Report
Miika Ihamaki
EUR 91.26 For Business Accounts Only

Tokmanni (Hold, TP: EUR11.00) - Neutral ahead of Q3

We are close to consensus Q3 clean EBIT, reflecting lower YOY profitability for Tokmanni Finland and soft demand for the group’s key categories. We continue to see downside risk to its 2024 guidance and struggle to get excited about Tokmanni after a series of quarters with negative LFL traffic KPIs (including DollarStore) and underperformance versus the market. We reiterate our HOLD but have cut our target price to EUR11 (12), after small estimate cuts.
Underlying
Tokmanni Group Oyj

Tokmanni Group Oyj is a Finland-based company, which is primarily involved in the retail industry. The Company operates a retail chain with more than 150 stores in Finland. Tokmanni Group Oy's product assortment comprises approximately 25 000 active stock keeping units (SKU's) in six different product categories, such as home cleaning and personal care, groceries, clothing, tools and electrical equipment, leisure and home electronics, home and garden decoration. The home cleaning and personal care product category is divided into four subcategories: personal care, home care, household paper products, other products. The groceries product category is divided into six subcategories: beverages, snacks, cookies and candies, pet food and pet accessories, diet and nutrition, canned food, fresh food. The clothing product category includes mainly casual wear for daily use. The tools and electrical equipment product category includes various do-it-yourself goods, power, hand and other tools.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Miika Ihamaki

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