PUUILO PLC, FINANCIAL STATEMENTS RELEASE, 27 MARCH 2025, at 8.30 a.m. (EET)
Record Year - net sales and EBITA continued to grow
Highlights Q4/2024
- Net sales increased by 11.8% (+12.4%) and were €85.8 million (76.8)
- Like-for-like store net sales increased by 0.3% (+1.6%)
- Online store net sales decreased by 0.9% (-14.1%)
- Gross profit was €33.1 million (28.2) and gross margin was 38.5% (36.7%)
- Adjusted EBITA was €14.3 million (10.7), increasing by 33.6%, which corresponds to an adjusted EBITA margin of 16.6% (13.9%)
- EBIT was €13.9 million (10.2) which corresponds to 16.1% of net sales (13.3%)
- Operating free cash flow was €0.0 million (-1.4)
- Earnings per share were €0.12 (0.09)
- Two new stores were opened during the fourth quarter (two new stores)
Highlights FY2024
- Net sales increased by 13.3% (+14.2%) and were €383.4 million (338.4)
- Like-for-like store net sales increased by 1.5% (+5.2%)
- Online store net sales increased by 1.7% (-11.2%)
- Gross profit was €144.6 million (123.9) and gross margin was 37.7% (36.6%)
- Adjusted EBITA was €67.0 million (54.1), increasing by 23.8%, which corresponds to an adjusted EBITA margin of 17.5% (16.0%)
- EBIT was €65.1 million (52.8) which corresponds to 17.0% of net sales (15.6%)
- Operating free cash flow was €44.0 million (54.8)
- Earnings per share were €0.57 (0.46)
- Seven new stores were opened during the reporting period (five new stores)
- Board proposes that €0.46 per share will be distributed based on the net result of the financial year 2024 and €0.24 as special dividend totalling €0.70 per share. The dividend is proposed to be paid in two instalments
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 | Q4/2024 | Q4/2023 | 2024 | 2023 |
Net sales | 85.8 | 76.8 | 383.4 | 338.4 |
Net sales development (%) | 11.8% | 12.4% | 13.3% | 14.2% |
Like-for-like store net sales development (%) | 0.3% | 1.6% | 1.5% | 5.2% |
Online store net sales development (%) | -0.9% | -14.1% | 1.7% | -11.2% |
Gross profit | 33.1 | 28.2 | 144.6 | 123.9 |
Gross margin (%) | 38.5% | 36.7% | 37.7% | 36.6% |
Adjusted EBITA* | 14.3 | 10.7 | 67.0 | 54.1 |
Adjusted EBITA* margin (%) | 16.6% | 13.9% | 17.5% | 16.0% |
Adjusted EBITA* margin development (%) | 33.6% | 10.1% | 23.8% | 10.9% |
EBITA* | 14.3 | 10.7 | 67.0 | 54.1 |
EBITA* margin (%) | 16.6% | 13.9% | 17.5% | 16.0% |
EBIT | 13.9 | 10.2 | 65.1 | 52.8 |
EBIT margin (%) | 16.1% | 13.3% | 17.0% | 15.6% |
Net income | 10.0 | 7.3 | 47.9 | 38.7 |
EPS (€) | 0.12 | 0.09 | 0.57 | 0.46 |
Operating free cash flow | 0.0 | -1.4 | 44.0 | 54.8 |
Dividend (€ per share) | 0.70** | 0.38 | ||
Net debt / adjusted EBITDA | 1.4 | 1.5 | 1.4 | 1.5 |
Net debt / adjusted EBITDA excl. impact of IFRS 16 | 0.5 | 0.5 | 0.5 | 0.5 |
Number of stores (end of period) | 49 | 42 | 49 | 42 |
Number of personnel converted into full-time employees (FTE) | 761 | 762 | 849 | 791 |
Puuilo's financial year starts on 1 February and ends on 31 January the following year
* Operating profit before the amortisation and impairment of intangible rights
** Proposal of Board of Directors
Outlook for the financial year 2025
Puuilo forecasts that net sales will be €425 - 455 million and the adjusted operating profit (adjusted EBITA) will be €70 - 80 million in the financial year 2025.
The forecast includes elements of uncertainty arising from change in purchasing power and customer behaviour. In addition, geopolitical crises and international tensions may have an impact on the availability and price level of goods.
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
CEO Juha Saarela's review
Puuilo's financial year 2024 results were marked by strong operational discipline. The company's net sales and profitability grew significantly, and we exceeded our guidance for the adjusted EBITA. The operating environment wasn't easy, but we managed to improve our performance.
In Q4, Puuilo's net sales increased by 11.8% and was €85.8 million. Like-for-like net sales grew by 0.3%. The customer traffic increased by 15.9% and by 3.8% on a like-for-like basis. During Q4, we opened new stores in Äänekoski, and Kirkkonummi. The gross margin was 38.5%, and it increased by 1.8 percentage points. The significant increase in the gross margin is explained by the increased share of private label products and the change in the sales mix towards products with lower price point. We made strong progress in managing operating expenses. The expense ratio to net sales improved compared to the previous year. In Q4, the adjusted EBITA was €14.3 million, which corresponds to 16.6% of net sales. As a result, adjusted EBITA grew by 33.6%.
For the entire financial year, Puuilo's net sales increased by 13.3% to €383.4 million. Like-for-like store net sales increased by 1.5%. The increase in the customer traffic during the financial year was 16.8% and the growth in the customer traffic in like-for-like stores was 4.3%. During the financial year, we opened seven new stores, which is a record in Puuilo's history. All the new stores have performed well. Gross margin was 37.7% and increased by 1.1 percentage points. The increase in gross margin is mainly explained by the factors mentioned earlier, such as private label products and change in sales mix. In business functions, we improved our efficiency, which is reflected in the reported result. For the entire financial year, adjusted EBITA increased to €67.0 million, which represents 17.5% of net sales and exceeds our long-term margin target. The growth in adjusted EBITA compared to the previous year was reported at 23.8%.
Puuilo's strong performance originates from the growth in the customer traffic, the increase in gross margin, and the decrease in cost ratios. Despite the decrease in average basket size, net sales grew significantly due to strong increase in customer traffic. The average basket size is still being pressured by the consumer uncertainty and reduced purchasing power, which is reflected in the decline in sales of higher-price-end items. The weather also plays a part in this. It must be said that this past winter has only remotely resembled winter in most of Finland, in terms of temperature and snow.
We have made efforts to improve sales and the customer experience and enhance productivity. We have completed the implementation of the replenishment order automation (Relex) and have moved into the production phase. We have also successfully implemented workforce scheduling automation. Additionally, in logistics, we have completed the necessary centralizations. These measures are already reflected in the reported figures and will help us streamline our operations in the future and maintain the excellent performance we have achieved. Furthermore, we will publish our first CSRD-compliant sustainability report alongside the annual financial statements. We will also continue to implement our strategy, including increasing of our private label product volume towards our target level.
The new financial year is already underway, and we are confident about it. We have seven new stores lined up for the entire financial year, two of which, Varkaus and Savonlinna, have already been opened. After that, the sausage grills will heat up in Lohja, Mäntsälä, Jyväskylä, Iisalmi, and Heinola. We are getting an excellent start to the new financial year, as five of the new store openings listed above will take place in the first half of the year. There is plenty of work and growth ahead, but this is very familiar territory for us!
We estimate that our net sales for the financial year 2025 will be in the range of €425 - 455 million and expect adjusted EBITA to be between €70 - 80 million. The Board of Directors proposes for the Annual General Meeting that a dividend of EUR 0.46 per share will be distributed based on the net result of the financial year 2024, which corresponds approximately 81% of the net result and exceeds previous year's dividend by more than 20%. Additionally, the Board of Directors proposes for the Annual General Meeting that Puuilo pays a special dividend of EUR 0.24. Thus, the company would pay a total dividend of EUR 0.70 per share to shareholders.
With this excellent financial year, I want to thank our customers, personnel and shareholders and wish everyone a successful and thriving spring!
Significant events of the reporting period
Performance matching share plan for key employees
The Board of Directors decided to launch a new share-based incentive plan for years 2024 - 2026. The aim of the plan is to align the objectives of the shareholders and the key employees in order to increase the value of the company in the long-term. In the plan, it is possible to earn matching reward and performance-based matching reward. The performance criteria are the Total Shareholder Return of the Puuilo share (TSR) and the Adjusted EBITA. The maximum amount of to be paid is 738,000 Puuilo Plc shares, including the proportion to be paid in cash. The final number of shares will depend on the participants' personal share acquisitions and the achievement of the targets set for the performance criteria. (Stock exchange release 16 April 2024)
Puuilo Plc's updated long-term financial targets for the strategy period 2024 - 2028
Puuilo released updated long-term financial targets for the strategy period 2024 - 2028. The new targets are discussed on the first page of this review. (Stock exchange release 22 April 2024)
Composition of the Shareholders' Nomination Board
Representatives of the three largest shareholders registered in Puuilo Plc's shareholder register as of 1 October 2024 were elected to the Puuilo's Shareholders' Nomination Board along with the Chairman of the Board of Directors, Lasse Aho, as an expert member. The three largest shareholders nominated the following representatives to the Nomination Board: Ampfield Management, L.P., represented by Emerson Moore, Markku Tuomaala, represented by Janne Koikkalainen and Mutual Pension Insurance Company Ilmarinen, represented by Esko Torsti. (stock exchange release 18 December 2024)
Significant events after the end of the reporting period
Adjusted EBITA exceeded guidance for financial year 2024, preliminary information on financial year 2024 results
Puuilo released preliminary information about the financial year 2024 results. Puuilo's net sales for the financial year 2024 (February 2024 - January 2025) was €383.4 million, and the adjusted operating profit was €67.0 million, or 17.5% of the nets sales. Previously, Puuilo had guided that the nets sales for the financial year 2024 would be between €380 - 400 million and the adjusted EBITA would be between€60-66 million. (stock exchange release 10 March 2025)
Proposals of the Shareholders' Nomination Board
The Shareholders' Nomination Board of Puuilo Plc proposes to the Annual General Meeting that the number of the members of the Board of Directors will be five (previously six). The Nomination Board proposes that current members of the Board of Directors Jens Joller, Mammu Kaario and Tuomas Piirtola be re-elected. The Nomination Board also proposes that Susanne Hounsgaard and Markku Tuomaala be elected as new members to the Board of Directors. Current members of the Board of Directors Lasse Aho, Bent Holm and Anne-Mari Paapio have notified that they are no longer available to be elected as a members of the Board of Directors. All proposed persons are independent of the company and its major shareholders except Jens Joller who is independent of the company, but dependent of the major shareholder. The Nomination Board proposes to the Annual General Meeting that Mammu Kaario be elected as the Chair of the Board of Directors.
The Nomination Board proposes that the remunerations of the members of the Board of Directors are as follows:
-€65.000 (earlier €60.000) to the Chair of the Board of Directors as annual remuneration
-€33.000 (earlier €30.000) to the other members of the Board of Directors as annual remuneration
-In addition, the Chair of the Audit Committee will be paid €6.000 (earlier€5.000) as annual remuneration and other members of the Audit Committee €3.000 (earlier €2.500) as annual remuneration
All remunerations will be paid in cash. (stock exchange release 19 March 2025)
Refinancing
Puuilo has signed a new € 100 million long-term financing agreement with OP Corporate Bank Plc. The new financing agreement has a maturity of 36 months and includes two 12-month extension options. The new financing agreement replaces the previous agreement signed in 2021.
The financing agreement includes a total of € 70 million term loan and € 30 million revolving credit facility (RCF). The funds will be used to repay existing loans, working capital financing and for the Group's other general financing needs.
The terms of the financing agreement include one covenant: net debt/EBITDA ratio.
The agreement also includes € 30 million uncommitted additional financing option (accordion option). However, this accordion option requires a separate financing decision from the bank. (stock exchange release 27 March 2025)
Proposal for profit distribution
The Board of Directors of Puuilo Plc proposes for the Annual General Meeting to be held on 15 May 2025 that a dividend of total of €0.70 per share be paid based on the balance sheet to be confirmed for the financial year 1 February 2024 - 31 January 2025 on shares held outside the company. Of the proposed dividend, €0.46 will be distributed based on the financial year 2024 result and €0.24 will be distributed as a special dividend. The remaining distributable assets will remain in equity. The Board of Directors proposes that the dividend be paid in two instalments.
The first instalment, €0.35 per share, will be paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the instalment's record date 26 May 2025. The board proposes that the first dividend instalment payment date be 2 June 2025.
The second instalment, €0.35 per share, will be paid to shareholders registered in the company's register of shareholders kept by Euroclear Finland Ltd on the instalment's record date 16 October 2025. The board proposes that the second instalment payment date be 23 October 2025. The Board proposes it be authorised to decide, if necessary, on new dividend payment record dates and pay dates for the second instalment, if the rules and statutes of the Finnish book-entry system change or otherwise so require.
As at the date of the proposal for the distribution of profit, 26 March 2025, a total of 84,221,953 shares were held outside the company, and the corresponding total amount of dividends was €58,955,367.10.
The distributable assets of the Group's parent company total €134,624,715.28 which profit for the financial year is €50,176,011.13. The proposed dividend based on the financial year 2024 result corresponds to approximately 81% of Puuilo Group's net income for the financial year.
Financial statements
The Annual Reporting 2024, including the Financial statements and the Report by the Board of Directors, Sustainability Report, Corporate governance statement as well as Remuneration report will be published during week 17.
Annual General Meeting
Puuilo's Annual General Meeting is planned for Wednesday 15 May 2025. The meeting will be convened by the company's Board of Directors separately at a later date.
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 Q1 February - April 2025 on 10 June 2025
Half-year financial report February - July 2025 on 11 September 2025
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 11.30 am EET (10:30 am CET).
The conference call in English can be followed live at https://puuilo.events.inderes.com/2024-q4-results. Asking questions requires participation in the conference call. You can access the teleconference by registering on the link https://events.inderes.com/puuilo/2024-q4-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/q4-2024.
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
