Tokmanni Group (TOKMAN) Q3 2024 earnings summary

Executive summary

• Revenue grew by 14.3% year-over-year in Q3 2024, reaching EUR 416.3 million, with record EBIT of EUR 29.5 million and diluted EPS rising to EUR 0.28 from EUR 0.21.

• Dollarstore integration delivered annualized synergies of EUR 12.7 million by September, driving significant revenue and profit growth.

• Customer visits increased in both Tokmanni and Dollarstore segments, supported by improved consumer confidence in Sweden and despite low confidence in Finland.

• Grocery sales rose while non-grocery share declined, reflecting changing consumer behavior and focus on value.

• Inventory levels rose in preparation for Christmas and Dollarstore's shift to direct imports, but are considered healthy and fast-turning.

Financial highlights

• Like-for-like revenue increased by 0.8% year-over-year in Q3 2024.

• Comparable gross margin improved to 35.6% from 34.8% a year ago, with gross profit at EUR 148.3 million.

• Cash flow from operating activities was EUR 8.1 million, down from EUR 36.8 million last year, mainly due to inventory buildup.

• Diluted EPS was EUR 0.28, up from EUR 0.21 year-over-year.

• Net debt to comparable EBITDA improved to 3.7 (including leases) and 2.6 (excluding leases), with a target of 2.25 by year-end.

Outlook and guidance

• 2024 revenue guidance set at EUR 1,650–1,700 million; comparable EBIT expected between EUR 98–110 million, narrowing previous guidance.

• Dividend of EUR 0.38 per share to be paid as a second installment for FY 2023 in November.

• Store expansion continues, with seven new stores to open by year-end and at least 11 planned for 2025, mainly in Sweden and Denmark.