Komplett ASA

Earnings Release • Oct 26, 2023

Q3-23: Good financial progress across all parameters and best-in-class customer ratings

Q3-23: Good financial progress across all parameters and best-in-class customer ratings

Sandefjord, 26 October 2023: The macroeconomic environment and the consumer

electronics retail market remained challenging through the third quarter.

Komplett Group has continued its efforts to counter these externally driven

challenges and has demonstrated good financial progress in the period, combined

with continued solid liquidity.

In the third quarter, the group improved its operating results (EBIT adj.) by

NOK 49 million on modest revenue growth. The group's operations in Norway

continued to make good progress, while the Swedish market remained more

challenging, negatively affecting sales growth. All the group's brands are

either maintaining their positions or taking market share. Customer loyalty and

satisfaction remained high in the third quarter, which is underlined by top-tier

delivery and logistical services.

Total revenues amounted to NOK 3 874 million, up 2.4 per cent from NOK 3 784

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

improve and reached 13.5 per cent in the third quarter, corresponding to an

increase of 1.7 percentage points from 11.8 per cent in the same period of 2022.

The higher margin is a result of improved pricing strategies, effective sourcing

initiatives and healthier inventory positions. This has mitigated many of the

adverse effects of higher input costs driven by cost inflation and currency

effects compared to last year.

The gross margin progress was the main driver behind the improved operating

results (EBIT adj.), which amounted to NOK 39 million in the third quarter,

compared with negative NOK 10 million in the corresponding period last year.

This resulted in a year-over-year increase in the adjusted EBIT margin of 1.3

percentage points, to 1.0 per cent in the third quarter, up from negative 0.3

per cent last year.

Looking ahead, the demand environment is likely to remain weak in the near term,

despite some indications of a potentially easing macroeconomic conditions for

Nordic households in the coming year. Across the Komplett Group, efforts

continue to counter these externally driven challenges, and operational

excellence and profitability remain a top priority.

"Despite decline in all our key markets, we have succeeded in growing our top

line and in parallel continued to improve our gross margin versus last year.

While we have invested in brand visibility to pave the way for growth, we have

simultaneously kept good cost control and improved our financial headroom," says

Jaan Ivar Semlitsch, President and CEO of Komplett ASA.

"Moving forward, one of our key actions will be to deliver a strong promotional

programme during the peak season. Along with our campaign strategy, we have

built up a healthy stock composition, enabling us to provide market-leading

service levels during the festive season," Semlitsch adds.

The presentation material and report for the third quarter 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/landingpage/hegnarmedia/20231026_5/

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.