2024-05-17 07:00:00 CEST
2024-05-17 07:00:02 CEST
REGULATED INFORMATION
Tokmanni Group Oyj - Interim report (Q1 and Q3)
Tokmanni Group's Business Review for 1 January-31 March 2024: Strong growth in challenging market conditions
Tokmanni Group Corporation Business Review Unaudited 17 May
2024 at 8:00 am
FIRST QUARTER 2024 HIGHLIGHTS
· Tokmanni Group revenue grew by 42.4% (4.7%) and was EUR 339.2 million
(238.2)
· Like-for-like revenue increased by 1.7% (2.7%)
· Comparable gross profit totalled EUR 115.4 million (75.5) with the
comparable gross margin being 34.0% (31.7%)
· Comparable EBIT amounted to EUR -5.1 million (-2.2), representing -1.5% of
revenue (-0.9%)
· Cash flow from operating activities amounted to EUR -40.0 million (-12.9)
· Earnings per share, diluted was EUR -0.20 (-0.07)
OUTLOOK FOR 2024 UNCHANGED
In 2024, Tokmanni Group expects its revenue to be EUR 1,660-1,760 million.
Comparable EBIT is expected to be EUR 110-130 million.
TOKMANNI GROUP'S PRESIDENT AND CEO MIKA RAUTIAINEN
Strong growth due to Dollarstore, fixed costs had a negative impact on earnings
In the first quarter of 2024, Tokmanni Group's revenue grew by 42.4% to EUR
339.2 million. This significant growth is due to the acquisition that took place
in August last year. Like-for-like revenue increased by 1.7% (2.7%). Growth in
sales of grocery products of 4.7% boosted like-for-like sales. Customers'
purchasing power and confidence in their own finances remained low, and our
customers were increasingly attracted by low prices and interesting promotions.
The Tokmanni and Dollarstore integration is progressing according to plan. The
main focus is on the consolidation of purchases at Group level. Our target is to
achieve annual synergies of more than EUR 15 million by the end of 2025. The
synergies achieved by the end of March are already 6.7 million euros on an
annual basis.
Tokmanni segment's revenue grew by 4.2% to EUR 248.1 in the first quarter. Like
-for-like revenue grew by 1.7%. Comparable customer visits increased slightly on
the previous year, while the comparable average basket size increased by 1.2%.
The good sales development was driven by the timing of Easter, which was at the
end of March this year, whereas in the comparison period it was in early April.
Comparable gross margin was 32.8% (31.7%). Comparable EBIT was EUR -1.7 million
(-1.9).
Dollarstore segment's revenue was EUR 91.1 million in the first quarter. Like
-for-like revenue increased by 1.8% in local currencies. Comparable customer
visits decreased slightly from the previous year, while the comparable average
basket size increased by 3.4%. Comparable gross margin was 37.4%. Comparable
EBIT was EUR -2.8 million.
The first quarter is the weakest quarter of the year in terms of sales and
profitability for both Tokmanni and Dollarstore. However, both segments
performed reasonably well in the current market environment.
The start of the second quarter has been affected by events in the Red Sea and
political strikes, among other things. At Tokmanni, this was reflected as clear
shortages in shelf availability and additional costs. The spring season, which
is Tokmanni's second most important sales period, only started properly at the
beginning of May in southern Finland.
Key figures (Dollarstore included in from 1 August 2023 onwards)
1-3/202 1-3/202 Change% 1-12/202
4 3 3
Revenue, MEUR 339.2 238.2 42.4% 1,392.7
Like-for-like revenue development, % 1.7 2.7 1.1
Customer visit development, % 1.5 4.9 0.7
Gross profit, MEUR 115.4 76.0 52.0% 486.9
Gross profit, % 34.0 31.9 35.0
Comparable gross profit, MEUR 115.4 75.5 52.7% 489.5
Comparable gross profit, % 34.0 31.7 35.2
Operating expenses, MEUR -89.4 -59.4 50.4% -301.2
Comparable operating expenses, MEUR -89.4 -59.2 51.0% -298.1
EBITDA, MEUR 26.9 17.4 54.0% 189.9
EBITDA, % 7.9 7.3 13.6
Comparable EBITDA, MEUR 26.8 17.2 55.4% 195.6
Comparable EBITDA, % 7.9 7.2 14.0
Operating profit (EBIT), MEUR -5.0 -2.0 -147.5% 93.0
Operating profit (EBIT), % -1.5 -0.8 6.7
Comparable EBIT, MEUR -5.1 -2.2 -128.2% 98.8
Comparable EBIT, % -1.5 -0.9 7.1
Net financial items, MEUR -9.1 -3.3 179.7% -24.7
Capital expenditure, MEUR 5.9 18.3 -68.0% 238.7
Net cash from operating activities, MEUR -40.0 -12.9 220.2
Net debt, MEUR 807.5 437.0 730.4
Net debt without lease liabilities, MEUR 235.3 147.1 165.3
Net debt / comparable EBITDA * 3.9 2.8 3.7
Net debt / comparable EBITDA without 2.3 1.6 1.6
lease liabilities *
Return on capital employed, % 9.8 12.4 11.2
Return on equity, % 18.7 25.6 22.2
Equity ratio, % 18.6 26.9 18.8
Number of shares, weighted average during 58,820 58,816 58,819
the financial period (thousands)
Diluted number of shares, weighted 58,879 58,862 58,878
average during the financial period
(thousands)
Earnings per share, basic (EUR/share) -0.20 -0.07 0.92
Earnings per share, diluted (EUR/share) -0.20 -0.07 0.92
Personnel at the end of the period 6,128 4,107 6,206
Personnel on average in the period (FTE) 4,219 2,923 3,706
* Rolling 12 months comparable EBITDA
PRELIMINARY FINANCIAL IMPACT OF DOLLARSTORE ACQUISITION AND PRELIMINARY PURCHASE
PRICE ALLOCATION
Dollarstore financials have been included in Tokmanni Group financials starting
from 1 August 2023. Dollarstore consists of the Dollarstore and Big Dollar
stores. Tokmanni consists of the Tokmanni, Miny, Click Shoes and Shoe House
stores, as well as the Tokmanni and Click Shoes online stores. Based on refined
preliminary calculations the impact of Dollarstore purchase price allocation on
Tokmanni Group figures is the following: The preliminary fair valuation of
Dollarstore immaterial rights and owned assets will add EUR 47.0 million to the
balance sheet, which will be depreciated and amortised in accordance with
Tokmanni Group's accounting principles over periods varying from 15 to 20 years.
The annual impact of these amortisations and depreciations is around EUR 2,5
million per year on Tokmanni Group's EBIT. The impact of inventory fair
valuation will be reported in items affecting comparability and will not impact
comparable EBIT but will impact EBIT and earnings per share. The fair valuation
is EUR 3.2 million and it was recorded as an expense over six months starting
from August 2023.
ADJUSTMENTS AFFECTING COMPARABILITY
Tokmanni Group reports EBITDA and EBIT as its key performance indicators and
makes adjustments to improve comparability and provide a better view of Tokmanni
Group's operational performance. EBITDA is not a key indicator according to IFRS
accounting standards and it represents operating profit before depreciation and
amortisation. Comparable EBITDA and EBIT represent the same indicators excluding
items that Tokmanni Group's management considers to be exceptional and non
-recurring. The items include changes in the fair value of electricity and
currency derivatives, which are adjusted by Tokmanni Group as they are
unrealised gains or losses related to Tokmanni Group's open cash flow hedge
positions, and hence not related to Tokmanni Group's operational performance
during the review periods. In addition, other non-recurring costs related to
acquired businesses and companies are included in the items affecting
comparability.
Tokmanni Group's management uses the comparable EBITDA margin and comparable
EBIT margin as key performance indicators when evaluating Tokmanni Group's and
its segments' underlying operational performance.
Adjustments affecting comparability
MEUR 1-3/2024 1-3/2023 1-12/2023
Gross profit 115.4 76.0 486.9
Changes in fair value of currency -0.6 -0.4 -0.3
derivatives
Change in the fair value of inventory 0.5 0.0 2.9
related to purchase price allocation,
preliminary
Comparable Gross Profit 115.4 75.5 489.5
Operating expenses -89.4 -59.4 -301.2
Changes in fair value of electricity 0.0 0.0 0.0
derivatives
Non-recurring expenses related to business 0.0 0.2 3.1
acquisitions
Comparable operating expenses -89.4 -59.2 -298.1
EBITDA 26.9 17.4 189.9
Operating profit (EBIT) -5.0 -2.0 93.0
Changes in fair value of currency -0.6 -0.4 -0.3
derivatives
Changes in fair value of electricity 0.0 0.0 0.0
derivatives
Non-recurring expenses related to business 0.0 0.2 3.1
acquisitions
Change in the fair value of inventory 0.5 0.0 2.9
related to purchase price allocation,
preliminary
Comparable EBITDA 26.8 17.2 195.6
Comparable operating profit (adj. EBIT) -5.1 -2.2 98.8
MARKET DEVELOPMENT
According to the statistics of the Finnish Grocery Trade Association FGTA
(www.pty.fi), the total sales of department store and hypermarket chains
increased by 4.5% in the first quarter of 2024. Grocery sales increased, while
non-grocery sales decreased. It is important to note that the statistics
compiled by the FGTA only cover part of the market relevant for Tokmanni
segment.
According to the statistics of the Swedish Food Retailers' Federation
(https://www.svenskdagligvaruhandel.se/), the Food Retail Index increased by
6.4% in the first quarter of 2024. Sales of brick-and-mortar stores increased by
6.5% and online sales by 4.8%. The Food Retail Index measures sales growth in
the grocery trade and does not include specialised food stores or service trade.
It is important to note that the statistics compiled by the Swedish Food
Retailers Federation only cover part of the market relevant for Dollarstore
segment.
TOKMANNI GROUP'S STORE NETWORK
At the end of March 2024, Tokmanni Group had a total of 372 stores (31 December
2023: 372). In Finland Tokmanni Group had 201 Tokmanni, 28 Click Shoes, 2 Shoe
House and 6 Miny stores. In Sweden Tokmanni Group had 131 Dollarstore stores and
in Denmark 4 Big Dollar stores.
Tokmanni Group's stores 31 March 2024 31 March 2023 31 December 2023
Tokmanni segment 237 231 238
Tokmanni 201 199 201
Click Shoes and Shoe House 30 28 31
Miny 6 4 6
Dollarstore segment 135 134
Dollarstore 131 130
Big Dollar 4 4
Total 372 231 372
More information about Tokmanni Group's store network is available on the
Group's website at https://ir.tokmanni.fi/en.
FINANCIAL DEVELOPMENT
Reporting structure
Tokmanni Group consists of Tokmanni and Dollarstore segments as well as Group
functions and eliminations. Tokmanni segment consists of the Tokmanni stores,
Miny stores, Click Shoes stores and Shoe House stores, as well as the Tokmanni
and Click Shoes online stores. Click Shoes' and Shoe House's financials have
been included in Tokmanni Group financials starting from 1 March 2023.
Dollarstore segment consists of the Dollarstore and Big Dollar stores.
Dollarstore financials have been included in Tokmanni Group financials starting
from 1 August 2023. Due to Dollarstore's unusual accounting period and lack of
IFRS financial statement reporting, Tokmanni Group does not publish figures for
Dollarstore's comparison period, with the exception of revenue growth and
certain operational figures.
Seasonality
Tokmanni Group's business is subject to seasonality, which has a significant
effect on its revenue, profitability, and cash flow. In general, Tokmanni
Group's revenue, profitability and cash flow are lowest in the first quarter and
highest in the fourth quarter due to Christmas sales.
TOKMANNI GROUP
Revenue
Revenue, MEUR 1-3/2024 1-3/2023 Change % 1-12/2023
Tokmanni 248.1 238.2 4.2 1,208.6
Dollarstore* 91.1 0.0 0.0 184.1
Group functions and eliminations 0.0 0.0 0.0 -0.1
Total 339.2 238.2 42.4 1,392.7
* Dollarstore financials have been included in Tokmanni Group financials
starting from 1 August 2023.
January-March 2024
In the first quarter Tokmanni Group's revenue grew by 42.4% (4.7%) to EUR 339.2
million (238.2). Sales of Tokmanni Group's grocery products grew by 4.7%
compared to the corresponding period of the previous year. The proportion of
grocery sales was 56.9% (56.3%) of total sales. The grocery figures include
Dollarstore sales from the comparison period.
Tokmanni Group's like-for-like revenue grew by 1.7% (2.7%). The like-for-like
change in percentage is calculated in local currencies, and the comparison
period includes Dollarstore's figures.
Tokmanni Group's like-for-like customer visits decreased by 0.2% (+2.9%), and
the total number of customers grew by 1.5% (4.9%) compared to the corresponding
period of the previous year. The like-for-like average basket size increased by
1.9% to EUR 18.81 (18.46).
Profitability
Comparable EBIT, MEUR 1-3/2024 1-3/2023 Change % 1-12/2023
Tokmanni -1.7 -1.9 10.1 87.8
Dollarstore* -2.8 0.0 0.0 12.6
Group functions and eliminations -0.6 -0.3 -96.9 -1.6
Total -5.1 -2.2 -128.2 98.8
* Dollarstore financials have been included in Tokmanni Group financials
starting from 1 August 2023.
January-March 2024
In the first quarter of 2024, Tokmanni Group's gross profit amounted to EUR
115.4 million (76.0), and the gross margin was 34.0% (31.9%). Comparable gross
profit was EUR 115.4 million (75.5), corresponding to a comparable gross margin
of 34.0% (31.7%). The Group's gross profit in the first quarter was boosted
above all by Dollarstore's gross profit, but Tokmanni segment's improved gross
profit also supported the overall growth.
Tokmanni Group's operating expenses in the first quarter were EUR 89.4 million
(59.4), or 26.4% (24.9%) of revenue. The increase in operating expenses resulted
mainly from the integration of Dollarstore's operating expenses into Tokmanni
Group's consolidated figures. Expenses were also increased by higher property
costs and personnel expenses. Personnel expenses represented EUR 53.1 million
(33.5), or 15.7% of revenue (14.1%). Comparable operating expenses were EUR 89.4
million (59.2), or 26.4% of revenue (24.9%).
The Group's EBITDA in the first quarter totalled EUR 26.9 million (17.4),
corresponding to an EBITDA margin of 7.9% (7.3%). Comparable EBITDA totalled EUR
26.8 million (17.2), and the comparable EBITDA margin was 7.9% (7.2%).
Tokmanni Group's depreciation amounted to EUR 31.9 million (19.5). The growth
mainly reflected the impact of IFRS 16 due to the growth of the store network.
Depreciation excluding preliminary depreciation of tangible and intangible
assets (PPA) arising from the acquisitions amounted to EUR 31.1 million. EUR 0.7
million was recognised for preliminary depreciation of tangible and intangible
assets (PPA) arising in the acquisitions.
The Group's EBIT in the first quarter totalled EUR -5.0 million (-2.0),
corresponding to an EBIT margin of -1.5% (-0.8%). Comparable EBIT was EUR -5.1
million (-2.2), and the comparable EBIT margin was -1.5% (-0.9%). The increase
in operating expenses reduced the EBIT.
Tokmanni Group's net financial items totalled EUR -9.1 million (3.3). The result
before taxes was EUR -14.1 million (-5.3). Taxes for the period amounted to EUR
2.1 million (1.0). The net result was EUR -12.1 million (-4.3). The main reasons
for the weaker result compared with the previous year were the increase in
operating expenses, the increase in depreciation and higher finance costs.
Diluted earnings per share were EUR -0.20 (-0.07).
Balance sheet, financing and cash flow
At the end of March 2024, Tokmanni Group's inventories amounted to EUR 370.8
million (300.7). At the end of the review period, Tokmanni segment's inventories
amounted to EUR 271.6 million (300.7) and Dollarstore segment's inventories
amounted to EUR 99.1 million.
Consolidated cash flow from operating activities amounted to EUR -40.0 million (
-12.9) in the first quarter of 2024. The development in the cash flow from
operating activities was affected especially by the change in the value of
inventories year-on-year. The company had a total of EUR 211.0 million (139.6)
in credit facilities, consisting of loan agreements with financial institutions
and a commercial paper programme. Cash and cash equivalents amounted to EUR 18.8
million (4.2), and the Group's financial position is solid.
At the end of March 2024, Tokmanni Group's interest-bearing debt totalled EUR
826.3 million (441.2), including EUR 220.0 million (100.4) in non-current loans
from financial institutions and EUR 35.0 million (51.4) in current loans from
financial institutions and a commercial paper programme. The remainder of the
liabilities mainly consist of lease agreement liabilities reported under IFRS
16. The Group's net debt without lease liabilities was EUR 235.3 million
(147.1). The figure increased mainly due to acquisitions and investments in
store sites.
Tokmanni Group's ratio of net debt to comparable EBITDA excluding the impact of
IFRS 16 was 2.3 at the end of March 2024 (1.6). Tokmanni Group's target is to
maintain an efficient capital structure. The long-term goal is to keep the ratio
of net debt to comparable EBITDA, excluding the impact of IFRS 16, below 2.25 at
year-end.
Tokmanni Group's equity ratio was 18.6% (26.9%) at the end of March 2024.
Capital expenditure
Tokmanni Group's capital expenditure in the first quarter of 2024 totalled EUR
5.9 million (18.3). Capital expenditure was related to the expansion,
development and maintenance of the store network and the development of digital
services. The figures for the comparison period include, in addition to the
costs related to the construction of the Moreeni logistics centre and the road
connection, the acquisition of the business operations of Jyskän Varastomyymälä
Oy and the acquisition of the entire share capital of the Finnish shoe retail
chains Click Shoes Oy and Shoe House Oy.
TOKMANNI SEGMENT
Tokmanni segment includes the Tokmanni, Miny, Click Shoes and Shoe House stores,
as well as Tokmanni and Click Shoes online stores. The figures of Click Shoes
and Shoe House have been consolidated with those of Tokmanni Group as of 1 March
2023.
1-3/2024 1-3/2023 1-12/2023
Revenue, MEUR 248.1 238.2 1,208.6
Like-for-like revenue, % 1.7 2.7 0.7
Comparable gross profit, MEUR 81.3 75.5 415.5
Comparable gross profit, % 32.8 31.7 34.4
Comparable EBIT, MEUR -1.7 -1.9 87.8
Comparable EBIT, % -0.7 -0.8 7.3
Return on capital employed, %, rolling 12 months 12.2 12.9 12.5
Inventories at the end of period, MEUR 271.6 300.7 248.8
Capital expenditure, MEUR 4.7 18.3 236.5
Personnel on average in the period (FTE) 3,001 2,919 3,160
Number of stores at the end of period 237 231 238
Revenue
January-March 2024
In the first quarter, Tokmanni segment's revenue grew by 4.2% (4.7%) to EUR
248.1 million (238.2). The good sales development was driven by the timing of
Easter, which was at the end of March this year, whereas in the comparison
period it was in early April. Measured as a percentage, the sales of the toy and
car care departments grew the most. On the other hand, customers purchased
markedly fewer products related to leisure and home interior decoration compared
to the corresponding period of the previous year. Sales of grocery products grew
by 4.2%. The proportion of grocery sales was 55.9% (55.5%) of Tokmanni segment's
total sales.
The proportion of Tokmanni segment's B2B sales was 3.4% (3.5%) of revenue.
Revenue from B2B sales grew by 1.8% (20.9%). Tokmanni's online sales accounted
for 1.4% (1.2%) of the segment's revenue. Online revenue increased by 20.3% (
-21.5%).
Tokmanni segment's like-for-like revenue increased by 1.7% (2.7%). Like-for-like
customer visits in stores grew by 0.5% (2.9%), and the total number of customers
grew by 2.1% (4.9%). The like-for-like average basket size increased by 1.2% to
EUR 20.39 (20.15).
The brands managed by Tokmanni segment (private label products, exclusive
brands, and non-branded products) represented 29.6% (30.5%) of sales in the
first quarter. Direct imports accounted for 23.9% of sales (25.1%). These can be
broken down into products purchased using Tokmanni segment's sourcing company in
Shanghai, China, which accounted for 16.9% (18.2%), and other direct imports,
which accounted for 7.0% (6.8%).
Profitability
January-March 2024
In the first quarter of 2024, Tokmanni segment's gross profit amounted to EUR
81.9 million (76.0), and the gross margin was 33.0% (31.9%). Comparable gross
profit was EUR 81.3 million (75.5), corresponding to a comparable gross margin
of 32.8% (31.7%). The significant clearance sales for winter apparel in the
clothing segment reduced the gross margin in the comparison period.
Tokmanni segment's operating expenses in the first quarter totalled EUR 63.4
million (59.1), or 25.6% of revenue (24.8%). Comparable operating expenses were
EUR 63.4 million (58.9), or 25.6% of revenue (24.7%). The increase in expenses
was driven in particular by the rise in property costs and marketing and
personnel expenses. Personnel expenses represented EUR 35.9 million (33.3) of
total operating expenses, or 14.5% of revenue (14.0%).
Tokmanni segment's EBITDA in the first quarter totalled EUR 19.3 million (17.7),
which corresponds to an EBITDA margin of 7.8% (7.4%). Comparable EBITDA totalled
EUR 18.7 million (17.5), and the comparable EBITDA margin was 7.5% (7.4%).
Tokmanni segment's EBIT in the first quarter totalled EUR -1.1 million (-1.7),
corresponding to an EBIT margin of -0.5% (-0.7%). Comparable EBIT was EUR -1.7
million (-1.9), and the comparable EBIT margin was -0.7% (-0.8%).
Tokmanni segment's capital expenditure in January-March totalled EUR 4.7 million
(18.3).
DOLLARSTORE SEGMENT
The financial figures of the Dollarstore business have been consolidated with
those of Tokmanni Group as of 1 August 2023. Dollarstore segment consists of the
Dollarstore and Big Dollar stores.
1-3/2024 1-3/2023 8-12/2023
Revenue, MEUR 91.1 0.0 184.1
Like-for-like revenue, % 1.8 0.0 3.8
Comparable gross profit, 34.1 0.0 74.1
MEUR
Comparable gross profit, 37.4 0.0 40.2
%
Comparable EBIT, MEUR -2.8 0.0 12.6
Comparable EBIT, % -3.0 0.0 6.8
Return on capital 0.0 0.0 0.0
employed, %, rolling 12
months *
Inventories at the end of 99.1 0.0 94.1
period, MEUR
Capital expenditure, MEUR 1.2 0.0 2.2
Personnel on average in 1,209 0 0
the period (FTE)
Number of stores at the 135 0.0 134
end of period
* Not countable
Revenue
January-March 2024
Dollarstore segment's revenue increased to EUR 91.1 million in the first
quarter. In local currencies, revenue grew by 4.1% compared to the corresponding
period of the previous year. Measured as a percentage, sales of storage products
and toys and products related to various celebrations grew the most. On the
other hand, sales of various lighting and electronic products and furniture were
markedly lower than in the previous year. Sales of grocery products grew by 6.0%
compared to the corresponding period of the previous year in local currencies.
The proportion of grocery sales was 59.5% of Dollarstore's total sales.
Like-for-like revenue increased by 1.8% in local currencies. Like-for-like
customer visits in stores decreased by 1.5%, and the total number of customers
grew by 0.2% compared to the corresponding period of the previous year. The like
-for-like average basket size increased by 3.4% to EUR 15.59.
The brands managed by Dollarstore segment (private label products, exclusive
brands, and non-branded products) represented 4.9% of sales in the first
quarter.
Profitability
January-March 2024
In the first quarter, Dollarstore segment's gross profit amounted to EUR 33.6
million, and the gross margin was 36.8%. Comparable gross profit was EUR 34.1
million, corresponding to a comparable gross margin of 37.4%.
Dollarstore segment's operating expenses for the first quarter totalled EUR 25.4
million, or 27.9% of revenue. Comparable operating expenses were EUR 25.4
million, or 27.9% of revenue. Personnel expenses represented EUR 16.9 million of
total operating expenses, or 18.5% of revenue.
Dollarstore segment's EBITDA in the first quarter totalled EUR 8.2 million,
which corresponds to an EBITDA margin of 9.0%. Comparable EBITDA totalled EUR
8.7 million, and the comparable EBITDA margin was 9.6%.
Dollarstore segment's EBIT in the first quarter totalled EUR -3.3 million,
corresponding to an EBIT margin of -3.6%. Comparable EBIT was EUR -2.8 million,
and the comparable EBIT margin was -3.0%.
Dollarstore segment's capital expenditure in January-March totalled EUR 1.2
million.
PERSONNEL
Tokmanni Group had 6,128 (4,107) employees at the end of March 2024. 4,229
employees worked in Finland (4,107), 1,839 in Sweden and 60 in Denmark.
Personnel on average during the accounting period (FTE) was 4,219 (2,923).
RESOLUTIONS OF THE ANNUAL GENERAL MEETING
Tokmanni Group Corporation's Annual General Meeting was held in Mäntsälä,
Finland on 23 April 2024. The resolutions and other materials are available on
Tokmanni Group's website at https://ir.tokmanni.fi/en/investors/corporate
-governance/general-meeting/yhtiokokous2024.
RISKS AND BUSINESS UNCERTAINTIES
Tokmanni Group's risks and uncertainties are discussed in detail in the Report
by the Board of Directors for 2023 and in the Financial Statements Bulletin as
well as Tokmanni Group's website at https://ir.tokmanni.fi/en/investors/tokmanni
-as-an-investment/riskienhallinta.
Mäntsälä 17 May 2024
Tokmanni Group Corporation
Board of Directors
ANALYST AND PRESS CONFERENCE
Tokmanni Group's President and CEO Mika Rautiainen and CFO Tapio Arimo will
present the report to analysts, investors and media representatives on the
publication day at 10:00 am (Finnish time). The live webcast can be accessed via
Tokmanni Group's website at https://ir.tokmanni.fi/en/investors or through the
link below. On-demand version of the presentation will be available on the
company's website later during the same day.
Webcast link: https://rajucast.tv/tokmanni-group/business-review-for-january
-march-2024/
The participants can also join a telephone conference that will be arranged in
conjunction with the live webcasts. The participants are asked to dial in 5-10
minutes prior to starting time using the phone number and password below.
Finland: +358 9 2319 5437
Sweden: +46 (0) 8 5052 0424
UK: +44 (0) 33 0551 0200
US: +1 786 697 3501
Password: Tokmanni / 170524
For further information, please contact
Mika Rautiainen, President and CEO, tel. +358 20 728 6061,
mika.rautiainen(at)tokmanni.fi
Tapio Arimo, CFO, tel. +358 20 728 7390, tapio.arimo(at)tokmanni.fi
Maarit Mikkonen, Head of IR and Communications, tel. +358 40 562 2282,
maarit.mikkonen(at)tokmanni.fi
Tokmanni Group in brief
Tokmanni Group Corporation is one of the leading variety discount retailers in
the Nordics. Over 6,000 employees in Finland, Sweden and Denmark make customers'
everyday life and special occasions easier by offering a versatile and up-to
-date assortment of nordic and international brand-name products and other high
-quality products at prices that are always affordable. With more than 370
Tokmanni, Dollarstore, Big Dollar, Miny, Click Shoes and Shoe House stores and
online stores, the Group is always close to its customers. In 2023, Tokmanni
Group's revenue was EUR 1,392.7 million and comparable EBIT amounted to EUR 98.8
million. The Group's shares are listed on Nasdaq Helsinki.
Distribution
Nasdaq Helsinki
Key media
Tokmanni's Business Review for 1 January-31 March 2024
ACCOUNTING POLICIES
This Business Review has been prepared using the same accounting policies and
methods of computation as in the Financial Statements for 2023. AII figures in
the accounts have been rounded. Consequently, the sum of individual figures can
deviate from the presented sum figure. The figures in the financial statement
release are presented in millions of euros.
Seasonality
Tokmanni Group's business is subject to seasonality, which has a significant
effect on its revenue, profitability, and cash flow. In general, Tokmanni
Group's revenue, profitability and cash flow are lowest in the first quarter and
highest in the fourth quarter due to Christmas sales.
Use of estimates
The preparation of the Business Review in accordance with IFRS requires the
management to make estimates and assumptions that affect the amount assets and
liabilities on the balance sheet, the reporting of contingent assets and
liabilities, and the amounts income and expenses. Although the estimates are
based on the management's best knowledge of current events and actions, the
actual results may differ from the estimates.
This report is unaudited.
Consolidated income statement
(MEUR)
1-3/2024 1-3/2023 1-12/2023
Revenue 339.2 238.2 1,392.7
Other operating income 0.8 0.9 4.2
Materials and services -223.7 -162.2 -905.8
Employee benefits expenses -53.1 -33.5 -174.4
Depreciation -31.9 -19.5 -96.8
Other operating expenses -36.3 -26.0 -126.9
Share of profit in joint 0.0 0.0 0.1
ventures
Operating profit -5.0 -2.0 93.0
Financial income 1.9 0.1 2.6
Financial expenses -11.0 -3.3 -27.3
Profit/loss before tax -14.1 -5.3 68.4
Income taxes 2.1 1.0 -14.4
Net result for the financial -12.1 -4.3 54.0
period
Profit for the year
attributable to
Equity holders of the parent -12.1 -4.3 54.0
company
Consolidated statement of
comprehensive income (MEUR)
1-3/2024 1-3/2023 1-12/2023
Net result for the financial -12.1 -4.3 54.0
period
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss
Exchange differences on -7.2 0.0 8.8
translating foreign operations
Comprehensive income for the -7.2 0.0 8.8
financial period, net of tax
Comprehensive income for the -19.2 -4.3 62.8
financial period
Comprehensive income for the
financial period attributable
to
Equity holders of the parent -19.2 -4.3 62.8
company
Earnings per share 1-3/2024 1-3/2023 1-12/2023
Equity holders of the parent -12.1 -4.3 54.0
company
Earnings per share, basic -0.20 -0.07 0.92
(EUR/share)
Earnings per share, diluted -0.20 -0.07 0.92
(EUR/share)
INFORMATION BY SEGMENT
Revenue by segment, EUR million 1-3/2024 1-3/2023 1-12/2023
Tokmanni 248.1 238.2 1,208.6
of which between the segments in total 0.0 0.0 0.1
Dollarstore 91.1 0.0 184.1
Group functions and eliminations 0.0 0.0 -0.1
Group total 339.2 238.2 1,392.7
Gross profit by segment, EUR million 1-3/2024 1-3/2023 1-12/2023
Tokmanni 81.9 76.0 415.5
Dollarstore 33.6 0.0 71.4
Group functions and eliminations 0.0 0.0 -0.1
Group total 115.4 76.0 486.9
EBIT by segment, EUR million 1-3/2024 1-3/2023 1-12/2023
Tokmanni -1.1 -1.7 84.7
Dollarstore -3.3 0.0 9.9
Group functions and eliminations -0.6 -0.3 -1.6
Group total -5.0 -2.0 93.0
Comparable EBIT by segment, EUR million 1-3/2024 1-3/2023 1-12/2023
Tokmanni -1.7 -1.9 87.8
Dollarstore -2.8 0.0 12.6
Group functions and eliminations -0.6 -0.3 -1.6
Group total -5.1 -2.2 98.8
Comparable EBIT by segment, % 1-3/2024 1-3/2023 1-12/2023
Tokmanni -0.7 -0.8 7.3
Dollarstore -3.0 0.0 6.8
Group functions and eliminations 0.0 0.0 0.0
Group total -1.5 -0.9 7.1
Return on capital employed, %, rolling 12 months 1-3/2024 1-3/2023 1-12/2023
Tokmanni 12.2 12.9 12.5
Dollarstore 0.0 0.0 0.0
Group functions and eliminations 0.0 0.0 0.0
Group total 9.9 12.7 11.6
Inventories at the end of period, EUR million 1-3/2024 1-3/2023 1-12/2023
Tokmanni 271.6 300.7 248.8
Dollarstore 99.1 0.0 94.1
Group functions and eliminations 0.0 0.0 0.0
Group total 370.8 300.7 342.9
Capital expenditure by segment, EUR million 1-3/2024 1-3/2023 1-12/2023
Tokmanni 4.7 18.3 236.5
Dollarstore 1.2 0.0 2.2
Group functions and eliminations 0.0 0.0 0.0
Group total 5.9 18.3 238.7
CALCULATION OF THE GROUP'S KEY FIGURES
Like-for-like revenue development, % = Like-for-like revenue development is
calculated by taking into account
the revenue growth of stores that
are not considered to be net-new and
the revenue growth of relocated
stores, as defined by Tokmanni Group
to include: (i) new stores opened;
(ii) store relocations where the
store size changes by 30 per cent or
more and the assortment increases or
is reduced substantially; and (iii)
store expansions where the store
size changes by 30 per cent or more.
If the store falls in one of these
categories, it is regarded as a net
-new or relocated store in its
opening year and in the following
calendar year. Tokmanni Group
reduces the net amount of stores
closed during the financial year
from new and relocated stores.
Customer visit development, % = Number of customer transactions
Gross profit = Revenue - Materials and services
Comparable gross profit = Gross profit - Changes in the fair
value of currency derivatives -
Other non-recurring expenses
Operating expenses = Employee benefits expenses + Other
operating expenses
Comparable operating expenses = Operating expenses - Changes in fair
value of electricity derivatives -
Other non-recurring expenses
EBITDA = Operating profit + Depreciation
Comparable EBITDA = EBITDA - Changes in fair value of
currency and electricity derivatives
- Other non-recurring expenses
Comparable EBIT = EBIT - Changes in fair value of
currency and electricity derivatives
- Other non-recurring expenses
Net financial items = Financial income - Financial
expenses
Capital expenditure = Investments in tangible and
intangible assets + Purchased
subsidiary shares
Net debt = Interest-bearing debt - Cash and
cash equivalents
Net debt without lease liabilities = Net debt - IFRS 16 lease liabilities
Net debt / Comparable EBITDA = Net debt
Comparable EBITDA, average for the
preceding 12 months
Net debt / Comparable EBITDA without = Net debt - IFRS 16 lease liabilities
lease liabilities
Comparable EBITDA without IFRS 16
liabilities, average preceding 12
months
Capital employed = Non-current assets - Deferred tax
assets + Inventories + Trade and
other receivables + Cash and cash
equivalents - Non-current non
-interest-bearing liabilities -
Trade payables and other current
liabilities
Return on capital employed, %, = Comparable EBIT, average for the
rolling 12 months preceding 12 months
Capital employed, average for the
preceding 12 months
Invested capital = Balance sheet total - Deferred tax
liability and other non-interest
-bearing liabilities
Return on invested capital, % = Profit before taxes + Interest and
other financial expenses (preceding
12 months)
Invested capital, average for the
preceding 12 months
Return on equity, % = Net result for the preceding 12
months
Equity, average for the preceding 12
months
Number of personnel = Number of personnel at the end of
the period
Number of personnel on average, = Average number of personnel
converted into full-time employees converted into full-time employees
Equity ratio = Equity
Balance sheet total - Advances
received
CALCULATION OF THE GROUP'S PER-SHARE DATA
Earnings per share, basic = Net profit
Number of shares, weighted average during the period
Earnings per share, diluted = Net profit
Diluted number of shares, weighted average during the period
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