Puuilo (PUUILO) Q1 2022 earnings summary

Executive summary

• Q1 revenue rose 0.8% to €58.9m, while comparable-store sales fell 5.0%; adjusted EBITA declined to €6.2m from €8.7m.

• Late spring, higher inventory-related costs and inflation pressured gross margin and profitability; FY2022 guidance was lowered on May 25.

Financial highlights

• Revenue was €58.9m, up 0.8%; gross profit was €20.6m versus €21.3m, and gross margin fell to 35.0% from 36.5%.

• Adjusted EBITA was €6.2m versus €8.7m; adjusted EBITA margin was 10.5% versus 14.9%. Operating profit was €5.9m versus €7.3m.

• Net income was €4.2m versus €4.9m; EPS was €0.05 versus €0.06, or €0.05 versus €0.07 excluding listing expenses.

• Operational free cash flow was €3.2m versus €6.9m, mainly reflecting lower EBITDA and higher working capital from inventory growth.

• Current-period operating expenses had no comparability-impacting items; prior-year expenses included €1.1m, mainly listing costs.

Outlook and guidance

• FY2022 revenue is expected to grow, but below the long-term annual organic growth target of more than 10%; adjusted EBITA is forecast at €35–45m.

• Guidance was revised on May 25; the previous outlook anticipated growth in both revenue and adjusted EBITA versus FY2021.

• Seven store openings were in the pipeline across FY2022 and the following fiscal year; three were planned for FY2022, with four Helsinki-area locations planned for the following year.

• Long-term targets include revenue above €400m by FY2025, adjusted EBITA margin of 17–19%, net debt/adjusted EBITDA below 2.0x, and dividends of at least 80% of net income.

• H2 priorities included store network growth, sales-focused marketing, tighter fixed-cost control, lower inventory and optimized warehousing costs.