CEO Jaan Ivar Semlitsch at Komplett has some good news to report from the first quarter of this year.
Demand for the company's products is declining, resulting in sales ending at NOK 3,245 million in the first three months of the year.
This represents a sales shortfall of NOK 371 million or 10.3 percent compared to the same quarter 12 months ago.
“A difficult start to the year, with long-term prospects unchanged,” is the company’s summary.
| (million Norwegian krone) | First quarter-2024 | First quarter-2023 |
| Operating income | 3,245 | 3,618 |
| Operating profit | – 46 | – 4 |
| Result before taxes | – 89 | – 53 |
| Period result | – 72 | – 43 |
Even the final result is redder
Profit before tax was a loss of NOK 89 million, which was even lower than the same quarter last year. The deficit at that time was 53 million.
Declining profitability has led to an increase in the debt ratio, but Complete believes this is a temporary situation. The company says you have good control over liquidity and finances.
Complete also notes that competitors are constantly launching campaigns on goods that must be responded to in order not to lose market share. This, in turn, results in the margins remaining to you on the goods sold being negatively affected.
Expect increased purchasing power
Are there any bright spots that can be traced? Yes, Komplett's gross profit margin increased slightly, from 14.1 to 15 percent, due to improved sales and purchasing.
Measures have also been taken to counter rising costs associated with, among other things, inflation.
“The expected increase in purchasing power among consumers is expected to have a positive impact in the second half of the year, and cost measures and sales efforts are expected to have an increasing impact throughout the year,” CEO Semlic says in a commentary.
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