Good morning, everybody, and welcome to verkogauper.com's Q2 presentation. If you have any questions, please send them during the presentation to investorsverkogauper.com and presentation to investorsverkocauper.com, and all questions will be then read out loud at the end of the presentation in the Q and A section. Today, My presentation first with business review, some highlights out of the report of this morning, then give you some overview on the strategic development of the company and then our assumptions of consumer behavior and how market We'll develop going towards the end of the year. Then at the end, we have key takeaways and the questions, if there are any. So all in all, pretty much according to our expectation, solid quarter growth continuing while day, providing a record breaking operating profit for the Q2.
Growth especially coming from our online channel, which really indicates that the online shift that has been happening throughout the years before is a permanent one and then consumer behavior Growth came especially from our B2B line of business growing almost 40% to previous here. That highlights our approach to that line of business, really looking at it like consumer behavior. So small and midsized businesses typically act like consumers. They Appreciate ease of shopping experience, good availabilities, multiple delivery options, for example. So that combining with the fact that also that line of business is rapidly moving online And the online shift actually in the B2B segment is even faster than in the consumer business really also showing in our figures.
Then looking at the general picture from categories, in our main categories, IT related categories, market is slightly toughening consumption slightly softer. But on the other hand, midsize and evolving categories really showing a good performance and we are able to gain market share, which indicates the transformation of our company day from consumer electronic retail into a general retailer, which is also a good thing going towards our strategic targets and expanding our assortment in new and evolving categories and continue that development. But At the same time, it's fair to say that export business, although facing COVID And travel restrictions previous year still slightly declining. So that market is tough at moment. The situation on the eastern border here in Finland is not really that hour soon.
It is rather that it will slowly start to recover towards the end of the year and the full We will start at the beginning of next year. Profitability on a good level, like I said, record breaking day basis revenue ending up in operating profit of €5,100,000 with an increase to previous year of €800,000 It was not a big surprise that the board utilized its right and authority and decided this morning to pay out the quarterly growing dividend. Dividend shall be paid out per share €0.058 and obviously welcome to all new investors to this great success story of ferkocauper.com. A few KPIs, revenue development we touched upon. Interesting is to see how the latter half will develop in our line of business in retail.
As such, the last quarter is still the day quarter and heavily flavoring how the whole year is going to be in revenue and also profit wise. Now we have started to disclose the online sales and the performance in our online channel, really good development to figures from previous year. But obviously also there you can see that the last quarter is the main quarter where you need to really next Q1 and especially the Q2. The development was strong. Obviously, previous year, we had some softness in the figures, but still Absolutely looking at it, it's a good performance.
And we actually expect that line of business to continue to develop like that as That line of business is also rapidly moving online. And here at the Down right side, you'll see the cost ratio for revenue during the second quarter normally slightly higher than the latter half of the year, but we day. Good on track reaching our long term target at 10% or below cost per revenue within or by end of 2025. So P and L, once again, so from the revenue, we down to the gross margin, almost at the same level as last year, driven by solid performance in midsized smaller categories. Export slightly declining, so almost matching the high figures from previous year.
From the cost We have slight increase in personal expenses, the resources as such, but also know how capabilities, right people to make sure that we stay on track and the development work of the company towards the strategic goals is fulfilled. On The other side, other operating expenses slightly below previous year, so with total costs not growing at the same pace as at 3.9%, which is quite good achievement. Looking at the long term target is to be at 5% So we are quite close already in that perspective. So all in all, if you look into the history, it was the A 32nd growth quarter for the company and it was also the 6th consecutive profit development quarter for the company. So long term and midterm track record for the company is good.
And day. We do all the can to make sure that this stays on like that for a long period of time. So wrapping up the first half, revenue increasing nicely and expected just below 7%, really driven by online and B2B, both growing almost by 25%. At At the same time, growing and developing the profitability is a good sign. We have now after The first half year over €10,000,000 in EBIT already and increased the previous year of €1,700,000,000 also good on track reaching our profitability targets.
Few things good to mention from inventories, balance sheet and cash flows. If we start with the inventories, I think It's fair to start with the previous year figures, below €55,000,000 It's for our Line of business with a wide assortment actually a quite low figure. So also we had some issues last year as we had some extra Ordinary peaks in different categories and subcategories, the demand was quite high and we were out of stock as well. So in general, I think that level of inventory is slightly too low for us. At the same time, looking at this year figure, we prepared ourselves for coming season, the first one coming just around the corner back to school, back to business.
So if there would be day supply chain logistical issues or productional issues and shortages of chips or whatever. We wanted to make sure that we utilized the strong cash position and make sure that availability is on a high level and consumer experience is not jeopardized, but also slightly starting to prepare ourselves for the main seasons upcoming in the last quarter. Cash flow negative, which is an indicator that we have been purchasing more into our inventories, which go hand in hand. Investments higher than previous year, EUR 2,100,000 I've started to prepare ourselves to implement the micro fulfillment center here in Jatkasari. Software integration just below €20,000,000 the delta the previous year mainly because of the extraordinary dividend payout that we did a few months ago, equity ratio on a solid level.
And on top of that, we have negotiated an extra credit facility, which is obviously not utilized and there is no need for that for the coming future. Few words about the renewed strategy, the process, how around the customer promises, the customer value creation, around our assortment experience, speed and flexibility. And Obviously, the position that we have here in Finland, the trust that our consumers give us, the brand position and the recognition that we have is It's important if you develop and widen your offering from the current situation. That's really tale. We are on a good track, but it's fair to say that we have a lot of room for development in assortment, inexperience in development of our delivery options as well.
But from the trust side, obviously, it's a thing that It's a lot of work. You can lose it quite fast. But there has been several surveys during the last weeks and few months. The first one came out conducted by Swedish Hanken School of Economics here in Finland, a survey, including 2,500 consumers asked about which companies are the most innovative in Finland, all companies, medical and financial and tech and all. And we were among the top on the top 10 of the companies.
And from these top 10 companies, the 4 best ones were awarded and we were among those 4 ones. So consumers tend to look as an innovative company and it's an important A value for us as forerunner of retail, as the pioneers of e commerce or in online, we need to be innovative, not only to stay at the same pace, but we also want to develop our technology backbone, our experience and our operational excellency. So innovation is really in the core of the company's development work. 2nd by T Media, really giving numbers to different sectors of the company's operation. And all lectures that were rated.
We were given a green good or excellent value, excellent in product services and financial performance, but you can also see innovation quite high and management and governance on a high level. So the trust and reputation of the company is on a really good level at the moment. The third one also around the same topic. YUGOFT is publishing always certain kind of top brand results every year. And the last that they published was about recommendations of consumers utilizing certain brands, product, services and then ask would they recommend that to somebody else.
So actually a quite important factor because not only purchasing by saying to your friend or family member that, okay, it's very good. You should try it as well. So it's a good indicator of the given to the company. We have been among top 10 before, but now we were number 7. I think it's all time high for the company.
So also from that perspective, consumers not only like us, but they also recommend us further to other consumers. And the last one you can see on the left side, it's about it's the same company that measures this kind of end. As compared to our key competitors here in Finland, you see that we are ahead of them and us and our brand perception and the positive talk about us versus Amazon at the moment here in Finland. I think the gap is huge. So we are Really in a good position when it comes down to local hero position that we have here and defend.
So let's go on to the last segment of the presentation. In general, if We see our self and our operations. We expect that to be developing positively revenue and profit for the latter half of the year. Looking at the retail sector, it is fair to say that in general, I think the consumption will be slightly softer than we had previous year. And the consumption will be obviously divided between products and services.
But we don't believe that, for example, traveling will pick up to stay in Finland. That will probably happen to other areas as well, meaning that our line of business in export will be head date we did and probably like I said before, we'll not recover during this year. Probably the really end online shift to continue. So online channels will be in favor. B2B segments, for example, in our line of business should continue to grow.
And the to grow and the online shift will be shown also from categories. So midsize, small categories, which typically are a brick and mortar dominated specialty retail dominated are areas where we see that we can gain market share as But therefore, no need to make any adjustments on the guidance. So date at the moment and also that goes along for the EBIT as well. It is expected to be between 2020 26. And long targets like I said, we have been living with those just short of 6 months.
So obviously, no need to adapt those. So we have a clear picture where we want to aim when it comes down to year 2025. And good to mention as well that the dividend policy is important to us. It's almost sacred to us. We want to distribute a quarterly growing dividend and there's nothing at the moment that should have negative impact on that.
So we keep on to our promise of paying out the quarterly dividend. So if we summarize the report and the presentation, expectations were met internally at presentation. Online channel is continuing to show the trend in consumer behavior and online shift. B2B In our line of business, strong improvement, but also we have high hopes that, that line of business will carry on. And it days, like I said, one of the strategic growth areas for the company.
And if you look at the Finnish market as such, so revenue excluding export. Our growth was above 7% at the same time market growing below 6 test presentation. So gaining market share while improving profit is a good sign of company's execution. Our financial position is solid. So if we would see any additional needs for statements or interesting opportunities should lie ahead.
We are ready for those. And looking At the current biggest historic investment that we have in Jadkasari regarding the micro fulfillment center, regarding pallet conveyor and so on. We are fully on plan and we expect those to have But not least, for the first time in company's history, we have also disclosed that we will have a Capital Markets Day. I think the invites will be sent out today probably. So please have that in mind.
So Wednesday 29th September, It hopefully will be a hybrid one. So physical meeting with presentation. It will be also on-site visit to the store. And we probably also go to the warehouse, let's see what is there to be seen. Hopefully, at least something is already built.
But it's also live stream. So if you are not able to at this point. So from my side, thank you for listening. Thank you for following and have a great summer.