Unaudited consolidated interim accounts for the first quarter of 2026
| Segments (EURm) | Q1/26 | Q1/25 | yoy |
| Selver supermarkets | 142.4 | 148.3 | -4.0% |
| Department stores | 22.8 | 22.7 | 0.4% |
| Car trade | 55.8 | 37.3 | 49.6% |
| Security segment | 5.5 | 4.6 | 19.9% |
| Real Estate | 1.8 | 2.0 | -6.2% |
| Total sales | 228.4 | 214.9 | 6.3% |
| Selver supermarkets | 0.0 | 0.7 | -106.5% |
| Department stores | -1.8 | -1.7 | 4.2% |
| Car trade | 2.1 | 0.7 | 200.1% |
| Security segment | 0.0 | -0.1 | -110.4% |
| Real Estate | 2.2 | 2.2 | -1.9% |
| IFRS 16 | -0.4 | -0.5 | -2.2% |
| Total profit before tax | 2.0 | 1.3 | 58.3% |
The Group's consolidated unaudited sales revenue for the first quarter of 2026 was 228.4 million euros. Compared with the first quarter of 2025, sales revenue increased by 6.3%. The reporting period resulted in a net loss of 4.7 million euros. Compared with the same period a year earlier, the loss was 1.8 million euros lower, including the positive effect of lower income tax expense in the amount of 1.1 million euros. Profit before tax was 2.0 million euros, increasing by 0.7 million euros compared with the result a year earlier.
The economic growth forecast for 2026 nevertheless translated into only modest growth in consumption in the first quarter. Higher utility bills during the cold winter months absorbed a significant share of household spending, while the outbreak of a new war in the Middle East led consumers to become more cautious once again. In the Group's first-quarter financial results, this was felt most clearly in food retail, i.e. the Selver supermarkets segment, where performance declined both in terms of sales revenue and profit. This was offset by the gradual recovery in car sales, which made the Group's car segment the fastest-growing segment among the Group's business segments in both sales revenue and profit. As from 1 March 2026, the Group's results have included the results of Rohe Auto AS and SKO Motors OÜ, acquired at the beginning of March. The car segment was also the main driver of the Group's overall 6.3% growth in sales revenue. In addition to the car segment, the department stores and security segment also increased sales revenue, and unlike in the previous year, the security segment also returned a small profit. The Group's gross margin declined to some extent, reflecting the sales results achieved by the car segment under pricing pressure. Gross margin did not decline in the Group's other retail segments. Staff costs increased by 3.9%, while the total number of employees decreased by 0.4%. Finance costs decreased by 0.8% compared with the previous year.
In March, a significant strategic investment in the acquisition of shares in Rohe Auto AS and the holdings in SKO Motors OÜ and SKO Motors Kinnisvara OÜ was successfully completed. Through this investment, the Group is strengthening the position of its car segment in Estonia and the Baltics, creating synergies and adding resilience to the Group's brand portfolio. Work continued on the construction of a new bodyshop adjacent to the Peetri car dealership, with opening planned for the beginning of the second quarter. Development of the new Papiniidu Selver in Pärnu and the extension of Laulasmaa Selver also continued.
Selver supermarkets
The consolidated sales revenue of the supermarkets segment for the first quarter of 2026 was 142.4 million euros, a decrease of 4.0% compared with the same period a year earlier. In the first quarter of 2026, 10.2 million purchases were made at Selver stores, which was 5.0% fewer than in the comparative period of the previous year. The consolidated pre-tax loss of the supermarket segment in the first quarter was 0.04 million euros, which was 0.7 million euros weaker than the result a year earlier. The consolidated net loss was 1.0 million euros. In the comparable period of the base year, net profit was 0.09 million euros. The difference between net profit and profit before income tax arises from income tax paid on dividends - this year, dividend income tax was 0.4 million euros higher than a year earlier.
Selver's sales performance has been affected by weakened consumer purchasing power and intensified competition, in which it is difficult to increase sales revenue with the existing store base alone. Revenue performance has been affected in part by a higher comparison base due to one additional store and by a considerable decline in sales of industrial goods in the supermarket segment. One of the contributing factors was also that, this year, Easter fell in the second quarter, whereas in the base year it fell in the first quarter. Sales revenue from food products remained at a level close to that of the previous year, while sales volumes, similarly to the wider market segment, remained below the previous year's level. According to Statistics Estonia, the sales revenue of food stores in current prices increased by 3.2% in the first two months of 2026, while sales volumes declined by approximately 2%.
The financial results for the first quarter of 2026 were mainly affected by the decline in sales volumes. As regards operating expenses, the company has successfully coped with the upward pressure on input prices for various services and materials and with optimising expenditure volumes. However, market price increases in energy costs (electricity, heating and fuel) have still had a negative effect on the company's operating expenses, increasing operating costs by several hundred thousand euros and slightly reducing the company's operating cost efficiency ratio. Continuous improvements in work processes have made it possible to keep labour costs 1.2% below the base year level.
This year, Selver plans to open two new stores and to renovate and expand one existing store. In the first half of the year, Laulasmaa Selver is being renovated and expanded. The extension works are proceeding according to schedule, and in May the store will be temporarily closed to customers for a couple of weeks. In the second half of the year, Selver will open Papiniidu Selver in Pärnu, while operations at Pärnu Mai Selver will be discontinued due to the expiry of the lease agreement. Loo Selver in Jõelähtme Parish will also be opened in the second half of the year. There are also plans to convert the refrigeration equipment of one store to a CO2 system in order to improve cost efficiency and reduce negative climate impact. The focus remains on improving supply chain efficiency, preparations for the implementation of the Relex inventory management solution, and increasing volumes on the Bolt Market and Wolt platforms.
The supermarket segment continues its strategic focus on developing sustainable and customer-centric solutions. In order to reduce environmental impact, Selver has taken steps towards paperless administration. The company has significantly reduced the mass mailing of customer leaflets, directing paper-based direct mail only to selected campaigns or areas. At Kulinaaria, active product development has further improved the flavours of its ready-meal range and reduced packaging use. The assortment of Selver and Delice stores was supplemented with the Grøn Balance product range, a Scandinavian white-label brand that is sold exclusively in Estonia through the Selver retail chain. The range includes environmentally friendly laundry, cleaning and personal care products, as well as baby products and nappies. The range is aimed primarily at allergy sufferers and children and carries the internationally recognised Nordic Swan Ecolabel and Asthma Allergy Nordic certifications, confirming the safety and environmental sustainability of the products. At the same time, Selver continues to expand measures supporting healthier customer choices by offering a 15% discount on fruit and vegetables every Friday to encourage balanced and varied nutrition.
As at the end of the year, the supermarket segment comprises 72 Selver stores, 2 Delice stores, the mobile store and a café, with a total sales area of 124.3 thousand m². In addition, the segment includes e-Selver, the online store with the largest service area in Estonia, and the central kitchen Kulinaaria OÜ.
Department stores
The sales revenue of the department stores segment in the first quarter of 2026 was 22.8 million euros, which was 0.4% higher than in the same period of the previous year. The pre-tax loss amounted to 1.8 million euros, increasing by 0.07 million euros compared with the same period last year.
In the first quarter, the sales revenue of the department stores per square metre of selling space was 0.3 thousand euros per month, which was 1% higher than in the comparable period of the previous year. This year's winter discount campaign began with proper winter weather, which contributed to a strong campaign performance and left winter goods inventories at a lower level after the campaign than last year, when the winter months were on average warmer. Although high utility bills had a negative impact on February sales, the spring season began very positively in March both in the fashion departments and with the Beauty Time campaign, despite the excavation works taking place on Laikmaa Street in Tallinn, delivering the strongest growth ever recorded. The children's department in Tallinn, which was refurbished in March last year, has attracted customer interest in its assortment and has delivered better results in both department stores and in the e-store. With its distinctive assortment, the food department has moved against the declining trend in Estonia's food retail sector and continues to post monthly growth both in customer numbers and in performance. Changes in digital marketing have significantly increased traffic to the e-store and, as a result, improved performance compared with the previous year.
The sales revenue of TKM Beauty Eesti OÜ, which operates the I.L.U. cosmetics stores, amounted to 1.8 million euros in the first quarter of 2026, representing a decrease of 3,3% compared with the same period in 2025. In the first quarter, the loss was 0.1 million euros, which was 0.04 million euros weaker than the profit reported in the comparable period of 2025. Colder-than-usual weather in January and February favoured purchases of winter sports and fashion goods, leaving beauty products in the background. This affected sales revenue and created pressure for deeper promotional campaigns.
Car trade
The sales revenue of the car segment in the first quarter of 2026 was 55.8 million euros. Sales revenue increased by 49.6% compared with the previous year. The segment's consolidated pre-tax profit in the first quarter was 2.1 million euros, tripling compared with the same period a year earlier. As from 1 March 2026, the results of Rohe Auto AS and SKO Motors OÜ, acquired at the beginning of March, have been consolidated into the results of the car segment. A total of 1,499 new vehicles were sold in the first quarter.
In the first quarter, the Estonian car market returned to strong growth (100.4%), although this does not yet indicate a full recovery of the Estonian car market. Growth was driven mainly by a low comparison base, while sales continued to take place under pricing pressure and with larger discounts. In Latvia and Lithuania, the new passenger car market remained on a stable path of moderate growth. In the first quarter, the Group's car segment succeeded in increasing both sales revenue and profit. Results were supported by the stable, albeit moderate, growth of the Group's Baltic car dealerships and by the launch of new KIA models by the importer. During the quarter, the Group's car companies focused on improving sales processes, more specifically through targeted marketing campaigns and increasing the share of electric vehicle models.
The most significant event in the Group's car segment in the first quarter of 2026 was the acquisition in Tallinn of two Škoda dealerships - Rohe Auto AS and SKO Motors OÜ. This strategic step strengthens the position of the car segment in the Estonian car market and expands the Group's cooperation with the Škoda importer to Tallinn in addition to Riga and Vilnius, making the Group the largest Škoda dealer in the Baltics.
In Lithuania, the growth of the car segment is supported by the new KIA-Škoda multi-brand dealership in Vilnius, opened in November last year, which makes it possible to offer customers a wider choice of vehicles and significantly improves sales and service capacity in the largest market in the Baltics. The Lithuanian dealership has been well received by customers and has started operations as planned. The dealership's modern infrastructure and the concentration of several brands under one roof create a strong basis for growth in sales volumes. In Estonia, construction of Viking Motors' new and modern body repair workshop in Tallinn is continuing, with opening planned for the beginning of the second quarter. This will be the largest and most technologically advanced vehicle body repair workshop in the region, enabling substantially more work to be carried out than before.
The expanded KIA model range supports the direction of the Group's car business to increase its presence both in the electric vehicle segment and in the compact SUV category, particularly in light of growing consumer interest in more affordable electric cars.
Security segment
The security segment's external sales revenue for the first quarter of 2026 was 5.5 million euros, representing growth of 19.9% compared with the same period of the previous year. The segment's pre-tax profit for the first quarter amounted to 0.01 million euros, which was an improvement of 0.15 million euros compared with the same period last year.
In the first quarter, the segment continued to improve its results. Of the business areas, the strongest growth was delivered by the security technology projects business, where profitability also recovered and the contract portfolio increased. Owing to the challenging economic environment, pressure on profit margins remains in the highly competitive market and customers continue to be price sensitive. The increase in fuel prices that began at the end of February is bringing further direct and indirect increases in input costs. The focus remains on efficiency, the addition of new services and sales growth.
Real estate
The real estate segment's external sales revenue for the first quarter of 2026 was 1.8 million euros, which was 6.2% lower than in the same period last year. During the reporting period, the segment earned pre-tax profit of 2.2 million euros, which was 1.9% lower than in the comparative period.
The decline in quarterly sales revenue was partly attributable to changes in the rental space and reconstruction works at Tartu Kaubamaja Centre. In the autumn, one of Estonia's most modern sports clubs, MyFitness, will open on the second floor of the building, operating on more than 1,500 square metres of space. In April, a new footwear store will begin operations in the centre. In addition, the segment's quarterly sales revenue was reduced by the sale, at the beginning of last year, of commercial buildings leased by the Latvian real estate company to external customers.
The moderate decline in the real estate segment's quarterly profit was due primarily to higher depreciation costs related to the addition of new buildings and to lower external sales revenue. Profit was supported by growth in intra-group sales revenue and lower loan interest expense. In Vilnius, a new KIA and Škoda showroom together with a service building was opened at the end of last year. At the end of last year, the real estate segment also acquired Ülemiste Autokeskus.
Extension and reconstruction works are continuing at Laulasmaa Selver. In April, the bodyshop building being constructed next to the KIA sales and service centre in Peetri, on the outskirts of Tallinn, will be completed.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In thousands of euros
| 31.03.2026 | 31.12.2025 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 32,529 | 29,516 |
| Trade and other receivables | 25,166 | 23,628 |
| Inventories | 107,738 | 101,186 |
| Total current assets | 165,433 | 154,330 |
| Non-current assets | ||
| Long-term receivables and prepayments | 218 | 217 |
| Investments in associates | 1,794 | 1,860 |
| Investment property | 76,191 | 76,162 |
| Property, plant and equipment | 448,493 | 438,977 |
| Intangible assets | 29,565 | 26,429 |
| Total non-current assets | 556,261 | 543,645 |
| TOTAL ASSETS | 721,694 | 697,975 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Borrowings | 59,170 | 63,536 |
| Trade and other payables | 135,434 | 104,955 |
| Total current liabilities | 194,604 | 168,491 |
| Non-current liabilities | ||
| Borrowings | 283,657 | 256,942 |
| Trade and other payables | 1,385 | 1,386 |
| Deferred tax liabilities | 6,897 | 6,893 |
| Provisions for other liabilities and charges | 550 | 510 |
| Total non-current liabilities | 292,489 | 265,731 |
| TOTAL LIABILITIES | 487,093 | 434,222 |
| Equity | ||
| Share capital | 16,292 | 16,292 |
| Statutory reserve capital | 2,603 | 2,603 |
| Revaluation reserve | 119,862 | 120,630 |
| Retained earnings | 95,844 | 124,228 |
| TOTAL EQUITY | 234,601 | 263,753 |
| TOTAL LIABILITIES AND EQUITY | 721,694 | 697,975 |
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
In thousands of euros
| 3 months 2026 | 3 months 2025 | ||
| Revenue | 228,393 | 214,934 | |
| Other operating income | 614 | 329 | |
| Cost of merchandise | -167,654 | -156,424 | |
| Services expenses | -16,346 | -15,751 | |
| Staff costs | -29,406 | -28,303 | |
| Depreciation, amortisation and impairment losses | -10,622 | -10,766 | |
| Other expenses | -422 | -368 | |
| Operating profit | 4,557 | 3,651 | |
| Finance income | 119 | 279 | |
| Finance costs | -2,688 | -2,709 | |
| Share of net profit of associates accounted for using the equity method | 34 | 56 | |
| Profit before tax | 2,022 | 1,277 | |
| Income tax expense | -6,736 | -7,826 | |
| NET PROFIT FOR THE FINANCIAL YEAR | -4,714 | -6,549 | |
| Other comprehensive income: | |||
| Items that will not be subsequently reclassified to profit or loss | |||
| Other comprehensive income for the financial year | 0 | 0 | |
| TOTAL COMPREHENSIVE PROFIT FOR THE FINANCIAL YEAR | -4,714 | -6,549 | |
| Basic and diluted earnings per share (euros) | -0.12 | -0.16 | |
Raul Puusepp
Chairman of the Board
Phone +372 731 5000
