Tokmanni Group Oyj · OMXHEX:TOKMAN
Tokmanni Group Oyj — Q1 2019 Earnings Presentation
17 slides from Tokmanni Group Oyj's earnings presentation, Apr 25, 2019
Slide 1: Q1/2019
Q1/2019 Mika Rautiainen, CEO Markku Pirskanen, CFO
Slide 2: Revenue grew strong 8.3%, EBIT at previous year's level
Revenue grew strong 8.3%, EBIT at previous year's level • Revenue grew by 8.3% (10.9%) • Like-for-like revenue grew by 4.1% (6.1%) • Comparable gross profit totalled EUR 58.6 million (54.6), gross margin 31.2% (31.4%) • Comparable EBITDA totalled EUR 12.8 million (12.1), 6.8% of revenue (7.0%*) • Co
Slide 3: Tokmanni's like-for-like customer visits development
Tokmanni’s like-for-like customer visits development 3,0 % 3,1 % 0,2 % -0,1 % -1,0 % -1,4 % 2014 2015 2016 2017 2018 Q1/2019 3 25.4.2019 TOKMANNI Q1/2019
Slide 4: Tokmanni's and non-grocery market development
Tokmanni’s and non-grocery market development Sales development, % 12,0 11,0 8,0 10,9 7,8 8,0 8,3 4,0 4,5 4,4 4,0 0,0 1,9 1,4 1,6 1,1 -1,1 -1,9 -4,0 -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 Tokmanni Non-grocery market FGTA STATISTICS DOESN’T INCLUDE ONLIN
Slide 5: Main focus in 2019: Improving profitability
Main focus in 2019: IMPROVING PROFITABILITY 5 25.4.2019 TOKMANNI Q1/2019
Slide 6: Improving profitability
Improving profitability Development of profitability in Q1/2019 Long-term profitability target About 9 % • Development of gross margin 1,0%-2,0% – The conversion of Ale-Makasiini to Tokmanni was implemented as quickly as possible 6,0 % 1,0%-1,5% – Measures to improve product group specific gross mar
Slide 7: Action points in 2019
Action points in 2019 • Increasing the gross margin – Increasing direct import and sales of own brands – Increasing batch sales – Improving product group performance in terms of shrinkage and inventory management • Reducing the share of fixed costs – Strengthening supply chain and reducing real esta
Slide 8: Financial development
FINANCIAL DEVELOPMENT 8
Slide 9: Tokmanni's operations are subject to seasonality
Tokmanni’s operations are subject to seasonality The first quarter of the year is the lowest for sales and result Comparable Revenue, EBIT, M€ M€ 30,0 300,0 25,3 25,0 250,0 20,0 15,5 200,0 15,0 13,1 150,0 10,0 268,4 217,7 210,7 100,0 5,0 173,7 188,1 0,0 - 1,9 - 2,2 50,0 - 5,0 0,0 Q1/2018 Q2/2018 Q3/
Slide 10: Net sales growth is proceeding well
Net sales growth is proceeding well 188,1 173,7 • The strong revenue growth of 8.3% was mainly due to – investments in expanding product selections – developing the store concept +4,1 % – low prices • Sales development was at a good level in the clothing and tool products categories in particular Q1
Slide 11: Development of the gross margin
Development of the gross margin Comparable gross profit • Gross margin was affected by – conversion of Ale-Makasiini stores into 58,6 Tokmanni stores and the related clearance 54,6 +7,4 % sales and changes to product selections • effect of around EUR -0.5 million, corresponding to around 0.3% points
Slide 12: Reducing proportion of operating expenses has progressed in right direction
Reducing proportion of operating expenses has progressed in right direction Comparable operating expenses • The increase in euro-denominated operating expenses was mainly due to 46,8 – expansion of store network 43,4 +8,0 % – converting Ale-Makasiini stores into Tokmanni – increase in sales volumes
Slide 13: Balance sheet and financial position
Balance sheet and financial position 188 • The increase in inventories was mainly due to 175 – expansion of the store network – larger number of stock-keeping units – timing of Easter • Cash flow from operating activities amounted to EUR -28.3 million (-13.9*) 187,9 214,0 • Cash and cash equivalents
Slide 14: Net capital expenditure
Net capital expenditure • Increase in capital expenditure was mainly 2,7 due to – expansion of the store network – renovations of stores – development of digital services 1,4 • Capital expenditure in 2019 is expected to be around EUR 14–15 million Q1/18 Q1/19 14 25.4.2019 TOKMANNI Q1/2019
Slide 15: Outlook for 2019 unchanged
Outlook for 2019 unchanged • Tokmanni expects good 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 slight growth in like-for-like revenue. • Group profitability (comparable EBIT margin) is expected to im
Slide 16: Tokmanni
TOKMANNI
Slide 17: Half Year Financial Report is published in August 2019
Half Year Financial Report is published in 8 August 2019 IR contact: Maarit Mikkonen [email protected] +358 40 562 2282 [email protected] 17 25.4.2019 TOKMANNI Q1/2019