Half Year 2025 Tokmanni Group Oyj Earnings Call Transcript
Key Points
- Tokmanni Group Corp (FRA:TK9) experienced an increase in customer visits and revenue, particularly in the Dollarstore segment, which saw an 8.8% revenue increase in local currencies.
- The company successfully launched private label products in the Dollarstore segment, contributing to a 9.7% increase in non-grocery sales.
- Cash flow from operating activities was strong, reaching EUR73.1 million, driven by effective inventory management.
- The Tokmanni Club app has over 800,000 users, with app users showing a higher average basket size than other customers.
- The first EUROSPAR supermarket opened in connection with a Tokmanni store, showing promising results and learning opportunities from SPAR International cooperation.
- Tokmanni Group Corp (FRA:TK9) faced a decline in profitability due to lower gross margins and higher operating expenses, with comparable EBIT dropping to EUR21.4 million from EUR27.9 million the previous year.
- The sales of spring and summer seasonal products were weak, particularly in Finland, due to cold weather, impacting the gross margin negatively.
- Higher personnel and marketing costs, including salary increases and new store openings, negatively affected the EBIT.
- Operating expenses as a percentage of sales increased, with personnel expenses rising by EUR6 million compared to the previous year.
- The company is not currently planning to increase prices, despite facing salary inflation and other cost pressures.
Good morning, and welcome to Tokmanni Group's second quarter results presentation. My name is Mika Rautiainen. And today, together with me doing the presentation will be Tokmanni Group's CFO, Mr. Tapio Arimo. I will go through the key points of the second quarter first.
Tapio will present the financial figures. I'll come back to explain a little bit of the action points for the second half of 2025. And afterwards, it's time for questions.
So let's get started. As already published in July, the second quarter for Tokmanni Group, especially for Tokmanni segment was very disappointing. We are satisfied with the increase of customer visits and also the revenue increase especially for Dollarstore and also a slight revenue increase for Tokmanni as well. But due to lower gross margin and higher OpEx, the profitability declined clearly, which was, of course, extremely disappointing.
Let me go through a little bit detail the second quarter happenings. But before that, a familiar slide
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