Tokmanni Group (TOKMAN) investor relations material

Executive summary

• Q2 2025 revenue grew 4.8% to €442.9 million, with increased customer visits, but profitability declined due to lower gross margin and higher operating expenses, especially in Finland where weak seasonal sales impacted results.

• Dollarstore segment drove much of the revenue and gross profit growth, aided by private label expansion, while Tokmanni faced margin pressure and lower average basket size.

• Integration of Tokmanni and Dollarstore continues, targeting annual synergies over €20 million by end of 2025, with €16.8 million achieved by June 2025.

• Ongoing supply chain and system upgrades are expected to drive future efficiencies, though they caused temporary cost increases.

• Profitability was further pressured by increased personnel and marketing costs and a sales mix shift toward lower-margin groceries.

Financial highlights

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

• Q2 comparable gross profit: €157.7 million (35.6% margin); comparable EBIT: €21.4 million (4.8% margin), down from €27.9 million (6.6%).

• Q2 diluted EPS: €0.17 (vs. €0.25 y/y); Q2 operating cash flow: €73.1 million (vs. €43.9 million y/y).

• Net debt at €915.9 million (vs. €824.2 million y/y); net debt/comparable EBITDA (excl. leases) at 3.59 (target 2.25 by year-end).

• Personnel expenses rose to 14.7% of revenue (€65.0 million).

Outlook and guidance

• 2025 revenue expected at €1.7–1.79 billion; comparable EBIT forecasted at €85–105 million, revised down from previous guidance.

• Focus remains on profitability improvement, cost control, and efficiency gains from new supply chain systems.

• No significant gross margin declines expected in H2, barring further mix shifts.

• Net debt to EBITDA target of 2.25x by year-end remains achievable.