Unaudited consolidated interim accounts for the fourth quarter and twelve months of 2024

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TKM Grupp AS
TKM Grupp AS

Segments (EURm)

Q4/24

Q4/23

yoy

12m/24

12m/23

yoy

Supermarkets

164.1

165.0

-0.5%

610.4

620.2

-1.6%

Department stores

33.2

34.9

-4.7%

104.2

110.5

-5.7%

Cars

51.2

45.7

12.0%

200.8

194.4

3.3%

Security segment

6.0

5.3

13.5%

21.9

15.7

39.6%

Real Estate

2.1

1.7

23.7%

7.3

6.6

10.8%

Total sales

256.6

252.6

1.6%

944.6

947.3

-0.3%

 

 

 

 

 

 

 

Supermarkets

4.6

7.4

-38.2%

16.0

20.0

-19.8%

Department stores

1.8

1.9

-7.2%

-0.3

1.6

-120.7%

Cars

2.3

1.9

18.5%

11.1

13.3

-16.1%

Security segment

-0.1

-0.2

-70.5%

0.2

-0.1

-423.9%

Real Estate

5.5

2.8

97.2%

11.1

10.4

6.0%

IFRS 16

-0.8

-0.7

17.4%

-2.6

-2.2

16.8%

Total profit/loss before tax

13.2

13.1

1.0%

35.5

43.0

-17.5%

The Group's consolidated unaudited sales revenue for the fourth quarter of 2024 was 256.6 million euros, exceeding the previous year's revenue by 1.6%. The unaudited sales revenue for the entire year of 2024 amounted to 944.6 million euros, representing a decline of 0.3% compared to 2023, when sales revenue also totalled 947.3 million euros. The Group's consolidated unaudited pre-tax profit for the fourth quarter of 2024 was 13.2 million euros, marking a 1.0% increase compared to the same period in the previous year. The pre-tax profit for 2024 was 35.5 million euros, a decrease of 17.5% compared to the previous year.

The fourth quarter has traditionally been the most active period for the Group's economic activities. Despite the continued decline in Estonia's retail sector, the Group managed to increase its revenue in the final quarter of 2024 compared to the same period in the previous year. As anticipated, the Estonian car dealer in the Group's automotive segment benefited from a car purchase boom in the fourth quarter, driven by the announcement of the Estonian car tax set to take effect in 2025. Unlike competitors, the Group avoided deep discounts, which contributed to an increase in the automotive segment’s profit during the fourth quarter. The security segment demonstrated sound sales growth throughout the reporting year, continuing its strong organic performance in the fourth quarter, when the impact of a companies acquired in the first half of 2023 no longer had any comparison effect. The prolonged cooling of the Estonian economy has influenced consumers to increasingly prefer discounted products, which has put pressure on the margins of retail segments, resulting in a slight decline in margins in the final quarter of 2024 compared to the previous year. The Group’s operating expenses remained broadly stable. Marketing costs, driven by increased campaign volumes, and IT expenses related to automation initiatives showed higher growth rates. Continued process efficiency improvements have helped maintain control over labour costs, which grew by 3.2% in the fourth quarter, while the average number of employees increased by 2.0%. Net profit was negatively impacted by the gradual effect of higher loan interest rates and the revaluation of deferred tax liabilities under international accounting standards. Fourth-quarter profit was positively influenced by an extraordinary gain of 2.1 million euros from the sale of two non-core properties in the Group’s real estate segment in Latvia.