In This Article:
-
Revenue Growth: Increased by 14.3% to EUR 416.3 million.
-
Like-for-Like Revenue: Increased by 0.8%.
-
Gross Margin: Improved to 35.6% from 34.8% in the previous year.
-
EBIT: Record high third quarter result of EUR 29.5 million, representing 7.1% of revenue.
-
Cash Flow from Operating Activities: EUR 8.1 million, down from EUR 36.8 million the previous year.
-
Earnings Per Share (Diluted): EUR 0.28.
-
Store Count: 375 stores at the end of September, with seven new store openings planned by year-end.
-
Inventory Levels: Increased to EUR 319.2 million for Tokmanni segment and EUR 126.8 million for Dollar Store segment.
-
Comparable Customer Visits: Increased by 1.8% for Tokmanni and 0.5% for Dollar Store.
-
Dollar Store Revenue: Increased by 6.3%, with like-for-like growth of 3.1% in local currencies.
-
Operating Expenses: Tokmanni segment at 20.3% of revenue; Dollar Store segment at 22.7%.
-
Net Debt to Comparable EBITDA: Improved to 3.7 with lease liabilities, and 2.6 without lease liabilities.
Release Date: November 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Tokmanni Group Corp (STU:TK9) reported a 14.3% increase in revenue for the third quarter, reaching EUR 416.3 million.
-
The acquisition of Dollar Store has been beneficial, with significant synergies and benefits already visible.
-
Customer visits increased in both Tokmanni and Dollar Store segments, indicating improved customer confidence.
-
Comparable gross profit margin improved to 35.6% from 34.8% in the previous year.
-
The company is well-prepared for the Christmas sales season, with increased inventory levels and strategic direct imports.
Negative Points
-
The share of non-grocery sales declined, particularly in high-ticket non-food categories.
-
Cash flow from operating activities decreased to EUR 8.1 million from EUR 36.8 million the previous year, partly due to inventory buildup.
-
Online sales decreased by 11.3%, accounting for only 1.4% of Tokmanni segment revenue.
-
Dollar Store's comparable gross margin decreased to 37.6% due to clearance sales of old inventory.
-
The company's net debt to comparable EBITDA ratio remains above the target level, although it has improved.
Q & A Highlights
Q: Can you provide more details on the inventory buildup, especially regarding products sourced from Far Asia versus local sourcing? A: The inventory buildup is primarily for the Christmas season, including seasonal lights and winter products. Most food products are sourced locally from Finland. The inventory is at a healthy level, and we are confident in our current situation. (Mika Rautiainen, CEO)