The sales revenue of TKM Grupp increased by 13.8% in the second quarter

In the second quarter of 2023, the consolidated unaudited sales revenue of TKM Grupp (Tallinna Kaubamaja Grupp AS) amounted to 242.5 million euros, which is a 13.8% increase compared to the sales revenue of the same period last year. The sales revenue in the first six months was 460.5 million euros, which is an 11.8% increase compared to the result of the first six months of 2022. The consolidated unaudited net profit in the second quarter of 2023 amounted to 12.8 million euros, which is a 20.5% increase compared to the profit of the comparable period last year. The net profit of the group in the first six months of 2023 was 13.4 million euros, exceeding the result of the previous comparable period by 21.4%. The pre-tax profit earned in in the first half was 18.7 million euros, showing a 20.5% increase compared to last year.

‘The increase in sales revenue continued in the second quarter, but we also saw a decrease in the sense of security of customers and in consumption by volume. Sales revenue was mostly caused by the increase in prices, which is now affecting the selling price. Potential tax increases, high inflation, and the unstable economic environment were immediately reflected in consumer behaviour, but consumer confidence has now recovered somewhat. We see that the purchasing decisions of our customers are calculated and well thought-out, while high quality is still valued,’ said Raul Puusepp, Chairman of the Management Board of TKM Grupp. According to Puusepp, the profit position of the TKM Grupp has been strengthened by robust saving measures taken over the year and a benchmark for high energy prices in 2022.

‘The availability of cars has improved this year, which is also reflected in the significantly improved sales performance in the car trade. The interim long car purchase queues have now returned to normal and this also provides opportunities to make better sales offers,’ said Puusepp. ‘However, we also see a decrease in the volume of sales in the car segment and the increase in sales results comes primarily from the increase in prices,’ Puusepp added.

‘The completely renewed Järve Selver was opened in the second quarter, the results of which in the first months indicate that customers have received the upgrades well. The larger area also provides an opportunity to offer more products, we have significantly increased the selection of fruits and vegetables, bakery products, and fresh meat. The selection of industrial goods on the second floor has also expanded,’ said Puusepp. Speaking of the plans for the second half of the year, Puusepp pointed out the opening of Kurna Selver, which is the 73th Selver store, and the complete renewal of the Solaris Delice grocery store. In the second half of the year, the group will also focus on developing and strengthening the security company. The sales revenue of Viking Security outside the group in the first half of the year increased by almost 40% and Skarabeus Julgeolekuteenistus OÜ, acquired in May, provides even more opportunities for the development of the portfolio of security services.

The loyalty programme Partnerkaart launched the Partnerkaart application last year, which has been downloaded by 155,000 people by now. ‘The application has become an integral part of everyday shopping and customers are prone to using the app instead of standing in the line during peak hours. We have actively developed the application, several new features will be added in the coming weeks,’ said Puusepp.

The consolidated sales revenue of the supermarket business segment was 301.7 million euros in the first quarter of 2023, increasing by 6.5% in comparison with the same period of last year. The consolidated sales revenue was 154.5 million euros in the second quarter, increasing by 7.4% in comparison with the same period of last year.

In the first half of 2023, 21.7 million purchases were made from the stores, which was 3.5% more than in the reference year. As at the end of June, the supermarket segment includes 70 Selver stores, one Delice store, the Solaris grocery store, the mobile store, and a café, with a total sales area of 116,200 m². There is also e-Selver – the e-store with the largest service area in Estonia – as well as the central kitchen of Kulinaaria OÜ.

The sales revenue of the Kaubamaja department stores business segment in the first six months of 2023 was 51.7 million euros, exceeding the sales of the same period last year by 6.7%. The sales revenue of the second quarter was 27.0 million euros, exceeding the comparable period of last year by 0.7%. The pre-tax profit of the Kaubamaja department stores segment in the first half of 2023 was 0.2 million euros, showing a decrease of 61.2% in the year-on-year comparison. In the second quarter, the pre-tax profit was 1.0 million euros, which was 55.9% lower than last year.

In the second quarter of 2023, the sales revenue of OÜ TKM Beauty Eesti, which belongs to the Kaubamaja department stores segment and operates the I.L.U. cosmetics stores, amounted to 1.9 million euros, which is 24.1% more than in the second quarter of 2022. In the second quarter of 2023, the profit was 0.06 million euros – 0.02 million euros more than in the comparable period in 2022. The sales revenue in the first six months of 2023 was 3.6 million euros, which is 24.9% more than in the same period of 2022. In the first six months of 2023, the profit was 0.1 million euros, which was 0.08 million euros more than during the comparable period in 2022.

The sales revenue of the car trade segment for the first half of 2023 was 97.6 million euros, increasing by 34.4% compared to the same period last year. The sales revenue of 55.9 million euros in the second quarter was 44.7% higher than the sales revenue of the second quarter of 2022. During the first six months, a total of 3,169 new vehicles were sold, 1,708 of them in the second quarter. The net profit of the segment in the first half of 2023 was 6.6 million euros, exceeding the profit of the same period of the previous year by 1.7 million euros. The pre-tax profit of the segment in the first half of 2023 was 7.7 million euros, exceeding the profit for the first half of 2022 by 2.5 million euros. The pre-tax profit of the second quarter of 2023 was 4.7 million euros, which is 1.6 million euros more than the profit of the same period of the year before.

The sales revenue of the security segment outside the group in the first half of 2023 was 6.4 million euros, increasing by 40.3% in comparison with the same period of last year. The pre-tax profit of the segment in the first half of the year was 0.1 million euros, increasing by 0.1 million euros compared to the same period last year. The non-group sales revenue of the segment in the second quarter of 2023 was 3.5 million euros, increasing by 55.1% compared to the same period last year. The pre-tax profit of the second quarter of the segment was 0.1 million euros, increasing by 0.03 million euros compared to the same period last year.

The non-group sales revenue of the real estate segment was 3.2 million euros in the first six months of 2023. Sales revenue increased by 5.8% compared to the same period last year. The non-group sales revenue of the segment in the second quarter was 1.6 million euros. Sales revenue increased by 5.5% compared to the previous year. The pre-tax profit of the real estate segment in the first half of 2023 was 5.5 million euros, with the profit increasing by 0.8%. The pre-tax profit of the second quarter of the segment was 3.0 million euros. Pre-tax profit increased by 7.5% in the comparison period.