Tokmanni Group Oyj

Earnings Release • Aug 15, 2025

Tokmanni Group Corporation Half-Year Financial Report January-June 2025: In the second quarter revenue and customer visits increased, but profitability declined

Tokmanni Group Corporation Half-Year Financial Report January-June 2025: In the second quarter revenue and customer visits increased, but profitability declined

Tokmanni Group Corporation       Half-Year Financial Report
 Unaudited       15 August 2025 at 8:00 am

SECOND QUARTER 2025 HIGHLIGHTS

· Tokmanni Group's revenue grew by 4.8% (32.5%) and was EUR 442.9 million
(422.5)
· Like-for-like revenue grew by 1.9 % (-2.4 %)
· Comparable gross profit was EUR 157.7 million (155.2) and comparable gross
profit % was 35.6% (36.7%)
· Comparable EBIT amounted to EUR 21.4 million (27.9), 4.8% of revenue (6.6%)
· Cash flow from operating activities amounted to EUR 73.1 million (43.9)
· Earnings per share, diluted was EUR 0.17 (0.25)

JANUARY-JUNE 2025 HIGHLIGHTS

· Tokmanni Group's revenue grew by 3.0% (36.7%) and was EUR 784.7 million
(761.7)
· Like-for-like revenue increased by 0.2 % (-0.6 %)
· Comparable gross profit was EUR 273.1 million (270.6) and comparable gross
profit % was 34.8% (35.5%)
· Comparable EBIT amounted to EUR 10.2 million (22.8), 1.3% of revenue (3.0%)
· Cash flow from operating activities amounted to EUR -0.8 million (4.0)
· Earnings per share, diluted was EUR -0.14 (0.05)

GUIDANCE FOR 2025

In 2025, Tokmanni Group expects its revenue to be EUR 1,700-1,790 million.
Comparable EBIT is expected to be EUR 85-105 million.

TOKMANNI GROUP CEO MIKA RAUTIAINEN

During the second quarter of 2025, Tokmanni Group's revenue grew, driven
especially by Dollarstore's strong performance in non-grocery sales. Dollarstore
segment's revenue grew by 8.8% in local currencies, with like-for-like revenue
up by 5.1%. Tokmanni segment's like-for-like revenue grew by 0.8%, mainly due to
higher sales of groceries and Easter products, while demand for spring and
summer season products was weak. Nevertheless, customer visits increased across
Finland, Sweden, and Denmark.

The development of Tokmanni Group's gross margin was twofold. We succeeded in
improving Dollarstore segment's gross margin after a weak first quarter, with
comparable gross profit rising by EUR 5.0 million compared to the corresponding
period of the previous year. On the other hand, Tokmanni segment's comparable
gross margin declined by 1.4 percentage points. The decline was mainly due to
decreased sales of higher-margin non-grocery sales, particularly spring and
summer season products and increased share of grocery sales compared to the
corresponding period of the previous year.

We were not able to manage our operating expenses in line with our targets. As a
result, fixed costs in both segments increased faster than revenue, largely due
to higher personnel and marketing expenses. Personnel costs were driven up by
wage increases, new store openings, and increased working hours partly because
of the harmonisation of replenishment and warehouse management systems at the
Group level. The Group's weaker result compared to the corresponding period of
the previous year was mainly due to these increased operating expenses and the
lower gross margin percentage mentioned earlier.

Measures to improve profitability at Tokmanni and Dollarstore are proceeding.
These actions include strict cost control, particularly regarding personnel and
marketing expenses, as well as efforts to enhance the efficiency of supply chain
and store operations. We are also continuing the integration of Dollarstore into
Tokmanni Group. In addition, we continue to develop our store network in
Finland, Sweden, and Denmark.

Key figures

                    4-6/    4-6/  Change    1-6/    1-6/  Change    1-12/
                    2025    2024       %    2025    2024       %     2024

Revenue, MEUR 442.9 422.5 4.8% 784.7 761.7 3.0% 1,675.0
Like-for-like 1.9 -2.4 0.2 -0.6 1.0
revenue development,
%
Customer visit 3.7 -0.2 2.3 0.6 2.8
development, %
Gross profit, MEUR 156.7 155.2 1.0% 270.9 270.6 0.1% 596.4
Gross profit, % 35.4 36.7 34.5 35.5 35.6
Comparable gross 157.7 155.2 1.7% 273.1 270.6 0.9% 596.2
profit, MEUR
Comparable gross 35.6 36.7 34.8 35.5 35.6
profit, %
Operating expenses, -104.7 -96.4 8.6% -199.7 -185.7 7.5% -374.1
MEUR
Comparable operating -104.7 -96.4 8.6% -199.7 -185.7 7.5% -373.7
expenses, MEUR
EBITDA, MEUR 53.5 59.6 -10.2% 74.0 86.4 -14.4% 227.2
EBITDA, % 12.1 14.1 9.4 11.3 13.6
Comparable EBITDA, 54.6 59.6 -8.4% 76.2 86.4 -11.8% 227.4
MEUR
Comparable EBITDA, % 12.3 14.1 9.7 11.3 13.6
Operating profit 20.4 27.8 -26.9% 7.9 22.8 -65.3% 99.6
(EBIT), MEUR
Operating profit 4.6 6.6 1.0 3.0 5.9
(EBIT), %
Comparable EBIT, 21.4 27.9 -23.2% 10.2 22.8 -55.4% 99.7
MEUR
Comparable EBIT, % 4.8 6.6 1.3 3.0 6.0
Net financial items, -9.9 -9.8 0.5% -18.5 -18.9 -2.3% -38.8
MEUR
Capital expenditure, 7.1 12.8 -44.6% 11.7 18.6 -37.4% 39.4
MEUR
Net cash from 73.1 43.9 -0.8 4.0 89.1
operating
activities, MEUR
Net debt, MEUR 915.9 824.2 816.3
Net debt without 337.1 250.0 255.3
lease liabilities,
MEUR
Net debt / 4.22 3.81 3.59
comparable EBITDA *
Net debt / 3.59 2.41 2.39
comparable EBITDA
without
lease liabilities *
Return on capital 8.1 8.9 9.7
employed, %
Return on equity, % 14.9 16.8 19.5
Equity ratio, % 16.8 17.8 19.1
Number of shares, 58,857 58,849 58,854 58,823 58,844
weighted average
during
the financial period
(thousands)
Diluted number of 58,873 58,877 58,874 58,861 58,872
shares, weighted
average during the
financial period
(thousands)
Earnings per share, 0.17 0.25 -0.14 0.05 0.82
basic (EUR/share)
Earnings per share, 0.17 0.25 -0.14 0.05 0.82
diluted (EUR/share)
Personnel at the end 7,599 7,299 6,613
of the period
Personnel on average 4,683 4,695 4,489 4,457 4,611
in the period (FTE)
* Rolling 12 months
comparable EBITDA

ANALYST AND PRESS CONFERENCE

Tokmanni Group's CEO Mika Rautiainen and CFO Tapio Arimo will present the report
to analysts, investors and media representatives on the publication day at 10:00
am (Finnish time). The live webcast can be accessed via Tokmanni Group's website
at https://ir.tokmanni.fi/en/investors or through the link below. A recording
will be available after the event on Tokmanni Group's website.

Link to the webcast page: https://rajucast.tv/en/tokmanni-group/half-year
-financial-review-for-january-june-2025/.

The participants can ask questions by joining a Teams meeting that is arranged
in conjunction with the live webcast. The link to the Teams can be found on the
webcast page mentioned above.

For further information, please contact

Mika Rautiainen, CEO, tel. +358 20 728 6061, mika.rautiainen(at)tokmanni.fi
Tapio Arimo, CFO, tel. +358 20 728 7390, tapio.arimo(at)tokmanni.fi
Maarit Mikkonen, Head of IR and Communications, tel. +358 40 562 2282,
maarit.mikkonen(at)tokmanni.fi

Tokmanni Group in brief

Tokmanni Group Corporation is one of the leading variety discount retailers in
the Nordics. More than 6,000 employees in Finland, Sweden and Denmark make
customers' everyday life and special occasions easier by offering a versatile
and up-to-date assortment of nordic and international brand-name products and
other high-quality products at prices that are always affordable. With more than
380 Tokmanni, Dollarstore, Big Dollar, Click Shoes and Shoe House stores and
online stores, the Group is always close to its customers. In addition, the
Tokmanni Group has had exclusive rights to sell SPAR products and operate the
SPAR brand in Finland since 2025. In 2024, the Group's revenue was EUR 1,675
million and comparable EBIT amounted to EUR 100 million. The Tokmanni Group
Corporation's shares are listed on Nasdaq Helsinki.

Distribution

Nasdaq Helsinki
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