The 2023 sales revenue of TKM Grupp grew by 9.8%

In the fourth quarter of 2023, the consolidated unaudited sales revenue of TKM Grupp (Tallinna Kaubamaja Grupp AS) amounted to 252.6 million euros, which is a 7.8% increase compared to the same period last year. The sales revenue of 2023 was 947.3 million euros, showing a growth of 9.8% compared to the result of 2022, when the sales revenue was 862.8 million euros. In the fourth quarter of 2023, the group’s unaudited consolidated net profit was 12.8 million euros, which was 20.6% higher than the profit of the comparable period in the previous year. The net profit of the group in 2023 was 37.4 million euros, growing by 26.9% compared to last year. Pre-tax profit earned in 2023 was 43.0 million euros, showing an improvement of 23.1% compared to last year.

‘The economy in 2023 was characterised by turbulence and uncertainty about the future. The decline in consumer confidence is reflected in the results of the year. The rise of the consumer price index and the increase of food prices have made customers plan their shopping decisions more carefully and increasingly look for discounted goods. No significant decline of input prices is predicted for 2024. The normalisation of energy prices and keeping operating costs under control will help to maintain balance,’ said Raul Puusepp, Chairman of the Management Board of TKM Grupp.

‘The car trade companies of the group made a strong contribution to the group’s sales results in 2023, ending last year with a new profit record. The supply constraints at the beginning of the year eased, and successful planning of stocks allowed us to increase sales,’ Puusepp said, adding: ‘On the other hand, competition in the automotive sector is very fierce, which affects sales margins.’

Among the main developments in 2023, Puusepp highlighted the start of the development of TKM Grupp’s logistics centre, which is scheduled to be taken into use in the second half of 2024. The Järve and Ringtee Selver stores were completely renovated and the new Kurna Selver was opened in August. The Solaris grocery store was updated based on the new concept, and the I.L.U. stores in the Ülemiste and Kristiine shopping centres were also renovated. In June, the solar park of the Viimsi Shopping Centre, and in November, the solar park of Põltsamaa Selver were ready to be taken into use. At the end of the year, the acquired companies SKARABEUS Julgestusteenistus OÜ and Caesari Turvateenistuse AS were merged with Viking Security AS.

At the end of the year, TKM Finants started offering the options of paying in parts (so-called partial payment) and in instalments in the sales centres of Kaubamaja. The joint loyalty programme of the group launched an option to order digital Partner Cards (loyalty cards) to reduce the number of plastic Partner Cards that are issued. Convenience services in the Partner Card mobile app, such as the creation of shopping lists and the display of promotional offers, were also further developed. By the end of the year, the number of loyal customers of the Partner Card exceeded 730 000 thousand, 200 00 of whom use the Partner Card app for their everyday purchases.

The consolidated sales revenue of the supermarket business segment in 2023 was 620.2 million euros, increasing by 4.3% year on year. The consolidated sales revenue was 165.0 million euros in the fourth quarter, increasing by 2.0% year on year. In the fourth quarter of 2023, the pre-tax profit was 7.4 million euros, which was 2.5 million euros more than in the reference period. The consolidated pre-tax profit of the supermarket segment in 2023 was 20.0 million euros, increasing by 7.1 million euros in comparison with the previous year. In 2023, 44.2 million purchases were made at the stores, which was 1.1% higher than in the reference year. As at the end of December, the supermarket segment includes 71 Selver stores, 2 Delice stores, and a mobile store and a café, with a total sales area of 120.4 thousand m². There is also e-Selver – the e-shop with the largest service area in Estonia – as well as the central kitchen Kulinaaria OÜ.

The sales revenue of the business segment of the Kaubamaja department store in 2023 was 110.5 million euros, exceeding the sales of the same period last year by 5.0%. The sales revenue of the fourth quarter was 34.9 million euros, which was 3.3% better than the result of last year. The pre-tax profit of the Kaubamaja department stores in 2023 was 1.6 million euros, showing a decrease of 0.7 million euros year on year. In the fourth quarter, the pre-tax profit was 1.9 million euros, which was 4.1% lower than in the comparable period last year.

The 2023 sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. cosmetics stores, was 8.4 million euros, which was 26.4% more than in the same period in 2022. The profit in 2023 was 0.4 million euros, which was 0.2 million euros more than the result of 2022.

The sales revenue of the car trade segment in 2023 was 194.4 million euros, which was 32.4% higher than the result of the previous year. The sales revenue of 45.7 million euros in the fourth quarter exceeded the sales revenue of the same period in the previous year by 32.9%. Throughout the year, a total of 6,264 new vehicles were sold, 1,422 of them in the fourth quarter. The pre-tax profit of the segment in 2023 was 13.3 million euros, which is 2.6 million euros more than the pre-tax profit in 2022. The pre-tax profit of the fourth quarter of 2023 was 1.9 million euros, which was 0.3 million euros less than the profit of the same period of the year before.

The external sales revenue of the security segment in 2023 was 15.7 million euros, increasing by 59.5% compared to the year before. The pre-tax loss in 2023 was 0.1 million euros. The pre-tax loss increased by 0.2 million euros compared to last year. The external sales revenue was 5.3 million euros in the fourth quarter, increasing by 82.6% in comparison with the same period of the previous year. The pre-tax loss of the fourth quarter was 0.2 million euros, which is 0.2 million euros less than in the same period of the year before.

The sales revenue earned in the real estate segment outside the group was 6.6 million euros in 2023. Sales revenue increased by 6.9% compared to the previous year. The sales revenue earned by the segment outside the group was 1.7 million euros in the fourth quarter. Sales revenue increased by 8.1% compared to the previous year. The pre-tax profit of the real estate segment in 2023 was 10.4 million euros, with the profit decreasing by 7.8%. The pre-tax profit of the fourth quarter of the segment was 2.8 million euros. Pre-tax profit decreased by 12.2% in the reference period.