Full Year 2024 Tokmanni Group Oyj Earnings Call Transcript
Key Points
- Tokmanni Group Corp (FRA:TK9) experienced strong growth in customer visits, with a 5.3% increase in like-for-like visits during the fourth quarter.
- The company achieved a revenue growth of 5.5% and a like-for-like revenue increase of 3.6% in the fourth quarter.
- Comparable EBIT for the fourth quarter amounted to EUR47.5 million, maintaining a stable level compared to the previous year.
- The synergy savings target with Dollarstore was nearly achieved, with a run rate of EUR13.3 million by the end of 2024, close to the EUR15 million target by 2025.
- The SPAR collaboration is expected to enhance competitiveness in the grocery segment, with plans to introduce SPAR products in Tokmanni stores by mid-2025.
- Consumer confidence remained low, particularly in Finland, leading to cautious and discount-driven shopping behavior.
- The average basket size decreased by 2.5% in Finland, indicating a reduction in consumer spending.
- Gross profit margins were slightly lower due to aggressive campaigns and increased freight costs, particularly impacting Dollarstore.
- Inventory levels were significantly higher compared to the previous year, partly due to strategic decisions to ensure product availability.
- The company faced challenges with increased freight costs, amounting to over EUR7 million in 2024, affecting Dollarstore's gross margin.
Good morning, and thank you for joining Tokmanni Group's fourth quarter 2024 results presentation. My name is Mika Rautiainen. And today, I will be telling about the highlights of the fourth quarter in the beginning. Then Mr. Tapio Arimo, Tokmanni Group's CFO, will come and talk about the numbers a little bit more.
Afterwards, we will tell about the guidance for 2025 and a couple of words about SPAR collaboration as well. And of course, in the end, there is a possibility to ask questions. And for the questions, I will actually ask you to -- under the stream, there is the Teams link. So please join the Teams link to present the questions. And then we'll, of course, answer all the questions.
So let's get started. During the fourth quarter, Tokmanni had strong growth in customer visits, comparable EBIT growth was 2.7% during the fourth quarter. A couple of words about the store networks, the store network in the Nordics. By the end of the year 2024, we had 380 stores altogether. And of course,
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