Tokmanni Group (TOKMAN) Q2 2024 earnings summary

Executive summary

• Revenue grew 32.5% year-over-year in Q2 2024 to €422.5 million, mainly due to the Dollarstore acquisition, but like-for-like revenue declined 2.4% amid weak consumer demand and a late spring season.

• Integration of Tokmanni and Dollarstore is progressing, with €9.9 million in annualized synergies achieved by June and a target of over €15 million by end of 2025.

• Comparable EBIT for Q2 was €27.9 million (6.6% margin), down from €28.5 million (8.9% margin) last year; diluted EPS was €0.25, down from €0.33.

• Consumer confidence remained weak in Finland and Sweden, impacting customer visits and sales, especially in April.

• The group is actively expanding, with new store openings in Finland, Sweden, and Denmark planned for H2 2024.

Financial highlights

• Q2 2024 revenue: €422.5 million (+32.5% YoY); like-for-like revenue down 2.4%.

• Comparable gross margin: 36.7% (up from 36.1% YoY); comparable gross profit: €155.2 million.

• Comparable EBIT: €27.9 million (down from €28.5 million YoY), margin 6.6% (down from 8.9%).

• Diluted EPS: €0.25 (down from €0.33 YoY).

• Cash flow from operating activities: €43.9 million (down from €79.8 million YoY).

Outlook and guidance

• 2024 revenue expected at €1,650–1,730 million; comparable EBIT at €98–118 million, both revised downward in July.

• VAT increase in Finland from September expected to temporarily dampen consumer sentiment in H2.

• No significant recovery expected in H2; both segments to remain under pressure from weak economic climate and rising unemployment.

• Strategic EBIT target of €150 million for 2025 remains in place.

• Focus for H2: drive sales and customer visits, continue integration and synergy realization.