Puuilo (PUUILO) Q1 2024 earnings summary

Executive summary

• Net sales for Q1 2024 reached €75.4 million, up 16.1% year-over-year, with like-for-like growth of 4.8% and online sales down 6.6%.

• Adjusted EBITA increased to €8.3 million (11.0% margin), with net income at €5.0 million and EPS stable at €0.06.

• Customer traffic increased 19% overall and 7% on a like-for-like basis, while average basket size declined due to a shift toward lower-priced products.

• Two new stores were opened in Nokia and Ylöjärvi, both performing above expectations, with a third store opened in early May.

• The quarter was impacted by political strikes and challenging weather, causing temporary sales and logistics disruptions.

Financial highlights

• Gross profit rose to €27.6 million, with gross margin at 36.6% (up from 36.5%), supported by lower logistics costs and a favorable sales mix.

• Adjusted EBITA was €8.3 million (11.0% margin); EBIT was €7.6 million (10.1% margin); earnings per share were €0.06.

• Operating free cash flow for Q1 was €2.3 million, impacted by increased inventory for new stores and private label imports.

• Net debt/adjusted EBITDA was 1.5x (0.5x excluding IFRS 16); cash and equivalents at period end were €21.5–22 million.

• Inventories increased to €106.4 million, driven by new stores and private label imports.

Outlook and guidance

• Full-year 2024 net sales are forecast at €380–410 million, with adjusted EBITA expected between €60–70 million.

• Long-term targets: net sales above €600 million and adjusted EBITA above €105 million by FY2028.

• Guidance unchanged, but uncertainties remain due to inflation, interest rates, strikes, and geopolitical risks.

• Confident outlook for summer and year-end, with strong start to the year.