Release Date: August 16, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Negative Points

Q & A Highlights

Q: Could you elaborate on the assumptions behind the lower guidance for the second half of the year? A: Both operating segments have faced a tough economic climate, and we expect this to continue. Despite some recent positive news, increasing unemployment rates in Finland and Sweden will likely dampen consumer spending. We do not foresee a significant recovery in the second half.

Q: What were the main drivers behind the decline in Dollarstore's comparable customer visits? A: Dollarstore is in a transition period, needing to clear old inventory while introducing new products, including Tokmanni private labels. This has affected customer perception. Additionally, Dollarstore's core customers, who are low-income, have been most impacted by the tough economic climate.

Q: Will the VAT increase in Finland lead to more aggressive pricing strategies? A: Yes, we are not satisfied with Tokmanni's sales in Finland and will adopt a more aggressive pricing strategy in the second half to attract customers despite the VAT increase.

Q: How has the financial performance of Dollarstore compared to expectations since the acquisition? A: The performance is almost according to plan, though the transition period has been challenging due to market conditions. We expect to see the benefits of synergies and new assortments in the coming years.

Q: How do you expect the VAT increase to impact competition? A: The VAT increase affects all players equally, so we do not expect it to change the competitive landscape significantly. We will continue to focus on offering competitive prices and maintaining customer trust.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.