Unaudited consolidated interim accounts for the third quarter and first nine months of 2026
| Segments (EURm) | Q3/26 | Q3/25 | yoy | 9m/26 | 9m/25 | yoy |
| Supermarkets | 148.2 | 150.9 | -1.7% | 437.6 | 454.9 | -3.8% |
| Department stores | 22.5 | 22.4 | 0.7% | 70.3 | 70.8 | -0.8% |
| Cars | 73.4 | 52.7 | 39.2% | 205.4 | 135.2 | 52.0% |
| Security segment | 5.6 | 4.8 | 18.2% | 16.4 | 13.7 | 19.4% |
| Real Estate | 1.9 | 1.9 | -2.6% | 5.6 | 5.8 | -4.1% |
| Total sales | 251.7 | 232.7 | 8.2% | 735.2 | 680.4 | 8.1% |
| Supermarkets | 3.7 | 4.7 | -20.2% | 5.6 | 8.7 | -35.8% |
| Department stores | -1.2 | -1.0 | 22.1% | -3.1 | -2.7 | 12.9% |
| Cars | 2.8 | 2.5 | 12.9% | 7.6 | 4.8 | 57.6% |
| Security segment | 0.0 | 0.2 | -90.4% | -0.2 | -0.2 | 6.4% |
| Real Estate | 2.3 | 2.4 | -2.2% | 6.9 | 7.0 | -1.6% |
| IFRS 16 | -0.4 | -0.6 | -20.4% | -1.4 | -1.5 | -8.6% |
| Total profit before tax | 7.1 | 8.1 | -11.7% | 15.3 | 16.0 | -4.2% |
The Group’s unaudited consolidated revenue for the third quarter of 2026 amounted to 251.7 million euros, exceeding the revenue generated in the same period of the previous year by 8.2%. Revenue for the first nine months totalled 735,2 million euros, representing an increase of 8.1% compared with revenue of 680.4 million euros in the first nine months of 2025. The Group’s unaudited consolidated profit before tax for the third quarter of 2026 amounted to 7.1 million euros, which was 11.7% lower than in the corresponding period of the previous year. Profit before tax for the first nine months amounted to 15.3 million euros, declining by 4.2% 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. Labour costs increased by 6.9%, while the total number of employees under employment contracts decreased by 0.3%. Finance costs rose by 14.4% 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.
Selver supermarkets
The Selver supermarkets segment generated consolidated revenue of 148.2 million euros in the third quarter of 2026, representing a year-on-year decline of 1.7%. Consolidated revenue for the first nine months amounted to 437.6 million euros, decreasing by 3.8% compared with the previous year. During the first nine months of 2026, a total of 32.2 million purchases were made in the stores, which was 3.7% fewer than a year earlier. In the third quarter of 2026, profit before tax and net profit both amounted to 3.7 million euros, 0.9 million euros lower than in the comparative period. Consolidated profit before tax for the first nine months was 5.6 million euros, falling 3.1 million euros short of the comparative period. Net profit for the first nine months amounted to 4.6 million euros, decreasing by 3.5 million euros compared with the previous year. The difference between net profit and profit before income tax arose from income tax paid on dividends, which was 0.4 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%. According to Statistics Estonia, retail revenue from food products in Estonia increased by 2.4% at current prices during the first eight months of 2026, while sales volumes declined by 0.5%. Since June, food prices have decreased by 0.5%, 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. Continued focus on improving operational efficiency enabled labour costs to remain under control, with labour costs standing 1.3% 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 CO₂ 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 CO₂ 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.
At the end of the third quarter, the Selver supermarkets segment comprises 73 Selver stores, 2 Delice stores, a mobile store and a café, with a total sales area of 126.0 thousand square metres. The segment also includes e-Selver, Estonia’s online supermarket e-Selver with the country’s largest service area, and the central kitchen Kulinaaria OÜ.
Department stores
The department stores segment generated revenue of 22.5 million euros in the third quarter of 2026, exceeding the result of the previous year by 0.7%. Revenue for the first nine months amounted to 70.3 million euros, remaining 0.8% below the comparable period of the previous year. The department stores segment reported a pre-tax loss of 1.2 million euros in the third quarter of 2026. The pre-tax loss increased by 0.2 million euros compared with the previous year. The pre-tax loss for the first nine months amounted to 3.1 million euros, which was 0.3 million euros weaker than the result recorded a year earlier.
The average monthly revenue per square metre of sales area in the department stores during the first nine months was 0.30 thousand euros, 0.5% below the previous year’s result. While extensive excavation works took place around the Tallinn department store during the first half of the year, access to the store had been restored by the end of the summer, and the autumn season began on a positive note, supporting the third-quarter result. Summer discount campaigns were less aggressive this year as inventory levels were healthier and sales margins therefore higher. The Children’s World department, renovated last year and supported by its renewed brand portfolio, continues to perform well both in the department stores and online. The Food World department has also continued to grow with its distinctive assortment despite the challenging conditions in the Estonian grocery retail market. As part of the autumn campaign, Kaubamaja once again launched new cooperation projects, including a special collection by Ärni Blumi and Kriss Soonik in the Women’s World department, and a new PAI bed linen collection in the Home World department, created in cooperation with Epp-Maria Kokamägi and Liisu Arro. The increase in Kaubamaja’s loss was attributable to the fact that revenue growth was insufficient to offset higher IT and logistics costs associated with the enterprise software solution introduced last year and the reorganisation of logistics services.
The revenue of OÜ TKM Beauty, which operates I.L.U. beauty stores and engages in cosmetics wholesale, amounted to 2.09 million euros in the third quarter of 2026, decreasing by 4.4% compared with the same period of 2025. The company recorded a loss of 0.05 million euros in the third quarter, with the loss increasing by 0.08 million euros year-on-year. Revenue for the first nine months of 2026 amounted to 6.2 million euros, 3.1% lower than in the same period of 2025. The loss for the first nine months of 2026 amounted to 0.3 million euros, increasing by 0.2 million euros compared with the previous year. Third-quarter results were affected by summer discount campaigns, continued intense competition and challenges related to the development of the I.L.U. online store.
Car trade
The car segment generated revenue of 73.4 million euros in the third quarter of 2026, exceeding revenue in the third quarter of 2025 by 39.2%. Revenue for the first nine months amounted to 205.4 million euros, an increase of 52,0% compared with the same period of the previous year. During the third quarter, 1,944 new vehicles were sold, representing an increase of 22.1% compared with the same period of the previous year. During the first nine months, a total of 5,550 new vehicles were sold, which was37.9% more than a year earlier. The segment’s profit before tax for the third quarter of 2026 amounted to 2.8 million euros, exceeding the profit before tax of the corresponding period of the previous year by 12.9%. Profit before tax for the first nine months amounted to 7.6 million euros, exceeding the result of the previous year by 2.8 million euros.
Growth in the Baltic new passenger car markets continued during the third quarter of 2026, although at varying rates across countries. Over the first nine months, the Estonian market grew by 56%, supported by the low comparison base of 2025 and the gradual recovery in demand. The Latvian market remained at the level of the previous year, while growth in Lithuania reached 17% over the first nine months. The results of the car segment were supported in the third quarter by both higher volumes of new vehicle sales and a strong after-sales business. Performance was further supported by synergies achieved through the integration of the Tallinn Škoda dealerships acquired during the first half of the year, helping to improve operational efficiency and align sales, service and support processes across the network. At the same time, service volumes increased throughout the Baltics, supporting profitability and strengthening the share of recurring revenue in the business.
The Group’s position as one of the leading car retailers in the Baltics strengthened further, and development of the Škoda sales network continued in line with strategic objectives. In Lithuania, the KIA-Škoda multi-brand dealership in Vilnius continued its strong development, with sales and service volumes increasing in line with expectations. The modern dealership supports the Group’s long-term growth objectives in the largest automotive market in the Baltics and helps increase the market share of both KIA and Škoda in the region. In Estonia, workloads continued to increase at Viking Motors’ new body repair centre during the quarter. The capacity of the new facility enables the servicing of a significantly larger number of customers and shorter repair times, thereby supporting both customer satisfaction and growth in the after-sales business. Key areas of focus include expanding cooperation with major corporate customers, improving the customer experience and ensuring profitable growth across the sales and service network throughout the Baltics.
During the third quarter, KIA expanded its model range with the passenger version of the PV5 electric van, the new EV2 electric city car and the new Seltos crossover. These new models support the Group’s objective of increasing its share in the rapidly growing electric vehicle segment and offering customers a broader range of options across different price categories. The wider impact of Škoda model updates is expected to become evident during the final quarter of the year.
Security segment
The security segment generated third-quarter 2026 external revenue of 5.6 million euros, representing growth of 18.2% compared with the same period of the previous year. The segment’s profit before tax for the third quarter amounted to 0.02 million euros, which was 0.2 million euros lower than in the corresponding period of the previous year. External revenue for the first nine months of 2026 amounted to 16.4 million euros, increasing by 19.4% year-on-year. The segment reported a pre-tax loss of 0.2 million euros for the first nine months. The loss increased by 6.4% compared with the same period of the previous year.
Revenue continued to grow during the third quarter. The strongest performance came from security technology projects and maintenance services, where both revenue and profitability improved. On the negative side, the cash handling services business continues to require operational changes. Among input costs, the most significant impact came from higher-than-usual fuel prices, which had a negative quarterly effect of 41 thousand euros. Signs of an improving economic environment can be seen in growing customer orders and an expanding construction project portfolio. A positive trend has been the increase in home security sales, supported by the company’s rising market awareness.
Real estate
The real estate segment generated third-quarter 2026 external revenue of 1.9 million euros. Revenue declined by 2.6% compared with the same period of the previous year. External revenue for the first nine months amounted to 5.6 million euros, representing a decrease of 4.1% year-on-year. The real estate segment reported profit before tax of 2.3 million euros in the third quarter of 2026. Profit before tax decreased by 2.2% compared with the comparative period. Profit before tax for the first nine months amounted to 6.9 million euros, declining by 1.6%.
The decrease in external revenue continued to be affected by the reconstruction works of the leased premises at the Tartu Kaubamaja centre. During the third quarter, new service and catering premises were opened in the centre, and in October a MyFitness sports club with an area of approximately 1,500 square metres will open its doors, supporting growth in both visitor numbers and the attractiveness of the centre. In addition, in October Tartu Kaubamaja, in cooperation with the Tartu City Government, will open the largest children's playground in the city centre in Uueturu Park.
The decline in the real estate segment’s profit was primarily attributable to higher depreciation expenses resulting from the addition of new buildings. These buildings were constructed and acquired to support the activities of the Group’s car segment. At the end of last year, a new Škoda and Kia multi-brand dealership was completed in Vilnius, and in April a newly completed body repair workshop commenced operations alongside the KIA sales and service centre in Peetri, near Tallinn. In August, the vehicle sales showrooms of Rohe Auto AS and SKO Motors OÜ were added to the real estate segment’s property portfolio. The addition of new buildings supports growth in the real estate segment’s intra-group revenue. At the same time, the higher loan volumes associated with these investments and the increase in base interest rates led to higher interest expenses for the segment.
To ensure the sustainability of the Group’s real estate portfolio and to improve operational efficiency, building automation development projects and façade refurbishment works have been initiated in several properties.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In thousands of euros
| 30.09.2026 | 31.12.2025 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 15,316 | 29,516 |
| Trade and other receivables | 26,338 | 23,628 |
| Inventories | 118,447 | 101,186 |
| Total current assets | 160,101 | 154,330 |
| Non-current assets | ||
| Long-term receivables and prepayments | 225 | 217 |
| Investments in associates | 1,692 | 1,860 |
| Investment property | 76,191 | 76,162 |
| Property, plant and equipment | 435,474 | 438,977 |
| Intangible assets | 30,339 | 26,429 |
| Total non-current assets | 543,921 | 543,645 |
| TOTAL ASSETS | 704,022 | 697,975 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Borrowings | 19,460 | 63,536 |
| Trade and other payables | 102,976 | 104,955 |
| Total current liabilities | 122,436 | 168,491 |
| Non-current liabilities | ||
| Borrowings | 324,465 | 256,942 |
| Trade and other payables | 1,514 | 1,386 |
| Deferred tax liabilities | 6,918 | 6,893 |
| Provisions for other liabilities and charges | 800 | 510 |
| Total non-current liabilities | 333,697 | 265,731 |
| TOTAL LIABILITIES | 456,133 | 434,222 |
| Equity | ||
| Share capital | 16,292 | 16,292 |
| Statutory reserve capital | 2,603 | 2,603 |
| Revaluation reserve | 118,350 | 120,630 |
| Retained earnings | 110,644 | 124,228 |
| TOTAL EQUITY | 247,889 | 263,753 |
| TOTAL LIABILITIES AND EQUITY | 704,022 | 697,975 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In thousands of euros
| III quarter 2026 | III quarter 2025 | 9 months 2026 | 9 months 2025 | |||||
| Revenue | 251,664 | 232,651 | 735,219 | 680,431 | ||||
| Other operating income | 247 | 637 | 1,189 | 1,258 | ||||
| Cost of merchandise | -185,861 | -169,866 | -542,537 | -494,915 | ||||
| Service expenses | -15,437 | -14,331 | -46,930 | -45,184 | ||||
| Staff costs | -29,358 | -27,452 | -89,950 | -84,973 | ||||
| Depreciation, amortisation and impairment losses | -10,733 | -10,609 | -32,079 | -31,982 | ||||
| Other expenses | -224 | -183 | -903 | -759 | ||||
| Operating profit | 10,298 | 10,847 | 24,009 | 23,876 | ||||
| Finance income | 62 | 54 | 216 | 408 | ||||
| Finance costs | -3,225 | -2,819 | -9,006 | -8,405 | ||||
| Finance income on shares of associates accounted for using the equity method | 12 | 14 | 112 | 132 | ||||
| Profit before tax | 7,147 | 8,096 | 15,331 | 16,011 | ||||
| Income tax expense | -9 | 0 | -6,757 | -7,827 | ||||
| NET PROFIT FOR THE FINANCIAL YEAR | 7,138 | 8,096 | 8,574 | 8,184 | ||||
| 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 | ||||
| TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR | 7,138 | 8,096 | 8,574 | 8,184 | ||||
| Basic and diluted earnings per share (euros) | 0.18 | 0.20 | 0.21 | 0.20 | ||||
Raul Puusepp
Chairman of the Board
Phone +372 731 5000
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