Q2-23: Improved profitability for Komplett Group in a challenging market

20 Jul 2023 07:00 CEST

Sandefjord, 20 July 2023: The second quarter of 2023 was characterised by
continued weak demand, with reduced consumer sentiment across all key markets.
Komplett Group actively mitigates these externally driven challenges through
careful investments in brand building and product availability, and demonstrated
good margin control in the quarter.

The group's B2C operations in Norway made good progress, with revenue growth of
19 per cent. This is partly due to the newly launched marketing campaign for the
Komplett brand in Norway, which has increased the awareness of the group's
seamless deliveries and high service level.

Total revenues amounted to NOK 3 634 million, compared with NOK 3 570 million in
the same period in 2022. The group's gross margin continued to improve and
reached 14.1 per cent in the second quarter, corresponding to an increase of 1.7
percentage points from 12.4 per cent in the same period of 2022. The margin
progress reflects an improved pricing environment and better pricing strategies.
In addition, the group benefited from a healthier inventory position and less
price pressure compared with the prior-year period.

Adjusted EBIT amounted to NOK 0 million in the second quarter, compared with
negative NOK 10 million in the corresponding period last year. This improvement
has been driven by expanded gross margins and improved operational efficiencies,
partly offset by cost inflation and certain project-related costs. Adjusted EBIT
margin amounted to 0 per cent in the second quarter, compared with negative 0.3
per cent last year.

"During the second quarter, we have continued to actively counter externally
driven challenges. We have finalised favourable terms with several key
suppliers, which will continue showing effects in the coming quarters. In
parallel, we have reduced our overall inventory yet improved product
availability, which makes our stock composition healthier and more competitive
than in the same period last year. We have also continued to realise synergies
across the group as we continue to utilise our benefits of scale as a leading
Nordic player, and we will continue to work on our cost base in a highly
inflationary environment," says Jaan Ivar Semlitsch, President and CEO of
Komplett ASA.

"As we continue our journey into the next quarters and years, we will take
advantage of our competitive advantages to deliver excellent customer
experiences and to drive profitable growth for our shareholders. Increased
inflation and a weak Norwegian currency will also have an impact on our pricing
strategies, which must be introduced to the market," Semlitsch adds.

The presentation material and report for the second quarter and first half-year
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/hegnarmedia/#!/hegnarmedia/20230720_1

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.

More information:
Access the news on Oslo Bors NewsWeb site

595560_Komplett_Q2_2023_Report.pdf
595560_Komplett_Q2_2023_Presentation.pdf