Puuilo (PUUILO) Q4 2022 earnings summary

Executive summary

• FY2022 net sales rose 9.7% to €296.4m; adjusted EBITA increased to €48.8m from €48.4m, with like-for-like sales up 5.5%.

• Q4 net sales grew 9.7% to €68.3m and like-for-like store sales rose 6.8%; adjusted EBITA was €9.7m versus €9.8m.

• Growth came from existing and new stores and online, supported by higher customer numbers amid inflation and geopolitical uncertainty.

Financial highlights

• FY2022 gross profit was €107.2m versus €99.6m; gross margin declined to 36.2% from 36.9%.

• FY2022 EBIT was €47.0m versus €44.5m; net income was €35.1m versus €31.9m, and EPS was €0.41 versus €0.38.

• FY2022 operating free cash flow reached €52.7m versus €10.8m; Q4 cash flow was €3.9m versus negative €7.2m.

• Q4 adjusted EBITA margin was 14.2% versus 15.7%; EBIT was €9.4m versus €9.5m.

Outlook and guidance

• FY2023 net sales and adjusted EBITA in euros are forecast to increase versus FY2022, with elevated uncertainty.

• Long-term targets: net sales above €400m by FY2025, annual organic growth above 10%, and adjusted EBITA margin of 17%–19%.

• Five new stores were planned for FY2023, including Vantaa Porttipuisto, Nummela, Kerava and Vantaa Varisto; at least four openings were targeted for 2024.

• Gross-margin support was expected from lower purchase prices as energy and sea freight costs eased; inventory turnover and operating processes remained improvement priorities.