Tokmanni Group (TOKMAN) Q1 2025 earnings summary

Executive summary

• Group revenue grew 0.8% year-over-year to EUR 341.8 million, but like-for-like revenue declined 1.9% and comparable EBIT fell to EUR -11.2 million from EUR -5.1 million.

• Dollarstore's result declined due to lower gross margin, aggressive clearance campaigns, assortment changes, and higher operating expenses, but integration with Tokmanni progressed and synergy benefits reached EUR 16.2 million annually.

• Dollarstore's share of group sales reached a record 29%, but profitability was hurt by aggressive clearance campaigns.

• Consumer confidence remained weak in Finland and Sweden, impacting demand, especially for higher-priced products.

• New management model and joint sourcing for Tokmanni and Dollarstore implemented, with joint private label products performing well.

Financial highlights

• Comparable gross profit was EUR 115.4 million, with a comparable gross margin of 33.7% (down from 34.0%).

• Comparable EBIT was EUR -11.2 million (-3.3% margin), down from EUR -5.1 million (-1.5% margin) year-over-year.

• Net result was EUR -18.6 million, with diluted EPS at EUR -0.32 (vs. EUR -0.20 year-over-year).

• Cash flow from operating activities was EUR -73.9 million, impacted by higher inventories.

• Capital expenditure was EUR 4.6 million, mainly for store network, maintenance, and digital services.

Outlook and guidance

• Revenue guidance for 2025 remains EUR 1,720–1,820 million; comparable EBIT guidance unchanged at EUR 100–130 million.

• Management expects improved consumer purchasing power later in 2025 due to salary increases, low inflation, and tax cuts.

• Q2 started positively, especially after Easter, with like-for-like customer visits turning positive.