PUUILO PLC: HALF-YEAR FINANCIAL REPORT, 11 SEPTEMBER 2025 at 8.30 am
Highlights Q2/2025
- Net sales increased by 13.2% (+14.9%) and were €135.8 million (119.9)
- Like-for-like store net sales increased by 1.3% (+2.1%)
- Online store net sales increased by 2.4% (+10.6%)
- Gross profit was €51.9 million (45.1) and gross margin was 38.2% (37.6%)
- Adjusted EBITA was €28.2 million (24.8), increasing by 13.7%, which corresponds to an adjusted EBITA margin of 20.8% (20.7%)
- EBIT was €27.3 million (24.4) which corresponds to 20.1% of net sales (20.3%)
- Operating free cash flow was €38.1 million (31.7)
- Earnings per share were €0.25 (0.22)
- Two new stores were opened during the second quarter (two new stores)
Highlights H1/2025
- Net sales increased by 15.2% (+15.4%) and were €225.0 million (195.4)
- Like-for-like store net sales increased by 3.4% (+3.1%)
- Online store net sales increased by 8.4% (+3.9%)
- Gross profit was €84.9 million (72.7) and gross margin was 37.7% (37.2%)
- Adjusted EBITA was €39.0 million (33.0), increasing by 18.1%, which corresponds to an adjusted EBITA margin of 17.3% (16.9%)
- EBIT was €37.7 million (32.0) which corresponds to 16.8% of net sales (16.4%)
- Operating free cash flow was €51.8 million (33.9)
- Earnings per share were €0.33 (0.28)
- Five new stores were opened during the first half (four 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 | Q2/2025 | Q2/2024 | H1/2025 | H1/2024 | 2024 |
| Net sales | 135.8 | 119.9 | 225.0 | 195.4 | 383.4 |
| Net sales development (%) | 13.2% | 14.9% | 15.2% | 15.4% | 13.3% |
| Like-for-like store net sales development (%) | 1.3% | 2.1% | 3.4% | 3.1% | 1.5% |
| Online store net sales development (%) | 2.4% | 10.6% | 8.4% | 3.9% | 1.7% |
| Gross profit | 51.9 | 45.1 | 84.9 | 72.7 | 144.6 |
| Gross margin (%) | 38.2% | 37.6% | 37.7% | 37.2% | 37.7% |
| Adjusted EBITA* | 28.2 | 24.8 | 39.0 | 33.0 | 67.0 |
| Adjusted EBITA* margin (%) | 20.8% | 20.7% | 17.3% | 16.9% | 17.5% |
| Adjusted EBITA* margin development (%) | 13.7% | 18.7% | 18.1% | 17.3% | 23.8% |
| EBITA | 27.7 | 24.8 | 38.5 | 33.0 | 67.0 |
| EBITA margin (%) | 20.4% | 20.7% | 17.1% | 16.9% | 17.5% |
| EBIT | 27.3 | 24.4 | 37.7 | 32.0 | 65.1 |
| EBIT margin (%) | 20.1% | 20.3% | 16.8% | 16.4% | 17.0% |
| Net income | 20.7 | 18.4 | 28.0 | 23.4 | 47.9 |
| EPS (€) | 0.25 | 0.22 | 0.33 | 0.28 | 0.57 |
| Operating free cash flow* | 38.1 | 31.7 | 51.8 | 33.9 | 44.0 |
| Net debt / adjusted EBITDA* | 1.2x | 1.3x | 1.2x | 1.3x | 1.4x |
| Net debt / adjusted EBITDA excl. impact of IFRS 16* | 0.2x | 0.3x | 0.2x | 0.3x | 0.5x |
| Number of stores (end of period) | 54 | 46 | 54 | 46 | 49 |
| Number of personnel converted into full-time employees (FTE) | 1,062 | 953 | 971 | 900 | 849 |
Puuilo's financial year starts on 1 February and ends on 31 January the following year
* Adjustments relate to items affecting comparability, which originate from significant items outside the ordinary course of the business and are related to strategic projects.
Outlook for the financial year 2025
Puuilo reiterates the outlook for the financial year 2025 provided in its financial statements release on 27 March 2025 and reiterated in its Q1 business review on 10 June 2025.
The company forecasts that net sales will be €425 - 455 million and the 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
Puuilo will publish the updated long-term targets for the strategy period 2026 - 2030 today, 11 September 2025.
CEO Juha Saarela's review
Puuilo delivered a solid performance in Q2. Net sales growth was 13.2% (+14.9%) and a like-for-like growth was 1.3% (+2.1%). Customer traffic continued to grow. Across all stores, the growth was +14.6% and +2.8% in like-for-like stores.
In Q2, the average basket size decreased by 1.2% (decrease of 2.8%) compared to last year. However, the rate of decrease in average basket size slowed down. We observe cautious optimism in the air regarding a potential stabilization in the average basket size towards the end of the year, supported by slightly improved figures in recent consumer confidence and other economic indicators. In Puuilo's case, the decline in average basket size may also be influenced by increased brand awareness and, to some extent, the expansion of our store network, which encourages customers to visit our stores more frequently as accessibility improves through new store openings.
In Q2, Puuilo's adjusted EBITA was €28.2 million (€24.8 million), which reflects an increase of 13.7% compared to last year. The EBITA increase was driven by strong net sales development, effective cost control, and an improved gross margin. In Q2, the Group's gross margin was 38.2% (37.6%) increasing by 0.6 percentage points compared to previous year. The positive development in gross margin was particularly supported by the strong growth in net sales of private label products. Operating cash flow in Q2 was strong, amounting to €38.1 million (€31.7 million). The solid cash flow was supported by strong EBITA.
Growth continues. During the past quarter, we opened two new stores: Mäntsälä in May and Jyväskylä Keljo in June. The latter is the second store in Jyväskylä. As usual, the openings went smoothly and attracted plenty of customers. Later in the financial year, we will open new stores in Iisalmi and Heinola. This brings the total number of new store openings for the year to seven. The opening calendar for the financial year 2026 is also nearly full. We have already announced new stores in Espoonlahti and Hollola. In addition, Vantaa Virkamies store will be relocated to Vantaa Tammisto. More news regarding 2026 store openings is still to come.
Today, we will publish Puuilo's strategy update and new financial targets extending through the financial year 2030. By the end of the strategy period, we are aiming for a network of at least 100 stores, annual average net sales growth of over 10%, and total net sales exceeding €800 million. Our profitability target is to achieve an adjusted EBITA margin of over 17%. Puuilo will start an organic international expansion by opening first pilot stores in Sweden during the strategy period. In doing so, we aim to ensure that Puuilo's long-term growth continues. That said, because our concept has demonstrated strong performance also in smaller cities, we increased our target for the long-term potential in Finland to over 90 stores. Additionally, we will continue to focus on maintaining like-for-like growth, increasing the share of private label products, streamlining the customer experience, and advancing our sustainability agenda.
Puuilo's future and growth outlook remain strong.
Finally, I want to thank our personnel, customers and shareholders!
Significant events after the end of the reporting period
Flagging notification
Puuilo has received a notification on 11 August 2025 in accordance with Chapter 9, Section 5 of the Finnish Securities Markets Act. According to the notification, The Capital Group Companies, Inc.'s total indirect holdings in shares and votes has decreased below the threshold of 10% on 8 August 2025 and was 9.84% after the transaction (Stock exchange release 13 August 2025).
Updated long-term financial targets for the strategy period 2026 - 2030
On 10 September 2025, Puuilo's Board decided on the updated long-time targets. The targets will be published on 11 September 2025.
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.
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 12:00 pm EET (11:00 am CET).
The conference call in English can be followed live at https://puuilo.videosync.fi/2025-q2-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-q2-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 12:00 am EET at https://puuilo.events.inderes.com/q2-2025.
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
