Tokmanni Group (TOKMAN) Q1 2025 earnings summary

Executive summary

• Revenue grew 0.8% year-over-year to EUR 341.8 million, but like-for-like revenue declined 1.9% and profitability dropped due to Dollarstore's low gross margin and higher operating expenses.

• Dollarstore's share of group sales reached a record 29%, but aggressive clearance campaigns and assortment changes hurt profitability.

• Integration between Tokmanni and Dollarstore progressed, with joint private label products performing well and synergy run rate reaching EUR 16.2 million.

• Consumer confidence remained weak in Finland and Sweden, impacting demand, especially for higher-priced products.

• New management model and leadership changes implemented to drive integration and performance.

Financial highlights

• Comparable gross profit was EUR 115.4 million, with gross margin declining to 33.7% from 34% last year.

• Comparable EBIT was EUR -11.2 million (margin -3.3%), a larger loss than -EUR 5.1 million last year.

• Diluted EPS was EUR -0.32 (vs. EUR -0.20 year-over-year); net result EUR -18.6 million.

• Cash flow from operations was EUR -73.9 million, impacted by higher inventories and seasonality.

• Capital expenditure was EUR 4.6 million, focused on store network and digital services.

Outlook and guidance

• 2025 revenue guidance remains EUR 1,720–1,820 million; comparable EBIT guidance unchanged at EUR 100–130 million.

• Management expects improved consumer purchasing power later in 2025 due to salary increases, low inflation, and tax cuts.

• Dollarstore expected to see positive surprises as integration deepens, but risks of negative surprises remain.