• Tokmanni Group revenue grew by 39.0% (1.5 %) and was EUR 471.2 million (339.0)
• Like-for-like revenue increased by 1.0% (-1.0%)
• Comparable gross profit totalled EUR 172.0 million (119.5) with the comparable gross margin being 36.5% (35.2%)
• Comparable EBIT amounted to EUR 46.2 million (35.8), representing 9.8% of revenue (10.5%)
• Cash flow from operating activities amounted to EUR 116.5 million (92.2)
• Earnings per share, diluted was EUR 0.44 (0.41)

• Tokmanni Group completed the acquisition of Dollarstore on 1 August 2023
• Tokmanni Group revenue grew by 19.2% (2.3%) and was EUR 1,392.7 million (1,168.0)
• Like-for-like revenue increased by 1.1% (-0.7%)
• Comparable gross profit totalled EUR 489.5 million (398.0) with the comparable gross margin being 35.2% (34.1%)
• Comparable EBIT amounted to EUR 98.8 million (85.8), representing 7.1% of revenue (7.3%)
• Cash flow from operating activities amounted to EUR 220.2 million (86.3)
• Earnings per share, diluted was EUR 0.92 (1.00)

NEW FINANCIAL REPORTING STRUCTURE

Tokmanni Group has changed its segment reporting due to the Dollarstore acquisition. From the fourth quarter of 2023, Tokmanni Group has two reportable segments, Tokmanni and Dollarstore. Tokmanni segment includes the Tokmanni, Miny, Click Shoes and Shoe House stores, as well as the Tokmanni and Click Shoes online stores. Click Shoes' and Shoe House's financials have been included in Tokmanni Group financials starting from 1 March 2023. Dollarstore segment consists of the Dollarstore and Bigdollar stores. Dollarstore financials have been included in Tokmanni Group financials starting from 1 August 2023. Tokmanni Group refers to the whole group.

DIVIDEND PROPOSAL

Tokmanni's Board of Directors proposes to the Annual General Meeting a dividend of maximum EUR 0.76 per share, which would be paid in two instalments.

TOKMANNI'S OUTLOOK FOR 2024

In 2024, Tokmanni Group expects its revenue to be EUR 1,660-1,760 million. Comparable EBIT is expected to be EUR 110-130 million.

TOKMANNI GROUP'S PRESIDENT AND CEO MIKA RAUTIAINEN
Tokmanni Group became the leading discount retailer in the Nordics

Tokmanni Group's acquisitions completed in 2023 made it a very significant year in the Group's success story. With the Dollarstore acquisition, Tokmanni Group became the leading discount retail chain in the Nordics. Good progress has been made in the realization of the synergy targets related to the acquisition. By the end of the year, we reached approximately EUR 2.4 million in annual synergies. The acquisitions of Click Shoes and Catmandoo enabled us to significantly strengthen our apparel offering in the Finnish market. The integrations of all acquisitions progressed as planned during 2023.

The reduction of disposable income was clearly reflected in customers' purchasing behaviour in 2023. Store visits and shopping basket contents were considered very carefully, especially in non-grocery products. In the final quarter, sales growth in Finland, Sweden and Denmark was satisfactory considering the market conditions, and the Group's revenue increased by 39.0% to EUR 471.2 million mainly driven by the Dollarstore acquisition.

Tokmanni segment's revenue for the fourth quarter was EUR 351.5 million. The growth was driven by the Click Shoes acquisition and a good start to the quarter. Like-for-like revenue grew by 0.6%. Comparable EBIT was EUR 36.1 million (36.0). The level of EBIT was supported in part by excellent control of fixed costs.

Dollarstore segment's revenue for the fourth quarter was EUR 119.8 million. Like-for-like revenue grew by 2.1% in local currencies. Dollarstore's strong price image is working well in the Swedish market also when consumer purchasing power weakens. Dollarstore's comparable EBIT amounted to EUR 10.7 million. The EBIT development was supported by sales growth and improvement in the gross profit.

In 2023, inventory control and increasing the efficiency of the supply chain received particular attention. The total value of Tokmanni Group's inventories was EUR 342.9 million (281.3). Thanks to successful measures taken, the value of the Tokmanni segment's inventories decreased to EUR 248.8 million (281.3) at the end of the year. Dollarstore's inventories amounted to EUR 94.1 million. Our successful measures to control inventory levels contributed to the increase in the Group's cash flow from operating activities. The Group's cash flow from operating activities in 2023 amounted to EUR 220.2 million (86.3).

At our Capital Markets Day held in February 2024, we presented our updated strategy and targets. Strengthening customer confidence and loyalty continue to be at the heart of everything we do. We will continue to work systematically to develop our operations.

I would like to extend my warmest thanks to our customers and partners and, above all, to all Tokmanni Group's wonderful employees for the year 2023. Together, we are in an excellent position to continue implementing our strategy and strengthening our position as the leading discount retailer in the Nordics.

Key figures
(Dollarstore 10-12/ 10-12/ Change 1-12/ 1-12/ Change
included in from 1 2023 2022 % 2023 2022 %
August
2023 onwards)
Revenue, MEUR 471.2 339.0 39.0% 1,392.7 1,168.0 19.2%
Like-for-like 1.0 -1.0 1.1 -0.7
revenue development,
%
Customer visit 0.5 0.3 0.7 0.8
development, %
Gross profit, MEUR 169.5 117.8 43.9% 486.9 396.8 22.7%
Gross profit, % 36.0 34.7 35.0 34.0
Comparable gross 172.0 119.5 44.0% 489.5 398.0 23.0%
profit, MEUR
Comparable gross 36.5 35.2 35.2 34.1
profit, %
Operating expenses, -96.5 -67.3 43.4% -301.2 -243.7 23.6%
MEUR
Comparable operating -96.2 -66.2 45.4% -298.1 -243.1 22.6%
expenses; MEUR
EBITDA, MEUR 74.4 51.7 43.7% 189.9 157.1 20.8%
EBITDA, % 15.8 15.3 13.6 13.5
Comparable EBITDA, 77.2 54.5 41.5% 195.6 158.9 23.2%
MEUR
Comparable EBITDA, % 16.4 16.1 14.0 13.6
Operating profit 43.4 33.0 31.7% 93.0 84.1 10.7%
(EBIT), MEUR
Operating profit 9.2 9.7 6.7 7.2
(EBIT), %
Comparable EBIT, 46.2 35.8 29.3% 98.8 85.8 15.2%
MEUR
Comparable EBIT, % 9.8 10.5 7.1 7.3
Net financial items, -10.4 -2.9 255.4% -24.7 -10.7 129.4%
MEUR
Capital expenditure, 17.5 20.5 -14.7% 238.7 54.3 339.8%
MEUR
Net cash from 116.5 92.2 220.2 86.3
operating
activities, MEUR
Net debt, MEUR 730.4 383.4
Net debt without 165.3 100.4
lease liabilities,
MEUR
Net debt / 3.7 2.4
comparable EBITDA *
Net debt / 1.6 1.1
comparable EBITDA
without
lease
liabilities *
Return on capital 11.2 12.8
employed, %
Return on equity, % 22.2 26.9
Equity ratio, % 18.8 31.2
Number of shares, 58,825 58,818 58,819 58,815
weighted average
during
the financial period
(thousands)
Diluted number of 58,884 58,860 58,878 58,858
shares, weighted
average during the
financial period
(thousands)
Earnings per share, 0.44 0.41 0.92 1.00
basic (EUR/share)
Earnings per share, 0.44 0.41 0.92 1.00
diluted (EUR/share)
Personnel at the end 6,206 4,241
of the period
Personnel on average 4,314 3,013 3,706 3,126
in the period (FTE)

* Rolling 12 months comparable EBITDA

Analyst and press conference

Tokmanni Group's President and 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 in English (Finnish time).

The live webcast can be accessed via Tokmanni's website at https://ir.tokmanni.fi/en/investors or through the link below. On-demand version of the presentation will be available on the company's website later during the same day.

Webcast link: https://rajucast.tv/en/tokmanni/q4-financial-statements-review-for-2023/

The participants can also join a telephone conference that will be arranged in conjunction with the live webcasts. The participants are asked to dial in 5-10 minutes prior to starting time using the phone number and password below.

Finland: +358 9 2319 5437
Sweden: +46 (0) 8 5052 0424
UK: +44 (0) 33 0551 0200
US: +1 786 697 3501
Password: Tokmanni / 220324

For further information, please contact

Mika Rautiainen, President and 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. Around 6,600 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 370 Tokmanni, Dollarstore, Bigdollar, Miny, Click Shoes and Shoe House stores and online stores, the Group is always close to its customers. In 2023, Tokmanni Group Corporation's revenue was EUR 1,393 million and comparable EBIT amounted to EUR 99 million. The Group's shares are listed on Nasdaq Helsinki.

Distribution

Nasdaq Helsinki
Key Media