Komplett ASA

Earnings Release • Feb 8, 2024

Q4-23: Improved profitability despite continued market headwind

Q4-23: Improved profitability despite continued market headwind

Sandefjord, 8 February 2024: In the fourth quarter, Komplett group delivered a

30 per cent increase in operating results (EBIT adj.) driven by sustained gross

margin progress and good cost control. Despite the difficult market conditions,

the group delivered stable sales, while continuing to strengthen its market

position.

The group delivered a strong black week and overall solid peak season

performance. The progress was mainly driven by the B2C segment, while the B2B

and Distribution segments to a larger extent were affected by the soft demand

environment. The market in Sweden remained weak, while the conditions in Norway

were slightly better yet also challenging towards year-end.

Total operating revenue increased by 1.7 per cent in the fourth quarter of 2023,

from NOK 4 657 million to NOK 4 734 million. Adjusted for currency translation

effects, revenue declined by 2.3 per cent. The group's gross margin continued to

improve and reached 14.0 per cent in the fourth quarter, corresponding to an

increase of 1.2 percentage points from 12.8 per cent in the same period of 2022.

The margin increase in combination with improved cost efficiency in an

inflationary environment were the main drivers behind the 30 per cent EBIT adj.

improvement, which resulted in an EBIT adj. margin of 1.9 per cent in the

fourth quarter, compared with 1.5 per cent in the same quarter of 2022. The

group is making good progress on operational measures to safeguard margins and

offset operating cost inflation.

As a consequence of the challenging market situation as well as general industry

valuation levels in recent periods, the group recognised non-cash impairment

charges of NOK 983 million in the fourth quarter, relating to impairment of

goodwill and de-risking of the balance sheet. The impairment is in accordance

with IFRS recommendations, and in line with generally accepted accounting

principles in Norway. It has no cash implication, has no operational consequence

and does not alter the outlook of the business nor its strategies.

Moving forward, the group continues its measures to improve its margins, while

reinforcing the efforts to counteract the negative effects of general cost

inflation on its expenses. Komplett Group is simultaneously continuing efforts

to develop its strong brands and to expand market shares, while pursuing the

possibilities for growth in related categories, channels and customer groups.

"Throughout the year 2023, we have succeeded with improving our market position,

utilising scale benefits and improving service levels while maintaining our

industry-leading cost position. Actions to improve operational and financial

performance have been combined with new management teams and key recruitments

across the group," says Jaan Ivar Semlitsch, President and CEO of Komplett ASA.

"At the entry of 2024, we expect markets to remain challenging, and, in

anticipation of a market recovery, we are continuing to refine our business

model and build on our strengths. We remain committed to meeting the high

expectations of our customers, improving profitability while retaining our

industry-leading cost position and building strong teams," Semlitsch adds.

The presentation material and report for the fourth quarter of 2023 are attached

to this notice.

A presentation of the results will be held by CEO Jaan Ivar Semlitsch and CFO

Thomas Røkke at 09:00 CET at the Vika Atrium Auditorium, Munkedamsveien 45,

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/20240208_3/

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.