CEO's review

The CEO's review is updated quarterly in connection with the publication of the financial results. This review is from Verkkokauppa.com's Half-year report 17 July 2025.

CEO Panu Porkka:

The operating environment showed cautious signs of recovery, and the electronics market grew in the second quarter. General wage increases and favorable development in key interest rates bolstered purchasing power. However, consumer confidence and purchase intentions remained subdued, reflecting ongoing uncertainty in the operating environment.

Verkkokauppa.com demonstrated strong performance, driving overall market growth and strengthening its market share. Revenue continued to grow in the second quarter and was 116.5 million euros (105.5), increasing by 10 percent compared to the previous year. Revenue growth was particularly strong in the company's strategic focus areas of e-commerce and new markets. The company's key categories entertainment and IT continued to grow as anticipated. TV category was boosted by the transition to high-definition broadcasts in Finland. In IT category, strong computer sales were driven by both successful commercial measures and a start of replacement cycles towards the end of the reporting period.

Own brands’ sales grew by 22 percent in the reporting period. Systematic efforts to enhance operating efficiency supported positive profitability development. Gross margin increased to 17.1 percent (16.4%), remaining on a high level due to successful assortment management and better commercial terms. Comparable fixed costs decreased as planned by 5 percent from the previous year. The company’s profitability continued to improve with comparable operating result increasing to 2.0 million euros (-1.7 million euros), representing 1.7 percent (-1.6%) of revenue.

The strategy implementation is progressing as planned. The importance of fast deliveries further strengthened, shifting purchases to online. The share of online sales remained high, reaching 69 percent of total revenue during the reporting period. Customer satisfaction with fast deliveries remained excellent, and the number of fast deliveries increased by over 60 percent. New market openings are supporting the company's growth, and sales in Central Europe and Scandinavia grew strongly.

During the reporting period, the company signed an agreement to sell its consumer finance business to Norion Bank AB. The arrangement supports both the company's growth targets and long-term plans. The transaction is expected to be completed in the second half of the year and will significantly improve the company's balance sheet structure. The company is in a strong position to continue profitable growth as the market situation further improves.