The nine-month sales revenue of TKM Grupp amounted to 687.9 million euros

In the third quarter of 2024, the consolidated unaudited sales revenue of TKM Group was 229.1 million euros, which was 2.1% less than the sales revenue of the same period last year. The sales revenue in the first nine months was 687.9 million euros, which was a 1.0% decrease in comparison with the result of the first nine months of 2023, when the sales revenue was 694.7 million euros. In the first nine months of the year, the pre-tax profit was 22.3 million euros, which is 25.6% less than the year before.

‘Consumer behaviour, impacted by the economic recession of the last few years, continues to be cautious and uncertain. Due to the instability of the labour market and fears of a continued economic decline, consumer buying behaviour has become significantly more rational,’ stated Raul Puusepp, Chairman of the Management Board of TKM Group. ‘The number of customers in the stores of the group remains at the same level as the year before, but the shopping cart demonstrates clear changes. People are looking for discounted goods, follow promotions, and buy less,’ added Puusepp.

According to Puusepp, the price image of Selver is considered to be a bit more expensive than that of its competitors due to its wide selection of goods that meets the expectations of even the most demanding customers. The price level of basic products of Selver is similar to other supermarkets, as we also increasingly emphasise in our marketing communication. Puusepp added that the payment solutions of Partner Kuukaart are gaining in popularity among the customers as a sign of the times. These solutions allow to distribute payments for daily purchases across a longer period.

‘General political rhetoric and coming tax hikes are not helping improve the economic environment and consumer confidence. The so-called car tax that is coming into effect next year will mean that purchasing and owning a passenger vehicle is going to be 3–15% more expensive than it is now, depending on the model. The increase in the sales volume of cars that we have planned for the end of the year demonstrated the first signs of upturn, but it is too soon to draw any general conclusions,’ said Puusepp.

In the third quarter of 2024, Selver opened two now stores – in Rocca al Mare shopping centre in Tallinn in August and a new Selver in Raadi city district in Tartu in September. A completely overhauled Toidumaailm was completed in Tartu Kaubamaja, carrying the largest selection of groceries in southern Estonia. Among all else, ‘sustainable shopping environment’ is an important keyword for all developments. We have adopted CO₂-based refrigeration systems, LED lighting, and efficient air circulation provided by fans, thus reducing energy consumption significantly. In the car segment, a KIA dealership is going to be opened in Bikernieku Street in Riga in the autumn of 2024. In Lithuania, construction of a KIA-Škoda dealership has begun in Vilnius. In Tallinn, we are continuing with preparations for the construction of a Viking Motors body shop in Peetri and for opening a KIA flagship dealership. In September, our logistics centre was completed that is going to improve the management of the supply chain and logistical services going forward.

The number of loyal customers of Partnerkaart exceeded 740,000 at the end of the third quarter – a 3.2% increase within a year. Loyal customers accounted for 85.6% of the turnover of the group. At the end of September, the ‘Buy now, pay later’ payment solutions of Partner Kuukaart were expanded. In addition to the physical stores at Tallinna Kaubamaja and Tartu Kaubamaja, instalment payment options are now also available in the online store of Kaubamaja, and the customers have quickly embraced the use of these services.

TKM Group in cooperation with other large companies launched a project called ‘Building a Better Estonia’, donating a considerable amount for the implementation of the ‘Supporting the Mental Health of the Youth through Evidence-based Short Interventions’ project by Peaasi.ee. This project was selected as a result of a survey among the customers of Partnerkaart. Our regular customers pointed out that mental health problems among the youth are a very important issue in Estonia. The grant is used for a significant improvement of the availability of the existing youth counselling services provided by Peahea and for increasing the number of adolescents between the ages 12–26 receiving fast and free psychological help without a doctor’s referral by about 400.

In the first nine months of 2024, the consolidated sales revenue of the supermarket business segment was 446.3 million euros, falling by 1.9% compared to the previous year. The consolidated sales revenue was 149.5 million euros in the third quarter, dropping by 2.6% in comparison with the same period of last year. In the nine months of 2024, 33 million purchases were made in the stores, which is the same as last year. The consolidated pre-tax profit of the supermarket segment in the first nine months was 11.5 million euros, decreasing by 1.1 million euros in comparison with the previous year. As at the end of September, the supermarket segment includes 73 Selver stores, two Delice stores, Rändpood mobile store, and a café, with a total sales area of 124,800 m². In addition, it includes e-Selver, which is the e-shop with the largest service area in Estonia, and the central kitchen Kulinaaria OÜ.

The sales revenue of the Kaubamaja department stores segment was 71.0 million euros in the nine months of 2024, which was 6.1% less than in the same period of the previous year. The sales revenue of the third quarter was 21.5 million euros, which was 9.7% less than last year. In the nine months of 2024, the pre-tax loss of the Kaubamaja department stores segment was 2.1 million euros – 1.8 million euros lower than the year before.

In the third quarter of 2024, the sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. cosmetics stores, was 2.0 million euros, which is the same as in the same period last year. In the first nine months of 2024, the sales revenue was 5.9 million euros, which is 5.7% more than in the same period in 2023. In the first nine months of 2024, the profit was 0.1 million euros, which was 0.1 million euros less than during the comparable period in 2023.

The sales revenue of the car trade segment for the first nine months of 2024 was 149.6 million euros, increasing by 0.7% compared to the same period last year. The sales revenue of 50.7 million euros of the third quarter was 0.8% weaker than the sales revenue of the third quarter of 2023. During the first nine months, a total of 4,741 new vehicles were sold – a similar result to the year before. In the third quarter, 1,570 new vehicles were sold. In the first nine months of 2024, the pre-tax profit of the segment was 8.9 million euros, which is 2.5 million euros less compared to the previous year.

The non-group sales revenue of the security segment for the third quarter of 2024 was 5.6 million euros, increasing by 39.6% compared to the same period last year. The non-group sales revenue of the security segment in the first nine months of 2024 was 15.9 million euros, increasing by 52.8% compared to the same period last year. The non-group sales made up 76% of the total sales in the first nine months. In the nine months, the pre-tax profit of the segment was 0.3 million euros. Compared to the same period last year, the result was higher by 0.2 million euros.

The non-group sales revenue of the real estate segment was 5.2 million euros in the first nine months of 2024. The sales revenue increased by 6.2% compared to the same period last year. The non-group sales revenue of the segment was 1.7 million euros in the third quarter. The sales revenue grew by 2.0% compared to the previous year. The pre-tax profit of the real estate segment was 5.5 million euros in the first nine months of 2024, with the profit decreasing by 27.4%.