Tokmanni’s balance sheet is so leveraged that it might be better to monitor the return on invested capital instead, which is not at an acceptable level—currently only 7-8%.
There is that pilot store in Erikslund @enska, @Olli_Vilppo had dug up that information earlier in this thread.
I am still cautiously optimistic that a turnaround will come at some point, even though things are a mess at Dollarstore. However, good cash flow provides support for the case; I understood from the webcast that spring and summer season products are largely already in warehouses or ports, so they have likely been paid for. A threat here, of course, is that freight costs will rise again as a result of the fighting in the Middle East. As for the guidance, lessons have been learned from previous profit warnings, and they possibly want to ensure a soft landing for the new CEO. Generally, companies should leave room for positive profit warnings rather than cranking expectations to the max.
With a bit of a taste of blood in my mouth, I also added more shares to my already substantial position on Friday. Analysts, as well as investors, surely feel a bit betrayed since Tokmanni didn’t even bother to give preliminary results, which fell just a tiny bit short of the guidance; however, I expect @Arttu_Heikura to stay on the “Add” side, and one can comfortably pay 7.50-8 euros for this right now
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And hey, we only have to wait two months for the next earnings release, which is already on May 8th; spring, at least here in Southern Finland, has gotten off to a good start. It’s worth remembering that last year H1 went down the drain due to various problems, leaving too much ground to make up in the latter half of the year.