Q4-22: Top line performance hampered by challenging markets, positive gross margin trend

09 Feb 2023 07:00 CET

Sandefjord, 9 February 2023: In the fourth quarter, the Komplett Group made good
progress in its efforts to secure a healthy inventory position, improve working
capital and reduce operating expenses. Going into 2023, the top line continues
to be impacted by a challenging market while a more positive trend is expected
for the gross margin.

In the fourth quarter, the Group's top line performance continued to be impacted
by reduced consumer sentiment. Total revenue amounted to NOK 4 657 million
compared with NOK 3 292 million in the corresponding period of 2021. NetOnNet
contributed NOK 1 821 million of the revenue. Adjusted EBIT amounted to NOK 70
million in the fourth quarter of 2022 compared with NOK 118 million in the same
period of 2021.

During the quarter, the Group's inventory reached a healthy level, which
translated into an improvement in the gross margin of one percentage point
compared to the previous quarter. Good cost control and healthy inventory
position are expected to drive margin improvement moving forward. The Group's
profitability will also benefit from synergy realisation and other initiatives
to reduce operating costs.

In 2022, the Group's revenues reached NOK 14.6 billion, corresponding to a 32.4
per cent growth from the year before. Revenues for 2022 included NOK 4 784
million from NetOnNet. Adjusted EBIT for the full-year period came in at NOK 87
million, compared with NOK 388 million one year earlier.

In 2022, Komplett successfully reduced its inventory by NOK 600 million. For the
full-year period, the Group reports a cash flow from operations of NOK 1.1
billion driven by material working capital improvements.

In the fourth quarter of 2022, the Group secured new long-term credit facilities
and completed a private placement of new shares in the amount of NOK 1 billion.
The net proceeds and funds made available under the new credit facilities will
enable the Group to refinance its existing bridge loan and continue to execute
its strategy as a leading online-first electronics and IT products retailer.

Komplett has also continued to work towards realising cost synergies following
the combination with NetOnNet. Supplier negotiations are yielding the expected
synergies, and cost synergies of at least NOK 200 million annually are expected
to have a full effect within 24 months of the transaction, of which NOK 100
million is expected as of 2023. Several initiatives have also been initiated in
NetOnNet to reduce operating costs by approximately SEK 70-90 million at a gross
level from 2023.

"During 2022, we succeeded in reducing our inventory by NOK 600 million.
Supported by good cost control and a healthy stock composition, improved gross
margin performance is expected going forward. As we enter 2023, we expect
consumer demand to remain challenging, but over time, online trade is expected
to return to its attractive growth trajectory.

"With a solid and scalable business model in place, our long-term profitability
will benefit from synergy realisation and other initiatives to reduce operating
costs. We are also confident that our online-first business model will serve us
well and partly outweigh the negative cost effects of market inflation. As
inventory positions and market prices normalise across the industry, we expect
our gross margin to continue to develop positively," said Lars Olav Olaussen,
CEO of Komplett.

The presentation material and report for the fourth quarter of 2022 are attached
to this notice.

CEO Lars Olav Olaussen and CFO Krister Pedersen will present the results today
at 09.00 CET at Haakon VIIs gate 2, Oslo.

The event will also be available via a live webcast at the following link:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20230209_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:

Krister A. Pedersen, CFO
Krister.Pedersen@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.

More information:
Access the news on Oslo Bors NewsWeb site

581775_Komplett_Q4_2022_Presentation.pdf
581775_Komplett_Q4_2022_Report.pdf