half-year financial report 2020/media/files/t/tokmanni-v2...•online sales accounted for 1.4%...

Half-year Financial Report 2020Revenue and result grew very strongly

Mika Rautiainen, CEO

Markku Pirskanen, CFO

29 July 2020

Highlights Q2/2020Many thanks to our customers and personnel

• Customers' confidence in Tokmanni was at a very high

level during exceptional times

• Action points related to employee’s trust and security

were very successful

• The spring season was excellent

• The result grew strongly

• Strong sales growth and employee safety measures

especially in supply chain weakened shelf availability

29.7.2020 Half-year Financial Report 20202

Like-for-like customer visits in stores


-0,1 %

-1,0 %

0,2 %

-1,4 %

3,0 %

2,3 % 2,2 %

2014 2015 2016 2017 2018 2019 1-6/2020

Like-for-like average basket


• Great sales for leisure, gardening and home improvement products and food products in particular

• Clothing sales were somewhat lower than in the previous year

-0,2 %

0,4 %

-0,4 %

0,0 %

2,5 %1,9 %

9,4 %

2014 2015 2016 2017 2018 2019 1-6/2020

• Revenue grew by 19.2% (10.2%) and was EUR 286.0 million (239.9)

• Like-for-like revenue for stores grew by 17.5% (5.3%)

• Comparable gross profit totalled EUR 98.6 million. (84.5), with the

comparable gross margin being 34.5% (35.2%)

• Comparable EBIT amounted to EUR 30.6 million (18.7), representing

10.7% representing (7.8%)

• Cash flow from operating activities amounted to EUR 78.9 million (37.8)

• Earnings per share were EUR 0.38 (0.21)

Half-year Financial Report 2020

Q2/2020: revenue and result grew very strongly

29.7.20205

• Tokmanni's online store gained a lot of new customers during

these exceptional times

• Online sales accounted for 1.4% (0.6%) of total revenue in

the second quarter of 2020 and business was profitable

• Expansion of the product range was very successful

• Customer experience, site functionality and how to find

products improved significantly


Online sales grew strongly from the end of March

1–6/2020: Tokmanni was successful during H1/2020

• Revenue grew by 13.3% (9.4%) and was EUR 484.9 million (428.0)

• Like-for-like revenue for stores grew by 11.8% (4.8%)

• Comparable gross profit totalled EUR 162.4 million (143.1), with the

comparable gross margin being 33.5% (33.4%)

• Comparable EBIT amounted to EUR 30.9 million (16.5), representing

6.4% of revenue (3.9%)


• Earnings per share were EUR 0.34 (0.14)


• Tokmanni Group Corporation’s Board of Directors has made a

decision of an additional dividend for the financial year ended

31 December 2019.

• The dividend to be paid is EUR 0.37 per share.

• The company has already paid a dividend of EUR 0.25 per

share for the financial year ended 31 December 2019 and it

was paid on 12 June 2020.

• The dividend shall be paid on 27 August 2020, to shareholders

listed in the company's shareholder register maintained by

Euroclear Finland Ltd on the record date of 31 July 2020.


Payment of additional dividend

Tokmanni’s and non-grocery market development, %

-1,1

1,9

4,5 4,4

10,911,0

7,8 8,0 8,3

10,2

9,9

6,1

5,8

19,2

-9,0-7,4

-11,0

1,11,4 1,6

-1,9-2,9

4,00,6

7,6

-0,1

-7,0

3,6

-12,0

-8,0

-4,0

0,0

4,0

8,0

12,0

16,0

20,0

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

Tokmanni Non-grocery market

Sales development, %

The figures include the following member companies of FGTA: department store and hypermarket chains K-Citymarket, Prisma, Sokos, Tokmanni and Minimani.

Source: The Finnish Grocery Trade Association.


Financial review

Q2/2020: revenue grew by 19.2% (10.2%) and comparable EBIT improved significantly

217,7 239,9

286,0

13,1

18,7

30,6

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

Q2/18 Q2/19 Q2/20

0,0

50,0

100,0

150,0

200,0

250,0

300,0

Revenue Comparable EBIT

Comparable

EBIT, M€Revenue,

M€


Comparable gross profit

• Due to the increase in net sales, the gross profit in

euros were clearly larger

• In the second quarter, the decrease in gross margin-%

was due to even lower prices offered to customers

and especially sales structure

• Due to the strong sales growth, gross margin-% was

improved by lower proportional shrinkage and better

inventory control

84,598,6

143,1

162,4

Q2/19 Q2/20 1-6/19 1-6/20

Comparable gross profit, EUR million


Comparable gross margin, %

34,5%35,2%

29.7.202012

33,5%33,4%

69,5 %30,5 %

Private label's share of sales

13

* Includes private label products, products of exclusive distribution and non-branded products

(69,6)

1-6/2020 (1-6/2019)

(30,4)

Half-year Financial Report 202029.7.2020

Private label*

Other

Q2/2020: private label share of sales 31.4% (32.2%)

Sales structure affected especially to the second quarter

Direct import’s share of sales

14,8 15,713,4 14,7

9,6 9,410,0

9,8

Q2/19 Q2/20 1-6/19 1-6/20

14 Half-year Financial Report 202029.7.2020

25,1%24,4%

Import

through

Shanghai

Other

direct import

24,5%23,4%

Operating expenses were very well in control

• Action points related to the coronavirus epidemic resulted in

some extra costs, however, the relative share of expenses

developed favourably

• The largest item in operating expenses was personnel costs

• Personnel expenses totalled EUR 31.8 million (30.8), 11.1%

of revenue (12.9%)

– Increased expenses were partly due to work shift

arrangements made to prevent the spread of the

coronavirus epidemic and also extra personnel recruited to

improve the supply chain

– Additional bonus to employees totalled EUR 0.6 million

– Reduction in employee pension payments of around

EUR 0.9 million


51,5 52,9

98,3 101,3

Q2/19 Q2/20 1-6/19 1-6/20

Comparable operating expenses, MEUR

Comparable operating expenses, EUR million

Share of revenue, %

29.7.202015

18,5%21,5% 20,9%23,0%

18,7

30,6

16,5

30,9

Q2/19 Q2/20 1-6/19 1-6/19

Comparable EBIT improved clearly

Comparable EBIT margin, %

Q2/2019 Q2/2020 1-6/2019 1-6/2020

7,8% 10,7% 3,9% 6,4%


Comparable EBIT, MEUR

Balance sheet, financing and cash flow

• Inventories amounted to EUR 229.6 million (220.3) at the end of June


during 1-6/2020

• Cash and cash equivalents were EUR 49.8 million (5.8) at the end of

June, and the financial position is stable

• Interest-bearing debt totalled EUR 420.5 million (436.7) at the end

of June

– EUR 100.0 million (100.0) in non-current corporate bonds and loans

from financial institutions and EUR 10.0 million (19.6) in current

corporate bonds and loans from financial institutions

– The remainder of the liabilities are lease liabilities reported under

IFRS 16

• Ratio of net debt to comparable EBITDA (rolling 12 months) was 2.5

(3.7) at the end of June

• Equity ratio was 25.0% (20.3%) at the end of June 2020


220,3 229,6

30.6.2019 30.6.2020

Inventories, MEUR

Inventories, EUR million

Number of stores

189

stores

29.7.202017

190

stores

Net capital expenditure

• Investments in the store network were postponed

in the second quarter

• Net capital expenditure in the second quarter totalled

EUR 3.1 million (5.6)

– Capital expenditure was mainly focused on the

expansion of the store network and renovations of stores

• Net capital expenditure totalled EUR 6.3 million (8.3) in

January–June 2020

• Capital expenditure in 2020 is expected to be around

EUR 15 million

5,6

3,1

8,3

6,3

Q2/19 Q2/20 1-6/19 1-6/20

Net capital expenditure, MEUR


H2/2020:

Strong focus on discount retailingin the current market situation

• Continuing the investments in security and well-being

of our customers, personnel and partners

• Contingency plans for the second wave of COVID-19

are done

• Securing the supply chain and the product flow for a

successful Christmas season

• Improving efficiency of the supply chain and improving

shelf availability will continue

• Strong commercial plan for the rest of the year

29.7.202020

Key action in H2/2020


• Tokmanni forecasts strong growth in revenue and

like-for-like revenue in 2020.

• Group profitability (comparable EBIT margin) is

expected to improve on the previous year.

• Tokmanni’s outlook for the latter half of 2020 is

based on the assumption that there will be no

significant disturbances in the market environment of

Tokmanni’s business.


Tokmanni’s outlook 2020

29.7.202021

tokmanni.fi

Thank [email protected]

Business Review January–September 2020

published on 29 October 2020

half-year financial report 2020/media/files/t/tokmanni-v2...•online sales accounted for 1.4%...

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