Elektroimportøren AS : Third quarter 2024 results

07 Nov 2024 07:30 CET

Summary of key financials in Q3 2024

Total revenue in Q3 was NOK 407 million, up 1.7 per cent from NOK 401 million
last year:
• Like-for-like revenue decreased by 1.1 per cent
• B2B revenue decreased by 2.2 per cent
• B2C revenue increased by 4.8 per cent

Gross margin in Q3 was 36.7 per cent, up from 35.3 per cent last year. Increase
driven by price increase and increase in B2C share of business

OPEX were NOK 105 million in Q3, down from NOK 112 million last year. The
decline is driven by strong cost focus and cost reductions implemented during
last year, which is coming through.

Reported EBITDA in Q3 was NOK 30 million, up from NOK 28 million last year.
EBITDA margin of 7.4 per cent, up from 7.1 per cent last year. Adjusted EBITDA
in Q3 was NOK 44 million, up from NOK 29 million last year. Adjustment of NOK 14
million is mainly related to write-down of Solar products of NOK 13 million.
Adjusted EBITDA margin of 10.9 per cent, up from 7.3 per cent last year. We have
agreed with DNB to exclude the write-down of solar in the LTM NGAAP EBITDA for
the covenant calculation.

Net profit for the quarter was NOK 33 million, up from NOK -6 million last year.
Net profit increased by NOK 40 million. Adjusted for earn-out release (NOK 44
million) and the additional inventory write down (NOK -13 million), the net
profit increased by NOK 9 million compared to last year.

CEO comments

We managed to grow sales in both countries through the quarter. In Norway,
online and B2C sales represents the growth, whilst in Sweden, store sales and
B2B is growing.

Sales have varied throughout the quarter. July started out very positively on
both sales and margin, August was somewhat slower but still with an increase in
sales, whilst September had a slight decline.

Sales growth are seen in more or less all categories, but smart home products
and EV chargers are growing the most. Mid-September we re-launched heating pumps
in Norway and we are expecting this product group to increase sales in the
heating category throughout the winter season. Solar market continues to be
challenging, and we have made a write-down on parts of our solar inventory to
reflect the changed market conditions.

Gross margins have been carefully managed throughout the quarter in both
countries. In July we had a general price increase, but we have also intensified
our campaign management, to even better balance sales and gross margin.

In Norway we continue to see that consumers are more responsive to campaigns.
Even though we see that we are increasing our market share in the B2B market,
our professional customers are still waiting for the market to come back.

In Sweden we are continuously improving our offering for both consumers and
professionals. We have managed to attract more and more B2B customers to our
physical store. This, together with intense campaign and pricing management are
driving our Swedish operation in the right direction on both sales and gross
margin.

Third quarter is the time to prepare for peak season, with October and November
being the busiest time for us. During September we conducted our yearly product
training Elektroakademiet. Together with our suppliers, all our employees
attended a two-day product and sales training. This event aims to continue to
build our employees’ product knowledge and sales skills. This year we had an
extra focus on smart home solutions and heating pumps.

Last week of August we opened our store number 28 in Norway. This store is our
second in the larger Bergen area, and we are happy to now being able to increase
our presence in this important market.
After two years of declining profits due to both internal and external
challenges, the third quarter, in many ways, represents a small but positive
change for us. Sales are up, Gross margins are up, OPEX to sales continue to
improve and profits are again increasing year on year.

I would like to thank all our employees for the great job they are doing, every
day, by delivering the best customer service in the most professional way.

PRESENTATION:
The quarterly report and presentation are available at:
https://www.elektroimportoren.no/investor and http://newsweb.no
The results will be presented today 7 November at 09:00 CET by CEO Andreas Niss
and CFO Jørgen Wist. The presentation will be broadcasted as a live webcast in
English.
Please use the following link:
https://teams.microsoft.com/l/meetup-join/19%3ameeting_YjlhOTI0MTctYTc1ZC00OGNmL
Tg3MWMtY2FiMzQ4YzRmNzUz%40thread.v2/0?context=%7b%22Tid%22%3a%2210b30f00-1bbd-40
41-9c4d-64749f4a7041%22%2c%22Oid%22%3a%223758e62c-12e5-4419-a645-4b77ef5225be%22
%7d

For more information, please contact:
Andreas Niss, CEO: +47 934 67 067
Jørgen Wist, CFO: +47 959 34 619.

More information:
Access the news on Oslo Bors NewsWeb site

631495_Elektroimportøren Q3 2024 presentation.pdf
631495_Elektroimportøren Q3 2024 report.pdf