In the first quarter of the financial year, Retail Puuilo experienced a decrease in operating profit before intangible amortization (EBITA) compared to analysts’ expectations. The consensus of analyst forecasts gathered by FactSet predicted an operating profit before intangible depreciation of EUR 8.6 million from February to April, which was higher than the previous year’s operating profit of EUR 7.3 million.
After adjusting for non-recurring items, EBITA for the first quarter was also higher than the previous year at EUR 8.3 million. CEO Juha Saarela mentioned that business expenses, excluding personnel costs, decreased relative to turnover, while personnel costs continued to grow due to the accelerated opening of three new stores. Turnover for the quarter was EUR 75 million, which met expectations and was higher than the previous year’s turnover of EUR 65 million.
Puuilo experienced strong comparable turnover growth in February and March but slowed down towards the end of April due to political strikes and changing weather conditions affecting performance. Customers remained cautious with a decrease in the share of goods costing more than EUR 200 in the sales mix while customer numbers increased but average purchase decreased compared to the previous year.
Despite falling slightly below analysts’ expectations, Puuilo maintained its instructions for the year, aiming for a turnover of EUR 380-410 million and an adjusted EBITA result of EUR 60-70 million. The company remains optimistic about its future prospects and performance in the market despite challenges faced during this period.
