PUUILO PLC, BUSINESS REVIEW, 10 DECEMBER 2025 at 8.30 EET
Highlights Q3/2025
- Net sales increased by 13.7% (+10.8%) and were €116.2 million (102.2)
- Like-for-like store net sales increased by 2.2% (-0.4%)
- Online store net sales decreased by 1.2% (-0.8%)
- Gross profit was €44.9 million (38.9) and gross margin was 38.6% (38.0%)
- Adjusted EBITA was €21.9 million (19.7), increasing by 11.2%, which corresponds to an adjusted EBITA margin of 18.8% (19.2%)
- EBIT was €21.4 million (19.3) which corresponds to 18.4% of net sales (18.8%)
- Operating free cash flow was €12.7 million (10.0)
- Earnings per share were €0.19 (0.17)
- No new stores were opened during the third quarter (one new store)
Highlights February - October 2025
- Net sales increased by 14.7% (+13.8%) and were €341.3 million (297.6)
- Like-for-like store net sales increased by 3.0% (+1.9%)
- Online store net sales increased by 5.3% (+2.3%)
- Gross profit was €129.8 million (111.6) and gross margin was 38.0% (37.5%)
- Adjusted EBITA was €60.9 million (52.7), increasing by 15.5%, which corresponds to an adjusted EBITA margin of 17.8% (17.7%)
- EBIT was €59.1 million (51.3) which corresponds to 17.3% of net sales (17.2%)
- Operating free cash flow was €64.5 million (44.0)
- Earnings per share were €0.52 (0.45)
- Five new stores were opened during the reporting period (five 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 | Q3/2025 | Q3/2024 | 02/25-10/25 | 02/24-10/24 | 2024 |
| Net sales | 116.2 | 102.2 | 341.3 | 297.6 | 383.4 |
| Net sales development (%) | 13.7% | 10.8% | 14.7% | 13.8% | 13.3% |
| Like-for-like store net sales development (%) | 2.2% | -0.4% | 3.0% | 1.9% | 1.5% |
| Online store net sales development (%) | -1.2% | -0.8% | 5.3% | 2.3% | 1.7% |
| Gross profit | 44.9 | 38.9 | 129.8 | 111.6 | 144.6 |
| Gross margin (%) | 38.6% | 38.0% | 38.0% | 37.5% | 37.7% |
| Adjusted EBITA* | 21.9 | 19.7 | 60.9 | 52.7 | 67.0 |
| Adjusted EBITA* margin (%) | 18.8% | 19.2% | 17.8% | 17.7% | 17.5% |
| Adjusted EBITA* margin development (%) | 11.2% | 28.9% | 15.5% | 21.4% | 23.8% |
| EBITA | 21.8 | 19.7 | 60.4 | 52.7 | 67.0 |
| EBITA margin (%) | 18.8% | 19.2% | 17.7% | 17.7% | 17.5% |
| EBIT | 21.4 | 19.3 | 59.1 | 51.3 | 65.1 |
| EBIT margin (%) | 18.4% | 18.8% | 17.3% | 17.2% | 17.0% |
| Net income | 16.2 | 14.5 | 44.1 | 37.9 | 47.9 |
| EPS (€) | 0.19 | 0.17 | 0.52 | 0.45 | 0.57 |
| Operating free cash flow | 12.7 | 10.0 | 64.5 | 44.0 | 44.0 |
| Net debt / adjusted EBITDA* | 1.3x | 1.3x | 1.3x | 1.3x | 1.4x |
| Net debt / adjusted EBITDA excl. impact of IFRS 16* | 0.5x | 0.4x | 0.5x | 0.4x | 0.5x |
| Number of stores (end of period) | 54 | 47 | 54 | 47 | 49 |
| Number of personnel converted into full-time employees (FTE) | 972 | 828 | 971 | 876 | 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 specifies 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 and half-year report on 11 September 2025.
The company forecasts that net sales will be €430 - 450 million and the adjusted EBITA will be €72 - 79 million in the financial year 2025. Previously, the company forecasted that net sales would be €425 - 455 million and adjusted EBITA would be €70 - 80 million.
The specified guidance is based on the development in the first three quarters and the outlook for the last quarter of the financial year.
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 2026 - 2030:
- Growth: Net sales CAGR above 10% and net sales above €800 million by the end of financial year 2030 (ends in January 2031)
- 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 2.5x
CEO Juha Saarela's review
Puuilo's autumn went well. In August - October (Q3), our net sales increased by 13.7%, and like-for-like store net sales by 2.2%. Customer traffic growth was even stronger; +16.0% in all stores and +4.6% in like-for-like stores. The average basket size decreased by 2.0% compared to the same period last year. We see several reasons for the decrease, the most important being the continued caution among consumers. However, the concept works, and we are gaining market share.
In Q3, Puuilo's adjusted EBITA was €21.9 million, which was 18.8% (19.2%) of net sales. EBITA margin decreased mainly due to higher personnel costs resulting from for example the general increase according to the collective bargaining agreement that took effect in August. Adjusted EBITA grew by 11.2% compared to last year's Q3. The gross margin rose to 38.6% increasing by 0.6 percentage points compared to previous year. The main driver of the gross margin increase was Puuilo's private label strategy, where the number of products sold under our own brands continues to grow and pushes the margin upward.
There were no store openings in Q3, but by the end of the financial year we will have opened seven new stores. Our Iisalmi store was opened at the beginning of the fourth quarter, and we will open another store in Heinola by the end of Q4.
Next year also looks quite promising in terms of new store openings. So far, we have announced new stores in Hollola, Espoo Espoonlahti, Lahti Holma and Kangasala for the 2026 financial year. If everything goes as planned, next year may be a record year for us in terms of the number of store openings.
Near-term macroeconomic conditions remain difficult to predict, with a forecasted return to stronger growth in the Finnish economy repeatedly pushed out. Weakened consumer purchasing power continues to weigh modestly on average basket size, though we have adapted. What matters most to us in this environment is our sustained growth in customer traffic, which reflects Puuilo's strong customer value proposition.
As announced in October, our CFO Ville Ranta will leave Puuilo at the end of 2025 to join another company. I would like to warmly thank him for his contribution to the successful implementation of our company's strategy and wish him every success in meeting future challenges. With this positive performance update, I would like to wish all our shareholders, customers, and the entire personnel Happy Holidays!
Significant events of the reporting period
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 new targets are discussed on the first page of this review. (Stock exchange release 11 September 2025)
CFO Ville Ranta to leave Puuilo by the end of 2025
CFO Ville Ranta has announced that he will leave Puuilo to join another company. He will leave his current position on 31 December 2025. The company has started a search for his successor. (Stock exchange release 1 October 2025)
Members of Nomination Board
Representatives of the three largest shareholders registered in Puuilo Plc's shareholder register as of 1 October 2025 were elected to the Puuilo's Shareholders' Nomination Board along with the Chair of the Board of Directors, Mammu Kaario, as an expert member. Puuilo Plc's Shareholders' Nomination Board is a body of the Company's shareholders responsible for preparing proposals for the election and remuneration of the members and the Chair of the Board of Directors as well as the remuneration of Board committee members to the Annual General Meeting 2026 and, when necessary, to the Extraordinary General Meeting.
The three largest shareholders have nominated following members to Puuilo's Shareholders Nomination Board: Ampfield Management, L.P., represented by Emerson Moore, Markku Tuomaala, represented by Janne Koikkalainen, Evli Fund Management Company Ltd, represented by Ville Tiainen. (Stock exchange release 14 October 2025)
Significant events after the end of the reporting period
Interim CFO
Annu von Weymarn has been appointed as interim CFO and member of the Management Team of Puuilo effective 1 January 2026. Weymarn has served at Puuilo since 2019 and is currently the company's Head of Financial Controlling. (Stock exchange release 10 December 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.
Financial Statements Release 2025 (February 2025 - January 2026) on 25 March 2026
Business review Q1 (February - April 2026) on 11 June 2026
Half-year Financial Report (February - July 2026) on 10 September 2026
Business review Q3 (February - October 2026) on 10 December 2026
The Financial Statements 2025 and the Report by the Board of Directors will be published during week 16.
Puuilo's Annual General Meeting is planned for Tuesday 12 May 2026. The meeting will be convened by the company's Board of Directors separately at a later date.
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-q3-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-q3-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/q3-2025.
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