TKM Grupp (TKM1T) Q1 2025 earnings summary

Executive summary

• Consolidated sales revenue for Q1 2025 was €214.9m, down 3.0% year-over-year, with a net loss of €6.5m compared to a €1.5m loss in Q1 2024, mainly due to higher income tax and a sharp decline in the car market.

• Pre-tax profit was €1.3m, down €2.5m from the previous year; gross profit margin improved slightly to 27.2%.

• The car trade segment was heavily impacted by the new vehicle tax, while supermarkets reversed a four-quarter sales decline.

• The Group continued investments in store renovations, logistics, and digital platforms, and maintained a strong focus on sustainability and employee engagement.

Financial highlights

• Revenue: €214.9m (down 3.0% year-over-year); Net loss: €6.5m (vs. €1.5m loss in Q1 2024); Pre-tax profit: €1.3m (down €2.5m).

• EBITDA: €14.4m (down 13.9%); Operating profit: €3.7m (down 40.4%).

• Gross profit margin: 27.2% (up from 26.8%); EPS: -€0.16 (vs. -€0.04 in Q1 2024).

• Cash flow from operations: €5.9m; Cash and cash equivalents at period end: €41.8m.

• Dividends of €0.65 per share declared and approved.

Outlook and guidance

• Management expects continued cautious consumer behavior and slow recovery in Estonia, with inflation and tax increases constraining private consumption.

• The Group is focused on operational efficiency, digital development, and sustainability, with ongoing investments in store and logistics upgrades.

• Economic recovery is anticipated to be gradual, with GDP growth forecast at 1.5% for 2025 and stronger growth in subsequent years.