Börsiteade

Pealkiri

Unaudited consolidated interim accounts for the third quarter and first nine months of 2025

Teade

Segments (EURm)           Q3/25   Q3/24    yoy     9m/25   9m/24     yoy
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  Supermarkets              150.9   149.5     0.9%   454.9   446.3      1.9%

  Department stores          22.4    21.5     3.8%    70.8    71.0     -0.2%

  Cars                       52.7    50.7     4.1%   135.2   149.6     -9.6%

  Security segment            4.8     5.6   -15.4%    13.7    15.9    -13.7%

  Real Estate                 1.9     1.7    12.1%     5.8     5.2     12.4%
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  Total sales               232.7   229.1     1.5%   680.4   687.9     -1.1%
-----------------------------------------------------------------------------
  Supermarkets                4.7     5.3   -11.7%     8.7    11.5    -24.3%

  Department stores          -1.0    -1.1    -7.0%    -2.7    -2.1     28.9%

  Cars                        2.5     3.2   -23.0%     4.8     8.9    -45.8%

  Security segment            0.2     0.4   -51.8%    -0.2     0.3   -175.3%

  Real Estate                 2.4     1.6    45.4%     7.0     5.5     25.8%

  IFRS 16                    -0.6    -0.8   -30.9%    -1.5    -1.8    -15.5%
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  Total profit before tax     8.1     8.6    -5.7%    16.0    22.3    -28.1%
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The  Group's unaudited consolidated sales revenue for the third quarter of 2025
amounted  to 232.7 million euros, exceeding the sales revenue of the same period
of  the previous  year by  1.5%. The Group's  sales revenue  for the  first nine
months  totalled 680.4 million  euros, representing  a decrease of 1.1% compared
with  the first nine months of 2024, when sales revenue was 687.9 million euros.
The Group's unaudited consolidated pre-tax profit for the third quarter of 2025
was  8.1 million  euros,  which  is  5.7% lower  than  in the same period of the
previous  year. The pre-tax profit  for the first nine  months amounted to 16.0
million euros, declining by 28.1% year-on-year.

After  several consecutive quarters of decline, the Group's sales revenue turned
to  moderate growth in the  third quarter, although the  total sales revenue for
the  first nine  months of  the year  remained slightly  below the  level of the
previous year. Sales revenue increased across nearly all of the Group's business
segments, with the only decrease recorded in the security segment, which depends
more heavily on one-off projects. The Group's sales revenue in Estonia continued
to  be significantly affected by the vehicle  tax introduced at the beginning of
the  year and the  accompanying speculation in  the market, which  resulted in a
40.5% contraction  in the Estonian  new car market  during the first nine months
compared with the same period of the previous year. Nevertheless, the decline in
sales  revenue  of  the  Group's  Estonian  car segment companies was limited to
approximately  one third. Overall, the sales  revenue of the Group's car segment
for  the first  nine months  was 9.6% lower  than in  the previous  year, as the
negative  impact in Estonia was offset by stronger results from the subsidiaries
in  Latvia and  Lithuania. The  increase in  the VAT  rate in  July, rising food
prices  and continued consumer caution have exerted pressure to expand the share
of  discount campaigns in  sales revenue, while  simultaneously putting downward
pressure  on profit margins. Although in the  third quarter the Group achieved a
profit  comparable to that of 2024, the weaker  performance in the first half of
the  year resulted  in the  Group's nine-month  net profit  being the  lowest in
recent  years. According to Statistics Estonia,  a similar trend can be observed
across  the entire  retail sector:  while sales  revenue has grown, all Estonian
retail enterprises (excluding motor vehicle sales) operated at an aggregate loss
during  the first  half of  2025. To improve  the internal efficiency of trading
processes  and  optimise  labour  costs,  the  Group continues to strengthen its
supply  chain in cooperation with the logistics centre. The Group's labour costs
increased  by 5.0% during  the first  nine months,  while statistics  on average
wages  in Estonia  indicate a  growth trend  of around  6%. The decrease  in the
EURIBOR  rate provided relief of 0.7 million euros in financial expenses on bank
loans and lease liabilities compared with the previous year.

In  the department stores segment, the project to update the I.L.U. online store
platform  reached its final stage, with the launch of the new e-store, featuring
expanded  marketing capabilities, scheduled  for the fourth  quarter. Earlier in
the  reporting year, during the first quarter, renovation works were carried out
on  two floors of the Children's Department  in the Kaubamaja Tallinn store. The
renewed  Children's Department was opened in  March. The Group's Lithuanian real
estate subsidiary continues the construction of a new KIA and Shkoda showroom and
service  centre in Vilnius, aimed at supporting the expansion of the Group's car
segment in the Lithuanian market. In Estonia, work is ongoing to establish a new
body  repair workshop adjacent to the  Peetri car dealership. This year, several
renovation  projects  have  also  been  launched  for  store buildings, with the
objective  of aligning  the premises  with current  business needs and improving
their  energy efficiency. In the fourth quarter  of this year, the renovation of
the  Jõgeva Selver store is planned. In addition, preparatory work has begun for
the development of the new Pärnu Papiniidu Selver, scheduled to open in 2026, as
well as for the expansion of the Laulasmaa Selver store.

At  the end of the reporting period, the number of loyal customers exceeded 750
thousand,   representing  a  1.4% increase  year-on-year.  The  share  of  loyal
customers  in the Group's turnover was 85.9% (85.6%  in the first nine months of
2024). The  convenient  and  increasingly  popular  Partner  Card mobile app has
become  a key digital channel, with more than 323 thousand customers using it by
the end of the quarter.

Selver supermarkets

The  consolidated sales revenue of the supermarket segment for the third quarter
of  2025 amounted  to  150.9 million  euros,  representing  an increase of 0.9%
compared to the same period of the previous year. The consolidated sales revenue
for  the first nine months totalled 454.9 million euros, showing growth of 1.9%
compared  to the corresponding period of the previous year. In the third quarter
of  2025, as well as for  the nine months as  a whole, the average monthly sales
revenue  of goods per square metre of  selling space was 0.40 thousand euros for
both  the segment in total and for  comparable stores, remaining at the level of
the  previous year  across all  subcategories. During  the first  nine months of
2025, 33.5 million purchases were made in the stores, which is 1.3% more than in
the  same period of  the previous year.  In the third  quarter of 2025, both the
pre-tax  profit and  net profit  of the  segment amounted  to 4.7 million euros,
decreasing  by 0.6 million euros  compared to the  base period. The consolidated
pre-tax  profit of the supermarket segment for the first nine months of 2025 was
8.7 million  euros,  which  is  2.8 million  euros  lower than in the comparable
period  of the previous year. The net profit  for the first nine months was 8.1
million  euros, representing  a decrease  of 1.7 million  euros compared  to the
previous  year. The difference  between net profit  and profit before income tax
results  from the income tax  paid on dividends, this  year, dividend income tax
was 1.0 million euros lower than in the previous year.

When  assessing the financial results, it should  be taken into account that the
comparative  data for the period do not  fully include the figures for the Raadi
and  Rocca al  Mare Selver  stores, which  were opened  in the  third quarter of
2024. At  the same time, the comparative data  include the results of the Maardu
Selver store, which was closed in February of the current year.

The sales performance of the supermarkets segment in the third quarter continued
to  be influenced by the overall  situation in the Estonian economic environment
and  retail sector, as  well as by  the weak purchasing  power of consumers. The
increase  in the personal income tax rate  to 22% from the beginning of 2025 has
had  a negative impact on consumer confidence, while the rise in the VAT rate to
24%, effective  from  1 July  2025, has  led  to  notable  changes  in  consumer
behaviour.  Retail sales volumes of  food and everyday goods  have remained on a
declining   trend.  According  to  Statistics  Estonia,  retail  sales  in  non-
specialised stores, predominantly selling food, tobacco and alcoholic beverages,
increased  by 2.4% at  current prices  during the  first eight  months of 2025.
Selver's  sales growth has remained broadly in line with the market segment as a
whole.

The financial results of the third quarter of 2025 were affected by a decline in
sales  volumes and by  a decrease in  the gross margin,  resulting from the high
proportion of promotional products in the shopping basket. The cost base for the
current year has increased due to one-off expenses related to the opening of new
stores  and the  closure of  the Maardu  store. At  the same time, the Group has
successfully  managed the pressure  arising from rising  input prices of various
services  and  materials,  as  well  as  optimised  expenditure  levels, thereby
maintaining  operating cost efficiency  indicators at the  level of the previous
year.  The pressure on  wage costs and  slower sales revenue  growth compared to
wage  increases  have  led  to  a  slight decline in labour productivity. During
2025, the  logistics centre established  in Maardu in  2024 will be brought into
full operation, improving the efficiency of trading processes in the supermarket
segment.

The  focus across the supermarket segment continues to be on the optimisation of
product assortment and processes. To better respond to changing customer demand,
Selver added the Scandinavian white-label brand First Price to its product range
during  the  reporting  year.  The  First  Price brand, available exclusively in
Selver and Delice stores, combines affordable pricing with reliable Scandinavian
quality,  thereby  broadening  the  company's  selection of competitively priced
everyday  goods. In product development under the central kitchen's Selveri Köök
brand,  Kulinaaria continues  to invest  in innovation,  introducing new product
lines  ranging from restaurant-quality sauces and an expanded sandwich selection
to  Selver's  30th anniversary  cake  featuring  cream cheese and caramel cream.
Product  development efforts remain focused  on maintaining high product quality
while  reducing salt, sugar, and fat content. In packaging, continuous attention
is  directed towards improving the efficiency  of packaging materials and usage.
Further  emphasis is placed on increasing operational volumes on the Bolt Market
and  Wolt platforms, as well  as on the development  of Selver's e-store. At the
beginning  of the  year, Selver's  e-store was  voted Estonia's favourite online
shop  in the food and consumer goods category  in a public poll organised by the
Estonian E-Commerce Association.

The  supermarket  segment  continues  to  operate  responsibly and with a strong
commitment  to  sustainability,  with  the  aim  of  continuously  improving its
activities  to reduce environmental impact. To  promote the circular economy and
increase  the recycling rate  of waste, the  Group's waste management system has
been  modernised. The  collection and  transport of  various materials  now take
place  through  the  logistics  centre,  enabling  more  efficient  sorting  and
recycling,  while also reducing the carbon  footprint. From this year, customers
have  been offered new reusable shopping  bags made from recycled mono-material.
Thanks to their polypropylene composition, these bags are easily recyclable. The
segment  has also contributed  to community development  by providing employment
opportunities for many young people during the summer period, thereby supporting
youth  employment and  helping to  build good  working habits.  In April, Selver
joined  the "Vägivallavabaks" (Violence-Free Environment) initiative launched by
the  President  Kaljulaid  Foundation,  which  brings together employers to take
action against domestic violence.

In October, renovation work will commence at the Jõgeva Selver store, which will
include   an   expansion  of  the  sales  area  and  the  introduction  of  more
environmentally  friendly solutions. In 2026, renovation of the Laulasmaa Selver
store  in Harju County is planned, which  will also result in an increased sales
area.  A new Papiniidu Selver store in Pärnu  is scheduled to open at the end of
2026 or  the beginning  of 2027. Preparatory  activities for  both projects have
already started.

As  of the end of September,  the supermarket segment included 72 Selver stores,
2 Delice  stores, a Mobile Store, and a café,  with a total sales area of 123.8
thousand  square metres.  In addition,  there is  e-Selver, which is the largest
online store in Estonia by service area, and the central kitchen, Kulinaaria OÜ.

Department stores

The  sales revenue  of the  department stores  segment for  the third quarter of
2025 totalled 22.4 million euros, exceeding the previous year's result by 3.8%.
The  nine-month sales  revenue amounted  to 70.8 million  euros, remaining 0.2%
below  the level of the  corresponding period of the  previous year. The pre-tax
loss  of the  department stores  segment in  the third  quarter of 2025 was 1.0
million  euros, which is 0.1 million euros smaller than a year earlier. The pre-
tax  loss for the first nine months  was 2.7 million euros, which is 0.6 million
euros weaker than the result of the same period of the previous year.

The  average sales revenue  per square metre  of selling space  in the Kaubamaja
department  stores for the first nine months of 2025 was 0.30 thousand euros per
month,  remaining on  par with  the previous  year. Sales  revenue in  the third
quarter  was  positively  affected  by  a  successful  summer discount campaign,
reflecting  the overall  strong performance  of campaigns  this year. The autumn
"Ilu  Aeg" (Beauty Time) campaign  also proved to be  the most successful in the
company's  history. Despite the cooler summer  months, which did not support the
sale  of summer clothing,  the stock position  of Kaubamaja was  stronger than a
year  earlier and therefore there was no need for extensive markdowns during the
summer  sales period. In the grocery  segment, a product assortment that clearly
differentiates  itself from competitors continues to attract new loyal customers
to  the Food Worlds (Toidumaailmad),  with sales results exceeding expectations.
During  the first months of  the year, renovation works  were carried out on two
floors  of the  Children's Department  in the  Kaubamaja Tallinn  store, and the
fully  redesigned department  was opened  in March.  The new  concept introduced
additional brands and lifestyle-based displays, generating considerable customer
interest.  Kaubamaja has also  gained positive attention  from exclusive special
collections  sold  only  at  Kaubamaja.  During  the  spring  season,  a jubilee
collection  was created in  collaboration with designer  Lilli Jahilo, while the
autumn  campaign featured a jewellery  collection by Sigrid Kuusk  and a new PAI
bed  linen collection by  Kätlin Kaljuvee. Customer  interest in the e-store has
increased  notably,  showing  double-digit  growth  compared  with  the previous
period.

The  sales revenue of OÜ  TKM Beauty Eesti, which  operates the I.L.U. cosmetics
stores,  amounted to 1.9 million euros in  the third quarter of 2025, a decrease
of  4.6% compared with the same  period in 2024. The loss  for the third quarter
was  0.02 million euros, which  is 0.1 million euros  weaker than the result for
the  comparable period of 2024. The  sales revenue for the  first nine months of
2025 was  5.6 million euros,  representing a  decrease of 4.7% year-on-year. The
loss for the first nine months of 2025 totalled 0.2 million euros, which is 0.3
million  euros weaker than the result of the comparable period in 2024. Consumer
confidence  to spend remains low, while  expectations for promotional prices are
high.  Marketing campaigns targeted  at loyal customers  continued to play a key
role  in third-quarter  results. The  project for  upgrading the  I.L.U. e-store
platform  reached its final stage, with the  launch of the new e-store, offering
enhanced marketing capabilities, scheduled for the fourth quarter.

Car trade

The  sales  revenue  of  the  car  trade  segment for the third quarter of 2025
amounted  to 52.7 million euros,  exceeding the third  quarter result of 2024 by
4.1%. The  sales revenue for the first nine months totalled 135.2 million euros,
representing  a decrease  of 9.6% compared  to the  same period  of the previous
year.  In the first nine months, a  total of 4,025 new vehicles were sold, which
is  15,1% fewer than  a year  earlier. In  the third quarter, 1,592 new vehicles
were  sold, which was 1,4% more than in the same period a year earlier. The pre-
tax  profit of the segment for the  third quarter of 2025 was 2.5 million euros,
which  is 0.7 million euros lower than in  the same period of the previous year.
The  pre-tax profit  for the  first nine  months was  4.8 million euros, falling
short of the previous year's result by 4.1 million euros.

In  the third quarter of 2025, the results  of the Group's car segment continued
to  be affected by the motor vehicle  tax introduced in Estonia at the beginning
of  the year and by  the general decline in  consumer confidence, which led to a
40% contraction in the new car market in Estonia. Nevertheless, the Group's pan-
Baltic  business model  allowed it  to balance  the decline  in sales revenue in
Estonia  through more  stable performance  in the  Latvian and Lithuanian retail
markets,  supported by the continued import  of KIA vehicles across the Baltics.
To  maintain KIA's market share and  sustain unit sales, active sales programmes
targeting  major corporate clients (fleet sales) were launched, with the initial
results  proving encouraging. Sales of after-sales  services and spare parts are
increasing  in  line  with  the  expansion  of  the vehicle fleets of the brands
represented  by the Group.  Favourable developments continued  in the Lithuanian
market,  where sales volumes were successfully maintained. At the same time, the
ongoing  construction  of  the  new  KIA-Shkoda dealership in Vilnius temporarily
increased  the cost  base. The  new sales  and service  centre is  scheduled for
completion  in November 2025. In Estonia, the  construction of the Viking Motors
body  repair workshop is progressing according to plan, with completion expected
to strengthen after-sales service capacity.

During  the summer months, the long-awaited  new-generation KIA Sportage SUV was
launched  on the Baltic market. Its successful  debut placed the model among the
best-selling  passenger cars in Estonia in August.  Sales also began for the new
electric  model KIA EV4, which further  diversifies the Group's electric vehicle
offering.  Towards the end of the year, the  launch of the KIA K4, the successor
to  the KIA Ceed, is expected, with considerable market interest already evident
ahead of its arrival.

Security segment

The  external sales  revenue of  the security  segment for  the third quarter of
2025 amounted  to 4.8 million euros, decreasing  by 15.4% compared with the same
period  of the previous year. The segment's pre-tax profit for the third quarter
was 0.2 million euros, which is 0.2 million euros weaker than in the same period
of the previous year. The external sales revenue of the security segment for the
first  nine months of  2025 was 13.7 million euros,  down by 13.7% year-on-year.
The  pre-tax  loss  for  the  first  nine  months amounted to 0.2 million euros,
representing  a  decline  of  0.5 million  euros compared with the corresponding
period of the previous year.

The  results of the third  quarter were weaker than  those of the previous year,
although compared with the second quarter, positive trends have emerged, even if
profit margins and service volumes remain under pressure. Growth was recorded in
guarding  services, inventory services and the maintenance portfolio of security
technology.  The largest decline occurred in technical project construction. The
company's  focus remains  on expanding  sales activities,  improving operational
efficiency, and implementing new development projects.

Real estate

The  external sales revenue of the real  estate segment for the third quarter of
2025 totalled 1.9 million euros, representing a 12.1% increase compared with the
same  period of the previous year. The external sales revenue for the first nine
months amounted to 5.8 million euros, growing by 12.4% year-on-year. The pre-tax
profit  of the real estate segment for the third quarter of 2025 was 2.4 million
euros,  up by 45.4% compared  with the reference  period. The pre-tax profit for
the  first nine  months amounted  to 7.0 million  euros, showing  an increase of
25.8%.

The  sales revenue growth for  the current year has  been primarily supported by
the  addition of rental income  from the logistics centre  leased to an external
tenant,  which commenced operations at the end of the previous year. New tenants
have  contributed  to  the  increase  in  rental  income across the centres. The
Latvian  real estate company  has not recorded  external sales revenue in recent
quarters,  as the commercial  buildings leased to  external tenants were sold at
the  beginning of  the year.  The increase  in profit  for the  reporting period
mainly  reflects higher rental  income and the  impact of lower financing costs,
with  interest expenses in  the segment having  decreased by nearly one quarter.
The  comparative period results  included the loss  from the sale  of the Punane
Selver building in April 2024.

In  Vilnius, the  construction of  the new  KIA and  Shkoda showroom  and service
centre  is nearing completion,  with the building  scheduled to be finalised and
taken  into use before the end of  the year. In Estonia, construction is ongoing
in Peetri, where a body repair workshop is being built adjacent to the KIA sales
and  service centre. Expansion and reconstruction works are also underway at the
Laulasmaa  Selver store. The logistics centre building completed in autumn 2024
received  a BREEAM Excellent certificate in June, confirming its compliance with
EU Taxonomy A-class energy efficiency standards. In cooperation with Enefit, the
installation  of  electric  vehicle  charging  stations  in  store  car parks is
continuing.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of euros

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                                                 30.09.2025   31.12.2024
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  ASSETS
-------------------------------------------------------------------------
  Current assets

  Cash and cash equivalents                          11,630       45,454

  Trade and other receivables                        21,197       30,310

  Inventories                                       102,683       97,091
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  Total current assets                              135,510      172,855
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  Non-current assets

  Long-term receivables and prepayments                 231          235

  Investments in associates                           1,695        1,733

  Investment property                                75,660       81,284

  Property, plant and equipment                     424,636      424,794

  Intangible assets                                  26,276       25,785
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  Total non-current assets                          528,498      533,831
-------------------------------------------------------------------------
  TOTAL ASSETS                                      664,008      706,686
-------------------------------------------------------------------------

-------------------------------------------------------------------------
  LIABILITIES AND EQUITY
-------------------------------------------------------------------------
  Current liabilities

  Borrowings                                         14,113       44,436

  Trade and other payables                           96,160      110,997
-------------------------------------------------------------------------
  Total current liabilities                         110,273      155,433
-------------------------------------------------------------------------
  Non-current liabilities

  Borrowings                                        300,711      279,958

  Trade and other payables                            1,323        1,285

  Deferred tax liabilities                            7,939        7,939

  Provisions for other liabilities and charges          524          543
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  Total non-current liabilities                     310,497      289,725
-------------------------------------------------------------------------
  TOTAL LIABILITIES                                 420,770      445,158
-------------------------------------------------------------------------
  Equity

  Share capital                                      16,292       16,292

  Statutory reserve capital                           2,603        2,603

  Revaluation reserve                               110,135      112,167

  Retained earnings                                 114,208      130,466
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  TOTAL EQUITY                                      243,238      261,528
-------------------------------------------------------------------------
  TOTAL LIABILITIES AND EQUITY                      664,008      706,686
-------------------------------------------------------------------------

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In thousands of euros

-------------------------------------------------------------------------------
                                                                       9 months
                       III quarter 2025 III quarter 2024 9 months 2025   2024
-------------------------------------------------------------------------------
 Revenue                        232,651          229,107       680,431  687,933

 Other operating
 income                             637              702         1,258    1,252



 Cost of merchandise           -169,866         -166,081      -494,915 -499,682

 Service expenses               -14,331          -14,733       -45,184  -44,951

 Staff costs                    -27,452          -26,199       -84,973  -80,891

 Depreciation,
 amortisation and
 impairment losses              -10,609          -10,609       -31,982  -31,686

 Other expenses                    -183             -241          -759   -1,031
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 Operating profit                10,847           11,946        23,876   30,944
-------------------------------------------------------------------------------
 Finance income                      54               98           408      427

 Finance costs                   -2,819           -3,488        -8,405   -9,278

 Finance income on
 shares of associates
 accounted for using
 the equity method                   14               33           132      166

 Profit before tax                8,096            8,589        16,011   22,259
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 Income tax expense                   0                0        -7,827   -5,313
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 NET PROFIT FOR THE
 FINANCIAL YEAR                   8,096            8,589         8,184   16,946
-------------------------------------------------------------------------------
 Other comprehensive
 income:

 Items that will not
 be subsequently
 reclassified to
 profit or loss
-------------------------------------------------------------------------------
 Other comprehensive
 income for the
 financial year                       0                0             0        0
-------------------------------------------------------------------------------
 TOTAL COMPREHENSIVE
 INCOME FOR THE
 FINANCIAL YEAR                   8,096            8,589         8,184   16,946
-------------------------------------------------------------------------------
 Basic and diluted
 earnings per share
 (euros)                           0.20             0.21          0.20     0.42

Raul Puusepp
Chairman of the Board
Phone +372 731 5000