Key Developments
During the first three months of the 2026/2027 financial year, the economic environment across the Group's operating markets remained mixed and generally challenging, particularly in Estonia and Finland. Consumer confidence remained subdued and unemployment elevated, continuing to constrain household spending. At the same time, moderating inflation and gradual growth in real incomes provided some early signs of improvement in consumer purchasing power, although the recovery in consumption remained modest. The Baltic markets showed somewhat more resilient economic dynamics, while the recovery in Finland remained slower. Despite the challenging environment, the Group continues to view the current market conditions as an attractive opportunity to expand its operations, gain market share and further strengthen its leading positions across its operating markets. Following key actions were taken during the reporting period:
- Apollo Group successfully issued additional bonds with a nominal value of 10 mln eur. This was tap issue of the first series of bonds issued by The Group (nominal value EUR 500, interest rate 7.00% per annum and maturity date 20 March 2031, ISIN EE0000003XXX). The capital raised through the additional bond issue will support the implementation of Group's growth strategy, the opening of new locations, and the launch of new concepts on the market.
- Apollo Group signed in May a share purchase agreement for acquisition of 2 Lithuanian companies: RESTORANI DVYLIKA UAB for a price of 5.1 mln eur and CCF KAVINES UAB for a price of 0.3 mln eur. The transaction is in line with Apollo Group's long-term growth goals and strategic expansion plans. This is an important strategic step that strengthens Apollo Group's position in the Lithuanian market, adds a new restaurant format to the group's portfolio and creates additional operational synergies. Currently, Apollo Group's restaurant portfolio includes well-known brands in Lithuania such as KFC, Delano and CAN CAN Pizza. Following the transaction, the portfolio will be expanded with ten more "12" self-service restaurants and 20 Caif Cafe cafes.
- In June Apollo Group entered into a five-year Development and Franchise Agreement with Krispy Kreme Doughnut Corporation (North Carolina, United States). Krispy Kreme® is a globally recognized fresh doughnut brand known for its iconic Original Glazed doughnut and signature hot-off-the-line, melt-in-your-mouth experience. Founded in 1937, Krispy Kreme operates in more than 40 countries around the world. Under the agreement the Group has obtained the right to develop and open up to 25 Krispy Kreme branded outlets of 3 varying sizes across the Baltic States during the period 2026-2030. Foremore, pursuant to the Development Agreement, the Group has been granted an option, exercisable until 31 December 2027, to enter into a Development and Franchise Agreement for Krispy Kreme outlets in the Republic of Finland. The first Krispy Kreme doughnut shop is planned to be open in Tallinn at the end of ongoing calendar year. The agreement is in line with Apollo Group's long-term growth strategy and regional expansion plans and constitutes a significant strategic step in expanding the Group's operations in the Baltic States. The transaction introduces a new brand to Apollo Group's portfolio, focused on sweet products and coffee beverages.
- Apollo Group, in cooperation with MM Group OÜ and KFC franchisor, is in the process of acquiring the local Fly Chicken restaurant chain operating in the Norwegian market in order to bring the KFC franchise to the Norwegian market. Today, Fly Chicken operates 19 locations in Norway, most of which Apollo Group plans to convert into KFC restaurants. In addition, Apollo Group plans to open new KFC restaurants in Norway within the next 5 years. Norway becomes the fifth KFC market where Apollo Group operates under a KFC franchise agreement. Norway offers strong purchasing power, a highly developed restaurant and delivery market, and significant potential in the fried chicken category, where KFC is currently not represented.
- The Group started 2 major reconstruction projects in Estonia - Bookstore in Kristiine Shopping Mall and Lido restaurant in Mustamäe shopping center.
- Vapiano exited Latvian market, where is had 1 unit, as it earlier did with Lithuanian market. The Group took strategic decision to focus with Vapiano brand on Estonian and Finnish markets. Additional unit in Tallinn in Rocca Al Mare shopping mall was successfully opened in March 2026.
- Delano opened new Delano restaurant in CUP shopping center in June. This constituted a new unit of Delano in over a decade. 2nd new unit is currently under construction, and opening is scheduled for autumn.
- New cinema in Keila with 2 screens was opened in Estonia in Keila Keskus in May. Initial months of operations demonstrated solid results of this newly opened unit.
- Effective 31 July 2026, Kadri Ärm stepped down as CEO of Apollo Cinemas Baltics within the Apollo Group and resigned from her positions as a member of the Management Board of Apollo Kino OÜ (Estonia), Apollo Kino SIA (Latvia) and Apollo Kinas UAB (Lithuania). Effective 1 August 2026, Leitti Mändmets assumed the role of CEO of Apollo Cinemas Baltics.
Financial Performance
Consolidated revenue for 3 months of 2026/2027 financial year amounted to 70.5 mln eur, representing a 19% increase compared to the same period of the prior year (3 months of 2025/2026: 59 mln eur). Consolidated EBITDA reached 11.9 mln eur, an increase of 2 mln eur.(3 months of 2025/2026: 9.8 mln eur). The Group generated a consolidated net profit of 1.7 mln eur (3 months of 2025/2026: net profit of 1.1 mln eur). Depreciation and amortisation expense increased to 7.1 mln eur, an increase of 0.6 mln eur to comparable period. Total finance costs grew by 0.9 mln eur to 3.1 mln eur (3 months of 2025/2026: 2.2 million). The consolidated liabilities of the Apollo Group increased by 10 mln eur as at 31 July 2026 compared to the end of previous financial year (total liabilities as at 31 July 2026: 250 mln eur; total liabilities as at 30 April 2026: 240 mln eur).
Interest rate and foreign exchange fluctuations did not have a material impact on the Group's financial results for 3 months of 2026/2027. Operational transactions are predominantly conducted in euros, mitigating currency exposure. The Group's financing agreements are structured with fixed interest rates. Based on the duration of these contracts and the Group's capitalisation profile, potential Euribor fluctuations are not expected to materially affect liquidity. The Group's customer base consists largely of retail consumers, resulting in immediate cash settlement for the majority of transactions.
Employees
As of 30 April 2026, the Apollo Group employed 4,125 people, an increase of 358 employees compared with the beginning of the financial year. Of the total employees, 36% are based in Estonia, 22% in Lithuania, 35% in Latvia, and 7% in Finland.
Financial risks
According to Terms and Conditions of the Bonds the Group should be in compliance with following financial covenants, which are tested as at the end of each quarter based on published results:
- Adjusted equity ratio.
- Interest coverage ratio.
- Leverage ratio.
Actual values of main ratios with explanatory calculations are presented in table below.
| (in thousands of euros) | 31.07.2026 | 30.04.2026 | |
| 1 | Equity | 22 967 | 21 312 |
| 2 | Shareholder's loan and accrued interests | 41 096 | 40 403 |
| 3 | Loans and borrowings + lease liabilities | 200 459 | 191 177 |
| 4 | Total liabilities | 250 006 | 239 932 |
| 5 | IFRS 16 lease liabilities | 98 737 | 100 127 |
| 6 | pre - IFRS 16 EBITDA (12 months trailing) | 23 494 | 21 929 |
| 7 | Cash and cash equivalents | 30 619 | 18 500 |
| 8 | Net interest expenses (12 months trailing) | 1 030 | 691 |
| 9 | Net debt (3-2-5-7) | 30 007 | 32 147 |
| 10 | Adjusted equity ratio ((1+2)/(1+4-5) | 37% | 38% |
| 11 | Interest coverage ratio (6/8) | 22.8 | 31.7 |
| 12 | Leverage ratio (9/6) | 1.3 | 1.5 |
Targeted levels of all financial ratios are met for all reporting periods presented in current financial report. The Group is in compliance with financial covenants and there are no continuing events of default as defined in Terms and Conditions of the Bonds.
Interim condensed consolidated statement of comprehensive income
| (in thousands of euros) | Notes | 3 months 2026/2027 | 3 months 2025/2026 |
| Revenue from contracts with customers | 6 | 70 474 | 58 991 |
| Other operating income | 709 | 2 021 | |
| Capitalised development costs | 343 | 299 | |
| Goods, materials and services | 7 | -26 148 | -21 739 |
| Operating expenses | 8 | -11 290 | -10 805 |
| Employee benefits expense | 9 | -22 208 | -18 942 |
| Depreciation and amortisation expense | 11,12 | -7 061 | -6 414 |
| Operating profit/(-loss) | 4 819 | 3 411 | |
| Finance costs | -3 134 | -2 206 | |
| Finance income | 89 | 0 | |
| Profit/(-loss) before tax | 1 774 | 1 205 | |
| Income tax expense | -120 | -64 | |
| Profit/(-loss) for the period | 1 654 | 1 141 | |
| attributable to the equity holders of the parent | 1 654 | 1 063 | |
| attributable to non-controlling interest | 0 | 78 | |
| Other comprehensive income/(-loss) | 0 | 0 | |
| Total comprehensive income/(-loss) for the period, net of tax | 1 654 | 1 141 | |
| attributable to the equity holders of the parent | 1 654 | 1 063 | |
| attributable to non-controlling interest | 0 | 78 |
Interim condensed consolidated statement of financial position
| (in thousands of euros) | Notes | 31.07.2026 | 30.04.2026 |
| ASSETS | |||
| Current assets | |||
| Cash | 30 619 | 18 500 | |
| Trade and other receivables | 3 686 | 3 340 | |
| Prepayments | 1 862 | 1 579 | |
| Inventories | 6 580 | 6 190 | |
| Total current assets | 42 747 | 29 608 | |
| Non-current assets | |||
| Financial assets carried at amortised cost | 1 611 | 1 553 | |
| Property, plant and equipment | 12 | 153 814 | 154 970 |
| Intangible assets | 11 | 74 801 | 75 114 |
| Total non-current assets | 230 226 | 231 637 | |
| TOTAL ASSETS | 272 973 | 261 245 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Loans and borrowings | 13 | 1 050 | 397 |
| Lease liabilities | 13 | 13 549 | 13 427 |
| Trade and other payables | 14 | 48 691 | 47 856 |
| Total current liabilities | 63 290 | 61 680 | |
| Non-current liabilities | |||
| Loans and borrowings | 13 | 99 117 | 89 007 |
| Lease liabilities | 13 | 86 742 | 88 346 |
| Other non-current financial liabilities | 381 | 417 | |
| Deferred tax liabilities | 476 | 482 | |
| Total non-current liabilities | 186 716 | 178 252 | |
| Total liabilities | 250 006 | 239 932 | |
| Equity | |||
| Issued capital | 3 | 3 | |
| Other reserves | 86 414 | 86 414 | |
| Accumulated losses | -63 450 | -65 104 | |
| Total equity | 22 967 | 21 313 | |
| TOTAL LIABILITIES AND EQUITY | 272 973 | 261 245 |
Toomas Tiivel
Chairman of the Management Board
+372 550 5285
toomas.tiivel@apollogroup.ee
