The nine-month sales revenue of TKM Group grew by 10.5%

In the third quarter of 2023, the consolidated unaudited sales revenue of TKM Group (Tallinna Kaubamaja Grupp AS) amounted to 234.1 million euros, which is a 8.2% increase compared to the same period last year. The sales revenue in the nine months was 694.7 million euros, which was a 10.5% increase in comparison with the result of the first nine months of 2022, when the sales revenue was 628.4 million euros. In the third quarter of 2023, the consolidated unaudited sales revenue of the group was 11.2 million euros, which was 3.4 million euros more than the sales revenue of the same period of 2022. The net profit of the group for the first nine months of 2023 was 24.6 million euros, which was 30.5% higher than the result of the comparable period in the previous year.

‘Similarly to the general situation of retail trade in Estonia, the growth of TKM Group is also driven by car trade. The good results were aided by large-scale sales transactions concluded in the third quarter. It is gratifying to see that the security of supply of new cars has also recovered from the post-COVID-19 lows – this allows us to provide the level of service our customers are expecting,’ commented Raul Puusepp, Chairman of the Management Board of TKM Group. ‘The sales growth of Selver and Kaubamaja was slightly more modest – we can sense that customers are more uncertain about the future and more cautious in their purchasing decisions. Although price increases have slowed down and wage growth is catching up, price increases of groceries are still outpacing wage growth,’ Puusepp added.

‘In the third quarter, the construction of the logistics centre of TKM Group began, and a construction contract was signed with Merko Ehitus Eesti AS. This is an important strategic decision for the group, which will help the companies of the group to find new business opportunities and increase operational efficiency,’ said Raul Puusepp. The third quarter saw the construction of the new Kurna Selver and the opening of a completely new premium-branded Delice store with a completely new concept in the Solaris Centre at the heart of Tallinn, as well as the conversion of the Kristiine I.L.U. store to the new concept.

‘The Partner Card application launched a year ago had been used by more than 176 thousand customers by the end of the quarter, which is about 24% of all customers who have a Partner Card. In the third quarter, the convenience functionalities of the Partner Card application were enhanced with the possibility to create shopping lists and display promotional offers. We also continued to develop our “pay later” payment solutions, which are planned to be made available to customers in the last quarter of the year,’ Puusepp added.

The consolidated sales revenue of the supermarket business segment in the nine months of 2023 was 455.2 million euros, increasing by 5.1% compared to the previous year. The consolidated sales revenue was 153.5 million euros in the third quarter, increasing by 2.4% in comparison with the same period of last year. The consolidated pre-tax profit of the supermarket segment in the first nine months of 2023 was 12.6 million euros, increasing by 4.6 million euros in comparison with the previous year. In the nine months of 2023, 33.1 million purchases were made from the stores, which was 1.8% more than in the reference year. As at the end of March, the supermarkets segment included 71 Selver stores, two Delice stores, the mobile shop, and a café, with a total sales area of 120.3 thousand m², as well as e-Selver, the e-shop with the largest service area in Estonia, and the central kitchen Kulinaaria OÜ.

The sales revenue of the business segment of the Kaubamaja department store in the first nine months of 2023 was 75.6 million euros, exceeding the sales of the same period last year by 5.9%. The sales revenue of the third quarter was 23.9 million euros, which was 4.1% better than the result of last year. The pre-tax profit of the Kaubamaja department stores segment in the first nine months of 2023 was 0.2 million euros.

In the third quarter of 2023, the sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. cosmetics stores, was 2.0 million euros, which is 34.0% more than in the second quarter of 2022. The sales revenue in the first nine months of 2023 was 5.6 million euros, which is 28.0% more than in the same period of 2022. In the first nine months of 2023, the profit was 0.2 million euros, which was 0.1 million euros more than during the comparable period in 2022.

The sales revenue of the car trade segment was 148.6 million euros in the first nine months of 2023. The sales revenue increased by 32.3% compared to the sales revenue of the same period last year. The 51.1-million-euro sales revenue of the third quarter was 28.4% higher than the sales revenue in the third quarter of 2022. In the first nine months, a total of 4842 new vehicles were sold, of which 1673 were sold in the third quarter. The pre-tax profit of the segment for the first nine months of 2023 was 11.4 million euros, exceeding the profit for the same period in 2022 by 2.9 million euros.

The sales revenue of the security segment outside the group in the first nine months of 2023 was 10.4 million euros, increasing by 49.9% in comparison with the same period of last year. The pre-tax profit of the segment in the first nine months of the year was 0.1 million euros, increasing by 0.05 million euros compared to the same period last year. The sales revenue of the segment outside the Group in the third quarter of 2023 was 4.0 million euros, increasing by 68.0% compared to the same period last year. The sales revenue earned in the security segment outside the Group was 4.9 million euros in the first nine months of 2023. Sales revenue increased by 6.5% compared to the same period last year. The sales revenue of the segment outside the Group in the third quarter was 1.7 million euros. Sales revenue increased by 7.8% compared to the previous year. The pre-tax profit of the real estate segment in the first nine months of 2023 was 7.6 million euros, with the profit decreasing by 6.0%.