Puuilo (PUUILO) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 rose 16.3% year-over-year to €103.8 million, with like-for-like sales up 7.7% and online sales up 17.6%.

• Adjusted EBITA surged 50.2% to €16.3 million, representing a 15.7% margin.

• Gross margin improved to 39.0%, up from 37.1% year-over-year, driven by a 28% increase in private label sales.

• Customer traffic increased by 14.5% overall and 6.2% in like-for-like stores; average basket size grew slightly.

• Two new stores opened in Q1, with a total of 58 stores at period end; preparations for Swedish market entry are progressing.

Financial highlights

• EBIT reached €15.7 million (15.1% margin), up from €10.4 million (11.7%) year-over-year.

• Net income was €11.3 million, with EPS at €0.13, up from €0.09.

• Operating free cash flow was €17.1 million, up from €13.6 million.

• Inventory increased to €136.1 million, mainly due to new store openings and private label stock.

• Net debt/adjusted EBITDA improved to 1.2x (0.3x excluding IFRS 16 impact); net debt (excl. IFRS 16) was €29.1 million.

Outlook and guidance

• Full-year 2026 net sales forecasted at €480–510 million; adjusted EBITA expected at €80–90 million.

• Long-term targets: net sales CAGR above 10%, net sales above €800 million by FY2030, adjusted EBITA margin above 17%, and net debt/adjusted EBITDA below 2.5x.

• At least eight new stores planned for FY2026, with continued expansion in Finland and first Swedish store expected within 15 months.

• Budgeted set-up expenses for Swedish expansion are approximately €1 million for FY2026.