Q2-24: High customer satisfaction, good cost control and progress on strategic initiatives in a challenging market

18 Jul 2024 07:00 CEST

Sandefjord, 18 July 2024: The results for the second quarter were impacted by
product related innovation cycles in core categories, weak markets, and strong
competition, especially in Sweden. In this environment, Komplett Group succeeded
in reducing its cost base, while improving liquidity and maintaining a
controlled financial position.

Total operating revenue decreased by 5.9 per cent in the second quarter of 2024,
from NOK 3 634 million to NOK 3 418 million. The decline was driven by weak
demand in some of the group's core categories, gaming and IT. The year-over-year
impact was partly explained by the effects of fewer product launches in the
first half-year period of 2024 than in 2023.

Although the group's commercial and sourcing efforts are generating positive
results, the gross margin reached 13.1 per cent in the second quarter,
corresponding to a decline of 1.0 percentage points. The decline was a result of
price investments campaign activities to defend market shares in a competitive
market, combined with proactive inventory management.

Cost reductions more than offset the increased expenses driven by general
inflation and store expansions, and the group managed to reduce its operating
expenses by 7.8 per cent on a like-for-like basis in the quarter.

EBIT adj. amounted to negative NOK 38 million in the second quarter of 2024,
compared with NOK 0 million in the same period of 2023.

Moving forward, the group expects continued good progress from its commercial
and strategic initiatives, while competition is likely to remain intense. The
positive impact from improved consumer confidence, product cycles and ongoing
initiatives is expected to be gradually more supportive into the second half of
the year

"The market challenges seen over the past two years, continued in the first half
of 2024, accompanied by intensifying competition. These are challenges we aim to
overcome as we set out on our updated strategic growth path. So far, we are
making good progress, and our commercial initiatives and cost measures are being
completed as planned," says Jaan Ivar Semlitsch, President and CEO of Komplett
ASA.

"We have strong commercial plans for Q3 and for Q4 and peak season, and moving
forward, improved consumer sentiment is expected to gradually translate into
increased demand. In parallel, the headwind from last year's product launches is
expected to ease in the second half of the year. AI led technology is also
expected to gradually be a positive driver on demand over time," Semlitsch adds.

The presentation material and report for the second 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/20240718_2/

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 and is subject to the disclosure requirements pursuant
to Section 5-12 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

623799_Komplett_Q2_2024_Presentation.pdf
623799_Komplett_Q2_2024_Report.pdf