TKM Grupp (TKM1T) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was €237.3m, down 2.1% year-over-year; H1 2024 revenue was €458.8m, down 0.4% from H1 2023.

• Net profit for Q2 2024 was €9.9m, a 23.2% decrease year-over-year; H1 2024 net profit was €8.4m, down 37.9%.

• Prolonged retail sector downturn and higher interest expenses impacted profitability.

• Cost-efficiency measures kept operating expenses stable; gross margin held at prior year levels.

• Investments continued in e-commerce, logistics, and store renovations.

Financial highlights

• Q2 2024 EBITDA was €23.3m, down 7.7% year-over-year; H1 2024 EBITDA was €40.1m, down 6.8%.

• Operating profit for Q2 2024 was €12.9m (down 14.6%); H1 2024 was €19.0m (down 16.4%).

• Gross profit margin for H1 2024 was 27.29%, nearly flat year-over-year.

• Earnings per share for H1 2024 was €0.21, down from €0.33 in H1 2023.

• Total assets at 30 June 2024 were €674.4m, a 3.0% decrease from year-end 2023 (excluding IFRS 16 impact).

Outlook and guidance

• Economic uncertainty remains high, but recovery is expected in H2 2024, supported by improved household purchasing power and lower interest rates.

• Retail and car markets remain challenging; no significant consumer behavior change yet from upcoming car tax.

• New store openings and logistics center completion are planned for H2 2024.