Tokmanni Group

The business models of discount retailers often rely on low prices all year round and a tight cost structure. It is therefore relevant to look more closely at the different types of cost structures and profitability factors of the companies.

Tokmanni reported its first quarter as a Nordic discount retailer. Overall, the Q3 report was weak, with revenue and EPS below our expectations. According to the company, the Dollarstore integration is well underway, and the first significant synergies are expected from the beginning of 2024.

The decline was strongest in the clothing product group (-12%), which, we believe, hits Stockmann the hardest, but also has an impact on both Tokmanni's and Kesko’s consumer goods trade. The total grocery (daily goods) trade grew by 5.1%, which was still driven by price inflation, but the trend has been turning since the start of the year and we expect volumes to slowly pick up as inflation eases. As expected, the food service market slowed down by 1.6% from the previous year, which Kespro’s sales figures sort of reflected.

The Finnish Grocery Trade Association (Päivittäistavarakauppa ry PTY) reported that the revenue of department store and hypermarket chains (K-Citymarket, Prisma, Sokos, Tokmanni, Minimani and Stockmann) grew by 7.3% in August.

Häng med Tokmanni-analytikern Olli Vilppo och Isa Hudd in i en Tokmanni affär!

Tokmanni's Q2 results were close to our expectations, and we finally saw positive development in comparable EBIT. Inflation continues to a burden on the company, especially in own costs, but we expect the sales margin to continue to recover, supporting the earnings growth outlook.

Tokmanni's Q2 results were close to our expectations, and we finally saw positive development in comparable EBIT. Inflation continues to a burden on the company, especially in own costs, but we expect the sales margin to continue to recover, supporting the earnings growth outlook. We also remain cautiously positive on the acquisition of Dollarstore.