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In the first quarter of 2025, renovation works were carried out on two floors of the Children’s Department (Lastemaailm) at the Kaubamaja Tallinn department store. In March, the fully renewed Lastemaailm was opened, featuring a new concept. The addition of new brands and a lifestyle-oriented layout attracted a significant number of new customers to Lastemaailm in March. Within the department store segment, development work commenced on upgrading the I.L.U. e-store to a new platform and quality standard, with completion scheduled for the third quarter. The Group’s Lithuanian real estate company continued the construction of a new KIA and Škoda showroom and service centre in Vilnius, aimed at supporting the expansion of the Group’s car segment in the Lithuanian market. In Estonia, preparatory work has begun for the establishment of a new body repair workshop adjacent to the Peetri car dealership. This year has also seen the launch of several store renovation projects, with the objective of aligning the properties with current business needs and improving their energy efficiency. Preparations have also been made for the expansion of the Laulasmaa and Keila Selver stores.

Selver supermarkets

The consolidated sales revenue of the supermarket business segment for the first quarter of 2025 was 148.3 million euros, representing a 1.3% increase compared to the same period of the previous year. The average monthly revenue from goods per square metre of selling space was 0.39 thousand euros in the first quarter of 2025, reflecting a 2.3% decline year on year. On a like-for-like store basis, revenue from goods per square metre of selling space was 0.39 thousand euros, remaining at the previous year’s level (change -0.8%). A total of 10.7 million purchases were made at Selver stores in the first quarter of 2025, marking a 2.7% increase compared to the previous year. The consolidated pre-tax profit of the supermarket segment was 0.7 million euros in the first quarter, which is 0.4 million euros less than the result for the same period last year. The consolidated net profit of the supermarket segment was 0.1 million euros, which was 0.7 million euros higher than in the prior year. The difference between net profit and profit before tax is attributable to income tax on dividends – this year, dividend income tax was 1.0 million euros lower than in the previous year. The base figures do not include data from Raadi and Rocca al Mare Selver stores opened in the third quarter of 2024, but are increased by data from Maardu Selver, which was closed in February of the current year.

Selver’s sales performance has not remained unaffected by the broader challenges facing the Estonian retail environment, where consumer confidence continues to be subdued. The impact of various tax amendments and price increases has diminished consumers’ ability to purchase goods and services. Purchasing decisions are made more cautiously, with shopping increasingly dispersed across multiple outlets in search of promotional offers, which has in turn led to a decrease in the average basket value. The volume of sales in the food and daily goods retail sector continues to show a downward trend. According to data from Statistics Estonia, in the first two months of 2025, retail sales revenue at current prices in the non-specialised store segment—primarily comprising food, tobacco, and alcohol—grew by 1.9%.

The economic performance of the first quarter of 2025 was affected by a decline in sales volumes and a slight decrease in the gross margin on goods sales due to a higher proportion of promotional items. This year’s operating cost base has increased as a result of new store openings and also includes one-off expenses related to the closure of the Maardu store. The segment has successfully managed pressure from rising input prices for various services and materials, as well as optimised expenditure volumes, enabling operational efficiency indicators to be maintained at the same level as the previous year. Ongoing efforts to improve work processes have also helped to sustain labour efficiency.

In the second half of the year, Selver plans to renovate one store, incorporating environmentally sustainable solutions. Continued focus remains on product assortment and process optimisation. In the course of 2025, the Logistics Centre established in Maardu in 2024 will be fully integrated into the supply chain. Key priorities include increasing operational volumes on the Bolt Market and Wolt platforms and further developing the Selver e-store. At the beginning of the year, Selver’s e-store was voted the public’s favourite in the food and consumer goods category in a public vote organised by the Estonian E-Commerce Association.

The supermarket segment continues to operate responsibly and with a commitment to sustainability, aiming to continuously improve its activities to reduce environmental impact while offering customers value-driven and well-considered solutions. The segment's focus areas include reducing direct greenhouse gas emissions, increasing waste recycling, reducing food waste, improving packaging and packaging use, supporting short supply chains, and advancing fast and convenient digital solutions. Kulinaaria, the producer of Selveri Köök branded products, continues its active product development with the aim of offering customers a wide variety of new flavours, placing emphasis not only on maintaining high product quality but also on reducing the salt, sugar, and fat content of products. As a result of this product development, 15 new products reached store shelves during the first quarter. The main emphasis was placed on the confectionery segment, with new anniversary products added. New items were also introduced in the hot and cold ready meals categories, and the successful sushi segment was expanded. In celebration of Selver’s 30th anniversary, a special pâté with a new flavour has been created.

As at the end of March, the supermarket segment includes 72 Selver stores, 2 Delice stores, a mobile store, and a café, with a total sales area of 123.8 thousand m². In addition, it includes e-Selver, e-store with the largest service area in Estonia, and the central kitchen Kulinaaria OÜ.

Department stores

The sales revenue of the department stores segment for the first quarter of 2025 amounted to 22.7 million euros, representing a 5.2% decrease compared to the same period in the previous year. The pre-tax loss totalled 1.7 million euros, increasing by 0.5 million euros year on year.

Sales revenue per square metre of selling space was 0.3 thousand euros per month in the first quarter, which is 5.2% lower than in the comparative period. The continued cooling of the economic environment persisted into the first quarter, negatively impacting the performance of industrial goods in the department stores. Due to milder than average winter months, the winter fashion discount campaign was extended into the first half of February, positively influencing sales. The inventory position was more optimal compared to the previous year, which eliminated the need for deep discounts during the period. In the grocery section, the distinctive product range continues to attract new loyal customers to the Food World stores, with sales results in line with expectations. Renovation works were carried out on two floors of the Children’s World in Tallinn during the early months of the year, and in March a fully revamped department was opened under a new concept. The addition of new brands and lifestyle-based displays sparked significant customer interest.

The sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. cosmetics stores, totalled 1.8 million euros in the first quarter of 2025, marking a 6.5% decrease compared to the same period in 2024. The segment posted a loss of 0.1 million euros, which is 0.1 million euros weaker than the profit recorded in the comparative period of 2024. First-quarter results were negatively affected by general consumer uncertainty, with most purchases taking place during promotional campaigns, exerting pressure on margins. Development work commenced on transferring the I.L.U. e-store to a new platform and enhancing its quality; this is expected to be completed in the third quarter.

Car trade

The car trade segment’s sales revenue for the first quarter of 2025 amounted to 37.3 million euros. Revenue declined by 16.8% compared to the previous year. The segment’s consolidated pre-tax profit totalled 0.7 million euros in the first quarter, which represents a decrease of 1.6 million euros year-on-year.

The first quarter of 2025 began under challenging market conditions for the Group’s car segment. In addition to the customary seasonal slowdown at the beginning of the year, the Estonian car market was significantly impacted by the motor vehicle tax effective from January, which led consumers to postpone purchasing decisions. As a result, sales of new passenger cars in Estonia fell by 55% compared to the same period last year. The Group’s car segment sold a total of 1,030 new passenger cars in the first three months of the year, representing a 23.6% decrease compared to the same period last year. In response to the market contraction, aggressive pricing campaigns were undertaken for popular models such as the KIA Sportage and KIA Ceed, which had a notable negative impact on the segment’s profitability. Despite the downturn in the Estonian market, the Group’s pan-Baltic business model in the car segment helps to diversify risks and maintain profitability. In addition, customer interest in electric and hybrid vehicles has grown, and sales of these vehicles are on an upward trend. The KIA range of electric vehicles has expanded—with the introduction of the new, more affordable KIA EV3 alongside the refreshed premium-class model EV6. Several important new launches are anticipated this year, including the KIA EV4 and the PV5 electric van. Second-half sales prospects are also supported by the upcoming market entry of the updated KIA Sportage and an entirely new Ceed model family.

In Lithuania, construction of the KIA–Škoda multi-brand dealership in Vilnius progressed according to plan. In Estonia, Viking Motors opened its new flagship KIA sales and service centre in Peetri at the beginning of the year. Preparations have also commenced for establishing a body repair workshop adjacent to the Peetri dealership.

Security segment

The security segment’s non-group sales revenue for the first quarter of 2025 amounted to 4.6 million euros, representing a year-on-year increase of 1.6%. The segment posted a pre-tax loss of 0.1 million euros for the quarter, remaining at the same level as in the corresponding period last year.

The first quarter continued the trends observed at the end of the previous year. The economic environment continues to exert pressure on profit margins, with rising input costs on one hand and a cautious, price-sensitive market on the other. Within the segment, better results were achieved in technical surveillance and security equipment maintenance, with both portfolios recording growth. By contrast, security technology installation projects and cash handling services underperformed relative to the previous year.

Real estate

The real estate segment’s non-group sales revenue for the first quarter of 2025 amounted to 2.0 million euros, representing a 15.7% increase compared to the first quarter of the previous year. The segment’s pre-tax profit for the quarter was 2.2 million euros, reflecting a year-on-year increase of 0.6%.

Revenue growth in the real estate segment was largely driven by the addition of rental income from the logistics centre that commenced operations at the end of last year. The logistics centre has been leased to a third party. In March, a new tenant, the Vapiano restaurant, opened in the Viimsi Centre, contributing to increased footfall in the shopping centre. On the other hand, quarterly revenue declined in the Latvian real estate company following the sale of the Kuldīga and Salaspils commercial properties to external parties at the beginning of the year.

The segment’s profit was positively influenced by the more accommodative monetary policy adopted by central banks, as the gradual decline in Euribor rates has begun to reduce interest expenses in the real estate segment. Profit was negatively impacted by one-off expenses related to the sale of the Latvian properties. No additional revenue was recognised from the property transactions, as the buildings had already been revalued to market price at the end of last year. The income arising from the revaluation was reflected in the prior year’s report.

The Group’s Lithuanian real estate company, which commenced construction last year of a new KIA and Škoda showroom and service centre in Vilnius for the Group’s car segment, continued work on the project. In Estonia, preparatory works are underway for the construction of a body repair workshop adjacent to the Viking Motors dealership in Peetri. This year, several retail building renovation projects have been initiated with the aim of modernising the premises and aligning them with current business needs. The renovations will also improve the energy efficiency of the buildings. Preparatory works have been completed for the expansion of the Laulasmaa and Keila Selver stores.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of euros

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 

In thousands of euros

Raul Puusepp
Chairman of the Board
Phone +372 731 5000

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