good progress, with revenue growth of

19 per cent. This is partly due to the newly launched marketing campaign for the

Komplett brand in Norway, which has increased the awareness of the group's

seamless deliveries and high service level.

Total revenues amounted to NOK 3 634 million, compared with NOK 3 570 million in

the same period in 2022. The group's gross margin continued to improve and

reached 14.1 per cent in the second quarter, corresponding to an increase of 1.7

percentage points from 12.4 per cent in the same period of 2022. The margin

progress reflects an improved pricing environment and better pricing strategies.

In addition, the group benefited from a healthier inventory position and less

price pressure compared with the prior-year period.

Adjusted EBIT amounted to NOK 0 million in the second quarter, compared with

negative NOK 10 million in the corresponding period last year. This improvement

has been driven by expanded gross margins and improved operational efficiencies,

partly offset by cost inflation and certain project-related costs. Adjusted EBIT

margin amounted to 0 per cent in the second quarter, compared with negative 0.3

per cent last year.

"During the second quarter, we have continued to actively counter externally

driven challenges. We have finalised favourable terms with several key

suppliers, which will continue showing effects in the coming quarters. In

parallel, we have reduced our overall inventory yet improved product

availability, which makes our stock composition healthier and more competitive

than in the same period last year. We have also continued to realise synergies

across the group as we continue to utilise our benefits of scale as a leading

Nordic player, and we will continue to work on our cost base in a highly

inflationary environment," says Jaan Ivar Semlitsch, President and CEO of

Komplett ASA.

"As we continue our journey into the next quarters and years, we will take

advantage of our competitive advantages to deliver excellent customer

experiences and to drive profitable growth for our shareholders. Increased

inflation and a weak Norwegian currency will also have an impact on our pricing

strategies, which must be introduced to the market," Semlitsch adds.

The presentation material and report for the second quarter and first half-year

of 2023 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. Use the following link

to register and view the webcast and to ask questions:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20230720_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 (MAR) Article 7 and is subject to the disclosure

requirements pursuant to Section 5-12 of 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.