Interim reports | Verkkokauppa.com’s profit rose to a positive, with a sharp drop in turnover

Economic|Interim reports

Consumer electronics chain Verkkokauppa.com’s profit rose to the plus side in the second quarter of the current year, but the company’s turnover fell sharply.

Comparable operating profit was one million euros in April-June. The company’s result improved from the same time last year, as at that time the comparable operating profit was EUR 0.2 million in loss.

The company’s turnover in the second quarter decreased by a good ten percent. Turnover was 112.8 million euros, while a year earlier it was 125.7 million euros.

Turnover the decline was influenced by the fact that consumer and business customer sales were weaker than last year, says Verkkokauppa.com’s CEO Panu Porkka in the interim report.

There was a drop of more than ten percent in consumer sales, and sales to business customers fell by just under 15 percent from the second quarter of last year.

“The market environment remained challenging in the second quarter and price competition intensified compared to the first quarter of the year. High cost inflation and rising interest rates have clearly reduced purchasing power and made consumers more price-conscious and considerate in their purchase decisions. The economic uncertainty also had a weakening effect on the demand of small and medium-sized business customers. The summer seasonal sales got off to a slow start and the hoped-for pick-up in sales during the season largely failed to materialize,” says Porkka, interim report in

Verkkokauppa.com said in January that it was starting a profit improvement program, which according to CEO Porka, has progressed as planned.

“Improved operational efficiency, Selection changes and numerous other measures that improve profitability had a positive effect on our ability to generate results”, comments Porkka.

Verkkokauppa.com keeps its instructions unchanged for the current year. It expects revenue to decline and comparable operating profit to decline from last year. Last year, the company’s turnover was 543.1 million euros and the comparable operating profit was 3.5 million euros.

The company’s share price was up just under two percent from around five in the early evening.