Puuilo (PUUILO) Nordea roadshow presentation summary

Company background and growth trajectory

• Originated as a small carpenter workshop in 1982, evolving into a major discount retailer with 58 stores and a webstore by 2026.

• Achieved €442 million in net sales for FY2026, with a record profitability and ongoing expansion plans.

• Store network has rapidly expanded, with 7–10 new stores planned annually and international expansion into Sweden underway.

• 50% of stores are less than 5 years old, supporting strong like-for-like growth potential.

Business model and market position

• Focuses on home, building, tools, garden, and pet supplies, excluding groceries, electronics, and fashion.

• Offers over 30,000 SKUs, with 23.6% of sales from private label products, aiming for a 40% long-term target.

• Maintains a low-cost structure, enabling consistently lower prices than competitors and high customer loyalty.

• Holds a 12.1% market share in Finnish discount retail, with continuous gains over recent years.

Financial performance and profitability

• Net sales grew 16.3% in Q1 2026 to €103.8 million, with like-for-like sales up 7.7%.

• Gross margin improved to 39.0%, driven by a 28% increase in private label sales.

• Adjusted EBITA rose by 50.2% to €16.3 million, with a margin of 15.7%.

• Operating free cash flow reached €17.1 million, and net debt/EBITDA remained low at 1.2x.