Elektroimportøren : Elektroimportøren's results for 2nd quarter 2023

Quarterly report Q2 2023

AS

elektroimportoren

elektroimportoren

#QuarterlyreportQ22023 #elektroimportoren

Q U A R T E R L Y R E P O R T Q 2 2 0 2 3 E L E K T R O I M P O R T Ø R E N A S

To our shareholders

Total sales in the second quarter of NOK 326 million, which is down 9% from last year. Gross profit for the quarter was NOK 113 million, down from NOK 126 million in Q2 2022. EBITDA of NOK 31 million down from NOK 49 million last year.

The second quarter has been more challenging than we expected going into the quarter, but better than communicated in the relations with the private placement in June 2023. The largest deviation from last year comes from decrease in sales of EV chargers. We have been able to replace some of the lost sales with solar, but not fully.

Energy saving products continue to grow. Smart home devices that allow customers to better control their energy consumption and home security products are increasingly growing sales year on year.

Sales of solar products continues to increase but a major part of sales in Q2 have been to projects that will be delivered later this year.

We opened our first store in Sweden end of April. Both professional customers and consumers are giving us great feedback on assortment, price and the competence of our employees. Sales have so far been lower than expected, but we have a positive trend week by week, and expect sales to continue to increase as we move into peak season.

In June we signed our first franchise agreements with two new partners. These partners will establish Elektroimportøren stores in smaller cities across Norway. First franchise store opening is expected within 9 to 12 months.

Given the decline in sales we have seen the need for further cost reductions. In May we made reductions in our staff both in administrative and sales positions. The effect of these reductions will be effective from September and onwards.

We believe that the market will continue to be challenging in the months to come. However, with the private placement that took place in June and the cost reductions we have made, we are now better positioned to handle these rougher conditions going forward.

I would like to thank all our employees in both Norway and Sweden for their dedication and hard work. In a challenging market you keep delivering the best customer service in the most professional way, to all our customers, thank you for that.

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 2 2 0 2 3 E L E K T R O I M P O R T Ø R E N A S

Summary of key financials in Q2

Revenue of NOK 326 million (NOK 358 million), down 9.0%. Like-for-like sales have declined by 10.7%. Revenue excluding EV chargers is NOK 305 million (NOK 310 million).

B2B sales decreased by 8.8% compared to last year while B2C sales decreased with 9.3%.

Gross margin percentage is 34.6% (35.1%). The gross margin in Norway is 35.9% (36.0%). Margin percentage in Elbutik is significantly lower than for the Norwegian operation with 21.8%.

Reported EBITDA of NOK 31 million (NOK 49 million). EBITDA margin percentage is 9.4% (13.6%).

Revenue (NOK million)		Reported EBITDA (NOK million)

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Q U A R T E R L Y R E P O R T Q 2 2 0 2 3 E L E K T R O I M P O R T Ø R E N A S

Like for Like growth %	Revenue growth (YOY)

		Q1 2023	Q2 2023
	Store	-3,5 %	-10,8 %
	Online	-1,4 %	-10,6 %
	Total like-for-like	-3,2 %	-10,7 %

Reported EBITDA margin (%)		# of physical stores

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Q U A R T E R L Y R E P O R T Q 2 2 0 2 3 E L E K T R O I M P O R T Ø R E N A S

Alternative performance measure Q2 2023 - Group

Amounts in NOK million	Q2 2023	Q2 2022	H1 2023	H1 2022	FY 2022
Revenue	326	358	709	726	1626
Cost of goods sold	-213	-232	-459	-463	-1019
Gross profit	113	126	250	263	607
Gross margin (%)	34,6 %	35,1 %	35,2 %	36,2 %	37,3 %
Operating expenses in sales channels	-46	-49	-106	-109	-257
Other operating expenses	-37	-28	-81	-61	-143
OPEX	-82	-77	-187	-170	-400
OPEX to sales margin (%)	-25,2 %	-21,5 %	-26,4 %	-23,4 %	-24,6 %
Adjusted EBITDA	31	49	62	93	207
Adjusted EBITDA margin (%)	9,4 %	13,6 %	8,8 %	12,8 %	12,7 %
Adjustments	0	0	0	-1	-1
EBITDA reported	31	49	62	92	206
EBITDA reported margin (%)	9,4 %	13,6 %	8,8 %	12,6 %	12,7 %
Depreciation	-26	-23	-50	-46	-91
Adjusted EBIT	5	26	12	47	116
Adjusted EBIT margin (%)	1,4 %	7,3 %	1,7 %	6,5 %	7,1 %
Adjustments	0	0	0	-1	-1
Amortisation intangible assets	0	0	0	0	-1
EBIT reported	4	26	12	46	114
EBIT reported margin (%)	1,4 %	7,2 %	1,6 %	6,3 %	7,0 %
Net financial expenses	-14	-8	-26	-17	-46
Profit before tax	-10	18	-15	29	67
Net income	-8	14	-12	23	50
Liabilities to financial institutions	-335	-421	-335	-421	-339
Leasing liabilities	-391	-349	-391	-349	-378
Cash/Overdraft facility	22	0	22	0	3
Net interest bearing debt	-704	-770	-704	-770	-714

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