Puuilo (PUUILO) Q1 2022 earnings summary

Executive summary

• Q1 net sales rose 0.8% YoY, while like-for-like sales fell 5%; April’s two-digit like-for-like decline, delayed spring demand and higher inventory-related costs weighed on results.

• Growth strategy and long-term targets were unchanged, with three store openings planned by year-end and at least four more in 2023.

Financial highlights

• Q1 net sales were €58.9m, up 0.8% YoY; growth came from new stores as like-for-like sales decreased 5%.

• Adjusted EBITDA was €6.2m, down €2.5m YoY, reflecting lower gross margin and higher expenses, including personnel and listed-company administration costs.

• Operating free cash flow was €3.2m, down €3.7m YoY, due to lower EBITDA and higher inventories.

Outlook and guidance

• FY2022 net sales are expected to increase YoY, with growth below the long-term annual rate of 10%; adjusted EBITDA guidance is €35m–€45m.

• Long-term targets remain net sales above €400m by FY2025 and an adjusted EBITDA margin of 17%–19%.

• Three stores are planned for 2022: Sastamala in September, Tornio in October and Lieto later in the year; four openings are planned for 2023.