Tokmanni Group Corporation’s Financial Statement Bulletin 2024: Revenue grew by 5.5% and comparable EBIT by 2.7% in the fourth quarter

Tokmanni Group Corporation        Financial Statement Bulletin        7 March 2025 at 8:00 am

FOURTH QUARTER 2024 HIGHLIGHTS

• Tokmanni Group’s revenue grew by 5.5% (39.0%) and was EUR 496.9 million (471.2)
• Like-for-like revenue increased by 3.6% (1.0%)
• Comparable gross profit was EUR 177.3 million (172.0) and comparable gross profit % was 35.7% (36.5%)
• Comparable EBIT amounted to EUR 47.5 million (46.2), 9.6% of revenue (9.8%)
• Cash flow from operating activities amounted to EUR 76.5 million (116.5)
• Earnings per share, diluted was EUR 0.50 (0.44)

JANUARY-DECEMBER 2024 HIGHLIGHTS

• Tokmanni Group’s revenue grew by 20.3% (19.2%) and was EUR 1,675.0 million (1,392.7)
• Like-for-like revenue increased by 1.0% (1.1%)
• Comparable gross profit was EUR 596.2 million (489.5) and comparable gross profit % was 35.6% (35.2%)
• Comparable EBIT amounted to EUR 99.7 million (98.8), 6.0% of revenue (7.1%)
• Cash flow from operating activities amounted to EUR 89.1 million (220.2)
• Earnings per share, diluted was EUR 0.82 (0.92)

DIVIDEND PROPOSAL

The Board of Directors proposes to the Annual General Meeting that, based on the approved balance sheet for the financial year ending 31 December 2024, a maximum dividend of EUR 0.68 per share be distributed. The Board of Directors proposes that the dividend be paid in two instalments.

TOKMANNI’S OUTLOOK FOR 2025

In 2025, Tokmanni Group expects its revenue to be EUR 1,720–1,820 million. Comparable EBIT is expected to be EUR 100–130 million.

TOKMANNI GROUP’S PRESIDENT AND CEO MIKA RAUTIAINEN

Strong growth in customer visits, record high comparable EBIT in the fourth quarter

There was strong growth in customer visits at Tokmanni and Dollarstore during the fourth quarter. Tokmanni segment’s like-for-like customer visits grew by 5.0% and Dollarstore segment’s grew by 6.0%. We were very successful with our product ranges and marketing for the high season. Overall, Tokmanni Group’s revenue grew by 5.5% in the fourth quarter to EUR 496.9 million (471.2).

Customers’ purchasing behaviour continued to be cautious, which was reflected as a smaller number of products in the shopping basket and a greater emphasis on promotional products and grocery products. As a result, Tokmanni Group’s comparable gross margin decreased in the fourth quarter to 35.7% (36.5%). Operating expenses grew moderately in the fourth quarter and the Group’s comparable EBIT increased to EUR 47.5 million (46.2).

The Tokmanni and Dollarstore integration is progressing as planned. The annual synergies achieved by the end of December 2024 already amounted to EUR 13.3 million. Our initial goal is to achieve annual synergy benefits of over EUR 15 million by the end of this year. We are constantly increasing our joint purchases, especially in non-grocery, which will bring new products especially to Dollarstore segment’s assortment.

We had a very exciting start to 2025, as we signed a licence agreement with SPAR International. This long-term cooperation will enhance Tokmanni Group’s competitiveness in many different areas. The first SPAR products will be available in all Tokmanni stores by the summer.

We will continue to decisively develop Tokmanni Group into the leading discount retailer in the Nordic countries. Our expansion to new locations will continue in all our market areas, in addition to which we are continuously investigating opportunities to enter new markets.

I would like to extend my warmest thanks to our customers and partners and, above all, to all Tokmanni Group employees for the year 2024.

Key figures (Dollarstore included in from 1 August 2023 onwards)

	10–12/ 2024	10–12/ 2023	Change %	1–12/ 2024	1–12/ 2023	Change %
Revenue, MEUR	496.9	471.2	5.5%	1,675.0	1,392.7	20.3%
Like-for-like revenue development, %	3.6	1.0		1.0	1.1
Customer visit development, %	6.8	0.5		2.8	0.7
Gross profit, MEUR	178.0	169.5	5.0%	596.4	486.9	22.5%
Gross profit, %	35.8	36.0		35.6	35.0
Comparable gross profit, MEUR	177.3	172.0	3.1%	596.2	489.5	21.8%
Comparable gross profit, %	35.7	36.5		35.6	35.2
Operating expenses, MEUR	-100.2	-96.5	3.8%	-374.1	-301.2	24.2%
Comparable operating expenses, MEUR	-99.8	-96.2	3.7%	-373.7	-298.1	25.3%
EBITDA, MEUR	80.0	74.4	7.6%	227.2	189.9	19.7%
EBITDA, %	16.1	15.8		13.6	13.6
Comparable EBITDA, MEUR	79.7	77.2	3.3%	227.4	195.6	16.2%
Comparable EBITDA, %	16.0	16.4		13.6	14.0
Operating profit (EBIT), MEUR	47.8	43.4	10.1%	99.6	93.0	7.0%
Operating profit (EBIT), %	9.6	9.2		5.9	6.7
Comparable EBIT, MEUR	47.5	46.2	2.7%	99.7	98.8	0.9%
Comparable EBIT, %	9.6	9.8		6.0	7.1
Net financial items, MEUR	-11.4	-10.4	9.7%	-38.8	-24.7	57.5%
Capital expenditure, MEUR	13.8	17.5	-21.2%	39.4	238.7	-83.5%
Net cash from operating activities, MEUR	76.5	116.5		89.1	220.2
Net debt, MEUR				816.3	730.4
Net debt without lease liabilities, MEUR				255.3	165.3
Net debt / comparable EBITDA *				3.59	3.73
Net debt / comparable EBITDA without lease liabilities *				2.39	1.56
Return on capital employed, %				9.7	11.2
Return on equity, %				19.5	22.2
Equity ratio, %				19.1	18.8
Number of shares, weighted average during the financial period (thousands)	58,849	58,825		58,844	58,819
Diluted number of shares, weighted average during the financial period (thousands)	58,876	58,884		58,872	58,878
Earnings per share, basic (EUR/share)	0.50	0.44		0.82	0.92
Earnings per share, diluted (EUR/share)	0.50	0.44		0.82	0.92
Personnel at the end of the period				6,613	6,206
Personnel on average in the period (FTE)	4,564	4,313		4,611	3,706

* Rolling 12 months comparable EBITDA

ANALYST AND PRESS CONFERENCE

Tokmanni Group’s 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. A recording will be available after the event on Tokmanni Group's website.

Link to webcast page: https://rajucast.tv/en/tokmanni-group/financial-statements-review-for-2024/

The participants can ask questions by joining the Teams meeting that is arranged in conjunction with the live webcast. The link to Teams can be found on the webcast page mentioned above.

For further information, please contact

Mika Rautiainen, Group CEO, tel. +358 20 728 6061, mika.rautiainen(at)tokmanni.fi
Tapio Arimo, Group 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. More than 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, Click Shoes and Shoe House stores and online stores, the Group is always close to its customers. In 2024, the Group's revenue was EUR 1 675 million and comparable EBIT amounted to EUR 100 million. The Tokmanni Group Corporation's shares are listed on Nasdaq Helsinki.

Distribution

Nasdaq Helsinki
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