CEO statement

President and CEO MIKA RAUTIAINEN 
15 November 2024, Tokmanni Group’s Business Review Q3/2024

We will continue our growth in line with our strategy in Finland, Sweden and Denmark

We will continue to decisively build Tokmanni Group into the leading discount retailer in the Nordic countries. At the end of the third quarter, Tokmanni Group had 375 stores in Finland, Sweden and Denmark and the expansion to new locations will continue in all our market areas. We are also constantly exploring the possibility of expanding into new markets.

In the third quarter, customer visits grew in both segments. Tokmanni segment’s customer visits grew by 2.4% and Dollarstore segment’s by 3.2%. Customer confidence was low in both Finland and Sweden, and this was reflected as a smaller average basket size than before. Demand focused on promotional products and products with a lower price point, in practice grocery products. Correspondingly, sales of the highest value products fell, with sales of products worth over EUR 100 down by over 10%. Grocery sales increased by 4.7% and accounted for 52.9% of the Group’s total sales. Overall, Tokmanni Group’s revenue increased by 14.3% and were EUR 416.3 million (364.3). Dollarstore segment is included in the comparison figures for August–September.

Tokmanni Group’s comparable gross margin was clearly better than the corresponding period of the previous year at 35.6% (34.8%). The improvement in the Tokmanni segment’s gross profit was driven, among other things, by successful purchase volumes, smaller clearance sales and synergy savings realised through joint purchasing. Dollarstore segment’s gross profit was reduced by the clearance sale in July–August. The Group’s comparable EBIT was EUR 29.5 million (26.4).

Creation of the joint Tokmanni and Dollarstore assortment is progressing at a good pace. Most of Dollarstore’s old assortment has been cleared, and there are currently around 2,500 jointly purchased stock-keeping units on sale. Tokmanni and Dollarstore have already benefited significantly from economies of scale in sourcing, purchasing and distribution. Halloween is a good example of this, as this year we had a joint assortment in both Tokmanni and Dollarstore stores. Customers were delighted with our product selection that was full of surprises and sales were so brisk that some of the products sold out quickly. The best thing is that we attracted new customers with our actions. 

Tokmanni and Dollarstore integration is progressing according to plan also in other respects. By the end of September, annual synergies achieved amounted to EUR 12.7 million. By the end of 2025, we aim to generate annual synergies of more than EUR 15 million. 

Preparations for the Christmas season have gone very well. The employees and stores are ready to serve customers with their festive Christmas spirit.