In This Article:
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Revenue Growth: 5.5% increase in Q4 2024, reaching EUR496.9 million.
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Comparable EBIT Growth: 2.7% increase in Q4 2024, totaling EUR47.5 million.
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Gross Margin: Decreased to 35.7% from 36.5% in the previous year.
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Cash Flow from Operating Activities: EUR76.5 million in Q4 2024.
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Earnings Per Share (Diluted): EUR0.50.
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Store Network: Total of 380 stores by end of 2024, with expansions in Sweden and Denmark.
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Like-for-Like Customer Visits: Increased by 5.3% in Q4 2024.
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Inventory Levels: Tokmanni at EUR298.9 million, Dollarstore at EUR129.5 million, both higher than the previous year.
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Net Debt: EUR832.2 million, a decrease from EUR864.1 million the previous year.
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Dividend Proposal: EUR0.68 per share in two installments.
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Synergy Savings: EUR13.3 million achieved by end of 2024, targeting EUR15 million by end of 2025.
Release Date: March 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tokmanni Group Corp (FRA:TK9) experienced strong growth in customer visits, with a 5.3% increase in like-for-like visits during the fourth quarter.
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The company achieved a revenue growth of 5.5% and a like-for-like revenue increase of 3.6% in the fourth quarter.
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Comparable EBIT for the fourth quarter amounted to EUR47.5 million, maintaining a stable level compared to the previous year.
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The synergy savings target with Dollarstore was nearly achieved, with a run rate of EUR13.3 million by the end of 2024, close to the EUR15 million target by 2025.
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The SPAR collaboration is expected to enhance competitiveness in the grocery segment, with plans to introduce SPAR products in Tokmanni stores by mid-2025.
Negative Points
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Consumer confidence remained low, particularly in Finland, leading to cautious and discount-driven shopping behavior.
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The average basket size decreased by 2.5% in Finland, indicating a reduction in consumer spending.
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Gross profit margins were slightly lower due to aggressive campaigns and increased freight costs, particularly impacting Dollarstore.
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Inventory levels were significantly higher compared to the previous year, partly due to strategic decisions to ensure product availability.
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The company faced challenges with increased freight costs, amounting to over EUR7 million in 2024, affecting Dollarstore's gross margin.
Q & A Highlights
Q: Could you describe the assumptions behind your guidance, and what should happen for your results to fall at the lower part of the guidance? A: Mika Rautiainen, CEO, explained that the guidance is cautious due to uncertainties such as geopolitical situations and consumer confidence, particularly in Finland. Tapio Arimo, CFO, added that the second half of the year is critical, and improvements in consumer confidence could lead to results at the higher end of the guidance.