Puuilo - En pionjär till lågprishandel

Hi all,

We initiated the translations of Puuilo, a finnish discount retailer. Latest report can be found here.

Puuilo

  • Is a discount retailer that focuses on DIY and renovation supply
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  • The concept is simple and somewhat unique in Finland and it’s working well.

  • Is one of the most profitable discount retailers inside Europe

    • High gross margin (36%)
    • Low fixed costs (20% of sales)
  • Has strong track record of growth and the growth prospectives are yet good inside Finland

  • Has around 40 stores now and is targeting over 60 stores inside Finland

  • Very strong cashflow profile and asset light business model à 80 % payout ratio

    • Option for acquisitions
  • It’s store expansion model is efficient (black figures are achieved after first month from opening) and young stores will grow over 10 years


  • Valuation: currently elevated but over time the earnings growth and dividend yield will offset the high valuation

Puuilo will arrange an investor day on April 23rd, in which it will introduce updated strategy and ways to continue growth even after the network of over 60 stores. Link to webcast: Invitation to the Puuilo Plc’s Investor Day on April 23, 2024 - Inderes.

4 gillningar

JA! Äntligen är översättningen av analysen här!
Vi passade på att fråga runt på kontoret vad folk har köpt senast i butiken :partying_face::

Vi svängde även ihop en video om bolaget tillsammans med @arttu.heikura :partying_face:

TOP OF Mind:

  • lönsamt: även i jmf med peers: coolt!!!
  • solid outlook
  • tillväxt: ser bra ut, men på sikt: varthän? Utanför Finlands gränser (i stil med Tokmanni- Dollarstore), eller fortsätta med M&A av mindre, lokala aktörer
  • lojala kunder = INTE att underskatta!
1 gillning

Här är en analys av ett företag som är älskat av finska investerare. :slight_smile:

Puuilo’s updated strategy targets stronger growth than previously expected and as a result we have revised our store opening forecasts upwards. The main drivers of the company’s profit growth are a scalable cost structure driven by an expanding store network and the growth of existing stores. The near-term valuation of the stock remains slightly elevated, but we believe this is justified by the strong earnings growth profile and high return on capital.

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