PUUILO PLC, BUSINESS REVIEW, 10 JUNE 2025. at 8.30 am
Highlights Q1/2025
- Net sales increased by 18.4% (+16.1%) and were €89.3 million (75.4)
- Like-for-like store net sales increased by 6.5% (+4.8%)
- Online store net sales increased by 19.6% (-6.6%)
- Gross profit was €33.1 million (27.6) and gross margin was 37.1% (36.6%)
- Adjusted EBITA was €10.8 million (8.3), increasing by 31.2%, which corresponds to an adjusted EBITA margin of 12.1% (11.0%)
- EBIT was €10.4 million (7.6) which corresponds to 11.7% of net sales (10.1%)
- Operating free cash flow was €13.6 million (2.3)
- Earnings per share were €0.09 (0.06)
- Three new stores were opened during the first quarter (two new stores)
Figures are in millions of euros unless otherwise stated and have been rounded. Hence the sum of individual figures may differ from the total shown. Puuilo's financial year starts on 1 February and ends on 31 January the following year. The figures in parentheses refer to the comparison period the previous year, unless otherwise stated. The information in this report is unaudited.
Key Figures
| €million | Q1/2025 | Q1/2024 | 2024 |
| Net sales | 89.3 | 75.4 | 383.4 |
| Net sales development (%) | 18.4% | 16.1% | 13.3% |
| Like-for-like store net sales development (%) | 6.5% | 4.8% | 1.5% |
| Online store net sales development (%) | 19.6% | -6.6% | 1.7% |
| Gross profit | 33.1 | 27.6 | 144.6 |
| Gross margin (%) | 37.1% | 36.6% | 37.7% |
| Adjusted EBITA* | 10.8 | 8.3 | 67.0 |
| Adjusted EBITA* margin (%) | 12.1% | 11.0% | 17.5% |
| Adjusted EBITA* margin development (%) | 31.2% | 9.9% | 23.8% |
| EBITA* | 10.8 | 8.3 | 67.0 |
| EBITA* margin (%) | 12.1% | 11.0% | 17.5% |
| EBIT | 10.4 | 7.6 | 65.1 |
| EBIT margin (%) | 11.7% | 10.1% | 17.0% |
| Net income | 7.3 | 5.0 | 47.9 |
| EPS (€) | 0.09 | 0.06 | 0.57 |
| Operating free cash flow | 13.6 | 2.3 | 44.0 |
| Net debt / adjusted EBITDA | 1.3 | 1.5 | 1.4 |
| Net debt / adjusted EBITDA excl. impact of IFRS 16 | 0.3 | 0.5 | 0.5 |
| Number of stores (end of period) | 52 | 44 | 49 |
| Number of personnel converted into full-time employees (FTE) | 877 | 847 | 849 |
Puuilo's financial year starts on 1 February and ends on 31 January the following year
* Operating profit before the amortisation and impairment of intangible rights
Outlook for the financial year 2025
Puuilo reiterates the outlook for the financial year 2025 given in its financial statements release on 27 March 2025.
The company forecasts that net sales will be €425 - 455 million and the adjusted operating profit (adjusted EBITA) will be €70 - 80 million in the financial year 2025.
The forecast includes elements of uncertainty related to changes in consumer purchasing power and behaviour. Additionally, geopolitical crises and international tensions may affect product availability and prices.
Puuilo's long-term targets
The company's long-term financial targets for the strategy period 2024 - 2028:
- Growth: Net sales above €600 million by the end of financial year 2028 (ends in January 2029)
- Profitability: Adjusted EBITA margin above 17% of net sales
- Profit distribution: The company aims to distribute at least 80% of net income for each financial year
- Leverage: Net debt to adjusted EBITDA below 2.0x
CEO Juha Saarela's review
The new financial year began with a strong performance. In the first quarter, the net sales grew by 18.4% and by 6.5% in like-for-like stores. Net sales growth was strong also in the online store, where a 19.6% increase was reported. The number of customers continued to rise significantly as well, increasing by 18.4% overall and by 6.9% in like-for-like terms. The average basket size remained at the previous year's level. The strong net sales performance in Q1 was partly driven by the early onset of spring, which led to a successful start for the gardening category.
In Q1, the gross margin was 37.1% representing an increase of 0.5% percentage points. The strong improvement in gross margin was driven by the significantly increased share of private label products. Net sales of private label products grew by 37.7%, their share of total net sales also increased. Operating expenses remained well under control; the expense ratio decreased to 19.5% of net sales. All the above income statement items contributed to an adjusted EBITA of €10.8 million. EBITA increased by approximately €2.6 million and accounted for 12.1% of net sales.
During Q1, we opened three new stores: in Varkaus, Savonlinna and Lohja. True to tradition, customers enjoyed free sausages and checkout queues extended throughout the store. The store openings were highly successful, and the new stores got off to a solid start as expected. Next up was the opening of Mäntsälä store, which falls in Q2. During the rest of the financial year, new stores will be opened in Jyväskylä Keljo, Iisalmi and Heinola. In total, at least seven new stores will be opened during this financial year. The growth continues!
The spring and summer season have started well. I wish a happy Midsummer and summer to all our shareholders, customers, and personnel!
Significant events of the reporting period
Adjusted EBITA exceeded guidance for financial year 2024, preliminary information on financial year 2024 results
Puuilo released preliminary information about the financial year 2024 results. Puuilo's net sales for the financial year 2024 (February 2024 - January 2025) were €383.4 million, and the adjusted EBITA was €67.0 million, or 17.5% of net sales. Previously, Puuilo had guided that the nets sales for the financial year 2024 would be between €380 - 400 million and the adjusted EBITA would be between €60-66 million. (Stock exchange release 10 March 2025)
Refinancing
Puuilo signed a new € 100 million long-term financing agreement with OP Corporate Bank Plc. The new financing agreement has a maturity of 36 months and includes two 12-month extension options. The new financing agreement replaced the previous agreement signed in 2021.
The financing agreement includes a total of € 70 million term loan and € 30 million revolving credit facility (RCF). The funds will be used to repay existing loans, working capital financing and for the Group's other general financing needs.
The terms of the financing agreement include one covenant: net debt/EBITDA ratio.
The agreement also includes € 30 million uncommitted additional financing option (accordion option). However, this accordion option requires a separate financing decision from the bank. (Stock exchange release 27 March 2025)
Change in the holding of Puuilo Plc's treasury shares
A total of 126,481 Puuilo shares held by the company were conveyed without consideration to 28 key employees who participated in the 2022-2024 share-based incentive program. The program was originally announced on 20 April 2022 with a stock exchange release. The conveyance is based on the authorisation granted to the Board of Directors by the Annual General Meeting of Shareholders held on 15 May 2024. After the share transfer on 14 April 2025, the company held a total of 428,519 own shares. (Stock exchange release 15 April 2025)
Board of Directors established a new long-term incentive plan for company's key employees
The Board of Directors of Puuilo Plc decided to establish a new Long-Term Incentive Plan for the key employees of the Company and its subsidiaries ("LTI") and launch the first LTI plan period for 2025-2027.
The purpose of the LTI is to encourage key employees to acquire and own the Company's shares. The LTI also aims to align the interests of the shareholders and the key employees as well as to increase key employees' motivation and long-term commitment to the Company. The LTI is intended to consist of annually commencing plan periods, each with a 12-month savings period followed by a holding period of approximately one and a half years. The Board of Directors will resolve annually on the launch of a new plan period. Participation in the LTI is voluntary, and key employees are invited to participate in each plan period separately.
The first LTI plan period 2025-2027 began on 1 June 2025 and ends on 31 May 2028. The first savings period ends on 31 May 2026. The holding period begins at the first acquisition of savings shares. In the 2025-2027 plan period, the LTI is offered to approximately 100 key employees of the Group, including also the Management Team and the CEO. As part of the LTI, the key employees have an opportunity to make a one-off investment and/or save a proportion of their salaries and invest those savings in Puuilo shares. With the savings of the 2025-2027 plan period, Puuilo shares will be acquired in four tranches estimated in September 2025, December 2025, March 2026 and June 2026.
In the 2025-2027 plan period, as a reward for their commitment, the Company grants the key employees participating in the LTI a gross reward of one free matching share for every savings share acquired with their savings. The participants have also an opportunity to earn one to three performance-based matching shares (gross) for each savings share acquired with their savings if the performance criteria set for the plan period are met. The performance criteria of the plan are tied to the total shareholder return of the share (TSR), the company's adjusted earnings before interest, taxes and amortisation (EBITA) and return on invested capital (ROIC). Continuity of employment and holding of acquired savings shares for the duration of the holding period, ending on the day following the 2027 financial statement release, are prerequisites for receiving the award. The potential award will be paid partly in shares and partly in cash after the end of the holding period. The cash proportion is intended to cover taxes and statutory social security contributions arising from the award. Matching shares will be freely transferable after their registration in a participant's book-entry account. The savings shares and matching share are Puuilo shares.
The maximum number of matching shares (gross before taxes) for the first plan period of 2025-2027 is approximately 519 000 shares, calculated at the share price on 16 April 2025. The final number of matching shares depends on the key employees' participation and savings rate in the plan, the fulfilment of the prerequisites for receiving matching shares and the number of shares acquired from the market with savings. (Stock exchange release 17 April 2025)
Significant events after the end of the reporting period
The company has not had any significant events after the reporting period.
Next financial reports
Puuilo's financial year starts on 1 February and ends on 31 January the following year. The company publishes Business reviews for the first and third quarter, a Half-year financial report and a financial statements release.
Half-year financial report February - July 2025 on 11 September 2025
Business review Q3 February - October 2025 on 10 December 2025
All financial reports are published in English and in Finnish and are available at: https://www.investors.puuilo.fi/en/investors/reports_and_presentations.
Conference call in English and webcast in Finnish
The report will be presented for analysts, investors, and the media on the publication date in English at 10:00 am EET (9:00 am CET) and in Finnish at 11.30 am EET (10:30 am CET).
The conference call in English can be followed live at https://puuilo.videosync.fi/2025-q1-results. Asking questions requires participation in the conference call. You can access the teleconference by registering on the link https://player.videosync.fi/puuilo/2025-q1-results/dial-in.
After the registration you will be provided phone numbers and a conference ID to access the conference. If you wish to ask questions, please, dial *5 on your telephone keypad to enter the queue.
The webcast in Finnish will begin at 11.30 am EET at https://puuilo.events.inderes.com/q1-2025.
Recordings of both events will be available later the same day at Puuilo's Investors website at https://www.investors.puuilo.fi/en/investors/reports_and_presentations
For further information, please contact:
Juha Saarela, CEO, mobile phone: +358 50 409 7641
Ville Ranta, CFO, mobile phone: +358 40 555 4995
