Welcome to Tokmanni's Second Quarter Result Presentation. My name is Mika Rautiainen, and I'm the CEO of Tokmanni Group. Today with me, I have Tokmanni's CFO, Mr. Markku Pirskanen. First, I will go through the second quarter highlights, and Markku will then dig deeper with the numbers. After that, I'll come back to the outlook for the second half of this year. We will have time for your questions. Well, it's of course my great pleasure to share the results of the second quarter of Tokmanni with you. It's been a very strong quarter for Tokmanni in a very difficult environment. That's of course, many thanks to our customers and personnel. We think that one of the key drivers for the great performance was basically the customer confidence that we've been building up for the last couple of years. It has been on a very high level.
Of course, in this situation, we basically had our, let's say, most difficult times at the end of March, then we decided that we won't do any layoffs of personnel. We just decided that we'll go through these difficult times together. Basically, our Tokmanni employees, they've been doing a fantastic job during these exceptional times. Luckily enough we had basically three registered corona cases within the company of more than 4,000 people working for Tokmanni. Due to this fantastic job, we've decided to give a special reward for our personnel from the second quarter performance. The spring season was basically excellent for Tokmanni and the very strong revenue growth that also led to a very strong result. Of course, we had almost 20% revenue growth.
At the same time with the supply chain, especially in our warehouse, we were forced to basically make sure that the employees in our warehouse they are in a very safe situation. We basically had to divide the whole team into very small groups. This led to let's say 10% less efficient workflow with our supply chain. This combined with +20% higher sales. I think that on the best weeks, we had +40% to +50% growth. This combination was of course very difficult and the shelf availability in our stores that was on a couple of weeks, it was on a very difficult level or let's say bad level and not according to our targets. Of course, we're working at the moment very hard to get the situation back on track.
In Finland, and I'm sure in all other countries as well, there is a lot of question or discussion regarding the changes with the retail business from the stores to online. These are the figures which actually don't include the customer visits from our online business. The like-for-like customer visits for the first half of 2020, it was +2.2%. We consider this as a very good achievement. As mentioned the end of the first quarter of this year was very difficult. It was a dramatic drop with the customer visits in our stores, and of course, in the beginning of April there was no growth at all. Considering all of this, we think that this is a very good achievement. We were able to invite a lot of new customers in the Tokmanni stores.
Of course in the end of March and the beginning of April, we also decided to stick to a discounter model as strong as we can to make sure that we will succeed in these difficult times. Of course, the average basket was basically on an an excellent growth. All the product groups that were related to basically our customers' home and whether it's home decoration, home improvement, all of these product groups, they were doing excellent, as well as food products. They were doing very well. At the same time, with the clothing and cosmetics these product groups the sales development was lower. Actually, with clothing, it was a little bit lower than in the previous year, and that's only natural when people were basically staying at home and also working online. There was no real need for new clothing products.
I would say that I personally consider this as a great achievement that we were reaching almost the same level as in the previous year. About the figures both revenue and result comparison. Sorry. The revenue figures were already informed before. Also mentioned that we expect that the gross margin will be slightly lower than last year, and actually with 0.7% lower level compared to last year. The comparable EBIT during the second quarter was EUR 30.6 million. From our point of view, on a very good level, 10.7%. Cash flow from the operating activities mounted on to almost EUR 79 million. A big change with this was, of course, with the better results and better control with the working capital. Earnings per share during the second quarter were EUR 0.38. About the online sales, of course, it grew strongly from the end of March.
I think that basically new customers or customer visits, it was three times higher than previous year. The online sales, it's still on a very low level, 1.4% of the total revenue. Of course, a very positive thing is that the online business was profitable. We were successful with the expansion of product range, especially for the online business. Of course, the customer experience site functionality and how to find products. These improved significantly and that was, of course, a very positive thing. The visitors on our website that was a very strong growth. The combination with our online business and with our nationwide store network with 190 stores, that works very well together.
Basically, in Finland Tokmanni is located approximately five minutes for every Finn, so it's actually quite easy to check the products out on our website, then just five minutes away, you can pick up the product. This seemed to work very well for Tokmanni. Well, regarding the first half of 2020, revenue growth was 13.3%, like-for-like growth was 11.8%. Very good figures. We were basically at the same level with the gross margin being 33.5% compared to last year's 33.4%. The EBIT amounted to EUR 30.9 million compared to last year's EUR 16.5 million. The growth was very good. As already mentioned, the cash flow was significantly higher than the previous year, amounted to EUR 55.3 million and earnings per share EUR 0.34.
Based on these figures Tokmanni Board of Directors have made a decision of an additional dividend for year 2019. It will be EUR 0.37 per share. This will basically be in addition to the EUR 0.25 which was paid on the 12th of June this year. Altogether, this is EUR 0.62 as the plan was originally. Basically we feel that the situation for Tokmanni is getting more normal. Actually, it's even better than normal. We are able to stick to the original plans when it comes to the Tokmanni dividend from year 2019. As a last part of the highlights of the second quarter, it's the Tokmanni and non-grocery market development. Here you can see Tokmanni figures with the red line and then it's the Finnish Grocery Trade Association's information regarding the department store and hypermarket chains.
As you can see, the non-grocery market was developing positively during the second quarter, but Tokmanni really gained some market share when it comes to the non-grocery market. This is of course very good from our perspective. That's the highlights of the second quarter. Markku, please, can you open up a little bit financial details? Please, go ahead.
Thank you. Oops. Let's go a bit deeper on financials, and then I will start about the revenue and then looking with Q2 numbers and then taking a little bit longer timeframe by taking also the figures from Q2 2018. As we see, we have had a good development during the last three Q2s, and with 19.2%, which we achieved now, 2020, we can say it's exceptional. Of course, when we are looking at last year, we achieved over 10% increase. These two together are big numbers. What's good here is our operating profit. No, sorry, EBIT figure. When we are looking 2018 Q2, we were at the level of EUR 13 million and now coming up to EUR 30.6 million, which is very good development. Comparable gross profit.
We had a good revenue, and due to this nice good revenue, we achieved also higher gross profit when we are looking back on EUR. That's of course the most important thing that you will get more EUR there. When we are looking on percentage-wise, we had now 34.5% compared last year, 35.2%, so we lost 0.7% in gross margin percentage. This is due to the two different reasons. Mika already mentioned that in the beginning of April, we started to push our prices so that the customer has good prices, and of course it was an unstable situation and we didn't know how the demand will develop and we wanted to ensure the good revenue by pushing with the prices and that of course affected to our gross margin percentages. Another thing which affected to the margin was also the sales structure.
People bought different kind of products what they have usually bought during the Q2. We estimated that when we published 2nd of July the pre-information about our revenue and margin, that the difference to the last year Q2 will be 1% and we ended up to 0.7%, which is of course good because it's lower figure, lower difference. There were two different reasons behind that. Our shrinkage, when we look at that on proportional way, was on better position compared last year. Also we were managing better our inventory which meant that we didn't have so much non-marketable products at the end of Q2. All in all, looking the situation after six months, our gross margin percentage is about the same level compared last year.
We have said that we are targeting to increase the private label share and now looking the numbers after six months, we are about the same level compared to last year, but especially during Q2 due to the reason that the sales mix was different, we were on lower level, so ending up 31.4% compared last year's 32.2%. As said, it's coming from our sales structure. This private label is going on hand to hand with our direct import somewhat hand to hand. During Q2, the private label share was a bit lower, but when we are looking our direct import share, we managed to increase it a bit. We ended up to 25.1% compared last year, 24.4%, so there are 0.7 percentage unit increase. Of course, when we are looking the cumulative figures, we see that the increase was slower during Q2 compared to Q1 2020.
Revenue margin after that looking operating expenses. Have to say that operating expenses were well in control. In euro-wise, somewhat increase, but when we are looking relative figures, we achieved during Q2 18.5% operating expenses against the revenue compared last year's 21.5%. There are 3% difference and that's, how would I say, big amount. Of course, when we are going forward, most probably very difficult to achieve this kind of steps. When looking due to very good performance when we are looking operating expenses. The biggest part here in operating expenses are personnel expenses, and we see that we had EUR 31.8 million personnel expenses out of that with total expenses, which were EUR 52.9 million. Also when we are looking personnel expenses, 11.1% against 12.9%, so good development on that side, too.
There were different kind of items which affected to our personnel expenses. There were plusses and minuses. It was clear that when we made some arrangements to prevent the spread of coronavirus, we had to made the different kind of shifts, separate the shifts in stores and our logistic center. That's clear that way affect to our efficiency there, which increase the expenses. The other one which affect here is the additional bonuses to employees, EUR 0.6 million, which we are paying and have to say that these people really deserve these bonuses when they have been serving the customers and taking somewhat risks with the coronavirus. Other direction on cost side was this employee pension payment reduction, which was decided by the Finnish government, and it's temporary, and it affected to the Q2 by EUR 0.9 million.
Comparable EBIT, we already discussed about the numbers. Looking at percentages, we see that when we are looking the six months development last year, 3.9%, and now we achieved 6.4% and have to say that that's good development. Balance sheet financing and cash flow. Especially when this coronavirus epidemic started, we put strong emphasis on cash flow and financial situation. One part that was, of course, this postponement, difficult word, postponing the payment of dividend. Also we are looking the investments and this kind of issue by really concentrating how our cash flow will develop during Q2. Now afterwards, we can see that we were managing well with our inventory. Due to the good inventory management and good result, the cash flow was very strong during the first half of the year.
When we are looking our cash position at the end of June, we see that now we have EUR 49.8 million, comparing that last year's figure, EUR 5.8 million. The cash position is really, as said, stable. Interest-bearing debt, it's EUR 420 million, and mostly these liabilities are coming from our lease liabilities. At the same time, saying that as a whole, EUR 110 million are so-called net debt out of that EUR 420 million. Ratio of net debt to comparable EBITDA was 2.5, at the same time saying that our long-term target is 3.2. We are now under this 3.2 clearly. About the investments, as I already have mentioned that when we were at the beginning of April and coronavirus started, we decided to postpone some investments to our store network and secure our cash flow.
Therefore, we can see that our investments during Q2 2020 is only EUR 3.1 million, and last year it was EUR 5.6 million. We are clearly on a lower level. Now when the situation has somewhat came in Finland back to not normal, but at least near normal, we are starting to make the investments to our store network again, and we are expecting them to be at the level of EUR 15 million, which was also originally planned earlier. That's about the numbers somewhat, and now Mika will continue again by looking the H2 2020. Thank you.
Thank you, Markku. Well, as described, the combination of very strong customer confidence in Tokmanni, excellent spring, summer season, and Tokmanni's very active commercial plan during the second quarter, this was very successful. Obviously we will have a very strong focus on discount retailing during the second half of the year as well. I have to also say that during the third quarter it's not really any specific season for Tokmanni. Of course, the most important season is Christmas season, which is basically the fourth quarter. We feel that the situation in Finland will start getting a little bit closer to the normal commercial situation. Of course, our key actions, we will continue all the investments regarding the security and wellbeing of our customers, personnel, and partners.
For Tokmanni, of course, as you can see from the big picture, the warehouse supply chain is very critical and we're really investing to first of all getting the shelf availability on track. Of course, for maybe if there will be a second wave of COVID-19 also in Finland, we've basically made all the preparation for it. During the spring season basically during the first or in the end of the first quarter of this year, we had from two to four week delay with our imports from Far East for our spring season. This time we've been making the action points to secure the supply chain and product flow from Far East. We will have basically the Christmas season product in Finland. Part of them is already over here, latest in the beginning of September.
Basically during August they will be here in Finland, so we will kind of secure the sales of Christmas season. As mentioned already several times, we will be improving the efficiency of the supply chain and the shelf availability. The strong commercial plan for the rest of the year, we will continue with that. We basically made the plan end March, beginning April, and of course it has basically showed it works well, so we'll continue with this one. Based on all this information, our outlook, we will forecast a strong growth in revenue and like-for-like revenue in 2020. The group profitability is expected to improve on the previous year. Of course, this outlook is basically it's based on the assumption that there will be no significant disturbances or situations with the environment of Tokmanni business. Basically that's it.
Operator, I think it's now good time for questions. Markku, could you please come over here as well to answer the questions? Please, go ahead.
Thank you. If you would like to ask a question, please press zero one on your telephone keypad. If you wish to withdraw a question, you may do so by pressing zero two to cancel. That is zero one if you would like to ask a question. Our first question is from Nicklas Skogman from Handelsbanken. Please go ahead.
Yes. Hello there. I'm of course keen to hear what you can say about current trading. In the report you say that currently shopping behavior has returned to almost normal. Are you talking about the way people shop, buying more normal average baskets and more normal store traffic, and maybe that sales remain elevated because of more domestic holidaying and so on? Do you actually mean that sales growth is trending down toward normal like-for-like levels now already in July?
Yeah. Well, I think we cannot speak about the normal situation really with the current situation. Let's put it this way. First of all in the end of March, it was a dramatic drop with the customer visits. In June basically as Nicklas you very well know this midsummer timing so during that timing in the middle of June, the customers visits there were very strong growth with that. First down and then up very quite a lot. I think that now the level is getting more normal from our perspective. Of course it's very early to really say anything about this, but let's say that there are no dramatic changes. As mentioned that we were in June, like the revenue growth there were weeks with + 40%, to + 50% that's of course something very special.
Now it's getting more to the normal. I would say that the average basket is a little bit higher. I think that we also succeeded with the seasonal products. Basically our buying and sourcing were doing a very good job with having a very good assortment of products. Now when the school start is getting closer well it's too early to say anything about the average basket. It's on a positive normal level. It's very round answer, but I'm sure you understand why.
As an additional what Mika said, it's clear that this Q2 was exceptional and to as said we are coming back to the normal direction.
Okay. It still sounds like July is pretty strong though. Okay. On your guidance I don't think you have ever defined what you mean by strong sales growth. Should we assume that you're talking 5%-10%?
Well, if it's let's say 5%, with retail I would call it already a strong growth.
Okay. Thank you. Then finally for now at least, I'm looking at the other operating expenses, so OpEx excluding staff costs. They only increased by less than 2% in the quarter. Did you hold back on marketing or is there anything else that sort of on a low level in Q2?
There are clearly certain items in which we got the savings because people were working remotely. It of course meant that there were no traveling which made some savings, where we are not driving with the cars which made some savings and this kind of stuff we achieved there. Of course they are not huge but of course they also affect there. Marketing was roughly on the normal level.
Yeah, actually we even made some investments with the marketing because again, in the beginning of the second quarter, we decided that as a discounter we try to push it hard if there is like a drop with all the retail we will be there like still getting some market share. We did make some additional investments with the marketing. No savings from there, but let's say not huge additional cost either.
Okay. Good. That's it for now. Thank you very much.
Thank you.
[Non-English content ] Nicklas.
Just as a reminder, if you do wish to ask a question, please press zero one on your telephone keypad now. There seem to be no further audio questions at the time. I will hand over back to the speakers.
Okay. Thank you all and thank you very much. The next third quarter presentation will be published on the 29th of October 2020. See you later then. Thank you.
Thank you.