Tokmanni’s Financial Statement Bulletin 2021: Strong year 2021 as a whole – rising costs burdened the last quarter of the year
Tokmanni Group Corporation Financial Statement Bulletin 2021 11 February 2022 at 8:30 am
FOURTH QUARTER 2021 HIGHLIGHTS
- Revenue grew by 2.3% (14.6%) and was EUR 334.1 million (326.5)
- Like-for-like revenue for stores decreased by 0.3% (13.4%)
- Comparable gross profit totalled EUR 120.8 million (119.8), with the comparable gross margin being 36.2% (36.7%)
- Comparable EBIT amounted to EUR 40.5 million (44.8), representing 12.1% of revenue (13.7%)
- Cash flow from operating activities amounted to EUR 71.6 million (89.6)
- Earnings per share, diluted was EUR 0.52 (0.57)
JANUARY-DECEMBER 2021 HIGHLIGHTS
- Revenue grew by 6.4% (13.6%) and was EUR 1,141.8 million (1,073.2)
- Like-for-like revenue for stores grew by 4.8 % (12.3%)
- Comparable gross profit totalled EUR 396.4 million (371.1), with the comparable gross margin being 34.7% (34.6%)
- Comparable EBIT amounted to EUR 105.7 million (99.7), representing 9.3% of revenue (9.3%)
- Cash flow from operating activities amounted to EUR 126.8 million (151.1)
- Earnings per share, diluted was EUR 1.33 (1.20)
The figures for the comparison year of 2020 have been adjusted due to a correction made to the figures from previous financial years. The corrections concern the method of recognising purchase rebates and adjustments to leases recognised under IFRS 16. The effect of the adjustment is EUR -0.4 million on the result for 1–12/2020 and EUR -1.0 million on equity. The adjustment impacts the result for the 10–12/2020 period, and the impact effects the balance sheet of the whole of year 2020.
DIVIDEND PROPOSAL
Tokmanni’s Board of Directors proposed to the Annual General Meeting to pay a dividend of EUR 0.96 per share.
TOKMANNI’S OUTLOOK FOR 2022
For 2022, Tokmanni forecasts an increase in revenue and comparable EBIT in euros. The forecast is subject to uncertainties due to the development of the corona pandemic and its effects.
TOKMANNI’S PRESIDENT AND CEO MIKA RAUTIAINEN:
Strong year in 2021, but challenging Q4
Last-quarter revenue grew by 2.3% (14.6%) on strong comparison figures and was EUR 334.1 million (326.5). Sales growth was reasonable considering that the general communication about the pandemic and the restrictions imposed because of it had a clear impact on the behaviour of Tokmanni’s customers. Our online store sales increased by 44.4%, boosted by an extremely successful Black Friday campaign, among other things. Full-year revenue grew by a robust 6.4% (13.6%) to EUR 1,141.8 million (1,073.2). Online store sales grew by 58.7% for the full year.
The comparable gross margin in the fourth quarter was 36.2%, which was lower than in the previous year (36.7%). The reduction in the gross margin was due to benefits offered to our loyal customers and the fact that Tokmanni refrained from large-scale increases of sales prices. Tokmanni Klubi met with a good response from the customers, as more than 0.8 million customers have already joined.
Nearly all business-related expenses increased in the last quarter of the year. Property expenses, especially electricity, clearly increased during the quarter. The higher number of sickness absences was evident in personnel expenses. The rise in marketing expenses was particularly due to the launch Tokmanni Klubi. Comparable EBIT decreased to EUR 40.5 million (44.8). Comparable EBIT for the full year 2021 was EUR 105.7 million (99.7).
The measures related to Tokmanni’s new strategy are progressing as planned. We increased the number of our products, launched a loyal customer programme, and acquired a larger-sized store. The launch of the strategic projects involved significant early-stage investments. However, the growth projects defined in Tokmanni’s strategy are proceeding according to our plans.
I would like to extend a warm thank-you to our customers for their trust in Tokmanni during these exceptional times. We at Tokmanni’s are looking forward to serving our customers in the upcoming spring season. We have secured the availability of our products, procured our new products for the spring, and guaranteed our low prices.
Many thanks to all Tokmanni employees for your excellent work in 2021 and I wish you all the best for the upcoming spring season.
| Key figures | |||||||
| 10-12/ 2021 |
10-12/2020 | Change% | 1-12/2021 | 1-12/2020 | Change% | ||
| Revenue, MEUR | 334.1 | 326.5 | 2.3 % | 1 141.8 | 1 073.2 | 6.4 % | |
| Like-for-like revenue development, % | -0.3 | 13.4 | 4.8 | 12.3 | |||
| Customer visit development % | -0.1 | 2.2 | 0.8 | 3.2 | |||
| Gross profit, MEUR | 121.1 | 119.2 | 1.6 % | 397.8 | 370.5 | 7.4 % | *** |
| Gross margin, % | 36.2 | 36.5 | 34.8 | 34.5 | *** | ||
| Comparable gross profit, MEUR | 120.8 | 119.8 | 0.9 % | 396.4 | 371.1 | 6.8 % | *** |
| Comparable gross margin, % | 36.2 | 36.7 | 34.7 | 34.6 | *** | ||
| Operating expenses | -63.8 | -60.1 | 6.2 % | -226.9 | -211.5 | 7.3 % | |
| Comparable operating expenses | -63.9 | -60.1 | 6.4 % | -227.6 | -210.9 | 7.9 % | |
| EBITDA, MEUR | 58.4 | 60.4 | -3.3 % | 174.5 | 163.1 | 7.0 % | *** |
| EBITDA, % | 17.5 | 18.5 | 15.3 | 15.2 | *** | ||
| Comparable EBITDA, MEUR | 58.1 | 61.1 | -4.9 % | 172.5 | 164.4 | 4.9 % | *** |
| Comparable EBITDA, % | 17.4 | 18.7 | 15.1 | 15.3 | *** | ||
| Operating profit (EBIT), MEUR | 40.9 | 44.2 | -7.6 % | 107.7 | 98.5 | 9.4 % | *** |
| Operating profit margin EBIT, % | 12.2 | 13.5 | 9.4 | 9.2 | *** | ||
| Comparable EBIT, MEUR | 40.5 | 44.8 | -9.6 % | 105.7 | 99.7 | 6.0 % | *** |
| Comparable EBIT, % | 12.1 | 13.7 | 9.3 | 9.3 | *** | ||
| Net financial items, MEUR | -2.5 | -2.5 | -0.7 % | -10.1 | -10.0 | 1.0 % | |
| Net capital expenditure, MEUR* | 6.9 | 4.6 | 51.0 % | 21.7 | 12.8 | 69.5 % | |
| Net debt / comparable EBITDA ** | 1.8 | 2.0 | 1.8 | 2.0 | |||
| Net cash from operating activities, MEUR | 71.6 | 89.6 | 126.8 | 151.1 | |||
| Return on capital employed, % | 6.5 | 7.3 | 17.1 | 16.2 | |||
| Return on capital employed %, rolling 12 months | 18.0 | 16.2 | 18.0 | 16.2 | *** | ||
| Return on equity, % | 13.3 | 16.8 | 33.8 | 35.5 | *** | ||
| Return on equity %, rolling 12 months | 37.9 | 37.3 | 37.9 | 37.3 | *** | ||
| Equity ratio, % | 30.0 | 27.8 | 30.0 | 27.8 | *** | ||
| Number of shares, weighted average during the financial period (thousands) |
58 732 | 58 811 | 58 731 | 58 825 | |||
| Diluted number of shares, weighted average during the financial period (thousands) |
58 781 | 58 845 | 58 776 | 58 850 | |||
| Earnings per share, basic (EUR/share) | 0.52 | 0.57 | 1.33 | 1.20 | *** | ||
| Earnings per share, diluted (EUR/share) | 0.52 | 0.57 | 1.33 | 1.20 | *** | ||
| Personnel at the end of the period | 4 105 | 4 056 | 4 105 | 4 056 | |||
| Personnel on average in the period | 4 102 | 4 057 | 4 132 | 3 873 |
* Net capital expenditure, excluding non-current receivables from others.
** Rolling 12 months comparable EBITDA.
***The figures for the comparison year of 2020 have been adjusted due to a correction made to the figures from previous financial years. The correction concerns the method of recognising purchase rebates and adjustments to leases recognised under IFRS 16. The impact of adjustments on materials and services for the period 1–12/2020 is EUR -0.5 million, on income taxes EUR 0.1 million and therefore EUR -0.4 million on the result. The impact on equity is EUR -1.0 million. The impact on the result is felt in the period 10–12/2020 and the impact on the balance sheet covers the whole of 2020. More information on adjustments can be found on pages 25–30 of this financial statements bulletin.
Analyst and press conference
Tokmanni’s President and CEO Mika Rautiainen and CFO Markku Pirskanen will present the review to analysts, investors and media representatives today 11 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/investors or through the link https://tokmanni.videosync.fi/2021-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 phone number and passcode below.
Finland: +358 9 8171 0310
Sweden: +46 85 664 2651
UK: +44 333 300 0804
US: +1 631 913 1422
Passcode: 45397462#
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 1,142 million and it has approximately 4,000 employees. Tokmanni is the only nationwide general discount retailer in Finland, with almost 200 stores across Finland.
Distribution
Nasdaq Helsinki
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