Tokmanni Group Oyj · OMXHEX:TOKMAN
Tokmanni Group Oyj — Q3 2019 Earnings Presentation
19 slides from Tokmanni Group Oyj's earnings presentation, Oct 30, 2019
Slide 1: Business Review 1–9/2019
Business Review 1–9/2019 Strong growth in revenue and EBIT in the third quarter Mika Rautiainen, CEO Markku Pirskanen, CFO 30 October 2019
Slide 2: Highlights Q3/2019
Highlights Q3/2019 • Strong revenue development – Sales developed favourably in all product categories – Sales were also supported by tax refunds • Strong EBIT development – The gross margin improvement was due to the sales mix and higher sales of private labels and direct import products – The rela
Slide 3: Q3/2019: All product categories were performing very well
Q3/2019: All product categories were performing very well • Revenue grew by 9.9% (7.8%) to EUR 231.5 million (210.7) – Tools, leisure and home goods, interior decoration and garden products had strong sales • Like-for-like revenue increased by 4.9% (4.0%) • Comparable gross profit totalled EUR 82.0
Slide 4: 1–9/2019: Business proceeding according to the plan
1–9/2019: Business proceeding according to the plan • Revenue grew by 9.5% (9.9%) and was EUR 659.5 million (602.0) • Like-for-like revenue grew by 4.9% (5.9%) • Comparable gross profit totalled EUR 225.1 million (202.7), comparable gross margin 34.1% (33.7%) • Comparable EBIT amounted to EUR 38.4 m
Slide 5: Actions to improve profitability continue
Actions to improve profitability continue • Improving gross margin – Increasing sales of private labels and direct imports • Reducing the share of operating expenses – Proceeding according to the plan – Improvements in supply chain management has been started, results will be seen in the future • De
Slide 6: Tokmanni’s and non-grocery market development, %
Tokmanni’s and non-grocery market development, % Sales development, % 12,0 10,2 11,0 8,0 11,0 9,9 7,8 8,0 8,3 7,6 4,0 4,5 4,4 4,0 0,0 1,9 1,4 1,6 1,1 0,6 -1,2 -4,0 -1,9 -2,9 -8,0 -7,4 -9,0 -12,0 -11,0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Tokmanni Non-grocery market 6 30
Slide 7: Financial review
TOKMANNI Financial review
Slide 8: Tokmanni’s revenue is growing
Tokmanni’s revenue is growing Revenue development, % Like-for-like revenue development, % 9,3 9,5 5,6 4,9 2,9 2,7 2,7 -0,1 -0,6 -1,3 2015 2016 2017 2018 1-9/2019 8 30 October 2019 Business Review 1–9/2019
Slide 9: Tokmanni’s operations are subject to seasonality
Tokmanni’s operations are subject to seasonality Comparable Revenue, EBIT, MEUR MEUR 30,0 300,0 24,4 25,0 21,9 250,0 20,0 18,7 200,0 15,5 15,0 13,1 150,0 10,0 268,4 239,9 231,5 217,7 210,7 100,0 5,0 173,7 188,1 - 1,9 50,0 0,0 - 2,2 - 5,0 0,0 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Re
Slide 10: Q3/2019: Comparable gross profit developed positively
Q3/2019: Comparable gross profit developed positively 225,1 • The gross margin improvement was 202,7 mainly due to the sales mix • Share of private labels and direct imports of total revenue developed favourably – tools, leisure and home goods, interior decoration and garden products has 82,0 72,1 s
Slide 11: Development of private labels and direct imports progressing
Development of private labels and direct imports progressing Private label's share of sales, %* Direct import’s share of sales, % Private label Other Import through Shanghai Other direct import 25,7% 24,4% 23,6% 22,1% 22,9% 31,8 7,5 8,9 9,3 10,3 (30,9) 9,6 68,2 (68,9) (69,1) 16,1 16,8 12,5 13,6 14,1
Slide 12: Operating expense ratio improved
Operating expense ratio improved 144,0 • The increase in euro-denominated 136,3 operating expenses was mainly due to – additional operating expenses that came from the new stores added to the store network and high sales volumes • In January-September 2019 personnel expenses totalled EUR 84.1 millio
Slide 13: Strong EBIT development
Strong EBIT development Comparable EBIT, MEUR 38,4 26,5 21,9 15,5 Q3/2018 Q3/2019 1-9/2018 1-9/2019 Comparable EBIT margin, % Q3/2018 Q3/2019 1–9/2018 1–9/2019 7.4% 9.5% 4.4% 5.8% 13 30 October 2019 Business Review 1–9/2019
Slide 14: Balance sheet and financial position
Balance sheet and financial position • The increase in inventories was due to the earlier product deliveries to the Christmas season sales, growth in the store network and partly to the wider selection of stock keeping 189 units 177 • Due to the increase in inventories, cash flow from operating acti
Slide 15: Net capital expenditure
Net capital expenditure Net capital expenditure, MEUR • Capital expenditure was mainly focused on – the expansion of the store network, 11,9 – renovations of stores and 10,9 – the development of digital services • Capital expenditure in 2019 is expected to be around EUR 15 million 3,4 3,6 Q3/2018 Q3
Slide 16: Tokmanni's outlook for 2019 updated with regard to revenue
Tokmanni's outlook for 2019 updated with regard to revenue • Tokmanni expects strong revenue growth for 2019, based on the revenue from the new stores acquired and opened in 2018 and new stores to be opened in 2019, as well as on good growth in like-for-like revenue. • Group profitability (comparabl
Slide 17: Perfekt+ is packed with high-quality everyday products
Perfekt+ is packed with high-quality everyday products for laundry, dishwashing and cleaning 17 30 October 2019 Business Review 1–9/2019
Slide 18: Financial Statements Review 2019 will be published in February 2020
Financial Statements Review 2019 will be published on 7 February 2020 IR contact: Maarit Mikkonen [email protected] 040 562 2282 [email protected]
Slide 19: Thank you!
Thank you! [email protected] tokmanni.fi