Tokmanni's competitor Rusta's figures exceeded expectations

Translation: Original published in Finnish on 6/17/2025 at 9:28 am EEST.

Nordic discount retailer Rusta reported a stronger-than-expected Q4’25 report. The result improved thanks to revenue growth and good fixed cost control. The Tokmanni we follow lagged behind Rusta's development, although different financial periods and calendars may have accentuated this effect.

Strong sales development; the result also improved

Rusta's Q4 revenue increased by 13% (15% currency-adjusted) to 2,553 MSEK. The result exceeded the consensus median (2,482 MSEK) by around 3%. Sales growth was supported by the expanded store network and strong sales growth in existing stores (9%). The company reported that summer seasonal sales had started strongly, especially in Sweden and Norway. In addition, the company reported that its customer numbers and average purchase size increased during the quarter, which was at least partly a result of increased campaigning. The year-on-year figures were slightly boosted by a data breach in the comparison period, which weakened Rusta's sales at the time. However, adjusted for this, sales development was strong (reported 12% and like-for-like 6%).

The company stated that it had shifted its focus from profitability to increasing sales, which was reflected in a weaker gross profit margin. Exchange rate fluctuations also weakened the company's gross profit margin. However, fixed costs scaled, which in our opinion was affected by the strong growth in like-for-like sales. However, the cost structure of the comparison period was increased by the costs incurred as a result of the data security breach, so the scale was not actually this large. Ultimately, the EBITA came in above the consensus median (-33 MSEK) at -15 MSEK, reflecting the seasonally weak start to the year.

Rusta's performance is at the top of the market, although the calendar may have an impact on the figures

In Sweden, Rusta's like-for-like sales grew by 9%, customer numbers increased and the average purchase rose. Tokmanni's Dollarstore segment's growth in comparable store customer numbers (1%), average purchase (~2%) and revenue (3%) was weaker than Rusta's. ÖoB, owned by Norway's Europris, showed outright weak development in Sweden, as the company's like-for-like sales decreased. However, clearance sales arranged as part of the concept change increased ÖoB's customer numbers in Sweden. In other markets, Rusta's like-for-like sales growth (9%) was also strong. Thus, Tokmanni (like-for-like customer volumes -2% and sales -4%) lagged behind its competitor's performance in its domestic market. Most of Rusta's revenue in Other markets is generated in Finland, so we believe that this reflects the development of the Finnish business quite well.

Overall, Rusta's quarter can be considered successful compared to other major discount retailers in the market. However, it is important for investors to consider the effects of the calendar, as Tokmanni's and Europris' sales figures were weakened by the different timing of Easter, while this had no impact on Rusta due to the different reporting period. Therefore, we believe it is more fruitful to examine the development of market shares based on the entire first half of the year.