Tokmanni - Strong revenue growth in Q3
Tokmanni’s Q3 revenue increased by ~13% y/y (LFL growth of 11.6%) and was EUR 262m vs. EUR 253m/255m Evli/cons. Tokmanni’s adj. EBIT was EUR 24.0m vs. EUR 25.8m/27.3m Evli/cons. Adj. gross margin was 34.0%. The company expects strong growth in revenue and LFL revenue in 20E. Comparable EBIT margin is expected to improve on the previous year.
- Q3 revenue growth outpaced the expectations as revenue increased by 13% y/y and was EUR 262m vs. our EUR 253m and consensus of EUR 255m. LFL growth was 11.6%. Growth was good especially in sales of yard and garden furniture, sports and leisure, detergents and home cleaning, paper products and groceries. Online sales grew by ~155%.
- Q3 adj. gross profit was EUR 89.0m (34.0% margin) vs. EUR 89.3m (35.3%) Evli expectation. Gross margin was impacted by discount sales and different sales structure.
- Q3 adj. EBITDA was EUR 40.3m vs. EUR 41.9m our view.
- Q3 adj. EBIT was EUR 24.0m (9.2% margin) vs. EUR 25.8m (10.2%) our expectation and EUR 27.3m (10.7%) consensus. Strong growth in revenue and strict cost control had a positive impact on adj. EBIT despite of the decrease in gross margin.
- Q3 eps was EUR 0.29 vs EUR 0.32/0.33 Evli/consensus.
- Guidance for 20E: strong growth in revenue and like-for-like revenue. Profitability (comparable EBIT margin) is expected to improve on the previous year.