Unaudited consolidated interim accounts for the third quarter and first nine months of 2025
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%
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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
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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
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TOTAL ASSETS 664,008 706,686
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LIABILITIES AND EQUITY
-------------------------------------------------------------------------
Current liabilities
Borrowings 14,113 44,436
Trade and other payables 96,160 110,997
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Total current liabilities 110,273 155,433
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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
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TOTAL LIABILITIES 420,770 445,158
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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
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TOTAL LIABILITIES AND EQUITY 664,008 706,686
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In thousands of euros
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9 months
III quarter 2025 III quarter 2024 9 months 2025 2024
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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
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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
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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
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TOTAL COMPREHENSIVE
INCOME FOR THE
FINANCIAL YEAR 8,096 8,589 8,184 16,946
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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