Tokmanni’s Financial Statement Bulletin 2020: Revenue over 1 billion and EBIT over EUR 100 million – Record-breaking year ended in a strong Q4
Tokmanni Group Corporation Financial Statement Bulletin 2020 12 February 2021 at 8:30 am
FOURTH QUARTER 2020 HIGHLIGHTS
- Revenue grew by 14.6% (6.1%) and was EUR 326.5 million (284.8)
- Like-for-like revenue for stores grew by 13.4% (3.1%)
- Comparable gross profit totalled EUR 120.3 million (100.1), with the comparable gross margin being 36.8% (35.2%)
- Comparable EBIT amounted to EUR 45.3 million (32.0), representing 13.9% of revenue (11.2%)
- Cash flow from operating activities amounted to EUR 89.6 million (56.5)
- Earnings per share, diluted was EUR 0.57 (0.39)
JANUARY-DECEMBER 2020 HIGHLIGHTS
- Revenue grew by 13.6% (8.5%) and was EUR 1,073.2 million (944.3)
- Like-for-like revenue for stores grew by 12.3% (4.3%)
- Comparable gross profit totalled EUR 371.6 million (325.3), with the comparable gross margin being 34.6% (34.4%)
- Comparable EBIT amounted to EUR 100.2 million (70.4), representing 9.3% of revenue (7.5%)
- Cash flow from operating activities amounted to EUR 151.1 million (84.0)
- Earnings per share, diluted was EUR 1.21 (0.80)
DIVIDEND PROPOSAL
Tokmanni’s Board of Directors proposed to the Annual General Meeting to pay a dividend of EUR 0.85 per share.
TOKMANNI’S OUTLOOK FOR 2021
The behaviour of Tokmanni's customers and thus the future prospects will be strongly influenced by the coronavirus pandemic and the development of its treatment in 2021. In the current circumstances, 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.
CEO Mika Rautiainen:
RECORD-BREAKING SALES AND RESULT IN 2020
I would particularly like to thank our customers, personnel, partners and shareholders for the sales and result we have achieved in exceptional year 2020.
In 2020, Tokmanni gained a large number of new customers, and our loyal customers increased their purchases significantly. Our total number of customers for the full year grew by 3.2%, and the average basket size grew by 10.1%. In the fourth quarter, Tokmanni’s revenue grew by 14.6% to EUR 326.5 million (284.8). Full-year revenue for 2020 increased by 13.6%, exceeding the one billion euro threshold for the first time in the company’s history. At the same time, also our online sales grew by 124.1%. Tokmanni’s extensive product offering, affordable prices and excellent customer service once again proved their attractiveness.
In an operating environment fraught with risks, Tokmanni’s employees have admirably managed to serve customers and advance the company’s growth story. In the changing circumstances during the year, Tokmanni’s employees took good, responsible and quick decisions that led to record-breaking sales and a top result. Tokmanni exceeded its strategic EBIT target of 9% in 2020. Full-year comparable EBIT amounted to EUR 100.2 million, representing 9.3% of revenue. As a reward for their excellent work, Tokmanni employees will be paid a total of about EUR 3.7 million in sales and performance bonuses for 2020.
In recent years, Tokmanni’s store network and customer base have expanded significantly and Tokmanni has become a retailer for everyone. We have reached several milestones that are important for the company. In 2021, we will continue our determined efforts to build the growth of sustainable general discount retail, being aware of that we are still living in another year of COVID-19. We will present the elements of our future growth and our revised strategic targets at Tokmanni’s virtual Capital Markets Day on 22 March 2021. We warmly invite you to join us!
IMPACTS OF THE CORONAVIRUS PANDEMIC ON TOKMANNI’S BUSINESS
Stores and consumers were subjected to many changes during the coronavirus year 2020. Consumer behaviour changed as safety measures increased and people spent more time at home and travelling in Finland. Tokmanni was able to respond in an agile way to the changes caused by the coronavirus by focusing especially on the safety of customers and employees, improving customer service, developing digital channels and adjusting its product assortments and prices. In 2020, yard and garden furniture, sports, wellbeing and leisure products, home decoration products, and cleaning products and detergents had particularly strong sales in Tokmanni’s extensive assortment.
In the fourth quarter, Tokmanni continued its measures to promote the safety of customers and employees, and added new measures. All of Tokmanni’s stores were open in 2020, and the company was not forced to furlough any employees. During the coronavirus pandemic, Tokmanni has become aware of 17 confirmed coronavirus infections among its employees by the end of 2020 (total number of personnel: 4,056).
The reliability of the operations of the logistics centre and supply chain is critical for Tokmanni. In the latter half of the year, Tokmanni was better prepared than it was early in the year for any new disruptions from the pandemic, and it continues to employ safety measures widely. Christmas products arrived in Finland earlier than in the previous year to ensure that they would be available. The shelf availability in the stores was at a good level in the latter part of the year, after some early-year challenges. During the past year, Tokmanni managed to improve the processes in its supply chain, enabling good shelf availability in the second half of 2020.
Tokmanni’s liquidity is good. At the end of December 2020, the company’s cash and cash equivalents and undrawn credit limits totalled EUR 137.1 million (31 December 2019: 88.1). Tokmanni has recognised a loan of EUR 100 million on its balance sheet that was set to mature in October 2021 under its terms and conditions valid at the turn of the year. For this reason, the loan in question is reported in the financial statements under current liabilities. Since the turn of the year, the company reached an agreement on 11 February 2021 concerning a rearrangement of the EUR 100 million loan, with a new maturity date in February 2026. Tokmanni also agreed on a EUR 50 million credit limit with a maturity of five years. In addition to the above, the financing agreement includes a committed option for drawing down an additional loan of EUR 50 million in instalments. The option for an additional loan is valid for three years and it includes a conditional option to extend the loan by one year at a time for another two years.
| Key figures | ||||||
| 10-12/ 2020 |
10-12/ 2019 |
Change % |
1-12/ 2020 |
1-12/ 2019 |
Change % |
|
| Revenue, MEUR | 326.5 | 284.8 | 14.6% | 1 073.2 | 944.3 | 13.6% |
| Like-for-like revenue development, % | 13.4 | 3.1 | 12.3 | 4.3 | ||
| Customer visit development % | 2.2 | 5.6 | 3.2 | 6.9 | ||
| Gross profit, MEUR | 119.7 | 99.7 | 20.0% | 370.9 | 325.2 | 14.1% |
| Gross margin, % | 36.6 | 35.0 | 34.6 | 34.4 | ||
| Comparable gross profit, MEUR | 120.3 | 100.1 | 20.1% | 371.6 | 325.3 | 14.2% |
| Comparable gross margin, % | 36.8 | 35.2 | 34.6 | 34.4 | ||
| Operating expenses | -60.1 | -54.1 | 11.0% | -211.5 | -198.9 | 6.3% |
| Comparable operating expenses | -60.1 | -53.9 | 11.4% | -210.9 | -197.9 | 6.5% |
| EBITDA, MEUR | 60.9 | 47.0 | 29.5% | 163.6 | 130.6 | 25.3% |
| EBITDA, % | 18.7 | 16.5 | 15.2 | 13.8 | ||
| Comparable EBITDA, MEUR | 61.5 | 47.6 | 29.1% | 164.9 | 131.6 | 25.3% |
| Comparable EBITDA, % | 18.8 | 16.7 | 15.4 | 13.9 | ||
| Operating profit (EBIT), MEUR | 44.7 | 31.4 | 42.2% | 98.9 | 69.4 | 42.6% |
| Operating profit margin EBIT, % | 13.7 | 11.0 | 9.2 | 7.3 | ||
| Comparable EBIT, MEUR | 45.3 | 32.0 | 41.4% | 100.2 | 70.4 | 42.3% |
| Comparable EBIT, % | 13.9 | 11.2 | 9.3 | 7.5 | ||
| Net financial items, MEUR | -2.5 | -2.6 | -4.3% | -10.0 | -10.5 | -4.2% |
| Net capital expenditure, MEUR* | 4.6 | 3.5 | 31.2% | 12.8 | 15.4 | -16.8% |
| Net debt / comparable EBITDA ** | 2.0 | 2.9 | 2.0 | 2.9 | ||
| Net cash from operating activities, MEUR | 89.6 | 56.5 | 151.1 | 84.0 | ||
| Return on capital employed, % | 7.3 | 5.3 | 16.2 | 11.8 | ||
| Return on capital employed %, rolling 12 months |
16.3 | 11.8 | 16.3 | 11.8 | ||
| Return on equity, % | 16.8 | 13.1 | 35.4 | 26.8 | ||
| Return on equity %, rolling 12 months | 37.4 | 30.1 | 37.4 | 30.1 | ||
| Equity ratio, % | 27.7 | 25.3 | 27.7 | 25.3 | ||
| Number of shares, weighted average during the financial period (thousands) |
58 811 | 58 869 | 58 825 | 58 869 | ||
| Diluted number of shares, weighted average during the financial period (thousands) |
58 845 | 58 869 | 58 850 | 58 869 | ||
| Earnings per share, basic (EUR/share) | 0.58 | 0.39 | 1.21 | 0.80 | ||
| Earnings per share, diluted (EUR/share) | 0.57 | 0.39 | 1.21 | 0.80 | ||
| Personnel at the end of the period | 4 056 | 3 659 | 4 056 | 3 659 | ||
| Personnel on average in the period | 4 057 | 3 624 | 3 873 | 3 647 |
* Net capital expenditure, excluding non-current receivables from others
** Rolling 12 months comparable EBITDA
Analyst and press conference
Tokmanni’s CEO Mika Rautiainen and CFO Markku Pirskanen will present the review to analysts, investors and media representatives today 12 February 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/2020-q4-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 3 33 300 0804
US: +1 63 1913 1422
Passcode: 35958804#
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.
Distribution
Nasdaq Helsinki
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