Tokmanni Group (TOKMAN) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 4.8% year-over-year to approximately EUR 443 million, with like-for-like revenue up 1.9% and customer visits increasing, but profitability declined due to lower gross margin and higher operating expenses.

• Dollarstore segment drove much of the revenue growth, with 8.8% local currency revenue increase and strong non-grocery sales, while Tokmanni faced margin pressure and weak seasonal sales.

• Integration of Tokmanni and Dollarstore continues, with annual synergy benefits reaching EUR 16.8 million by June 2025 and a target of over EUR 20 million by end of 2025.

• Profitability was impacted by higher personnel and marketing costs, and a shift in sales mix toward lower-margin groceries.

• Cash flow from operating activities was strong at EUR 73.1 million, driven by inventory management.

Financial highlights

• Q2 2025 revenue: EUR 442.9 million (+4.8% y/y); like-for-like revenue up 1.9%.

• Comparable gross profit was EUR 157.7 million (35.6% margin); comparable EBIT dropped to EUR 21.4 million (4.8% margin) from EUR 27.9 million (6.6%).

• Earnings per share (diluted) was EUR 0.17, down from EUR 0.25 year-over-year.

• Operating expenses rose, with personnel costs up EUR 6 million year-over-year and personnel expenses at 14.7% of revenue.

• Cash flow from operating activities improved to EUR 73.1 million from EUR 43.9 million.

Outlook and guidance

• 2025 revenue expected between EUR 1.7 billion and EUR 1.79 billion; comparable EBIT guidance set at EUR 85–105 million, revised down from previous guidance.

• Focus for the remainder of 2025 is on profitability, cost control, efficiency improvements, and inventory management.

• No significant gross margin decline expected in the second half, barring a shift in product mix.