The sales revenue of TKM Grupp was 458.8 million euros in the first six months of 2024

In the first six months of 2024, the sales revenue of TKM Grupp was 458.8 million euros – a 0.4% decrease in comparison with the result of the first six months of 2023. Consolidated unaudited sales revenue was 237.3 million euros in the second quarter, falling short of the result of the previous year by 2.1%. In the first half of the year, pre-tax profit was 13.7 million euros, which is 27.1% less than the year before.

‘Prolonged decline of retail trade has impacted the sales results of the TKM Grupp, as we can still see uncertainty among our customers and preference for promotional offers. Customers have learned their lessons from the years of the drawn-out crisis and consider their purchases thoroughly. Unstable labour market also plays its part by undoubtedly reducing consumer confidence,’ explained Raul Puusepp, the Chairman of the Management Board of TKM Grupp. ‘Although general economic situation is finally showing signs of stabilisation and some sectors are recovering from the crisis, the retail sector will need some time for the situation to improve,’ added Puusepp. According to Puusepp, the continued trust of customers is demonstrated by the number of valid Partner Cards that set a new record in the first six months, approaching 740,000, while about 30% of holders have also downloaded the Partner Card app into their phones.

‘Car dealerships contributed significantly towards the sales results, because regardless of the general decline on the Baltic automotive market, they have managed to increase their sales. The growing sales volumes of KIA encourage us to make even more momentous decisions in the future to expand our car sales segment,’ stated Puusepp. ‘Presumably, car tax will enter into force in Estonia next year and its impact on car sales is still unclear. However, we know that establishing this tax will put considerable pressure on the sales margins of dealerships and the sale of vehicles will depend increasingly on promotional campaigns,’ added Puusepp.

When discussing plans for the second half of the year, Puusepp emphasised opening two new Selver stores, one in the Rocca al Mare shopping centre in Tallinn and the other in the Raadi city district in Tartu. Kaubamaja will open a Toidumaailm grocery section in Tartu in the autumn, following a complete overhaul. In the autumn of 2024, a new flagship KIA dealership will open in Peetri, serving the city of Tallinn. In Lithuania, TKM Lietuva UAB announced a tender to build a new joint car dealership for KIA and Škoda; its construction should also start this year. Moreover, this year is going to witness the opening of I.L.U. beauty store with an updated concept in the Lõunakeskus shopping centre in November.

The consolidated sales revenue of the supermarket business segment amounted to 296.7 million euros in the first half of 2024, falling by 1.6% year-over-year. The consolidated sales revenue amounted to 150.3 million euros in the second quarter, dropping by 2.7% in comparison with the same period of last year. In the first half of 2024, 21.7 million purchases were made from the stores, which is the same as last year. In the second quarter of 2024, both pre-tax profit and net profit amounted to 5.2 million euros, which was 0.5 million euros more than in the reference period. The consolidated pre-tax profit of the supermarket segment amounted to 6.2 million euros in the first six months, similar to the year before. As at the end of June, the supermarket segment includes 71 Selver stores, two Delice stores, the Rändpood mobile store, and a café, with a total sales area of 120.2 thousand 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 amounted to 49.4 million euros in the six months of 2024, which was 4.5% less than in the same period of the previous year. The sales revenue of the second quarter amounted to 25.4 million euros, which was 5.9% less than last year. In the six months of 2024, the pre-tax loss of the Kaubamaja department stores segment amounted to 1.0 million euros, which was 1.2 million euros lower than a year ago. The pre-tax profit of the second quarter amounted to 0.2 million euros. The pre-tax profit decreased by 0.8 million euros.

In the second quarter of 2024, the sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. cosmetics stores, amounted to 1.9 million euros – 2.0% more than in the second quarter of 2023. In the second quarter, the profit was 0.02 million euros, or 0,05 million euros less than during the same period in 2023. The sales revenue of the first six months of 2024 amounted to 3.9 million euros, which is an increase of 8.9% year-over-year. In the first six months of 2024, the profit amounted to 0.04 million euros, or 0.06 million euros less than during the same period in 2023.

The sales revenue of the car trade segment for the first half of 2024 was 98.9 million euros, increasing by 1.4% compared to the same period last year. The sales revenue of 54.1 million euros of the second quarter was 3.1% smaller than the sales revenue of the second quarter of 2023. During the first six months, a total of 3,171 new vehicles were sold – similar result to the year before. In the second quarter, 1,822 new vehicles were sold. In the first half of 2024, the pre-tax profit of the segment amounted to 5.6 million euros, which is 2.1 million euros less year-over-year. The pre-tax profit of the second quarter of 2024 amounted to 3.3 million euros, which is 1.4 million euros less than the profit of the same period of the year before.

The non-group sales revenue of the security segment for the second quarter of 2024 amounted to 5.7 million euros, increasing by 63.2% compared to the same period last year. In the second quarter, the pre-tax profit of the segment amounted to 0.04 million euros, falling by 0.01 million euros compared to the same period last year. The non-group sales revenue of the security segment in the first half of 2024 amounted to 10.3 million euros, increasing by 61.1% in comparison with the same period last year. In the first half of the year, the pre-tax loss of the segment amounted to 0.1 million euros, decreasing by 0.2 million euros compared to the same period last year.

The non-group sales revenue of the real estate segment amounted to 3.4 million euros in the first six months of 2024. The sales revenue increased by 8.4% compared to the same period last year. The non-group sales revenue of the segment amounted to 1.8 million euros in the second quarter. The sales revenue grew by 8.6% compared to the previous year. In the first half of 2024, the pre-tax profit of the real estate segment amounted to 3.9 million euros, with the profit falling by 28.1%. In the second quarter, the pre-tax profit of the segment amounted to 1.7 million euros. The pre-tax profit decreased by 42.1% compared to the reference period.