Puuilo Oyj posted a sharp rise in sales and profitability for the first half of 2026, though its shares slipped 1.4% following the release of second-quarter results and full-year guidance.
For the quarter ending July, net sales rose 12.9% to EUR 153 million from EUR 135.5 million a year earlier, with like-for-like growth of 6.1%. Customer traffic increased 12% across the chain and 5% at comparable stores. Gross margin expanded 100 basis points to 39.1%, and adjusted EBITA climbed 19.8% to EUR 33.8 million on a margin of 22.1%, up from 20.8%.
Earnings per share came in at EUR 0.30, exceeding the ~EUR 0.27 estimate. Revenue slightly undershot consensus at EUR 153 million against a ~EUR 154.3 million forecast.
Operating free cash flow in the quarter totaled EUR 43.1 million, up roughly EUR 5 million year over year. Inventories reached approximately EUR 130 million at end-July, up EUR 10 million, driven by network expansion and higher private-label volumes.
Cash and cash equivalents stood at more than EUR 51 million, with bank loans of about EUR 70 million. Net debt excluding IFRS 16 lease liabilities was EUR 18 million, and the net-debt-to-adjusted-EBITA ratio (excl. IFRS 16) was 0.2. Total net debt to adjusted EBITA fell to 1.1 from 1.3 two years prior.
For the six-month period, net sales grew 14.2% to EUR 257 million, with like-for-like gains of 6.9%. Gross margin expanded 1.4 percentage points to 39.2%, private-label sales surged 23%, and adjusted EBITA rose 28.2% to EUR 50 million on a 19.5% margin. EPS for H1 was EUR 0.44 versus EUR 0.33 a year ago, and operating free cash flow reached EUR 60 million, up EUR 8.6 million year over year.
The company maintained its revised full-year guidance of net sales between EUR 495 million and EUR 515 million and adjusted EBITA between EUR 87 million and EUR 97 million.
Puulilo ended the quarter with 59 stores in Finland, up from 54 a year earlier, after opening a new location in Espoo (Espoonlahti) and relocating its Vantaa Virkamies store to Vantaa Tammisto. New stores in Lahti (Holma) and Kangasala opened on September 17, with further openings planned in Raasepori, Kurikka, and Turku before year-end. Next year will see locations in Ylivieska and Jämsä, with relocations in Kajaani and Jyväskylä Seppälä. The store-network target remains above 90 shops nationally.
In Sweden, Puuilo began piloting its first international stores using the same concept and logistics model, without a dedicated centralized warehouse. An Örebro outlet opened by year-end, with a Sundsvall location targeted for early 2027. Set-up costs for the Swedish expansion are budgeted at approximately EUR 1 million.
Long-term targets call for average annual sales growth above 10%, pushing net sales beyond EUR 800 million by the end of the strategic period. Adjusted EBITA margin aims to exceed 17%, with at least 80% of net results distributed to shareholders as dividends and a net-debt-to-EBITA ceiling below 2.5 times.
"Our concept works very well in tougher economic situations and environments," CEO Juha Saarela said. CFO Annu von Weymarn noted that "the quality of growth was good, as it was supported both by an increase in customer traffic and improving gross margin."
Puuilo shares closed at USD 16.84, down USD 0.24, leaving the stock in the range of USD 11.30 to USD 18.10 for the past year. The company has delivered a 38% gain year to date and a 50% return over six months. Market capitalization stands at USD 1.68 billion, with a P/E ratio of 24.83 and a PEG ratio of 0.72.
