| Segments (EURm) | Q2/25 | Q2/24 | Change | 6m/25 | 6m/24 | Change |
| Supermarkets | 155.7 | 150.3 | 3.6% | 304.0 | 296.7 | 2.5% |
| Department stores | 25.7 | 25.4 | 1.0% | 48.4 | 49.4 | -2.0% |
| Cars | 45.1 | 54.1 | -16.6% | 82.5 | 98.9 | -16.7% |
| Security | 4.4 | 5.7 | -24.1% | 9.0 | 10.3 | -12.8% |
| Real Estate | 1.9 | 1.8 | 9.5% | 3.9 | 3.4 | 12.6% |
| Total sales | 232.8 | 237.3 | -1.9% | 447.8 | 458.8 | -2.4% |
| Supermarkets | 3.4 | 5.2 | -35.0% | 4.0 | 6.2 | -34.9% |
| Department stores | 0.0 | 0.2 | -100.0% | -1.7 | -1.0 | 68.1% |
| Cars | 1.6 | 3.3 | -51.3% | 2.3 | 5.6 | -58.7% |
| Security | -0.3 | 0.0 | -747.6% | -0.4 | -0.1 | 324.0% |
| Real Estate | 2.4 | 1.7 | 39.0% | 4.6 | 3.9 | 17.6% |
| IFRS 16 | -0.5 | -0.6 | -16.6% | -1.0 | -1.0 | -2.6% |
| Total profit before tax | 6.6 | 9.9 | -32.7% | 7.9 | 13.7 | -42.1% |
The Group's unaudited consolidated sales revenue for the second quarter of 2025 amounted to 232.8 million euros, representing a year-on-year decrease of 1.9%. Sales revenue for the first half of the year totalled 447.8 million euros, declining by 2.4% compared to the result for the first half of 2024, when sales revenue stood at 458.8 million euros. The Group's unaudited consolidated profit before tax for the second quarter of 2025 was 6.6 million euros, which was 32.7% lower than the profit recorded for the comparable period of the previous year. The Group's profit before tax for the first six months of 2025 was 7.9 million euros, falling short of the result for the comparable period by 5.8 million euros. Net profit for the first half of the year was 0.1 million euros, which includes a negative tax impact of 2.5 million euros due to the increase in income tax rates.
The second quarter and the entire first half of the year continued to be characterised by a challenging economic environment shaped by an unstable international political situation as well as domestic tax increases and cautious consumer spending. The Group's sales revenue in Estonia was notably affected by the car tax introduced at the beginning of the year, which resulted in a 40% decline in the new car market volume in Estonia during the first half of the year compared to the same period last year. Nevertheless, the decline in sales revenue for the Group's car segment companies operating in Estonia was limited to approximately one third. Overall, the car segment's sales revenue for the six-month period fell short of the previous year's level by 16.7%, as the negative impact was offset by stronger results from subsidiaries in Latvia and Lithuania. Consequently, the Group's total sales revenue also remained slightly below the previous year's level, although the sales revenue of the Selver supermarkets segment continued to grow, building on the momentum from the first quarter, and the sales revenue of the department stores segment also rose slightly above the previous year's figure. Growth in these segments was supported by successful marketing and promotional campaigns. The real estate segment also contributed to the increase in non-group sales revenue and was the only segment to achieve profit growth. The decline in revenue for the security segment resulted from the seasonal fluctuation in the volume of security equipment projects. The additional business areas acquired in the security segment in 2024, along with the other business segments, generated stable sales revenue.
The Group's segments were able to maintain their gross margin at a level comparable to that of the previous year, thanks to skilful inventory planning and well-considered campaign management. However, the decline in gross profit resulting from lower revenue, the increase in staff costs, and the payment of corporate income tax at a higher rate in the first half of the year brought the Group's half-year profit to its lowest level in recent years, although the EBITDA for the first half of the year was the fourth highest on record, exceeding the result for the comparable period in 2021. A decrease in EURIBOR rates provided relief of 0.8 million euros in finance costs from interest on bank loans and leases compared to the previous year, but the additional interest expense arising from the revised IFRS 16 calculation added 0.6 million euros, which almost entirely offset the positive impact of the interest rate reduction. The Group's staff costs increased by 5.2%, while the total number of employees rose by 0.3%. One measure to optimise staff costs is the improvement of the supply chain in cooperation with the Group's logistics centre, which also helps to boost the internal efficiency of trading processes. The updated KIA Sportage, which is among the Group's most popular models, has reached the Baltic market, supporting the recovery of the car segment. A positive impact is also being provided by the growing demand for electric and hybrid vehicles, with the model range set to expand in the coming months with the addition of the new KIA EV4 and the electric van PV5.
In the first quarter of 2025, renovation works were carried out on two floors of the Children's World department in the Kaubamaja Tallinn store, and in March the completely redesigned Children's World was opened. The addition of new brands and a lifestyle-based layout attracted a significant number of new customers to the Children's World in March. In the department stores segment, development work commenced to upgrade the I.L.U. e-store to a new platform and quality standard, with completion scheduled for the third quarter. The Group's Lithuanian real estate company is continuing with the construction of a new KIA and Škoda showroom and service centre in Vilnius, aimed at supporting the expansion of the Group's car segment in the Lithuanian market. Preparatory work has begun in Estonia for the construction of a new bodywork workshop adjacent to the Peetri car dealership. Several store renovation projects have also been initiated this year, with the aim of aligning the buildings with current business needs and increasing their energy efficiency. In the second half of this year, the renovation of Jõgeva Selver is planned, in addition to preparations already underway for the development of the new Pärnu Papiniidu Selver, scheduled to open in 2026, and the expansion of Laulasmaa Selver.
Preparatory activities are ongoing for the refurbishment of the Kaubamaja Tallinn department store. The development is based on the winning entry "City Break" from the architectural competition held in cooperation with the City of Tallinn and the Union of Estonian Architects. To realise the project, it has been agreed with the City of Tallinn that a new detailed planning procedure will be carried out. The developers and the City of Tallinn have agreed that the detailed planning procedure will be prioritised and implemented with minimal time expenditure in accordance with the statutory deadlines.
Selver supermarkets
The consolidated sales revenue of the Selver supermarkets segment for the second quarter of 2025 amounted to 155.7 million euros, representing an increase of 3.6% compared to the same period of the previous year. The consolidated sales revenue for the six-month period totalled 304.0 million euros, marking a 2.5% growth year on year. The average monthly sales revenue from goods per square metre of selling space in the second quarter of 2025 was 0.41 thousand euros, increasing by 0.9% in total and by 2.2% for comparable stores. The average monthly sales revenue from goods per square metre of selling space for the first six months of 2025 was 0.4 thousand euros both in total and for comparable stores. The figure was the same for the corresponding period of the previous year. The growth in sales area efficiency in the second quarter brought the sales area efficiency for the first half of 2025 back to the level recorded in 2024. A total of 22.1 million purchases were made in stores during the first half of 2025, which is 1.8% more than in the corresponding period of the previous year.
The profit before tax and net profit for the second quarter of 2025 were both 3.4 million euros, which is 1.8 million euros less than in the base period. The consolidated profit before tax for the supermarkets segment for the first six months of 2025 was 4.0 million euros, falling short of the comparative base by 2.2 million euros. The net profit for the six-month period was 3.5 million euros, declining by 1.1 million euros compared to the previous year. The difference between net profit and profit before tax is attributable to income tax paid on dividends - this year, income tax on dividends was 1.0 million euros lower than in the previous year. The comparative figures do not include the data for the Raadi and Rocca al Mare Selver stores opened in the third quarter of 2024 but do include the data for the Maardu Selver, which was closed in February this year.
The sales performance of Selver in the second quarter has been affected by the general situation in the Estonian retail market, the weakened purchasing power of customers and more subdued seasonal goods sales due to cooler weather conditions. The volume of sales in food and convenience stores continues to decline, reflecting consumer behaviour trends across the sector. The VAT increase to be implemented from July will further erode already low consumer confidence. The prices of food and production inputs continue to rise, driven by both global and local factors, and it is impossible for retailers to avoid passing these increases on to end prices.
The financial results for the second quarter of 2025 were impacted by the decline in sales volumes and a decrease in the gross margin on the sale of goods due to a higher proportion of campaign products. This year's operating cost base has increased due to one-off expenses related to new stores and the closure of the Maardu store. However, the Group has successfully managed the pressure from rising input prices for various services and materials and optimised expenditure levels, enabling operational efficiency ratios to be maintained at the same level as last year. Pressure on wage costs and the slower growth of sales revenue relative to wage growth have resulted in a slight decline in labour efficiency.
Selver plans to renovate the Jõgeva Selver in the second half of this year. As part of the renovation, the store's sales area will be expanded and more environmentally sustainable solutions will be implemented. Across the segment, continued focus remains on the product assortment and the optimisation of processes. To adapt even better to changed customer demand, Selver added the Scandinavian white-label brand First Price to its assortment in the first half of the year, which is available exclusively at Selver and Delice. The First Price range represents affordable pricing and reliable Scandinavian quality and broadens the selection of the most competitively priced everyday products. In 2025, full use will be made of the logistics centre established in Maardu in 2024 within the supply chain. There will also be a continued focus on increasing activity on the Bolt Market and Wolt platforms and on developing the Selver e-store. At the beginning of this year, Selver's e-store was chosen as the public's favourite grocery and convenience goods shop in a public vote organised by the Estonian E-Commerce Association. In April, Selver joined the 'For a Violence-Free Life' initiative, led by the President Kaljulaid Foundation, which unites employers in taking action against domestic violence. In 2026, one new store is planned to be opened - the Papiniidu Selver in Pärnu - and the Laulasmaa Selver in Harjumaa will be expanded and renovated. Preparatory activities for both projects have already commenced.
The supermarkets segment continues to operate responsibly and with a commitment to sustainability, with the aim of continuously improving its activities to reduce environmental impact. To increase environmental sustainability, a new waste collection system has been developed and introduced to raise the proportion of waste that is recycled, thereby reducing the environmental impact of our operations. In our refrigeration systems, we have begun to introduce more environmentally friendly refrigerants with very low global warming potential, helping to reduce our carbon footprint. For Kulinaaria's production, packaging and its use remain a key area of focus. In product development, alongside maintaining high product quality, significant attention is given to reducing the salt, sugar and fat content of products.
Department stores
The sales revenue of the department stores segment for the second quarter of 2025 amounted to 25.7 million euros, representing a 1.0% increase compared to the corresponding period of the previous year. No profit was generated in the second quarter, resulting in a shortfall of 0.2 million euros compared to the result for the corresponding period of the previous year. The six-month sales revenue totalled 48.4 million euros, which is 2.0% lower than for the same period last year. The department stores segment recorded a pre-tax loss of 1.7 million euros for the first six months of 2025, which is 0.7 million euros weaker than the result for the previous year.
The average sales revenue of the department stores per square metre of selling space for the six-month period was 0.30 thousand euros per month, down 1.8% year on year. The cooling economic climate continued for the second consecutive quarter, with various campaigns performing well as a result. The Spring 'Osturalli' campaign proved highly successful, marking the second best result in the campaign's history and contributing positively to the second quarter's sales revenue. Unfortunately, neither a milder winter nor one of the coldest summers have had the expected effect on seasonal goods sales. On the other hand, Kaubamaja's stock situation is better than in the previous year, which meant there was no need for extensive discounting. In grocery retail, a product range that stands out from competitors has continued to attract new loyal customers to Toidumaailm stores, with sales results exceeding expectations. In the early months of the year, renovation works were carried out on two floors of the Tallinna Lastemaailm department, and in March the fully renewed department with a new concept was opened. New brands and lifestyle-based displays were introduced, generating lively interest among customers. Exclusive special collections available only at Kaubamaja have also attracted positive attention and performed well - including the anniversary collection in collaboration with Lilli Jahilo and the Konges Slojd children's collection, available exclusively in Estonia at Kaubamaja. In the first half of the year, customer interest in the e-store grew significantly compared to the previous period, with growth figures in the double digits.
The sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. cosmetics stores, was 1.9 million euros for the second quarter of 2025, declining by 2.9% compared to the same period in 2024. The second-quarter loss was 0.1 million euros, which is 0.1 million euros lower than the result for the comparable period in 2024. The sales revenue for the first half of 2025 was 3.7 million euros, down 4.8% year on year. The loss for the first half of 2025 was 0.1 million euros, which is 0.2 million euros lower than for the same period in 2024. Overall consumer confidence remained low and continued to impact sales performance. Despite several successful campaigns that maintained customer footfall at the same level as in the previous period, meeting sales targets on regular days remains a challenge. Customers now plan their visits to shopping centres and their purchases carefully, paying particular attention to the timing of promotional campaigns.
Car trade
The sales revenue of the car segment for the second quarter of 2025 amounted to 45.1 million euros, which was 16.6% lower than in the same period of the previous year. The pre-tax profit for the second quarter of 2025 was 1.6 million euros, which was 1.7 million euros weaker than the profit for the same period last year. The segment's sales revenue for the first six months totalled 82.5 million euros, representing a 16.7% decrease compared to the same period of the previous year. The pre-tax profit for the first half of the year was 2.3 million euros, falling short of last year's result by 3.3 million euros. In the second quarter, 1,403 new vehicles were sold. A total of 2,433 new vehicles were sold in the first half of the year, which was 23.3% fewer than in the previous year.
The sales revenue of the car segment was significantly affected by the car tax introduced in Estonia at the beginning of the year, which led to a 40% reduction in the volume of the new car market in Estonia in the first half of the year compared to the same period last year. Nevertheless, the decline in sales revenue for the Group's Estonian car businesses was limited to approximately one third. Overall, the car segment's six-month sales revenue was down 16.7% year on year, with the negative impact offset by stronger performance from the Group's Latvian and Lithuanian subsidiaries. Despite the decline in the Estonian market, the Group's pan-Baltic business model enables the diversification of risks and helps maintain the car segment's profitability, although KIA sales have been more modest while awaiting new models. The updated KIA Sportage, which is among the Group's most popular models, has now arrived on the Baltic market and is supporting the recovery of the car segment. Further positive momentum is being provided by the growing demand for electric and hybrid vehicles, with the model range to be expanded in the coming months with the new KIA EV4 and the electric van PV5.
Construction of the KIA-Škoda multi-brand dealership in Vilnius, Lithuania, is progressing as planned. In Estonia, Viking Motors' new flagship KIA sales and service centre opened its doors at the beginning of the year on the outskirts of Tallinn in Peetri. Work has also commenced on the construction of a body repair workshop adjacent to the Peetri dealership.
Security segment
The non-group sales revenue of the security segment for the second quarter of 2025 amounted to 4.4 million euros, declining by 24.1% compared to the same period of the previous year. The pre-tax loss for the segment in the second quarter totalled 0.3 million euros, which was 0.3 million euros weaker than in the same period last year. The non-group sales revenue for the security segment for the first half of 2025 was 9.0 million euros, decreasing by 12.8% year on year. The pre-tax loss for the first six months of the segment was 0.4 million euros, 0.3 million euros weaker than for the same period last year.
Following last year's exceptionally strong growth base of 63%, the second quarter of this year was considerably weaker. The negative impact of the economic environment has increasingly affected all areas of activity through clients, reflected in both a reduction in volumes and pressure on profit margins. Managing the continued rise in input costs remains a challenge. The results in the security technology projects field fell the most, mainly due to seasonal fluctuations in project volumes. On the positive side, the technical surveillance portfolio continued to grow. The company remains focused on improving efficiency and increasing sales activity.
Real estate
The non-group sales revenue of the real estate segment for the second quarter of 2025 amounted to 1.9 million euros, representing an increase of 9.5% compared to the same period of the previous year. The non-group sales revenue for the first six months was 3.9 million euros, rising by 12.6% year on year. The pre-tax profit for the segment in the second quarter totalled 2.4 million euros, an increase of 39.0% compared to the reference period. The pre-tax profit for the first six months of 2025 was 4.6 million euros, up by 17.6%.
The growth in sales revenue in the first half of the year was largely supported by the addition of rental income from the logistics centre that commenced operations at the end of last year. The logistics centre has been leased to a non-group entity. At the beginning of the year, a new tenant, the Vapiano restaurant, opened in the Viimsi Centre, which boosted the centre's footfall. Sales revenue declined in the Latvian real estate company due to the sale of the Rezekne and Ogre commercial properties to non-group entities at the end of last year and the sale of the Kuldiga and Salaspils properties at the beginning of this year. The results for the reference period included the loss on the sale of the Punane Selver building, which was sold in April 2024. The segment's profit growth was supported by lower borrowing costs.
The Lithuanian real estate company commenced construction last year of a new KIA and Škoda dealership and service building in Vilnius. In Estonia, work has begun on the construction of a body repair workshop next to the KIA sales and service centre in Peetri. In addition, several store renovation projects are being prepared with the aim of modernising the buildings to meet current business needs, including improving energy efficiency.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In thousands of euros?
| 30.06.2025 | 31.12.2024 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 20,820 | 45,454 |
| Trade and other receivables | 20,230 | 30,310 |
| Inventories | 98,321 | 97,091 |
| Total current assets | 139,371 | 172,855 |
| Non-current assets | ||
| Long-term receivables and prepayments | 234 | 235 |
| Investments in associates | 1,851 | 1,733 |
| Investment property | 76,629 | 81,284 |
| Property, plant and equipment | 423,513 | 424,794 |
| Intangible assets | 26,226 | 25,785 |
| Total non-current assets | 528,453 | 533,831 |
| TOTAL ASSETS | 667,824 | 706,686 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Borrowings | 25,686 | 44,436 |
| Trade and other payables | 101,425 | 110,997 |
| Total current liabilities | 127,111 | 155,433 |
| Non-current liabilities | ||
| Borrowings | 295,811 | 279,958 |
| Trade and other payables | 1,305 | 1,285 |
| Deferred tax liabilities | 7,939 | 7,939 |
| Provisions for other liabilities and charges | 516 | 543 |
| Total non-current liabilities | 305,571 | 289,725 |
| TOTAL LIABILITIES | 432,682 | 445,158 |
| Equity | ||
| Share capital | 16,292 | 16,292 |
| Statutory reserve capital | 2,603 | 2,603 |
| Revaluation reserve | 110,812 | 112,167 |
| Retained earnings | 105,435 | 130,466 |
| TOTAL EQUITY | 235,142 | 261,528 |
| TOTAL LIABILITIES AND EQUITY | 667,824 | 706,686 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In thousands of euros
| II quarter 2025 | II quarter 2024 | 6 months 2025 | 6 months 2024 | |||
| Revenue | 232,846 | 237,323 | 447,780 | 458,826 | ||
| Other operating income | 292 | 341 | 621 | 550 | ||
| Cost of merchandise | -168,625 | -171,511 | -325,049 | -333,601 | ||
| Service expenses | -15,102 | -14,956 | -30,853 | -30,218 | ||
| Staff costs | -29,218 | -27,398 | -57,521 | -54,692 | ||
| Depreciation, amortisation and impairment losses | -10,607 | -10,467 | -21,373 | -21,077 | ||
| Other expenses | -208 | -458 | -576 | -790 | ||
| Operating profit | 9,378 | 12,874 | 13,029 | 18,998 | ||
| Finance income | 75 | 76 | 354 | 329 | ||
| Finance costs | -2,877 | -3,142 | -5,586 | -5,790 | ||
| Finance income on shares of associates accounted for using the equity method | 62 | 61 | 118 | 133 | ||
| Profit before tax | 6,638 | 9,869 | 7,915 | 13,670 | ||
| Income tax expense | -1 | -1 | -7,827 | -5,313 | ||
| NET PROFIT FOR THE FINANCIAL YEAR | 6,637 | 9,868 | 88 | 8,357 | ||
| Other comprehensive income: | ||||||
| Items that will not be subsequently reclassified to profit or loss | ||||||
| Other comprehensive income for the financial year | 0 | 0 | 0 | 0 | ||
| TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR | 6,637 | 9,868 | 88 | 8,357 | ||
| Basic and diluted earnings per share (euros) | 0,16 | 0.24 | 0,00 | 0.21 | ||
Raul Puusepp
Chairman of the Board
Phone +372 731 5000
