Group posts higher Q3 sales, lower pre-tax profit

2%. 4 million euros in the first nine months of 2025. 7% lower than in the corresponding period of the previous year. 2% year-on-year.

During the third quarter, the primary driver of the Group's revenue growth continued to be the car segment, where the recovery of the Baltic automotive markets, increased sales volumes of new vehicles, a strong after-sales business and the successful integration of the Tallinn Škoda dealerships acquired in the first half of the year supported strong growth in both revenue and profit. The security segment continued to deliver rapid revenue growth, driven by security technology projects and maintenance services; however, higher-than-usual fuel prices and pressure in the cash handling services business limited the improvement in profitability.

In the Selver supermarkets segment, performance was affected by a weak consumer environment, intensifying competition and temporary sales disruptions related to store openings, closures and renovation works. Positively, e-commerce revenue in the segment increased and customer loyalty activity remained at the previous year's level. In the department stores segment, trading conditions improved in the third quarter following the completion of extensive road construction works in the vicinity of the Tallinn department store, but revenue growth was insufficient to offset higher input costs.

The Group's gross margin continued to be moderately affected by sales made under pricing pressure in the car segment. Gross margin did not decline in the Group's other retail segments. 3%. 4% year-on-year in the third quarter, reflecting the addition of several newly constructed and acquired properties in the real estate segment.

During the third quarter, a new energy-efficient Loo Selver was opened in Jõelähtme Rural Municipality, and the renovation of existing stores and upgrades of refrigeration systems continued. In addition, Laulasmaa Selver was renovated and expanded in the Selver supermarkets segment, while Kreutzwaldi Selver ABC and Kärberi Selver were modernised. A new Papiniidu Selver will be opened in Pärnu in November. Mai Selver in Pärnu and Põlva Selver in southern Estonia will be closed in October.

The Selver supermarkets segment also continued investments aimed at improving inventory management efficiency and prepared for the implementation of the Relex inventory management solution. In the real estate segment, development of rental premises at the Tartu Kaubamaja centre continued. As part of investments made earlier in the reporting year, Viking Motors' new body repair workshop was opened in Estonia at the beginning of the second quarter. It is the largest and most technologically advanced facility of its kind in the region.

The investment significantly increases the Group's servicing capacity in the car segment and supports further growth of the after-sales business in Estonia. In the Selver supermarkets segment, Laulasmaa Selver was renovated and expanded. Operating on premises twice the size of the previous store, it was converted to energy-efficient solutions that reduce the building's environmental footprint by approximately one-third. In the second quarter, a significant strategic investment was made through the acquisition of shares in Rohe Auto AS and ownership interests in SKO Motors OÜ and SKO Motors Kinnisvara OÜ.

Through this investment, the Group strengthens its position in the car segment in Estonia and across the Baltics, creates synergies and adds resilience to the Group's brand portfolio. 7%. 8% compared with the previous year. 7% fewer than a year earlier.

9 million euros lower than in the comparative period. 1 million euros short of the comparative period. 5 million euros compared with the previous year. 4 million euros higher than in the previous year.

Selver's sales performance was affected by weakened consumer purchasing power and intensified competition. In addition to temporary sales disruptions and one-off costs related to store openings, closures and renovation works, sales results were also affected by extensive road construction works in the vicinity of several stores, which reduced customer accessibility and had a negative impact on footfall. At the same time, it is encouraging that the number of loyal customers making purchases remained at the base-year level. Revenue from food products declined by 2%, while revenue from non-food products increased by 2%.

Revenue generated through electronic channels grew by 6%. 5%. 5%, and food sales volumes have returned to modest growth for the first time in more than four years. The financial results for the third quarter of 2026 were primarily affected by lower sales volumes, a higher share of promotional products in shopping baskets and a decline in gross margin.

At the same time, the company continued to improve cost efficiency and successfully offset a significant proportion of rising input costs. Higher prices for energy carriers, including electricity, heating energy and fuel, increased operating expenses by several hundred thousand euros and slightly reduced efficiency; however, despite external pressures, operating expenses were lower overall than in the comparable period a year earlier. 3% below the base-year level despite wage inflation pressures in the labour market.

During 2026, Selver continued to develop its store network by renovating and expanding Laulasmaa Selver and modernising Kreutzwaldi Selver ABC and Kärberi Selver. Refrigeration systems were also replaced in the Laulasmaa and Kreutzwaldi stores. Following renovation, both stores now use energy-efficient CO refrigeration systems. In September, a new Selver store was opened in Loo, Jõelähtme Rural Municipality, with particular emphasis placed on energy efficiency.

The store's ventilation, heating and cooling systems operate on a demand-based basis, refrigeration equipment uses CO refrigerant, and waste heat recovery solutions have been implemented. A new Papiniidu Selver will be opened in Pärnu in November, with employees from the Mai Selver store in Pärnu, which will close in October, transferring to the new location. Põlva Selver will also be closed in October, although customers in the region will continue to have daily access to the e-Selver service. Improving supply chain efficiency has been a key focus this year.

Preparations are under way for the implementation of the Relex inventory management solution. Activity on the Bolt Market and Wolt platforms has been increased and is planned to increase further. Revenue generated through electronic channels accounts for approximately 5% of the company's total revenue. In August, Selver introduced a new message and visual label, "From Here.

From Estonia" ("Siit. Eestist"), highlighting Estonian producers and domestic products in stores and marketing channels, thereby supporting the growth of local food producers, encouraging more informed consumer choices and contributing to the sustainable development of the local economy. (MORE TO FOLLOW) Dow Jones Newswires October 09, 2026 09:30 ET (13:30 GMT) The statements in this document shall not be considered as an objective or independent explanation of the matters.

Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.