Q1-24: A difficult start to the year, with unchanged long-term potential

24 Apr 2024 07:00 CEST

Sandefjord, 24 April 2024: The financial results for the first quarter have been
impacted by declining demand and increasing competition across the group's key
markets and categories. Nevertheless, Komplett Group made good progress with its
commercial and cost measures and continued to improve its gross margin.

The slow-down in sales starting in December 2023 continued, as anticipated, into
the first quarter. The decline was driven by continued market challenges, with
subdued demand and challenges in several of the group's core categories,
restraining revenue growth across all the group's segments and markets. During
the period, the competitive environment in the industry has intensified further
leading to increased campaign activity and margin pressure.

As a consequence of the challenging demand environment, total operating revenue
decreased by 10.3 per cent in the first quarter of 2024, from NOK 3 618 million
to NOK 3 245 million. Through its commercial and sourcing efforts, the group's
gross margin continued to improve and reached 15.0 per cent in the first
quarter, corresponding to an increase of 0.9 percentage points from 14.1 per
cent in the same period of 2023.

Sales decline, in combination with a cost inflationary environment, resulted in
a negative adjusted EBIT result of NOK 40 million. Lower profitability has led
to a temporarily elevated leverage ratio for the group, but the group's
liquidity and financial position remain controlled.

Adjusted for currency effects, the group's operating expenses remained
relatively stable as higher marketing investments and general cost inflation
were largely counteracted by measures to proactively manage the cost base.

Actions to improve operational and financial performance have been reinforced
across the group in order to proactively manage the negative impact from volume
shortfall, continued inflationary pressure as well as costs associated with
expansion and store openings. The impact from these measures is expected to
increase throughout the year.

"In the first quarter, we made good progress with our long-term growth and
profitability initiatives, but challenging markets continue to impact our
financial performance in the short term. Indications of improved consumer
confidence are expected to have a positive impact in the second half of the
year, and our cost measures and commercial initiatives are expected to have an
increasing effect throughout the year," says Jaan Ivar Semlitsch, President and
CEO of Komplett ASA.

"We are mindful of making the right choices not only in a short-term perspective
to protect our margins, but also to strengthen our position in the longer term.
As online-first pioneers with presence in categories with short innovation and
replacement cycles, we are well-positioned in the fastest growing sales channels
and categories," Semlitsch adds.

The presentation material and report for the first 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/20240424_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

616565_Komplett_Q1_2024_Presentation.pdf
616565_Komplett_Q1_2024_Report.pdf