Sign Up

Unaudited consolidated interim accounts for the second quarter and first six months of 2025

Segments (EURm)

Q2/25

Q2/24

Change

6m/25

6m/24

Change

Supermarkets

155.7

150.3

3.6%

304.0

296.7

2.5%

Department stores

25.7

25.4

1.0%

48.4

49.4

-2.0%

Cars

45.1

54.1

-16.6%

82.5

98.9

-16.7%

Security

4.4

5.7

-24.1%

9.0

10.3

-12.8%

Real Estate

1.9

1.8

9.5%

3.9

3.4

12.6%

Total sales

232.8

237.3

-1.9%

447.8

458.8

-2.4%

 

 

 

 

 

 

 

Supermarkets

3.4

5.2

-35.0%

4.0

6.2

-34.9%

Department stores

0.0

0.2

-100.0%

-1.7

-1.0

68.1%

Cars

1.6

3.3

-51.3%

2.3

5.6

-58.7%

Security

-0.3

0.0

-747.6%

-0.4

-0.1

324.0%

Real Estate

2.4

1.7

39.0%

4.6

3.9

17.6%

IFRS 16

-0.5

-0.6

-16.6%

-1.0

-1.0

-2.6%

Total profit before tax

6.6

9.9

-32.7%

7.9

13.7

-42.1%

The Group's unaudited consolidated sales revenue for the second quarter of 2025 amounted to 232.8 million euros, representing a year-on-year decrease of 1.9%. Sales revenue for the first half of the year totalled 447.8 million euros, declining by 2.4% compared to the result for the first half of 2024, when sales revenue stood at 458.8 million euros. The Group's unaudited consolidated profit before tax for the second quarter of 2025 was 6.6 million euros, which was 32.7% lower than the profit recorded for the comparable period of the previous year. The Group's profit before tax for the first six months of 2025 was 7.9 million euros, falling short of the result for the comparable period by 5.8 million euros. Net profit for the first half of the year was 0.1 million euros, which includes a negative tax impact of 2.5 million euros due to the increase in income tax rates.

The second quarter and the entire first half of the year continued to be characterised by a challenging economic environment shaped by an unstable international political situation as well as domestic tax increases and cautious consumer spending. The Group's sales revenue in Estonia was notably affected by the car tax introduced at the beginning of the year, which resulted in a 40% decline in the new car market volume in Estonia during the first half of the year compared to the same period last year. Nevertheless, the decline in sales revenue for the Group's car segment companies operating in Estonia was limited to approximately one third. Overall, the car segment's sales revenue for the six-month period fell short of the previous year's level by 16.7%, as the negative impact was offset by stronger results from subsidiaries in Latvia and Lithuania. Consequently, the Group's total sales revenue also remained slightly below the previous year's level, although the sales revenue of the Selver supermarkets segment continued to grow, building on the momentum from the first quarter, and the sales revenue of the department stores segment also rose slightly above the previous year's figure. Growth in these segments was supported by successful marketing and promotional campaigns. The real estate segment also contributed to the increase in non-group sales revenue and was the only segment to achieve profit growth. The decline in revenue for the security segment resulted from the seasonal fluctuation in the volume of security equipment projects. The additional business areas acquired in the security segment in 2024, along with the other business segments, generated stable sales revenue.

The Group's segments were able to maintain their gross margin at a level comparable to that of the previous year, thanks to skilful inventory planning and well-considered campaign management. However, the decline in gross profit resulting from lower revenue, the increase in staff costs, and the payment of corporate income tax at a higher rate in the first half of the year brought the Group's half-year profit to its lowest level in recent years, although the EBITDA for the first half of the year was the fourth highest on record, exceeding the result for the comparable period in 2021. A decrease in EURIBOR rates provided relief of 0.8 million euros in finance costs from interest on bank loans and leases compared to the previous year, but the additional interest expense arising from the revised IFRS 16 calculation added 0.6 million euros, which almost entirely offset the positive impact of the interest rate reduction. The Group's staff costs increased by 5.2%, while the total number of employees rose by 0.3%. One measure to optimise staff costs is the improvement of the supply chain in cooperation with the Group's logistics centre, which also helps to boost the internal efficiency of trading processes. The updated KIA Sportage, which is among the Group's most popular models, has reached the Baltic market, supporting the recovery of the car segment. A positive impact is also being provided by the growing demand for electric and hybrid vehicles, with the model range set to expand in the coming months with the addition of the new KIA EV4 and the electric van PV5.

In the first quarter of 2025, renovation works were carried out on two floors of the Children's World department in the Kaubamaja Tallinn store, and in March the completely redesigned Children's World was opened. The addition of new brands and a lifestyle-based layout attracted a significant number of new customers to the Children's World in March. In the department stores segment, development work commenced to upgrade the I.L.U. e-store to a new platform and quality standard, with completion scheduled for the third quarter. The Group's Lithuanian real estate company is continuing with the construction of a new KIA and Škoda showroom and service centre in Vilnius, aimed at supporting the expansion of the Group's car segment in the Lithuanian market. Preparatory work has begun in Estonia for the construction of a new bodywork workshop adjacent to the Peetri car dealership. Several store renovation projects have also been ...