ELEKTROIMPORTØREN Quarterly report Q1 2024
AS
elektroimportoren
elektroimportoren
#QuarterlyreportQ12024 #elektroimportoren
Q U A R T E R L Y R E P O R T Q 1 2 0 2 4 E L E K T R O I M P O R T Ø R E N A S
To our shareholders
Entering 2024, we were prepared for continued challenging market conditions and softer demand. The results from 1st quarter shows that our expectations were correct.
January sales showed a double digit decline in sales. In February sales improved and ended just below last year. The development from February continued in March, though total sales are influenced by Easter being in March this year vs. April last year. Sales in March were down in comparison with 2023. Total sales for the first quarter ended at NOK 350 million (NOK 383 million).
Gross margin is impacted by higher share from Sweden and increased B2B share of sales. This together with a negative FX effect gave us a decline in gross margin for the quarter compared to last year resulting in a total gross margin of 34.7 per cent (35.7 per cent).
All major categories have been influenced by the softer demand, except heating and energy. With a cold January, sales of heating panels and cables were good. EV chargers continue to be the category with the greatest decline but with one year since the Easee ban in Sweden we believe this will change from now on. In Sweden our physical store drives growth but online sales are down for the quarter.
We have continued with rigid cost control, with good results. First quarter OPEX of NOK 96 million is NOK 9 million lower than last year (NOK 105 million). In the first quarter we increased cost reductions further by reductions in personnel in our Swedish operation.
Throughout the first quarter our Norwegian operation have been doing a great job in a challenging market. This have resulted in an improvement in market share in the B2B sector, whilst keeping costs down and gross margins at a healthy level.
In Sweden market conditions have continued to be tougher than in Norway and we continue to work with our customer offer to attract more customers. We are pleased to see that sales in our physical store are developing in the right direction. In the first quarter we see March sales at the same level as November sales last year, a good indication that our business model has good growth potential. We still acknowledge that we have a way to go before our position is at the right level in Sweden.
We believe market conditions will continue to be challenging for some time. However, we do see that our good cost control together with our competitive offer in B2B and unique concept in B2C continue to attract customers. We will continue to deliver the best customer service in the most professional way, and when the market headwind turns into tailwind, we are ready to capitalize on that.
I would like to give my greatest thanks to all our employees for their drive, professionalism and eager to every day deliver the best possible customer experience to all our customers.
Yours sincerely
Andreas Niss, CEO Elektroimportøren
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Q U A R T E R L Y R E P O R T Q 1 2 0 2 4 E L E K T R O I M P O R T Ø R E N A S
Summary of key financials in Q1
Total revenue in Q1 was NOK 350 million, down 8.6% from NOK 383 million last year:
- Like-for-likesales declined by 10.2%
- B2B sales decreased by 6.4% year-over-year
- B2C sales decreased by 10.8%
- Easter effect of approximately NOK 10 million
Gross margin in Q1 was 34.7%, down from 35.7% last year:
- Decline driven by FX effects, as well as mix effects from Sweden and B2B share of sales
- Adjusted for FX and mix effects, gross margin would be 37.0% in Norway
OPEX were NOK 96 million in Q1, down from NOK 105 million last year. The decline is driven by strong cost focus and cost reduction implemented during 2023, which is coming through.
Reported EBITDA in Q1 was NOK 24 million, down from NOK 32 million last year. EBITDA margin of 6.8%, down from 8.2% last year.
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Q U A R T E R L Y R E P O R T Q 1 2 0 2 4 E L E K T R O I M P O R T Ø R E N A S
Revenue (NOK million) | Like for Like growth % | |
Reported EBITDA margin (%) | Reported EBITDA (NOK million) | |
# of physical stores
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Q U A R T E R L Y R E P O R T Q 1 2 0 2 4 E L E K T R O I M P O R T Ø R E N A S
Alternative performance measure Q1 2024 - Group
Amounts in NOK million | Q1 2024 | Q1 2023 | FY 2023 |
Revenue | 350 | 383 | 1604 |
Cost of goods sold | -229 | -246 | -1051 |
Gross profit | 121 | 137 | 553 |
Gross margin (%) | 34,7 % | 35,7 % | 34,5 % |
Operating expenses in sales channels | -54 | -61 | -242 |
Other operating expenses | -43 | -44 | -174 |
OPEX | -96 | -105 | -416 |
OPEX to sales margin (%) | -27,5 % | -27,5 % | -25,9 % |
Adjusted EBITDA | 25 | 32 | 137 |
Adjusted EBITDA margin (%) | 7,2 % | 8,2 % | 8,5 % |
Adjustments | -1 | 0 | -1 |
EBITDA reported | 24 | 32 | 136 |
EBITDA reported margin (%) | 6,8 % | 8,2 % | 8,5 % |
Depreciation | -27 | -24 | -95 |
Adjusted EBIT | -2 | 7 | 42 |
Adjusted EBIT margin (%) | -0,6 % | 1,9 % | 2,6 % |
Adjustments | -1 | 0 | -1 |
Amortisation intangible assets | 0 | 0 | -1 |
EBIT reported | -4 | 7 | 40 |
EBIT reported margin (%) | -1,1 % | 1,8 % | 2,5 % |
Net financial expenses | -8 | -12 | -55 |
Profit before tax | -12 | -5 | -16 |
Net profit | -11 | -4 | -12 |
Liabilities to financial institutions | -220 | -403 | -307 |
Leasing liabilities | -465 | -385 | -411 |
Cash/Overdraft facility | 58 | 0 | 9 |
Net interest bearing debt incl IFRS | -627 | -788 | -709 |
Net interest bearing debt excl. IFRS | -193 | -417 | -310 |
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Financials
Q U A R T E R L Y R E P O R T Q 1 2 0 2 4 E L E K T R O I M P O R T Ø R E N A S
Financial review Q1 2024 - Group
Revenues
Total sales in the first quarter were NOK 350 million, corresponding to a decline of 8.6 per cent compared to last year.
The decline was impacted by a tough January with double digit decline and Easter in March this year compared to April last year. Negative Easter effect of approximately NOK 10 million.
Stores in Norway had a decline of 8.6 per cent in the quarter. The negative development on the EV charger product category continued in the first quarter but has stabilised with a reduction around 25% (NOK 8 million YOY). From second quarter current year the sales of EV chargers are expected to increase, as the sales ban of Easee was implemented from end of Q1 last year.
The number of visits to physical stores in Norway was slightly down compared to last year because of the Easter effect, in addition the hit rate and basket is lower. This is a result of customers being more conservative in terms of their spending.
Online revenue in Norway declined by 18.6 per cent in Q1 2024 compared to last year.
Revenue of Spoton of NOK 7 million in the quarter, compared to NOK 9 million last year.
Solar orders were NOK 10 million in Q1 2024, in line with last year. Order backlog of NOK 11 million end of March 2024.
The store in Elbutik contributed with NOK 7 million in the quarter, while online sales in Elbutik was NOK 5 million lower compared to last year. B2B sales in Sweden in the quarter are included with NOK 6 million.
Revenue bridge Q1 2023 to Q1 2024
Sales Q1 | Stores | Online | Store | Online | Sales Q1 |
2023 | Norway | Norway | Sweden | Sweden | 2024 |
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Q U A R T E R L Y R E P O R T Q 1 2 0 2 4 E L E K T R O I M P O R T Ø R E N A S
Gross margin (%) | In Norway, the gross margin was 36.1 per cent (36.8 |
per cent). Increased share of B2B sales with lower | |
margin compared to sales B2C (0.2 per cent) and | |
exchange rate effects on Namron products (0.7 per | |
cent) had a negative effect on the gross margin. | |
Adjusted for the effects above, gross margin in | |
Norway would be 37.0 per cent Q1 2024. | |
Operating expenses in sales channels |
Gross margin (%), Norway
Operating expenses in sales channels are reduced with NOK 8 million compared to last year, even with general salary increase, inflation adjustment of costs and one new store in Sweden. The group continues to maintain a rigid cost control and the cost reduction implemented during 2023 is coming through. OPEX ratio at 27.5 per cent in line with last year.
Gross margin
Gross profit for the quarter was NOK 121 million, down from NOK 137 million in 2023. This translated into a gross margin of 34.7 per cent, compared with 35.7 per cent in the same period of 2023. Overall, margins were impacted by shift towards B2B with lower margin and FX effects. B2B had a negative development YOY due to low margin on solar products and higher competition in the service segment, while B2C increased the gross margin in Q1 2024 compared to last year.
The margin decline is also driven by a higher share of sales from Elbutik, which has a significantly lower margin at 21.6 per cent.
Other operating expenses
Other operating costs decreased by NOK 1 million in the quarter. This is due to the cost reduction in Norway. Other operating expenses in Sweden is in line with last year even with a new central warehouse.
EBITDA reported
EBITDA for the quarter was NOK 24 million, down from NOK 32 million last year. EBITDA reported decreased by NOK 8 million due to lower sales and gross margin.
EBIT reported
EBIT for the quarter was NOK -4 million, down from NOK 7 million last year. EBIT reported decreased by 11 million driven by EBITDA weakening (NOK 8 million) and increase in depreciation (NOK 3 million) mainly related to the Group´s automated warehouse in Sweden that was fully operational from January 2024.
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Q U A R T E R L Y R E P O R T Q 1 2 0 2 4 E L E K T R O I M P O R T Ø R E N A S
Net financial expenses | Liquidity and borrowings |
Net financial expenses of NOK 8 million relate to net interest expenses of NOK 6 million, gain on fair value movements on derivatives of NOK 5 million, net other financial expenses of NOK 1 million and IFRS 16 interest expenses of NOK 6 million. Average interest rate is 8.8 per cent in the quarter.
Net profit
Net profit for the quarter was NOK -11 million, down from NOK -4 million last year. Net profit decreased by NOK 7 million.
The group had cash of NOK 58 million at end of Q1 2024 in addition to an unused revolving credit facility of NOK 120 million.
Excluding IFRS 16 effects, net interest-bearing debt was NOK 193 million at the end of the quarter, corresponding to 2.7x of the LTM EBITDA excluding IFRS16 effects (NOK 84 million) and including Easee adjustment of NOK 26 million. The loan facilities will have no NIBD/EBITDA (based on NGAAP) covenant in Q1 2024, Q2 2024 and Q3 2024, and will have a NIBD/ EBITDA covenant of 4.0x in Q4 2024. Q1 2024 is the last quarter with the Easee covenant adjustment.
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Q U A R T E R L Y R E P O R T Q 1 2 0 2 4 E L E K T R O I M P O R T Ø R E N A S
Alternative Performance Measures Q1 2024 - Norway
Amounts in NOK million | Q1 2024 | Q1 2023 | FY 2023 |
Revenue | 317 | 352 | 1462 |
Cost of goods sold | -203 | -222 | -937 |
Gross profit | 115 | 130 | 524 |
Gross margin (%) | 36,1 % | 36,8 % | 35,9 % |
Operating expenses in sales channels | -50 | -59 | -229 |
Other operating expenses | -37 | -38 | -141 |
OPEX | -87 | -97 | -370 |
OPEX to sales margin (%) | -27,4 % | -27,5 % | -25,3 % |
Adjusted EBITDA | 28 | 33 | 154 |
Adjusted EBITDA margin (%) | 8,7 % | 9,3 % | 10,5 % |
Adjustments | 0 | 0 | 0 |
EBITDA reported | 27 | 33 | 154 |
EBITDA reported margin (%) | 8,6 % | 9,3 % | 10,5 % |
Depreciation | -23 | -24 | -88 |
Adjusted EBIT | 4 | 9 | 66 |
Adjusted EBIT margin (%) | 1,3 % | 2,7 % | 4,5 % |
Adjustments | 0 | 0 | 0 |
Amortisation intangible assets | 0 | 0 | 0 |
EBIT reported | 4 | 9 | 66 |
EBIT reported margin (%) | 1,2 % | 2,6 % | 4,5 % |
Net financial expenses | -7 | -12 | -52 |
Profit before tax | -3 | -2 | 14 |
Net profit | -3 | -2 | 11 |
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Elektroimportoren AS published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 11:19:46 UTC.
