Tokmanni Group Oyj: Tokmanni Group Corporation Half-year Financial Report January-June 2021: Revenue continued to grow and profit improved

2021-07-29 07:30:00
SECOND QUARTER 2021 HIGHLIGHTS
  • Revenue grew by 5.4% (19.2%) and was EUR 301.5 million (286.0)
  • Like-for-like revenue for stores grew by 4.4% (17.5%)
  • Comparable gross profit totalled EUR 105.8 million (98.6), with the comparable gross margin being 35.1% (34.5%)
  • Comparable EBIT amounted to EUR 32.3 million (30.6), representing 10.7% of revenue (10.7%)
  • Cash flow from operating activities amounted to EUR 61.5 million (78.9)
  • Earnings per share, diluted was EUR 0.41 (0.38)
JANUARY-JUNE 2021 HIGHLIGHTS
  • Revenue grew by 8.8% (13.3%) and was EUR 527.6 million (484.9)
  • Like-for-like revenue for stores grew by 7.8% (11.8%)
  • Comparable gross profit totalled EUR 180.5 million (162.4), with the comparable gross margin being 34.2% (33.5%)
  • Comparable EBIT amounted to EUR 39.1 million (30.9), representing 7.4% of revenue (6.4%)
  • Cash flow from operating activities amounted to EUR 39.5 million (55.3)
  • Earnings per share, diluted was EUR 0.48 (0.34)

TOKMANNI'S OUTLOOK FOR 2021

Tokmanni specifies its outlook.

New outlook

Tokmanni forecasts revenue growth for 2021. Group profitability measured in euros (comparable EBIT) is expected to improve and to be EUR 105-115 million.

Previous outlook

Tokmanni forecasts slight growth in revenue for 2021. Group profitability measured in euros (comparable EBIT) is expected to be on the same level as last year.

TOKMANNI'S CEO MIKA RAUTIAINEN:

Good performance compared with the previous year's strong figures

In the second quarter, Tokmanni's revenue grew at a very good rate against the strong comparison figures, by 5.4% (19.2%). Sales developed particularly well in garden, beauty, health and wellbeing products and in apparel. Shopping behaviour is gradually resuming its normal course. The number of customer visits increased by 2.4% in the second quarter, and the average basket size grew by 1.5%. Online store sales grew by 45.5% in the second quarter (167.2%).

The gross margin developed favourably in the second quarter as planned. At the same time, investments in the shelf availability of products and commercial setup in stores were reflected in an increase in personnel expenses during the quarter. As result of increased revenue and gross margin, Tokmanni continued its good profit performance in the second quarter, and its comparable EBIT improved to EUR 32.3 million (30.6).

Measures in line with the strategy published in March are off to an excellent start. A significant number of employees are participating in strategy work and projects, which accelerates strategy implementation. Our common goal is to develop Tokmanni into a successful variety discount retailer of the future.

We are confident about our success in the second half of the year. However, the market situation continues to be exceptional because of the pandemic. We will continue to do our best to ensure that customers find interesting products and the best price level at Tokmanni.

Key figures
4-6/ 4-6/ Change 1-6 1-6/ Change 1-12/2020
2021 2020 % /2021 2020 %
Revenue, MEUR 301.5 286.0 5.4% 527.6 484.9 8.8% 1 073.2
Like-for-like revenue 4.4 17.5 7.8 11.8 12.3
development, %
Customer visit 2.4 3.5 0.9 3.2 3.2
development %
Gross profit, MEUR 105.6 98.1 7.6% 181.6 162.3 11.9% 370.9
Gross margin, % 35.0 34.3 34.4 33.5 34.6
Comparable gross 105.8 98.6 7.3% 180.5 162.4 11.2% 371.6
profit, MEUR
Comparable gross 35.1 34.5 34.2 33.5 34.6
margin, %
Operating expenses -57.3 -52.4 9.3% -110.0 -101.9 7.9% -211.5
Comparable operating -57.8 -52.9 9.4% -110.3 -101.3 8.9% -210.9
expenses
EBITDA, MEUR 49.1 46.6 5.2% 73.3 62.3 17.6% 163.6
EBITDA, % 16.3 16.3 13.9 12.8 15.2
Comparable EBITDA, 48.7 46.7 4.3% 71.9 63.0 14.1% 164.9
MEUR
Comparable EBITDA, % 16.2 16.3 13.6 13.0 15.4
Operating profit 32.6 30.6 6.7% 40.4 30.2 34.0% 98.9
(EBIT), MEUR
Operating profit 10.8 10.7 7.7 6.2 9.2
margin EBIT, %
Comparable EBIT, MEUR 32.3 30.6 5.3% 39.1 30.9 26.5% 100.2
Comparable EBIT, % 10.7 10.7 7.4 6.4 9.3
Net financial items, -2.5 -2.5 1.9% -5.1 -5.0 2.3% -10.0
MEUR
Net capital 3.6 3.1 17.5% 5.9 6.3 -6.5% 12.8
expenditure, MEUR*
Net debt / comparable 2.0 2.5 2.0 2.5 2.0
EBITDA **
Net cash from 61.5 78.9 39.5 55.3 151.1
operating activities,
MEUR
Return on capital 5.5 5.1 6.8 5.1 16.2
employed, %
Return on capital 18.2 14.0 18.2 14.0 16.3
employed %, rolling
12
months
Return on equity, % 12.5 13.4 14.7 12.0 35.4
Return on equity %, 40.6 33.7 40.6 33.7 37.4
rolling 12 months
Equity ratio, % 26.1 25.0 26.1 25.0 27.7
Number of shares, 58 58 58 731 58 836 58 825
weighted average 731 819
during the financial
period (thousands)
Diluted number of 58 58 58 762 58 842 58 850
shares, weighted 775 844
average
during the financial
period (thousands)
Earnings per share, 0.41 0.38 0.48 0.34 1.21
basic (EUR/share)
Earnings per share, 0.41 0.38 0.48 0.34 1.21
diluted (EUR/share)
Personnel at the end 4 701 4 199 4 701 4 199 4 056
of the period
Personnel on average 4 357 3 920 4 099 3 719 3 873
in the period

* Net capital expenditure, excluding non-current receivables from others
** Rolling 12 months comparable EBITDA

Analyst and press conference

Tokmanni's CEO Mika Rautiainen and CFO Markku Pirskanen will present the review to analysts, investors and media representatives today 12 February at 11:30 am in English (Finnish time).

The live webcast can be accessed via Tokmanni's website at https://ir.tokmanni.fi/en or through the link https://tokmanni.videosync.fi/2021-q2-results. On-demand version of the presentation will be available on the company's website later during the same day.

The participants can also join a telephone conference that will be arranged in conjunction with the live webcasts. The participants are asked to dial in 5-10 minutes prior to starting time using the Participant Phone Number and Participant Passcodes below.

Finland: +358 9 8171 0310
Sweden: +46 8 5664 2651
UK: +44 33 3300 0804
US: +1 63 1913 1422
Passcode: 20690955#

For further information, please contact

Mika Rautiainen, CEO, tel. +358 020 728 6061, mika.rautiainen(at)tokmanni.fi
Markku Pirskanen, CFO, tel. +358 20 728 7390, markku.pirskanen(at)tokmanni.fi
Maarit Mikkonen, Head of IR and Communications, tel. +358 40 562 2282, maarit.mikkonen(at)tokmanni.fi

Tokmanni in brief

Tokmanni is the largest general discount retailer in Finland measured by number of stores and revenue. In 2020, Tokmanni's revenue was EUR 1 073.2 million and it has approximately 3,873 employees. Tokmanni is the only nationwide general discount retailer in Finland, with almost 200 stores across Finland.

Distribution

Nasdaq Helsinki
Key media

Cision