Elektroimportøren AS — Earnings Release 2023

Aug 16, 2023

Elektroimportøren: Second quarter 2023 results

Elektroimportøren: Second quarter 2023 results

Revenue of NOK 326 million (NOK 358 million), down 9.0%. Like-for-like sales have declined by 10.7%. Revenue excluding EV chargers is NOK 305 million (NOK 310 million). B2B sales decreased by 8.8% compared to last year while B2C sales decreased with 9.3%. Gross margin percentage is 34.6% (35.1%). The gross margin in Norway is 35.9% (36.0%). Margin percentage in Elbutik is significantly lower than for the Norwegian operation with 21.8%. Reported EBITDA of NOK 31 million (NOK 49 million). EBITDA margin percentage is 9.4% (13.6%).

Comments from CEO Andreas Niss:

“The second quarter has been more challenging than we expected going into the quarter, but better than communicated in relations with the private placement in June 2023. The largest deviation from last year comes from decrease in sales of EV chargers. We have been able to replace some of the lost sales with solar, but not fully.

Energy saving products continue to grow. Smart home devices that allow customers to better control their energy consumption and home security products are increasingly growing sales year on year.

Sales of solar products continues to increase but a major part of sales in Q2 have been to projects that will be delivered later this year.

We opened our first store in Sweden end of April. Both professional customers and consumers are giving us great feedback on assortment, price and the competence of our employees. Sales have so

far been lower than expected, but we have a positive trend week by week, and expect sales to continue to increase as we move into peak season.

In June we signed our first franchise agreements with two new partners. These partners will establish Elektroimportøren stores in smaller cities across Norway. First franchise store opening is expected within 9 to 12 months.

Given the decline in sales we have seen the need for further cost reductions. In May we made reductions in our staff both in administrative and sales positions. The effect of these reductions will be effective from September and onwards.

We believe that the market will continue to be challenging in the months to come. However, with the private placement that took place in June and the cost reductions we have made, we are now better positioned to handle these rougher conditions going forward.

I would like to thank all our employees in both Norway and Sweden for their dedication and hard work. In a challenging market you keep delivering the best customer service in the most professional way, to all our customers, thank you for that.”

The quarterly report and presentation are available at: https://www.elektroimportoren.no/investor

You are invited to join us for a physical meeting at 11.00 at Hotel Continental (Stortingsgaten 24-26) in Oslo. Please inform DNB of your attendance by e-mail to mona-cathrin.brekmo@dnb.no

If you cannot join our physical meeting, you are invited to join a live webcast today at 09.00. Link to webcast is available at: https://teams.microsoft.com/l/meetup-join/19%3ameeting_ZjY0ZGUzZWQtZWNkNS00NmNlLThhMzAtYWZiNmI0ZmYxMjFi%40thread.v2/0?context=%7B%22Tid%22%3A%22853e8b83-4054-4eb9-8b26-ec6513dd213d%22%2C%22Oid%22%3A%22ba1f21a1-74d5-4d4a-8b8f-2f06d0c71a75%22%2C%22IsBroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btype=a&role=a