Börsiteade

The Group’s unaudited consolidated sales revenue for the second quarter of 2026 amounted to 255.2 million euros, representing a year-on-year increase of 9.6%. The sales revenue for the first half of the year totalled 483.6 million euros, increasing by 8.0% compared to 447.8 million euros in the first half of 2025. The Group’s unaudited consolidated profit before tax for the second quarter of 2026 was 6.2 million euros, which was 7.2% lower than in the comparative period of the previous year. The Group’s profit before tax for the first six months of 2026 amounted to 8.2 million euros, exceeding the result for the comparable period of the previous year by 3.4%. Net profit for the first half of the year amounted to 1.4 million euros, compared to 0.1 million euros in the same period last year. Compared to the same period last year, the result was positively affected by a 1.1 million euro decrease in income tax expense.

The improvement in net incomes resulting from the tax-free income reform has, based on trade statistics, primarily been channelled into covering higher fuel costs and car sales, while sales volumes of food products have continued to decline. In such conditions, the Group’s car segment became the main growth driver, demonstrating the fastest growth in both sales revenue and profit among the business segments. The growth of the car segment was also supported by the operating performance of AS Rohe Auto and OÜ SKO Motors acquired at the beginning of March, which have been consolidated into the Group’s accounts since their acquisition. The security segment achieved strong growth in sales revenue; however, the increase in labour and fuel costs limited the improvement in profitability. Nevertheless, the segment succeeded in reducing its loss compared to the same period last year. In the Selver supermarkets segment, both sales revenue and profit declined, in line with the general market development. The growth in sales volumes among market participants has been supported by the expansion of store networks, while the Group’s Selver supermarkets segment did not open new stores during the reporting period. A new Selver store in Loo, near Tallinn, is scheduled to be added in the second half of the year. The results of the department stores segment remained similar to the previous year, although extensive traffic restrictions in the vicinity of the Kaubamaja Tallinn department store significantly limited customer access. The Group’s gross margin decreased somewhat, driven by sales in the car segment under conditions of pricing pressure. In the Group’s other retail segments, the gross margin did not decline. Labour costs increased by 6.7%, while the total number of employees under employment contracts grew by 0.7%. Finance costs increased by 7.5% in the second quarter compared to the previous year, which is related to the addition of several new buildings constructed in the real estate segment.

Selver supermarkets

The Selver supermarkets segment’s consolidated sales revenue for the second quarter of 2026 amounted to 147.0 million euros, decreasing by 5.6% compared to the same period last year. The consolidated sales revenue for the first half of the year was 289.4 million euros, declining by 4.8% year-on-year. A total of 21.1 million purchases were made in stores during the first half of 2026, representing a decrease of 4.3% compared to the previous year. In the second quarter of 2026, profit before tax and net profit both amounted to 1.9 million euros, which was 1.5 million euros lower compared to the base period. The consolidated profit before tax of the Selver supermarkets segment for the first half of the year was 1.9 million euros, falling short of the comparison base by 2.2 million euros. Net profit for the first half of 2026 amounted to 0.9 million euros, decreasing by 2.6 million euros compared to the previous year. The difference between net profit and profit before income tax is due to income tax paid on dividends, which was 0.4 million euros higher than in the previous year.

Selver’s sales performance has been affected by weakened consumer purchasing power and intensified competition. Over the past four years, food price inflation has outpaced average wage growth, meaning that consumers’ purchasing power in food products has not yet recovered to the level prior to the rapid price increases. Compared to the base period, Selver did not open new stores and closed one store. The 2026 revenue performance has been affected by a significant decline in the sale of non-food goods. Revenue from food products remained at a level close to the previous year, while volume sales, in line with the market segment, were below the prior year. Sales revenue in electronic channels increased by approximately 8%. According to data from Statistics Estonia, the sales revenue of grocery stores in the first five months of 2026 increased by 2.6% at current prices, while volume sales declined by approximately 1.5%.

The economic performance of the second quarter of 2026 was primarily affected by a decline in sales volumes. Operating expenses have been managed in the face of rising input costs across nearly all services and procurements, supported by cost optimisation measures, while maintaining operational efficiency at the level of the base year. Increases in energy prices (electricity, heating, fuel) due to various factors have had a negative impact, raising the company’s operating expenses by a few hundred thousand euros and slightly reducing the efficiency ratio of operating expenses. Continuous improvement of work processes has enabled labour costs to be kept 1.4% lower than the base year despite pressure from rising wage rates.

The Selver supermarkets segment continues its strategic focus on developing sustainable and customer-centric solutions. In Kulinaaria, steps have been taken to reduce packaging costs by removing lids from salad containers and introducing meal boxes made of thinner material. To support healthier customer choices, the campaign promoting the sale of fruit and vegetables was continued, offering a 15% discount on these products every Friday.

In 2026, Selver renovated and expanded the Laulasmaa Selver store. The store, now operating on a surface twice the previous size, has been converted to energy-efficient solutions that reduce the store’s environmental footprint by approximately one third. In the second half of the year, plans include converting the refrigeration systems of one store to a CO2 system to increase cost efficiency; opening the Loo Selver in Jõelähtme Parish and the Papiniidu Selver in Pärnu. At the same time, operations at the Pärnu Mai Selver will be discontinued due to the expiry of the lease agreement. The focus is on improving supply chain efficiency, preparing for the implementation of the Relex inventory management solution, and increasing operational volumes on the Bolt Market and Wolt platforms. In the first quarter of 2027, Selver will close the Põlva Selver and the Männimäe Selver in Viljandi due to the expiry of lease agreements.

Department stores

The department stores segment’s sales revenue for the second quarter of 2026 amounted to 24.9 million euros, which was 3.0% lower than in the previous period. The pre-tax loss was 0.1 million euros, which was 0.05 million euros higher than the loss in the previous period. Sales revenue for the six months totalled 47.8 million euros, which was 1.4% lower than in the comparable period of the previous year. The department stores segment’s pre-tax loss for the first six months of 2026 amounted to 1.8 million euros, which was 0.1 million euros weaker than the result a year earlier.

The average sales revenue per square metre of selling space of the department store for the six months was 0.30 thousand euros per month, which was 1.2% lower than in the same period last year. The second quarter sales performance was negatively affected by extensive excavation works on Laikmaa Street and Rävala Boulevard in Tallinn, which significantly complicated access to the Tallinn department store building. Although the summer discount campaign started with strong sales growth, performance weakened towards the end of the quarter due to cooler summer weather. The Children’s World department of the Tallinn store, which was renovated in March last year, and the updated assortment in both department store buildings have been well received by customers, supporting improved sales both in-store and in the e-shop. With its distinctive assortment, the Food Department has continued on a growth trajectory, steadily increasing both customer numbers and sales volumes despite the challenging conditions in the Estonian grocery retail market.

The sales revenue of OÜ TKM Beauty, which operates I.L.U. cosmetics stores and is engaged in cosmetics wholesale, amounted to 2.0 million euros in the second quarter of 2026, decreasing by 3.8% compared to the same period in 2025. The segment reported a loss of 0.2 million euros in the second quarter, which was 0.1 million euros higher than in the comparable period of 2025. Sales revenue for the first half of 2026 totalled 4.1 million euros, which is 2.5% lower than in the same period of 2025. The loss for the first half of 2026 amounted to 0.2 million euros, which was 0.1 million euros higher than the result for the comparable period of 2025. As of 1 April, the former retail company TKM Beauty Eesti OÜ was merged with the wholesale company TKM Beauty OÜ, which allows for better organisation of commercial management and more efficient implementation of necessary IT investments for the company’s development in the future. Customer confidence remains low; however, promotional campaigns dedicated to spring seasonal events in I.L.U. stores were well received by loyal customers. Another key development in the second quarter was the launch of the renewed I.L.U. e-store.

Car trade

The car segment’s sales revenue of 76.2 million euros in the second quarter of 2026 increased by 68.8% compared to the same period last year. The pre-tax profit for the second quarter of 2026 amounted to 2.7 million euros, which was 1.1 million euros higher than in the same period a year earlier. The segment’s sales revenue for the first six months was 132.0 million euros, increasing by 60.1% compared to the same period last year. The pre-tax profit for the first half of the year amounted to 4.8 million euros, exceeding the result of the previous year by 2.5 million euros. In the second quarter, 2,107 new vehicles were sold. In the first half of the year, a total of 3,606 new vehicles were sold, which was 48.2% more than a year earlier.

The financial results of the car segment improved significantly, supported by market growth in Estonia and Lithuania. The Estonian market grew by 62% over the six-month period, driven by a still low comparison base and a pricing pressure environment. In Latvia, growth remained at around 1%, while in Lithuania the market expanded by 16%. Although growth in the Estonian market remained very strong, it does not yet indicate a full recovery.

In the second quarter, AS Rohe Auto and OÜ SKO Motors acquired in Tallinn were integrated into the Group’s car segment. The acquired companies strengthened the Group’s position in the Estonian car market and made the Group the largest Škoda dealer in the Baltics. In Lithuania, the Vilnius KIA Škoda multi-brand dealership continued its strong development, with its modern infrastructure supporting the segment’s long-term growth potential in the largest Baltic market and its sales and service volumes growing in line with expectations. In Estonia, a new Viking Motors body repair workshop was opened at the beginning of the quarter, which is the largest and most technologically advanced in the region. The new workshop significantly increases the Group’s service capacity and allows faster and higher-quality service to be provided to customers.

In the second quarter, the car segment focused on cooperation with key customers, improving sales processes and targeted marketing campaigns. Attention was also given to increasing the share of electric vehicles and strengthening the compact SUV segment. The expanded KIA model range supported the Group’s strategy to increase its presence in the affordable electric vehicle segment, where demand remains strong. In the coming quarters, the car segment will focus on the efficient management of dealerships and deepening cooperation with key customers. The focus will be on developing strategic customer relationships, harmonising service capacity and optimising operational volumes across the Baltic-wide sales and service network.

In the third quarter, the model range will be supplemented with the KIA PV5 electric van passenger version, the electric city car EV2 and the all-new compact SUV KIA Seltos. New Škoda models are expected to arrive towards the end of the year.

Security segment

The security segment’s external sales revenue for the second quarter of 2026 amounted to 5.2 million euros, increasing by 20.2% compared to the same period last year. The segment reported a pre-tax loss of 0.3 million euros for the second quarter, remaining at the same level compared to the previous period. The security segment’s external sales revenue for the first six months of 2026 amounted to 10.8 million euros, increasing by 20.0% compared to the same period last year. The pre-tax loss for the first half of the year amounted to 0.3 million euros. The loss was 0.2 million euros lower compared to the same period last year.

Sales revenue growth remained strong in the second quarter. Faster growth in revenue and profitability was seen in the security technology projects and maintenance areas. In both the security systems and guarding services segments, the Group succeeded in securing several significant contracts, the impact of which will be reflected in future periods. The largest decline occurred in the cash-in-transit services segment. The overall result of the company was negatively affected by the high level of fuel prices. The economic environment continues to present both challenges and opportunities. Clients are actively seeking more efficient and cost-effective security solutions and are open to new developments. The growing recognition of the Viking Security brand is increasing the number of enquiries and new contracts in both business and private customer services.

Real estate

The real estate segment’s external sales revenue in the second quarter of 2026 amounted to 1.9 million euros, decreasing by 3.4% compared to the same period last year. The external sales revenue for the first half of the year totalled 3.7 million euros, declining by 4.8% compared to the same period of the previous year. In the second quarter, the real estate segment earned a pre-tax profit of 2.4 million euros, which was 0.8% lower than a year earlier. The pre-tax profit for the first half of the year was 4.5 million euros, remaining 1.3% below the comparative period.

The decrease in external sales revenue was primarily affected by changes in the composition of leased premises at the Tartu Kaubamaja centre and by ongoing reconstruction works at the centre. In autumn, a MyFitness sports club, operating on an area of over 1,500 square metres on the second floor of the centre, will be opened and will be one of the most modern in Estonia.

The modest decline in the real estate segment’s profit was mainly due to increased depreciation costs associated with the addition of new buildings. The largest impact comes from the new KIA and Škoda dealership and service building completed in Vilnius at the end of last year. In addition, the real estate segment acquired the Ülemiste Autokeskus property at the end of last year, and in April this year a body repair workshop building began operations next to the KIA sales and service centre in Peetri, near Tallinn. The newly added buildings support growth in intra-group sales revenue. In connection with new developments, the segment’s loan volume has increased, resulting in a certain rise in interest expenses.

During the preparation of the detailed spatial plan for the Kaubamaja quarter located in central Tallinn, an extensive mobility study has been commissioned, with expected completion by the end of the current year. Preparations are underway for façade renovation works at the Selver stores in Kohtla-Järve, Põltsamaa and Paide. In addition, development of building automation systems continues in the Kolde and Merimetsa Selver buildings.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of eurosˇ

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In thousands of euros

Raul Puusepp

Chairman of the Board

Phone +372 731 5000