Komplett ASA

Earnings Release • Jul 18, 2024

Q2-24: High customer satisfaction, good cost control and progress on strategic initiatives in a challenging market

Q2-24: High customer satisfaction, good cost control and progress on strategic initiatives in a challenging market

Sandefjord, 18 July 2024: The results for the second quarter were impacted by

product related innovation cycles in core categories, weak markets, and strong

competition, especially in Sweden. In this environment, Komplett Group succeeded

in reducing its cost base, while improving liquidity and maintaining a

controlled financial position.

Total operating revenue decreased by 5.9 per cent in the second quarter of 2024,

from NOK 3 634 million to NOK 3 418 million. The decline was driven by weak

demand in some of the group's core categories, gaming and IT. The year-over-year

impact was partly explained by the effects of fewer product launches in the

first half-year period of 2024 than in 2023.

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

results, the gross margin reached 13.1 per cent in the second quarter,

corresponding to a decline of 1.0 percentage points. The decline was a result of

price investments campaign activities to defend market shares in a competitive

market, combined with proactive inventory management.

Cost reductions more than offset the increased expenses driven by general

inflation and store expansions, and the group managed to reduce its operating

expenses by 7.8 per cent on a like-for-like basis in the quarter.

EBIT adj. amounted to negative NOK 38 million in the second quarter of 2024,

compared with NOK 0 million in the same period of 2023.

Moving forward, the group expects continued good progress from its commercial

and strategic initiatives, while competition is likely to remain intense. The

positive impact from improved consumer confidence, product cycles and ongoing

initiatives is expected to be gradually more supportive into the second half of

the year

"The market challenges seen over the past two years, continued in the first half

of 2024, accompanied by intensifying competition. These are challenges we aim to

overcome as we set out on our updated strategic growth path. So far, we are

making good progress, and our commercial initiatives and cost measures are being

completed as planned," says Jaan Ivar Semlitsch, President and CEO of Komplett

ASA.

"We have strong commercial plans for Q3 and for Q4 and peak season, and moving

forward, improved consumer sentiment is expected to gradually translate into

increased demand. In parallel, the headwind from last year's product launches is

expected to ease in the second half of the year. AI led technology is also

expected to gradually be a positive driver on demand over time," Semlitsch adds.

The presentation material and report for the second 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/20240718_2/

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.