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  • Tokmanni’s Business Review for 1 January–31 March 2021: First-quarter revenue grew 13.6% and comparable EBIT improved significantly

Tokmanni’s Business Review for 1 January–31 March 2021: First-quarter revenue grew 13.6% and comparable EBIT improved significantly

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Tokmanni Group Corporation        Business Review        Unaudited        29 April 2021 at 8:30 am


  • Revenue grew by 13.6% (5.8%) and was EUR 226.1 million (199.0)
  • Like-for-like revenue for stores grew by 12.7% (4.4%)
  • Comparable gross profit totalled EUR 74.8 million (63.8), with the comparable gross margin being 33.1% of revenue (32.1%)
  • Comparable EBIT amounted to EUR 6.8 million (0.3), representing 3.0% of revenue (0.1%)
  • Cash flow from operating activities amounted to EUR -22.0 million (-23.5)
  • Earnings per share, diluted was EUR 0.07 (-0.04)


Tokmanni’s outlook remains unchanged. Tokmanni forecasts slight growth in revenue for 2021. Group profitability measured in euros (comparable EBIT) is expected to be on the same level as last year.


An excellent start to Tokmanni’s year

Tokmanni’s revenue grew by 13.6%. All product categories enjoyed strong growth, particularly leisure and home electronics products. Online store sales grew by 145.5%. The number of customer visits decreased by 0.8%, while the average basket size grew by 14.5%. Customer behaviour was strongly influenced by the measures and restrictions imposed to control the coronavirus pandemic. At Tokmanni, coronavirus infections have remained very low. We thank our customers for acting responsibly in our stores and our employees for coping with the impacts of the coronavirus crisis.

Tokmanni’s gross margin improved clearly in the first quarter. Additionally, we succeeded in maintaining strict cost control. Operating profit increased on the back of revenue growth, an improved gross margin and cost control. Comparable EBIT set a record for the first quarter, amounting to EUR 6.8 (0.3) million.

The spring season is already under way in most of Finland. Tokmanni’s new spring and summer selection is available almost in its entirety at our stores. Tokmanni has so far succeeded in managing the challenges facing global transport so that it will not cause any major problems for the business.

At the Capital Markets Day held in March, Tokmanni announced its new financial targets. We have initiated systematic measures to achieve these targets. Customer trust and customer loyalty are at the core of everything we do.

Key figures
1-3/2021 1-3/2020 Change% 1-12/2020
Revenue, MEUR 226.1 199.0 13.6% 1 073.2
Like-for-like revenue development, % 12.7 4.4 12.3
Customer visit development % -0.8 2.8 3.2
Gross profit, MEUR 76.0 64.2 18.4% 370.9
Gross margin, % 33.6 32.2 34.6
Comparable gross profit, MEUR 74.8 63.8 17.2% 371.6
Comparable gross margin, % 33.1 32.1 34.6
Operating expenses -52.7 -49.5 6.5% -211.5
Comparable operating expenses -52.5 -48.5 8.3% -210.9
EBITDA, MEUR 24.2 15.7 54.3% 163.6
EBITDA, % 10.7 7.9 15.2
Comparable EBITDA, MEUR 23.2 16.3 42.0% 164.9
Comparable EBITDA, % 10.3 8.2 15.4
Operating profit (EBIT), MEUR 7.8 -0.4 2074.8% 98.9
Operating profit margin EBIT, % 3.5 -0.2 9.2
Comparable EBIT, MEUR 6.8 0.3 2459.3% 100.2
Comparable EBIT, % 3.0 0.1 9.3
Net financial items, MEUR -2.6 -2.5 2.8% -10.0
Net capital expenditure, MEUR* 2.3 3.2 -29.6% 12.8
Net debt / comparable EBITDA ** 2.1 3.1 2.0
Net cash from operating activities, MEUR -22.0 -23.5 151.1
Return on capital employed, % 1.3 -0.1 16.2
Return on capital employed %, rolling 12 months 17.6 12.1 16.3
Return on equity, % 2.4 -1.4 35.4
Return on equity %, rolling 12 months 39.8 29.9 37.4
Equity ratio, % 22.7 25.3 27.7
Number of shares, weighted average during
the financial period (thousands)
58 731 58 854 58 825
Diluted number of shares, weighted average during
the financial period (thousands)
58 760 58 860 58 850
Earnings per share, basic (EUR/share) 0.07 -0.04 1.21
Earnings per share, diluted (EUR/share) 0.07 -0.04 1.21
Personnel at the end of the period 3 876 3 556 4 056
Personnel on average in the period 3 842 3 518 3 873

* Net capital expenditure, excluding non-current receivables from others
** Rolling 12 months comparable EBITDA


According to the FGTA, the non-grocery market grew by 7.6% for the first quarter of 2021. The development of home and leisure products was strong, in particular. The revenue of department store and hypermarket chains grew by 9.3%. Tokmanni clearly outperformed the rest of the market in terms of growth. Tokmanni’s revenue grew by 13.6%.

The member companies of the FGTA operate the department store and hypermarket chains of K-Citymarket, Prisma, Sokos, Stockmann, Tokmanni and Minimani. However, it is important to note that the statistics compiled by the FGTA only cover part of Tokmanni’s addressable market.


Expanding the store network is one of the key ways of growing Tokmanni’s revenue and operating profit. Tokmanni has an efficient process of rolling out and ramping up new stores. Tokmanni aims to grow its store network to more than 220 stores in Finland by the end of 2025, which means around six new or relocated stores every year.

At the end of the first quarter, Tokmanni had 192 stores in Finland (31 March 2020: 190). In the first few months of this year, Tokmanni refurbished its stores in Tiiriö in Hämeenlinna and in Vanhakylä in Loviisa, as well as the stores in Järvenpää and Raisio. The store in Mäntsälä will be renewed during the spring. Tokmanni will move to new, larger commercial premises within the Trio shopping centre in Lahti in the spring and the Forum shopping centre in Jyväskylä in the autumn. In addition, Tokmanni has concluded an agreement for the opening of new stores in Kannelmäki in Helsinki, Kausala in Iitti, Rusko in Oulu, Kirkonkylä in Nurmijärvi, and Leppävirta. More information is available on the Tokmanni website on the “New store development” page, https://ir.tokmanni.fi/en/investors/tokmanni-as-an-investment/new_stores, and on the “News and Media” page, https://ir.tokmanni.fi/en/news-and-media.

Tokmanni considers a store to be new or relocated over the duration of its opening year and the following calendar year. On average, a new store becomes profitable after around 12 months and reaches its full capacity within around 24 months. New and relocated stores include new stores opened and store relocations where the store size changes by 30% or more and the assortment increases or is reduced substantially.



Tokmanni’s business is subject to seasonality, which has a significant effect on its revenue, profitability and cash flows. Generally, Tokmanni’s revenue, profitability and cash flows are lowest in the first quarter and highest in the fourth quarter due to Christmas sales.

Revenue in January–March 2021

In the first quarter of 2021, Tokmanni’s revenue grew by 13.6% (5.8%) to EUR 226.1 million (199.0). All product categories enjoyed strong growth, particularly leisure and home electronics products. Tokmanni’s online sales accounted for 1.3% (0.6%) of its total revenue, an increase of 145.5% year-on-year.

Like-for-like revenue grew by 12.7% (4.4%). Due to the coronavirus pandemic, customer behaviour in the past quarter was in line with the overall trend seen during the pandemic, differing from behaviour in the first quarter of last year. Like-for-like customer visits in stores were down 1.4% (+1.6%) and the total number of customers was down 0.8% (+2.8%) year-on-year. The like-for-like average basket in stores grew by 14.3% to EUR 19.84 (17.36).

Direct imports accounted for 24.4% of sales (23.7%). These can be broken down into products purchased using Tokmanni’s sourcing company in Shanghai, which accounted for 14.4% (13.3%), and into other direct imports, which accounted for 10.1% (10.4%). The brands managed by Tokmanni (private label products, exclusive brands and non-branded products) represented 29.6% of first-quarter sales (29.2%).

Profitability in January–March 2021

First-quarter gross profit totalled EUR 76.0 million (64.2), corresponding to a gross margin of 33.6% (32.2%). Comparable gross profit was EUR 74.8 million (63.8), corresponding to a comparable gross margin of 33.1% (32.1%). The gross margin was impacted positively by the sales mix and the increase in the share of direct imports and private label products.

Operating expenses grew to EUR 52.7 million (49.5), or 23.3% of revenue (24.9%), and thus their relative share developed favourably. The growth in operating expenses in euro terms was primarily due to growth in sales volumes and the resulting increase in personnel expenses in the stores. In addition, expenses increased somewhat due to maintenance measures conducted at properties because of heavy snowfall in the winter as well as contingency measures implemented to counter the effects of the coronavirus pandemic. Comparable operating expenses were EUR 52.5 million (48.5), or 23.2% of revenue (24.4%). Personnel expenses for the quarter totalled EUR 30.7 million (28.0), or 13.6% of revenue (14.1%).

EBITDA amounted to EUR 24.2 million (15.7), and the EBITDA margin was 10.7% (7.9%). Comparable EBITDA totalled EUR 23.2 million (16.3), and the comparable EBITDA margin was 10.3% (8.2%).

Thanks to revenue growth, an improved gross margin and cost control, EBIT grew clearly. EBIT totalled EUR 7.8 million (-0.4), and the EBIT margin was 3.5% (-0.2%). Comparable EBIT totalled EUR 6.8 million (0.3), and the comparable EBIT margin was 3.0% (0.1%).

Net financial items totalled EUR -2.6 million (-2.5). The result before taxes was EUR 5.2 million (-2.9). Taxes amounted to EUR -1.0 million (0.6). The net result was EUR 4.2 million (-2.4).

Diluted earnings per share were EUR 0.07 (-0.04). The return on capital employed was 1.3% (-0.1%). The return on equity was 2.4% (-1.4%). The 12-month rolling return on capital employed was 17.6% (12.1%), and the 12-month rolling return on equity was 39.8% (29.9%).

Balance sheet, financing and cash flow

At the end of March 2021, Tokmanni’s inventories amounted to EUR 253.7 million (238.8). The increase in inventories was due to the arrival of the spring season goods earlier than last year. The amount of inventories a year ago was lower also because consumers stockpiled goods very actively due to the outbreak of the coronavirus pandemic at the end of March 2020.

The Group’s cash flow from operating activities amounted to EUR -22.0 million (-23.5) in the first quarter. Cash and cash equivalents stood at EUR 41.3 million (3.3) at the end of March 2021 and the company’s financial position is stable.

At the end of March 2021, Tokmanni’s interest-bearing debt totalled EUR 393.7 million (425.9), including EUR 100.0 million (100.0) in non-current corporate bonds and loans from financial institutions and EUR 0 million (13.9) in current corporate bonds and loans from financial institutions.

The ratio of net debt to comparable EBITDA (rolling 12 months) was 2.1 (3.1) at the end of March 2021. Tokmanni intends to maintain an efficient long-term capital structure, and its long-term goal is to keep the ratio of net debt to comparable EBITDA below 3.2.

Tokmanni’s equity ratio was 22.7% (25.3%).

Capital expenditure

Net capital expenditure in the first quarter totalled EUR 2.3 million (3.2). Capital expenditure was mainly focused on the expansion of the store network, renovations of stores and the development of digital services.

Capital expenditure in 2021 is expected to be around EUR 16–18 million.

Tokmanni has begun exploring the possibility of expanding the Mäntsälä logistics centre together with the owner of the property and the municipality of Mäntsälä. According to preliminary plans, the warehouse space would increase by about a third from the current area. If the project is implemented, the enlarged logistics centre would replace some of the current external warehouses and have an impact on the capital expenditure level in the coming years. The feasibility study for the project is still in progress.


Tokmanni is a significant employer in Finland. Tokmanni had 3,876 (3,556) employees at the end of March 2021. On average, Tokmanni employed 3,842 (3,518) people during January-March 2021. In January–March 2021 personnel expenses totalled EUR 30.7 million (28.0), representing 13.6% of revenue (14.1%).


The Board of Directors of Tokmanni Group Corporation resolved to continue its share-based incentive program directed to the key employees. The aim of the program is to combine the objectives of the shareholders and the key employees in order to increase the value of the Company in the long-term, to commit the key employees to implement the Company’s strategy, and to offer them a competitive reward program based on earning and accumulating the Company’s shares.

The performance share program includes the calendar year 2021. The potential reward of the program will be based on the Company’s earnings per share and on the market value development 1.1-31.12.2021.

The target group of the program includes the CEO, the members of the Executive Group as well as other key employees. The potential rewards, which by nature are taxable income, to be paid correspond to a maximum of 120,000 Tokmanni Group Corporation’s shares based on the market value at the moment of granting and will be paid in Tokmanni Group shares and possibly partly in cash. The cash proportion covers taxes and tax-related costs arising from the reward to a key employee. The earned shares will be transferred to the participant’s book-entry account in 2022 and will be released from restrictions in January 2024. If the employee’s employment ends before the end of the restriction period, the shares will be returned to the company.


The cornerstones of Tokmanni’s strategy are enhancing customer confidence and loyalty and improving cost-effectiveness. Key measures to achieve these are investments in the significant expansion of the assortment, low prices, easy shopping, an attractive customer experience, the expansion of the store network, personnel, responsibility and the efficiency of operations.

Updated target Previous target
Revenue EUR 1.5 billion Slight growth in comparable revenue
Comparable EBIT EUR 150 million About 9%
Store network* Over 220 stores in Finland Over 200 stores
Net debt / comparable EBITDA Less than 3.2 Less than 3.2
Dividend** About 70% of net result for
the financial year
About 70% of net result for
the financial year

*Tokmanni’s goal is to increase the amount of stores every year around six new or relocated stores in Finland.
**The decision to distribute dividend is always dependent on capital structure, financial position, general economic and business conditions and future outlook.


Tokmanni Group Corporation's Annual General Meeting was held in Mäntsälä, Finland on 23 March 2021. The meeting was held based on the so-called temporary act so that shareholders participated in the meeting and exercised their shareholder rights only by voting in advance and by submitting counterproposals and asking questions in advance. The resolutions and other materials are available on Tokmanni’s website at https://ir.tokmanni.fi/en/investors/corporate-governance/general-meeting/agm2021.


Tokmanni’s risks and uncertainties are discussed in detail in the Report by the Board of Directors for 2020 and in the Financial Statements Bulletin as well as Tokmanni’s website at https://ir.tokmanni.fi/en/investors/tokmanni-as-an-investment/riskienhallinta.


Tokmanni’s outlook remains unchanged. Tokmanni forecasts slight growth in revenue for 2021. Group profitability measured in euros (comparable EBIT) is expected to be on the same level as last year.

Adjustments affecting comparability

Tokmanni reports EBITDA and EBIT as its key performance indicators and makes adjustments to improve comparability and provide a better view of Tokmanni’s operational performance. EBITDA is a non-IFRS indicator that represents operating profit before depreciation. Comparable EBITDA and comparable EBIT represent the same indicators excluding items that Tokmanni’s management considers to be exceptional and non-recurring, including changes in the fair value of electricity and currency derivatives, which are adjusted by Tokmanni, as they are unrealised gains or losses related to Tokmanni’s open cash flow hedge positions and are therefore not related to Tokmanni’s operational performance during the review periods.

Tokmanni’s management uses the comparable EBITDA margin and comparable EBIT margin as key performance indicators to assess Tokmanni’s underlying operational performance.

Adjustments affecting comparability
MEUR 1-3/2021 1-3/2020 1-12/2020
Gross profit 76.0 64.2 370.9
Changes in fair value of currency derivatives -1.2 -0.4 0.7
Comparable Gross Profit 74.8 63.8 371.6
Operating expenses -52.7 -49.5 -211.5
Changes in fair value of electricity derivatives 0.2 1.0 0.6
Comparable operating expenses -52.5 -48.5 -210.9
EBITDA 24.2 15.7 163.6
Operating profit (EBIT) 7.8 -0.4 98.9
Changes in fair value of currency derivatives -1.2 -0.4 0.7
Changes in fair value of electricity derivatives 0.2 1.0 0.6
Comparable EBITDA 23.2 16.3 164.9
Comparable operating profit (adj. EBIT) 6.8 0.3 100.2

Mäntsälä 29 April 2021

Tokmanni Group Corporation

Board of Directors

IR calendar

29 July 2021: Half Year Financial Review for January-June 2021
29 October 2021: Business Review for January-September 2021

Analyst and press conference

Tokmanni’s CEO Mika Rautiainen and CFO Markku Pirskanen will present the review to analysts, investors and media representatives on the publication day at 11:30 am in English (Finnish time).

The live webcast can be accessed via Tokmanni's website at https://ir.tokmanni.fi/en or through the link https://tokmanni.videosync.fi/2021-q1-results. On-demand version of the presentation will be available on the company's website later during the same day.

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 Participant Phone Number and Participant Passcodes below.

Finland: +358 9 8171 0310
Sweden: +46 8 5664 2651
UK: +44 33 3300 0804
US: +1 63 1913 1422
Passcode: 58649248#

For further information, please contact

Mika Rautiainen, CEO, tel. +358 020 728 6061, mika.rautiainen(at)tokmanni.fi
Markku Pirskanen, CFO, tel. +358 20 728 7390, markku.pirskanen(at)tokmanni.fi
Maarit Mikkonen, Head of IR and Communications, tel. +358 40 562 2282, maarit.mikkonen(at)tokmanni.fi

Tokmanni in brief

Tokmanni is the largest general discount retailer in Finland measured by number of stores and revenue. In 2020, Tokmanni’s revenue was EUR 1 073.2 million and it has approximately 3,873 employees. Tokmanni is the only nationwide general discount retailer in Finland, with almost 200 stores across Finland.


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