Good morning and a warm welcome to Tokmanni Q4 and full year presentation. My name is Mika Rautiainen. Together with me today to give the presentation is Tokmanni CFO, Mr. Markku Pirskanen. I will first go through the highlights of Q4 and the full year, and then Markku will dig deeper in numbers. After that, we'll have a couple of words about year 2020, and then, of course, there's time for questions. Now, first of all, it's an honor and a pleasure to present the report of all-time high revenue and result for actually both Q4 and the full year. Some of the Q4 highlights. We had two very successful new store openings in Vääksy and Virrat. These both small towns are in the, let's say, summer towns, summer vacation, or summer holiday locations.
Of course, we're a little bit nervous about opening these two stores in the end of November, but they were actually very successful openings, so we're very happy about that. We arranged the Tokmanni 30th birthday campaign and a Black Friday campaign, and both of these campaigns were very successful. The 30th birthday campaign was in October, and we actually were very well aware of the timing of the tax refunds that it didn't happen in December as it usually does, and that's why we arranged quite a big campaigns earlier than December. During the Q4, we were also able to increase our share of direct import strongly and as well, the private labels progressed well. Actually, during last year, we launched two new private labels, Pisara and Perfekt+, and both of these were a good success, so we're very happy about it.
Already mentioned, the Finnish government decided about a little bit different timing for the tax refunds. For already decades, it has been the beginning of December, which has, of course, boosted the Christmas sales of basically every store, every retailer. This time this year, it was mainly divided in several months, starting from August. That's why we were kind of missing the boost for the Christmas sales. I think we did quite okay compared to, for example, the market. Unfortunately, in the southern part of Finland, even though at the moment it's freezing cold, the winter season hasn't really started yet. This, of course, has slowed down a little bit the seasonal sales of winter products.
In November, we had the postal strike that had caused a little difficulties for us. Difficulties in distributing the advertising leaflets, that was of course, a little bit like a minor difficulties. Even though there were things that caused a little bit slowdown with the Christmas sales, we managed to reach an all-time high revenue and result for Q4. With revenue growth of 6.1% compared to last year's 8%, and like-for-like revenue of 3.1%. Last year, it was 4.7%. Even though it's, let's put it this way, only 3.1%, we're very happy when we're looking at what has been happening in the market. I think that we succeeded very well when it comes to the like-for-like sales for Q4. Of course, we're very happy about the gross margin, 35.2% compared to 34.4% from last year.
Comparable EBIT totaled in EUR 32 million with +26% growth compared to last year. This 11.2% of revenue is all-time high for Tokmanni. Earnings per share were EUR 0.39. About 2019, exactly 12 months ago, we were working quite hard with the new stores that we acquired in the beginning of the year. That also caused some costs for the first quarter in 2019. After the costs for the first quarter, we were able to start managing these new stores very well, and they're actually now very successful. That's of course, one of the main issues in the beginning of 2019. As already mentioned, we launched two new private label ranges. Also very successful, but we're still in the beginning. We can see that there's a lot of potential for both Pisara and Perfekt+.
As mentioned for our plans for 2019, we were determined to increase the Far East imports and also batch buying, and that's something that increased significantly, and we're also happy about this development. Our focus for 2019 was the improvements in Tokmanni profitability. We were successful with property maintenance costs, something that was already bringing us savings from the beginning of the year. Personally, very happy about the reduction of shrinkage, especially with garden. Our garden people made an excellent job with that area as well. Also good savings through flexible work arrangements. With the online sales and cost savings when it comes to our packaging line, we renewed that and we're able to achieve major savings with redesigning the packaging line.
From my point of view, one of the most important issues for 2019 was that more than 3,300 Tokmanni employees, including myself, we participated in the customer experience training. General discount retailer and customer service is not necessarily a very common combination, but I think that we're doing, in this area, a very good job. Our customers are very happy about our customer service level, we will invest in this also in year 2020. We ended up with lower operating expenses compared to revenue and a higher gross margin. Very good results for year 2019. Strong improvement of profitability, which actually was the focus for the whole year. Year 2018, we reached 9.3% growth in revenue, we consider that a very good achievement that we were able to grow revenue with 8.5% last year. Like-for-like revenue growth was 4.3%, when last year it was 5.6%.
It's not easy to keep up with the same pace, but I think that we succeeded very well. The last quarter was a little bit more difficult, anyway, as a total, it was a good success. Finally, we also managed to improve the gross margin to 34.4%, when last year it was 33.9%. Like mentioned especially during the first quarter, the gross margin, due to conversions of these acquired stores, were taking the gross margin a little bit too low. We're happy that we were able to improve the level of gross margin during the second half of the year. Operating expenses, 21% of revenue. Last year, 21.8%. Very good development over here as well. All-time high EBIT level of EUR 70.4 million, 7.5% of revenue and approximately 36% improvement compared to last year.
Earnings per share were EUR 0.80. Tokmanni board of directors' proposal of dividend is EUR 0.62. Previous year, this was EUR 0.50 per share. At this point of the time, it's for my colleagues, thank you very much for excellent job. A couple of comments regarding online sales. Our online sales grew strongly by 43.5%. To be honest, we could have had even stronger growth over here. That's why we will be investing a little bit more, especially already starting this spring on the online sales. The setup is actually very much okay with low prices and our surprising and wide assortment. Also with support of our nationwide store network. Still, now also with the packaging line redesign, we're working very well over there. We still have room to improve in this area. Anyway, it's growing. That's also something that we're investing in.
Not exactly a detail, but an important issue for Tokmanni, and especially for Tokmanni customers, is our corporate responsibility achievements in 2019. We were able to start a very good progress year 2019 with corporate responsibility. Our work was also awarded with Best Challenger Award in the responsibility reporting competition. We're very happy about it. We understand that we're started, we also want to combine these two things at discount retailer and corporate responsibility. I think that our customers are, at the moment according to our surveys, they're happy about the development that Tokmanni has taken when it comes to the sustainability issues. We're going to be continuing with this area during this year and of course, next year as well. A good start. Here's a figure about the Finnish non-grocery market development. With red line, Tokmanni figures. With the black, the market figures.
According to Finnish Grocery Trade Association, this actually doesn't include the online retail sales. Anyway, as you can all see, the fourth quarter of last year for the market was a little bit difficult due to the lacking of the tax refunds, but also for Tokmanni. Still, we think that we made a good job over here. That's shortly of the highlights. Please, Markku, the financial review.
Yeah. Thank you.
The figures. Thanks.
Mika already looked a little bit of these financial figures, but let's look them a little bit deeper. I always like to start with this graph, which shows that Tokmanni's business is clearly seasonal. As you see that when looking these bars and also the curve, which is describing our EBIT, they look very similar when we are looking different years. First quarter is the lowest one, second and third quarter clearly is about the same level, and the fourth quarter is really the one which makes or not makes the company's result. Because it's clearly the biggest one. I'm happy to look this curves from year 2018 and from 2019. Despite of the first quarter result this year, we have been able to increase our profits and also increase our revenue.
When we are looking in the Q4 2019, even we have some external factors which Mika already mentioned, which make our sales a little bit more difficult, we were able to achieve this nice 3.1 like-for-like growth. Yearly-based revenue development, we see here that 2018 and 2019, we have achieved a good growth and have to say that the actions which we started at the beginning of 2018, meaning that we concentrate on low prices, made our assortment wider and also made some changes in different departments in our stores. Seems to have been the right actions and of course we are the main issues, at the same time, I have to say that the bonus model, which gives some bonuses, all of our employees certainly has had some effect.
If you look this 2019 like-for-like revenue development, this 4.3%, we can split it a little bit. We can mention that the number of our customers in like-for-like stores increased by 2.3%. At the same time, we were able to increase the basket size by 1.9%, which means that the average baskets last year was EUR 17.90. Which is still quite small, or at least we can feel that it is still quite small. There are some potential to increase that basket size in the future. Gross profit, we can here also see that it also improved yearly based 34.4% last year compared to 33.9% 2018. We achieve 0.5% increase there. As Mika mentioned, at the beginning of the year, we struggled a little bit with this margin. I have to say that it takes some time when you start to make different kind of actions.
The main actions, what we have already communicated, has been the increase the share of direct imports and also increase the private label shares. It's quite clear when we are able to do that, it means that our margin should increase accordingly. Of course, also looking the whole year's figure, I have to say that one element there is that we have a professional sourcing. Here I'm happy to say that we really have a professional sourcing and it's one part, of course, when we are improving our margins here. To make a good sourcing, you are able to get the low purchasing prices, and through that you are also able to sell with low prices. Splitting between direct imports and private labels, let's start about the direct imports.
Q4, we see here that we were able to increase the share of direct imports from 26.4% up to 28.6%. That was clear good jump. Looking the whole year from 24.4% to 25.6%. At the same time when we are looking our import through our Shanghai office, we were also able to increase that share. Private labels, as Mika mentioned, we're bringing two new private labels last year. The products called Pisara and Perfekt+, and here you can see the nice-looking Perfekt+ products. If you look the figures during the Q4, we were able to increase the share of private labels from 33.3% up to 33.6%. Still looking the whole year, we were about the same level, which was 31.7% and as said, it was same during the 2018.
Good thing was also that our operating expenses were in good control and here we can see that the development and when we are looking the whole year we were able to drop this share from 21.8% down to 21%. Last quarter the development in percentage-wise was also the same direction from 19.8% down to 18.9%. When we are looking the euro-wise the whole year, we went up from EUR 190 million roughly to EUR 198 million, which means of course the EUR 8 million increase and the main reason or main part from where it came was this personal expenses were up from EUR 107 million to EUR 114 million and even were euro-wise increased. The good thing was that the salary percentage was also going to the right direction from 12.3% down to 12.1%. One point which I like to take up is the last quarter's Q4's absolute euro term expenses.
We went up EUR 53.2 million to EUR 53.9 million, increase of EUR 0.7 million, which was a bit less compared to previous quarters during 2019. We were able to make some good savings during Q4. Also at the same time, I like to remind you that when we are looking Q4 2018, we had These decorative lights coincidence 2018. That, of course, caused some expenses. During Q4 2019, we didn't have these kind of expenses. That explain partially why this difference between these two figures are less compared to previous quarters. The end result of all of these was, of course, the EBIT, which was strong development in that figure. Already mentioned this Q4. When we are looking the whole year figure, we ended up to a little bit over EUR 70 million compared to 2018's EUR 51.9 million.
We were able to improve almost EUR 20 million during this one-year time. In percentage-wise, from 6% up to 7.5%. Good development. Some words about the balance sheet, cash flow and financial position. When you are looking these inventory values, it shows quite big increase, roughly EUR 30 million, and it was due to the growth in store network, planned increase in our assortment, but also with a little portion, this later start of the winter. I have to say that now when we are looking in percentage-wise, when we put this inventory against the revenue, we start to be on the level that we will not anymore increase that relation and, of course, over time doing the job that we have a right level of inventory compared to how much we achieve sales.
This is always some kind of balancing issue to have a certain level of inventory and certain level of increase in sales. In this business, it's clear so that you have to have inventory there to make good sales, but of course, with some limitations. Interest-bearing debt, when we take into use this IFRS 16 at the beginning of 2019 it, of course, in mathematical based increased our debts up to a little bit over EUR 400 million. When we are looking so-called real debts, meaning some loans from financial institutions, we are roughly level of EUR 100 million. Good development in the ratio of net debt to comparable EBITDA. Now, at the end of 2019, we were at a level of 2.9, which is even lower compared to our strategy target, which is 3.2. We are in a good position on that sense. Investments.
Earlier we said that we will end up at the level of EUR 50 million in investments, and now when we are looking 2019 investments, we were in the figure of EUR 15.4 million, so that went according to plan. 2018, the figure was EUR 19.8 million, and it is a bit higher level due to the reason that that figure includes also some acquisitions which we made 2018. When we are looking at our investments during 2020, we are estimating that we will end up roughly at the level of EUR 16 million. Employees. We have roughly 3,600 employees and like to mention that roughly 85% out of this figure is working at the stores, and 7% at warehouse and 7% roughly at other functions. I'm happy to also say that we paid roughly EUR 2 million to our employees in sales and performance bonuses during 2019.
Of course, it's good when company's result is developing to the right direction and we are making the good result, we are happy to pay also to our employees. Just to remind our long-term target when we are speaking about the EBIT, we have said that our strategy target for EBIT is 9%, and we started from a figure of 6% during 2018, and we have split this target between 6% and 9%, how we will achieve it between operating expenses improvement and also to the gross margin improvement. Now when we are looking at the development during 2019, we can see that between 6% and 7.5%, 1% came from operating expenses improvement and 0.5% came from gross margin. Now when we are starting to go forward and trying to improve our EBIT, we see that there are two potential parts.
First of all, we are continuing to improve our operating expenses in relation to revenue, and we see that there are 0.5%-1% potential. When we are looking gross margin, it's something like 0.5%-1.5%. Looking back how we see this issue earlier, now we think that there are perhaps a bit more potential compared to our previous thinking in operating expenses side. This is the way how we are going forward and then continues our work to achieve in long term this 9% EBIT level. Work continues as said. That was about the financial figures, and now I like to move to Mika so he can continue the presentation. Thank you.
Thank you, Markku. About Tokmanni key focus on 2020. A little bit of background of this. In the beginning of year 2018, we decided to go back to a general discount retailer route that was behind Tokmanni as well. We're very much pushing year 2018 bringing back the customer confidence. That was a good success. Year 2019 improvement of the profitability of Tokmanni was in focus, and that was a success. For 2020, based on our customer surveys and discussions with our customers, we just have to make sure that Tokmanni stays on what it's doing well, and that's the discount retailer business model with a low price level, with wide assortment, good customer service, and so on. Of course, Tokmanni Well, we would like to say that Tokmanni is a small company, a small and fast company.
When we compare ourselves with discount retailers in the other Nordic markets and European markets and U.S. markets, of course, we're a small company, but I think that that's one of our strengths that we can react quickly, and we can also develop quickly. We're actually all the time doing quite wide surveys on what's happening in the general discount markets when it comes to the Nordic market, Sweden, Norway, Denmark, European market, and U.S. market, and following up very closely, like what's happening with other discounters and what's the development. Obviously, we can see at the moment that the combination of store network with online store, successful online store seems to be the winning combination at the moment. That's also something that we will be pushing in Tokmanni as well. The discounter segment continuously seems to be successful in everywhere.
We think that obviously it's the price level. For customers, it's very visible at the moment. Through your mobile applications, you can quickly see the price levels all around the market. It's easy to compare the price level. That's why it's very important that the discounters stick to the low price level because it's also very successful. Naturally, the digital and technological solutions in retail are accelerating the change. That's also something that Tokmanni will be investing with the support of our store personnel, with different tools for our store personnel, with AI applications for pricing, and also, of course, with the supply chain management. It's very important. These are the areas we're investing in 2020. For our customers in Finland, sustainability issues and the local market understanding, also with the assortment, it's very important. That's something we are able to react quite quickly.
We'll stick to that as well year 2020. As already mentioned before, I dare say that at the moment, I can see that we can make a competitive advantage of this customer and sales-oriented personnel we have. At the moment, our customers are very happy about our people, our service level of our people. That's why we will be investing in the training as well, quite hard. In 2020, Tokmanni targets good sales growth and market leadership in our destination categories, which are, for example, garden, clothing, health and beauty care, home decoration, home improvement, and so on. We will make sure that the price level in these destination categories will continuously be on the best price level in Finland and also the assortment. That's something that we're working all the time, especially in these destination categories.
We can see that there's a lot of potential also in these categories, still. We do target better gross margins by increasing direct imports and batch buying, as well as developing our private labels. We launched last year two new private label ranges. We will launch at least one new private label range in 2020. We will also invest in developing the current private label ranges. I think that we have active and potential private labels altogether, approximately 220 private label ranges. We will be working with these this year and of course, during the coming years. Last, but definitely not least, is the efficiencies in our supply chain management. This is starting already from the logistics in the Far East imports and of course, our central warehouse in Mäntsälä.
There will be some new working models, and of course then the distribution to our stores and the people working in the stores, how we can develop their work in our stores. These all will be in the focus area for 2020. Of course, as already mentioned, the key success factors. These we will have a strong hold on low price level in Finland, wide product assortment, and of course it's good availability of the products. It's something to keep in mind every single day, and sales and service-oriented personnel. Our job will be to help and support our store personnel to concentrate on our customers even better in future. As mentioned already, we will also be investing in our online stores together with our nationwide store network. We already launched in the end of 2018, our CMD.
As a target, we'll have a revenue level of EUR 1 billion, and we will be working very hard to achieve that level. For 2020 outlook, we expect a good revenue growth and a slight growth in like-for-like stores or like-for-like revenue and improvement of group profitability on previous year. Next business review will be launching on the 29th of April. This is actually a picture of our Tokmanni kickoff occasion some three, four weeks ago for kickoff for 2020. All our store managers together with our headquarter personnel. Pretty good spirit with people. I'm very happy about that. Anyway, thank you very much. I think now it's time for questions. Markku, could you please also join me with answering the questions?
Yes. Thank you. Sure.
Operator, are there any questions online?
Thank you. There are some questions on the line so far. Just as a reminder, if you do wish to ask a question, please dial zero one on your telephone keypad now. Our first question comes from the line of Nicklas Skogman of Handelsbanken. Please go ahead. Your line is open.
Yes. Hello.
Hello.
Congratulations on a very strong 2019. Very impressive.
Thank you very much.
When I look ahead now, it does seem like the margin improvement will need to come mainly from gross margin expansion. You mentioned more direct sourcing and private label as key focus areas in 2020, which I think we all agree on. If you disregard Q1 2019, which was impacted by the clearance of inventory in the acquired stores, you grew private label penetration by 90 basis points in Q3 and 60 basis points in Q4. Is that the sort of improvement or increase year-on-year that we should expect in 2020? Are you targeting more than that?
Could you please, which figure you referred?
The private label share of sales.
Yeah.
60 basis points in Q4 and 90 basis points in Q3.
Yeah. It's of course very difficult to say exactly what will be the development in percentages. Of course, when we look the whole year 2019, the private labels were still at the same level when it was 2018. Certainly, we are targeting to continue the work to have clearly higher shares in the coming quarters, but I can't give you an exact guidance of what will be the improvement. We have worked very hard on that, and certainly we are expecting that the development at certain level continues.
I could add up something over there. We have noticed that we are actually improving our private label sales if we also have some A brands beside our private label product. Of course, then sometimes it happens that our price level in our A brands are also very tempting to our customers. That is why it is always a customer decision whether the customers are choosing our private label or the A brand products. For sure, we have noticed that it is better not to make the decision for the customer so that, for example, we would skip the A brands totally. We have very good results when we have A brands and private label together, but that is why it is always a little bit difficult to estimate what will be the customer's final decision when choosing products. Definitely we will look for a stronger private label share.
I think a year ago or so you said your orders for direct sourcing had increased 20% compared to the previous year. Is there a similar increase in orders? Because these are long lead time orders, as I understand it. Is there a similar increase this year?
Well, we're not exactly talking about the increase, the exact percentages. Yes, we are increasing that, we also will look forward to increased Far East imports. At the same time, we are working closely together with Europris from Norway, together with ÖoB in Sweden. We can still see a lot of actual potential with these joint efforts when it comes to joint buying with the Nordic companies. That's for sure. Yes, it's increasing. We're not launching the exact figures or growth percentages.
Yeah. Okay. On the China sourcing, are you seeing any disruptions from the coronavirus at this point?
Well, it's a serious matter, and we've started to follow up that daily, basically from the start when we heard about it. Obviously, our personnel in our Shanghai office, that's of course the most important issue there. Personnel and their family's health is our first priority, and that's why we decided that the people will start coming back from the Chinese New Year vacation only starting from next week, starting in Monday. We do see that there are lower capacities used in the factories and also in the harbors. For all the products that are very important for us for our spring season start, they are already on their way, or they are already in Finland. We follow this very closely. What's the development, what's the situation when it comes to the Coronavirus and the Chinese environment? Of course, it's very difficult to estimate anything.
Of course, we hope that everything will or let's say the peak will be seen soon. Then of course the development will be healthier for the whole nation over there. Yes, it's a difficult issue. At the moment, we don't have difficulties with that. We see that if it continues, then of course there will be difficulties, I would say, globally.
Okay. Thank you. Then you guide for slight like-for-like growth if I'm reading that as say 2% and you have the EUR 1 billion sales target for 2020, that implies roughly 4% growth, contribution from stores. Is that what you're looking at as well?
Unfortunately, we haven't given exact number for what is like. Of course, we all know that it's not a huge number of course and as we have said it's low single digit and of course it's up to you to think what it exactly is. As said we haven't given any exact number.
Yes.
Sorry about this mystery answer, but.
That's fine. I think I'll get back in line to see if anyone else has questions. Thank you.
Thank you.
Thanks, Nicklas.
Thank you. Our next question comes from the line of Monique of Rosmas suggestion. Please go ahead, your line is open.
Hello, thank you for taking my question. I have three might, this one would be a follow-up question on the Chinese lockdown and Coronavirus. I understand that you have 16% of your imports coming from the Shanghai office. I guess you have other imports from China. I would like to know if you could give us a kind of number of like total import direct and indirect coming from China. I've understood that the Easter campaign products are on the way. When like the Coronavirus and the Chinese lockdown could be a problem actually for you? Thanks.
Sorry, we had a little bit difficulties to hear, but did you mean that or refer to this Coronavirus and when we are expecting when the challenges or problems will appear in our deliveries or purchases from China?
Yeah, exactly. I wanted to know if you could tell me, well, I know that 16% of your import are coming from the Shanghai office, but what's the total number coming from China of the import direct and indirect? Yes, I've understood that the Easter products are already on their way, so it's not a problem. Maybe when, yeah, when that lockdown could become a problem.
It's as Mika already mentioned that the products for spring season already are on way or are already in Finland. Of course, these products are not any more problem. Of course, if we looking a little bit more far and starting to look the summer and next autumn, of course we can't know how this virus issues will develop and if it will be more and more serious, it of course start to affect our businesses. That's absolutely clear. Of course it's a little bit later on this year.
Yeah. Of course, let's say the near future, the coming months are probably okay I could say, but if for example for all retailers and on full retailers, Canton Fair in April is very important. If there will be problems with that, of course it will start showing that retailers will be looking at different markets in, for example, in Europe, in Turkey, countries like this, in Vietnam and so on if the Canton Fair fails in one way or another. Near future is okay, but let's say with a little bit later of course there might be some problems and this is something that we're basically working on every day what to do if we will start having problems with deliveries from China.
Okay. Can I ask you another question on that one? When do you usually ship your summer products? In April or May, or before?
Yes. Let's say the first part is already in its way. When the season starts, then we usually get more products and more shipments. They haven't started yet from China, this is, of course, something that then we need to see what's going to be happening with these shipments.
Okay, thanks. I had another question on private label. You launched two lines in 2019. I wanted to know if you were planning to launch other new lines this year or in the short term.
Well, we'll be launching at least one new private label range this year. We will be renewing some of our private label ranges that we have already. Some of them, they're still selling quite well, but they need to have a renewal and a little bit new idea over there. There is good sales to start with. That's why we don't necessarily need to launch new ones, but we will definitely renew some of our existing private label ranges. At least one new private label range will be launched during the first half of the year.
Okay, thank you very much. Maybe my last question would be on online. You had a tremendous growth this year, it's still a very low portion of your sales.
That's true.
Is it something structural in Finland, or is it structural on your business?
Well, first of all I'm afraid I just have to say that in Finland, we come a little bit behind to other markets when it comes to online business. It's not that well-developed in Finland when it comes to retail market. About the Tokmanni online sales, it's a little bit also like a structural issue. We've been working with the packaging lines and things like this. Now we will be concentrating a little bit more on our destination categories. We definitely want to be, for example, number one garden online retailer in Finland. At the moment, it doesn't show on our online store, and this is, for example, one let's say structural issue that we will be working during 2020. Of course, number one garden retailer is not the only one, but we will be focusing a little bit more compared to last year with the online sales.
Perhaps some addition to this online potential what we had, when we are looking that we have this 191 stores at this moment, when you are remembering that in Finland, the distances are quite long, looking the whole Finland, it gives us a good possibility to deliver these products to our customers even they are buying through online in the future, hopefully more, to deliver with a efficient way. Because when we are looking our stores and thinking the click and collect model, we are quite near to every customer or every people here in Finland even we are in a southern or northern part of Finland. That's, of course, gives us a good potential to increase also online sales with a profitable way.
Thank you very much.
Thank you.
Thank you. Our next question comes from the line of Teresa Jiang of Goldman Sachs. Please go ahead, your line is open.
Yeah. Hi. Good morning, guys.
Hi, Teresa.
Just a couple of questions. Hi. Markku, you talked about basket size. I'm just wondering, any initiatives you are taking to improve basket size in the near term, or it's more like a medium-term growth for you? How you're thinking about it?
As I said, last year, we were able to increase with a 1.1%. At this moment it's EUR 17.90. Also mentioned that we think that and believe that there are a certain potential there. At the same time, I have to say that it's not a quick process to get the people buy more. To your question, I would say that it's step by step going forward and increasing the basket size. There will most probably not be any big jump with the short run.
Got it. The second question on supply chain benefits. We should be thinking that these should start to be incrementally more from here, given the initiatives you're doing with Arovi and Uber. Just trying to get a sense of what benefits should we be modeling?
As I have said earlier, the development of supply chain and the benefits out of that action is clearly the long-term actions. As Mika mentioned, we are really pushing to improve the supply chain. Of course, we are getting throughout the time smaller parts and then going also here step by step. To get bigger jump also here, it's very difficult to say or get. We have to look the whole process when we are speaking about the supply chain, starting from a factory to the end, meaning the store, and trying to improve the whole process there. I believe that we will get benefits with the smaller portions throughout the time, starting of course from 2020, but of course continuing in 2021 and so on.
Got it. All right. Thank you very much.
Thank you.
Thank you, Teresa .
Thank you. Once again, if there are any further questions, please dial zero one on your telephone keypads now.
No more questions.
We have one further follow-up question coming through. That's from Nicklas Skogman of Handelsbanken. Please go ahead. Your line is open.
Yes. One last question on working capital. I think you mentioned you said inventory is where at a level where you don't want to go higher at the moment. Do you expect benefits from working capital in 2020?
As I said, that we are clearly now at the level that the relation between inventory and revenue is, I would say we're on the highest or I don't know the highest. Anyhow, that we will not anymore increase that share and trying to keep it at least on that share. There might even be a small potential to get some benefit on that side. Today I don't or I can't say that this will happen. Anyhow, we will not in relative wise to increase inventory anymore.
Okay. Now also I remember that you said you will invest more in online in 2020. What does that entail?
Sorry.
Invest in online.
Invest in online. Yes. As mentioned, we will focus more on the business areas, especially our destination categories with Tokmanni online. Well, if you look at our online store, it's basically offering everything, all our assortment at the moment. It's not really focusing on any specific area well enough. That's something that we're going to be working with. Especially, I think that one of the first ones will be this garden online store, which of course not only the products but also advice and ideas of professionals when it comes to garden, what to do with your garden and things like this. We will be bringing some contents also on our online store. It will be more focused instead of our full assortment. Yeah, that's one of the main investments in the online business.
Yeah. We have to still remember that most probably you are looking also in money-wise that one. It's not a huge amount of money. Certainly when I said that for 2020, total amount of investments will be at the level of EUR 16 million. That's inside these figures. We are not speaking-
That's including.
That's including. We are not speaking in money-wise huge amount of amounts.
Yeah. That was the CapEx, right? EUR 16 million.
Yeah, that was the CapEx. Yeah.
On OpEx as well, you say there's Yeah. Okay. Very good. Thank you very much.
All right. Thanks.
Thank you. As there are no further questions, I'll hand back to our speakers for the closing comments.
Okay. Thank you very much, and talk to you next time latest on the 29th of April. Thank you very much.
Thank you.