Puuilo (PUUILO) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales rose 10.8% year-over-year to €102.2 million, with adjusted EBITA up 28.9% to €19.7 million (19.2% margin), driven by increased customer traffic and new store openings.

• Like-for-like sales were flat or declined 0.4% in Q3 due to a 3.4% drop in average basket size, offset by higher customer traffic.

• Seven new stores opened in the financial year, exceeding targets and bringing the network to 47–49 locations.

Financial highlights

• Cumulative net sales for the first three quarters were nearly €300 million, up 13.8–14% year-over-year.

• Adjusted EBITA for the first nine months was €52.7–53 million (17.7% of net sales), up 21.4% year-over-year.

• Q3 gross margin improved to 38.0%, up 2 percentage points year-over-year.

• Earnings per share for Q3 was €0.17 and €0.45 for the first three quarters, over 20% higher than last year.

• Operating free cash flow in Q3 was €10.0 million, down from €14.0 million a year earlier.

Outlook and guidance

• Full-year 2024 net sales forecasted at €380–400 million; adjusted EBITA expected at €60–66 million.

• Guidance reflects uncertainties from inflation, interest rates, labor strikes, and geopolitical risks.

• Q4 expected to follow typical seasonal patterns, with no major deviations anticipated.

• Expansion to continue in 2024, with at least five new stores planned for H1 and up to seven for the year.

• Long-term targets: net sales above €600 million by FY2028, adjusted EBITA margin above 17%, and net debt/adjusted EBITDA below 2.0x.