The sales revenue of TKM Grupp increased by 1.6% in the first quarter

In the first quarter of 2024, the consolidated unaudited sales revenue of TKM Grupp amounted to 221.5 million euros. The growth in comparison to the first quarter of 2023 was 1.6%. The net profit of the reporting period was 1.5 million euros, which is 2.1 million euros less than the profit of the first quarter of 2023, whereas income tax was calculated in the same amount as during the same period last year, i.e. 5.3 million euros. The pre-tax profit was 3.8 million euros and it also decreased by 2.1 million euros compared to the previous year.

‘Taking into account the fact that the retail market in Estonia has been falling for the last 18 months, we consider the stability of sales revenue to be a good result.  The results of the group’s retail businesses are clearly impacted by a decrease of the sense of security of the consumers and also high price pressure,’ said Raul Puusepp, Chairman of the Management Board of TKM Grupp. ‘The analyses of the purchase behaviour of customers clearly show that discounted goods are preferred and purchasing decisions are well thought through. On the positive side, customers continue to trust us and the number of loyal customers stays the same and has slightly increased,’ Puusepp added.

When commenting on the car trade, Puusepp said that the whole Baltic car market is characterised by economic uncertainty, which hinders purchasing new cars. Still, the results of the group’s car trade segment are satisfactory and thanks to successful marketing campaigns, the stock is optimal. ‘At the beginning of the year, the Škoda brand was added to the selection of the group’s Lithuanian company Motus Auto UAB. This brand has a large potential for growth which contributes strongly to the achievement of future goals,’ Puusepp added. This spring, popular updated car models such as KIA Sorento, Škoda Superb, and Škoda Kodiaq are expected to enter the market.

‘The focus of the TKM Grupp is aimed at increasing purchasing convenience and developing technological solutions. In the first quarter, the thoroughly prepared process of moving the Kaubamaja e-store to a new platform was completed – this creates new possibilities for cooperation partners and makes the purchasing process significantly smoother,’ said Puusepp. ‘We continue to be delighted by new record numbers of loyal customers who have joined the Partner Card programme. Digital Partner Card is clearly popular along with the ‘pay later’ solutions, the development of which continues,’ Puusepp mentioned.

In order to make processes more efficient, the group began developing a central logistics centre in Maardu last year. The logistics centre is scheduled to be completed in the autumn of 2024. Work continued to install a total of 49 new public electric chargers in 17 Selver parking lots. Approximately half of these are super-fast charging stations where it is possible to charge the necessary amount of energy for 100 km in only a few minutes.

The consolidated sales revenue of the supermarket business segment in the first quarter of 2024 was 146.4 million euros, decreasing by 0.5% compared to the previous year. In the first quarter, the pre-tax profit was 1.0 million euros, which was 0.7 million euros less than the result of the previous year. In the first quarter of 2024, 9.3 million purchases were made at Selver supermarkets, which was 2.5% less than during the same period last year.

The sales revenue of the first quarter of 2024 of the Kaubamaja department stores business segment was 24.0 million euros, which was 2.9% less than during the reference period last year. The pre-tax loss of the Kaubamaja department stores segment in the first quarter of 2024 was 1.2 million euros. Pre-tax loss increased by 0.4 million euros.

In the first 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 was 16.6% more than in the same period in 2023. The profit in the first quarter of 2024 was 0.04 million euros, which was 0.01 million euros less than the profit of the first quarter of 2023.

The sales revenue of the car trade segment in the first quarter of 2024 was 44.8 million euros. Sales revenue increased by 7.5% compared to the previous year. In the first quarter, the consolidated pre-tax profit of the segment was 2.3 million euros, which was 0.7 million euros less than the result of the previous year. During the first three months of the year, the car trade segment sold 1,349 new passenger cars, which is 3.6% more than last year.

The external sales revenue of the security segment in the first quarter of 2024 was 4.5 million euros, increasing by 58.6% compared to the same period last year. The pre-tax loss of the segment during the first quarter was 0.1 million euros, which is a result weaker by 0.2 million euros in comparison to the same period last year.

The sales revenue earned in the real estate segment outside the group was 1.7 million euros in the first quarter of 2024, which constitutes a 8.2% increase in comparison to the first quarter of 2023. The pre-tax profit of the segment of the first quarter was 2.2 million euros. Profit decreased by 11% in comparison to the reference period.