Good morning and warm welcome to the Tochmane Q4 and Full Year Presentation. My name is Mikael Autyanen and together with me today to give the presentation is Tochmani CFO, Mr. Marco Pireskare. I will first go through the highlights of Q4 and the full year, and then Marco 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. First of all, it's an honor and 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 2 very successful new store openings in Vaxu and Virat. These actually these both small towns are in the, let's say, summer towns, summer vacation or summer holiday locations.
And of course, we're a little bit nervous about opening these 2 stores in the end of November, but they were actually very successful openings. So we're very happy about that. We arranged TOKamani 30th Birthday campaign and a Black Friday campaign and these both of these campaigns were very successful. This, of course, was the 30th birthday campaign was in October, and we actually, of course, we were very well aware about of the timing of the tax refunds that like 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 as the private label.
Private labels progressed well. Actually, during the during last year, we launched 2 new private labels, Pizzara and Perfect Plus, and both of these were a good success. So we're very happy about it. Like 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. So that's why we were kind of missing the boost for the Christmas sales. But 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.
And this, of course, has slowed down a little bit the seasonal sales of winter products. And in November, we had the postal strike had caused a little difficulties for us when it went difficulties in distributing the advertising leaflets, but that was, of course, a little bit like a minor difficulties. But anyway, 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 percent.
And 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. So I think that we succeeded very well when it comes to the like for like sales for Q4. And of course, we are very happy about the gross margin, 35.2% compared to 34.4% from last year. And comparable EBIT totaled in 32,000,000 dollars with plus 26% growth compared to last year. And this 11.2 percent of revenue is all time high for TOK Monday.
Earnings per share were €0.39 And then about year 2019, exactly 12 months ago, we were working quite hard with the new stores that we acquired in the beginning of the year. And of course, that also caused some costs for the Q1 in 2019. But actually, after the costs for the Q1, 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 2 new private label ranges, also very, very successful, but we're still in the beginning.
We can see that there is a lot of potential for both Pizarro and Perfect Plus. 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 TOKMANI profitability. And 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 people with Garden people made an excellent job with that area as well. Also good savings through flexible work arrangements. Then with 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 3,000 300 TOKMANI employees, including myself, we participated in the customer experience training. Now discount retailer 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 and we will invest in this also in year 2020. So we ended up with lower operating expenses compared to revenue and 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, and we consider that a very good achievement that we were able to grow revenues with 8.5% last year. Like for like revenue growth was 4.3% when last year was 5.6%.
Of course, it's not easy to keep up with the same phase, but I think that we succeeded very well. Of course, the last quarter was a little bit more difficult, but anyway, as a total, it was a good success. And finally, we also managed to improve the gross margin to 34.4%, when last year was 33.9%. And like mentioned, especially during the Q1, the gross margin due to conversions of these acquired stores were taking the gross margin a little bit too low. So we're happy that we were able to improve the level of gross margin during the second half of the year.
And operating expenses, 21% of revenue last year, €21,800,000 so very good development over here as well. And all time high EBIT level of €70,400,000 7.5 percent of revenue and approximately 36% improvement compared to last year. Earnings per share were €0.80 and TOKMANI Board of Directors proposal of dividend is €0.62 and previous year, this was €0.50 per share. At this point of time, it's for my colleagues, thank you very much for excellent job. Some a couple of comments regarding online sales.
Our online sales grew strongly by 43.5%. But to be honest, we could have had even stronger growth over here. And 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 and also with support of our nationwide store network. But still and now we also with the packaging line redesign, we're working very well over there, but we still have room to improve in this area.
But anyway, it's growing and that's also something that we're investing in. Another not exactly a detail, but an important issue for TOKMANI and especially for TOKMANI 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 and responsibility reporting competition. We're very happy about it.
We understand that we're started, but we also want to combine these two things at discount retailer and corporate responsibility. And I think that our customers are at the moment according to our surveys, they're happy about the development that TOKMANI has taken when it comes to the sustainability issues. So we're going to be continuing with this area during this year and of course, next year as well. But a good start. Here's a figure about the Finnish non grocery market development with redline tokmani figures And with the black market figures, it's according to Finnish Grocery Traders Association.
So this actually doesn't include the online retail sales. But anyway, as you can all see, it's the Q4 of last year for the market was a little bit difficult due to the tax due to the lacking of the tax refunds, but also for top money, but still we think that we made a good job over here. So that's shortly of the highlights. And then please, Marco, the financial review.
Yes, thank you.
And the figures. Thanks.
So, Mikael 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 Tochman's business is clearly seasonal. And as you see that when looking at these bars and also the curve, which is describing our EBIT, they look very similar when we are looking different years. 1st quarter is the lowest one. 2nd and third quarter clearly is about the same level.
And the Q4 is really the one which makes or not makes the company's result because it's clearly the biggest one. And I'm happy to look this course from year 2018 and from 2019. Despite of a Q1 result this year, we have been able to increase our profits and also increase our revenue. And when we are looking at Q4 2019, even we have these some external factors, which Mick 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 the year 2018 2019, we have achieved good growth.
And I 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, but 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 we look this 2019 like for like revenue development with 4.3%, we can split it a little bit. And we can mention that the number of our customers in like for like stores increased by 2.3%. And at the same time, we were able to increase the basket size by 1.9%, which means that the average baskets last year was 17 €900,000 which is still quite small or at least we can feel that it's still quite small.
So there are some potential to increase that basket size in the future. Gross profit, it's we can here also see that it also improved yearly based 34.4% last year compared to 33.9 percent 2018. So we achieved half sorry, 0.5% increase there. And as Mikael mentioned, at the beginning of the year, we struggled a little bit with this margin. And I have to say that it takes some time when we you start to make different kind of actions.
And the main actions, what we have already communicated, has been the increase the share of direct imports and also increase the private label shares. Because 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. And 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. So 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 percent up to 28.6 percent. So that was clear, good jump. And looking the whole year from 24.4% to 25.6%.
And 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 Mikael mentioned, we were bringing 2 new private labels last year, the products called PISARA and Perfect Plus. And here you can see the nice looking Perfect Plus products. And if we look at 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%. And last quarter, the development in percentage wise was also the same direction from 19.8% down to 18.9%.
When we are looking euro wise, the whole year, we went up from €190,000,000 roughly to 1 €98,000,000 which means, of course, the €8,000,000 increase. And the main reason or main part from where it came was this personal expenses, they were up from 107 to 114. And even they 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'd like to take up is the last quarter's Q4's absolute euro term expenses. We went up €53,200,000 to €53,900,000 so increase of €700,000 which was a bit less compared to previous quarters during 2019.
We were able to make some good savings during Q4. But also at the same time, I'd like to remind you that when we are looking Q4 2018, we had this decorative lights coincidence 2018 and that of course caused some expenses. And during Q4 2019, we didn't have this kind of expenses. So that explained partially why this difference between these two figures are less compared to previous quarters. And the end result of all of this was, of course, the EBIT, which was strong development in that figure.
Already mentioned this Q4, but when we are looking for whole year figure, we ended up to a little bit over €70,000,000 compared to 20 eighteen's €51,900,000 So we were able to improve almost €20,000,000 during this 1 year time. And 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 at this inventory values, it shows quite big increase, roughly €30,000,000 and it was due to the growth in store network, planned increase in our assortment, but also with a little portion with 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 this is we will not anymore increase that relation.
And of course, over time, doing the job, but 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 clearly 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 €400,000,000 But when we are looking so called real debts, meaning some loans from financial institutions, we are roughly level of €100,000,000 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 strategic target, which is 3.2%.
So we are in a good position on that sense. Investments. Earlier, we said that we will end up to at the level of €15,000,000 in investments. And now when we are looking 2019 investments, we were in the figure of 15.4 percent, so that went according to plan. 2018, the figure was 19.8%.
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 €16,000,000 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% in at warehouse and 7% roughly at other functions. And I'm happy to also say that we paid roughly €2,000,000 to our employees in sales and performance bonuses during 2019. And 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 strategic target for EBIT is 9%. And we started from a figure of 6% at the end of during the 2018. And we have split this target between 6% 9%, how we will achieve it between operating expenses improvement and also to the gross margin improvement. And now when we are looking at development during 2019, we can see that between 6% 7.5%, 1% came from operating expenses improvement and 0.5% came from gross margin.
And now when we are starting to go forward and trying to improve our EBIT, we see that there are 2 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% to 1% potential. And when we are looking gross margin, it's something like 0.5% to 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. But this is the way how we are going forward and continues how to work to achieve in long term this 9% EBIT level, but work continues as said.
So that was about the financial figures. And now I'd like to move to Mika, so he can continue the presentation. Thank you.
Thank you, Markku. About TOK Money, 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 TOKMANI as well. And we're very much pushing year 2018, bringing back the customer confidence.
Year that was a good success. Year 2019, improvement of the profitability of Doc Mone 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 TOK Monday 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, TOK Money, well, we would like to say that TOKmoney is actually, we would like to say that TOKmoney is a small company, a small and fast company. But 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 markets, 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. And 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. And that's also something that we will be pushing with in TOKMAIN 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. So it's easy to compare the price levels. So 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 TOKMANI 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. And 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. So we'll stick to that as well here to 2020. And as already mentioned before, the customer and sales oriented personnel seems to be or I did 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.
So that's why we will be investing in the training as well quite hard. In 2020, Tacmandi 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. And we can see that there is a lot of potential also in these categories still.
And we do target better gross margins by increasing direct imports and batch buying as well as developing our private labels. We launched last year 2 new private label ranges. We will launch at least 1 new private label range in 2020, but we will also invest in developing the current private label ranges. I think that we have active and potential private labels altogether approximately 2 20 private label ranges, and we will be working with this this year and of course during the coming years. And last but definitely not least is the efficiencies in our supply chain management.
And this is starting already from the logistics in the Far East imports and of course, then our central warehouse in Mansada will also there will be some new working models. And of course, then the distribution to our stores and the store people working in stores, how we can develop their work in our stores, these all will be in the focus area for 2020. And 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. And 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. It will as a target, we'll have a revenue level of €1,000,000,000 and we'll be working very hard to achieve that level. For 2020 outlook, we expect a good revenue growth and slight growth in like for like stores or like for like revenue and improvement of group profitability on previous year.
Next business review, we will be launching on the 29th April. So that's about this is actually a picture of our TOKMANI kick off occasion some 3, 4 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.
Marco, could you please also join me with answering the questions?
Yes. Thank you. Yes.
Operator, are there any questions
on
Our first question comes from the line of Niklas Schuylkillmann of Handelsbanken. Please go ahead. Your line is open.
Yes, hello. Congratulations on a very strong 2019, very impressive. So when I look ahead now, it does seem like the margin improvement will need to come mainly from gross margin expansion. And you mentioned more direct sourcing and private label as key focus areas in 2020, which I think we all agree on. But and if you disregard Q1 2019, which was impacted by the clearance of inventory in the acquired stores, you grew private label penetration by 90 bps in Q3 60 bps in Q4.
Is that the sort of improvement or increase year on year that we should expect in 2020? Or are you targeting more than that?
Could you please which figure you referred?
Private label share of sales.
Yes. And 60 bps in
Q4 and 90 bps in Q3.
Yes. It's, of course, very difficult to say exactly what will be development of in percentages. And of course, when we look the whole year 2019, the private labels were still at the same level when it was 2018. But 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. But we have worked very hard on that.
And certainly, we are expecting that development at certain level continues.
I could add up something over there. It's we've noticed that we're actually improving our private label sales if we also have some A brands beside our private label products. But of course, then sometimes it happens that like our price level in our A brands are also like very tempting to our customers. So that's why it's always like a customer decision, whether the customers are choosing our private label or the a brand products. But for sure, we've noticed that it's better not to make the decision for the customer so that, for example, we would skip the aprons totally.
We have very good results when we have aprons and private label together. But that's why it's always a little bit difficult to estimate like what will be the customer's final decision when choosing products. But definitely, we will look for a stronger private label share.
I think a year ago or so, you said you had your orders for direct sourcing had increased 20 percent 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, but the exact percentages. But yes, we are increasing that. And we also will look forward to increased forest imports. And at the same time, we are working closely together with Europriest from Norway together with in Sweden. And we can see also potential with we can still see a lot of actually potential with these joint efforts when it comes to joint buying with the Nordic companies.
So that's for sure. But yes, it's increasing. We're not launching the exact figures or growth percentages.
Yes. Okay. And 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 of when we heard about it. And obviously, our personnel in our Shanghai office, that's, of course, the most important issue there. Personal and their families' 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 year sorry, next week starting in Monday. And we do see that there are lower capacities used in the factories and also in the harbors. And 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.
But we follow this very closely, what's the development, what's the situation when it comes to the coronavirus and the Chinese environment. And of course, it's very difficult to estimate anything. Of course, we hope that everything will or let's say, the peak will be soon be seen soon. And then, of course, the development will be healthier for the whole nation over there. But yes, it's a difficult issues.
At the moment, we don't have difficulties with that, but we see that if it continues, then of course there will be like difficulties, I could say, globally.
Okay. Thank you. And then you guide for slight like for like growth. If I'm reading that as, say, 2% and you have the EUR 1,000,000,000 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 light. But 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. But as said, we haven't given any exact number.
Sorry about this mystery cancer, but
That's fine. I think I'll get back in line, if anyone else has questions. Thank you.
Thank you. Thanks, Nicolas.
Thank you. Our next question comes from the line of Manik Groh of Rosneft. Please go ahead. Your line is open.
I have 3. My first one would be a follow-up question on the Chinese lockdown and coronavirus. I understand that you have 16% of your imports coming from Chang'e AGV. But 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 direct coming from China.
And I've understood that the Easter campaign products are on their way. So when do we have to like kind of when that when like the coronavirus in the Chinese market then 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. Did I?
Yes, yes, exactly. So I wanted to know if you could tell me well, I know that 16 Prisma Crane products are coming from the Chang'e AGV, but what's the total number coming from China of the import, direct and not direct? Yes, I've understood that the each products are already on their way, so it's not a problem. But maybe when that lockdown could become problem?
It's as Pika already mentioned that the products for spring season already are on way or are already in Finland. And of course, these products are not any more problem. But of course, if we're looking a little bit far more far and starting to look summer and next autumn, of course, we can't know how these 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.
But of course, it's a little bit later on this year.
Yes. And 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 non full retailers Canton Fair in April is very important, If there will be problems with that, then of course, it will start showing that like then retailers will be looking at different markets in, for example, in Europe, in Turkey, countries like this, in Vietnam and so on, if the content fare fails in one way or another. So 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 like April or May or before?
Yes. Like, let's say, the first part is already in its way. But then when we start like when the season starts, then we usually get more products and more shipments. They haven't started yet from China. And 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 2 lines in 2019 and 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 1 new private label range this year. And we will be also we will be renewing some of our private label ranges that we have already. Some of them are they're still selling quite well, but we but they need to have like a renewal and a little bit like a new idea over there. But there is like a good sales to start with. So that's why we don't necessarily need to launch new ones, but we will definitely renew some of our existing private label ranges.
But at least one new private label range will be launched during the first half of the year.
Okay. Thank you very much. And maybe my last question would be on online. You had a tremendous growth this year, but it's still a very, 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 we 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 a retail market. And but when about the TOKMANI online sales, it's a little bit like also like a structural issue. We've been working with the packaging lines and things like this. But now it's we will be concentrating a little bit more on our destination categories.
We definitely want to be the number one for example, number 1 garden online retailer in Finland. But 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, garden number 1, garden retailer is not the only one, but we will be focusing a little bit more compared to last year with the online sales.
And then perhaps some addition to this online potential we had and when we are looking at we have this 191 stores at this moment. And when you are remembering that Finland, in Finland the distances are quite long. And then looking for 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 an efficient way because when we are looking our stores and thinking of a click and collect model, we are quite near to every customer or every people here in Finland, even we are in the southern or northern part of Finland. And that, of course, gives us good potential to increase wholesale online sales with a profitable
way.
Thank you. Our next question comes from the line of Tushar Jain of Goldman Sachs. Please go ahead. Your line is open. Yes.
Hi. Good morning, guys. Just a couple of questions. Hi. In terms of 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 1.1%. And at this moment, it's €17.90 And also mentioned we that we think that and believe that there are certain potential there. But at the same time, I have to say that it's not a quick process to get the people buy more. So to your question, I would say that it's step by step going forward and increasing the basket Got it. And the second question on supply chain benefits.
Got it. And 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 Auropari and Uber. So just trying to get a sense of what benefits should 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. And we as Mikael mentioned, we are really pushing to improve the supply chain. And of course, we are getting throughout the time smaller parts and then going also here step by step. But to get bigger jump also here, it's very difficult to say and or get. And we have to look the whole process there when we are speaking about the supply chain starting from the factory to the end, meaning the store and trying to improve the whole process there.
And I believe that we will get benefits with smaller portions throughout the time starting, of course, from 2020, but of course, continuing in 2021 and so on.
And we have one further follow-up question coming through. That's from Niklas Skouggmann of Handelsbanken.
Yes. One last question. On working capital, do you expect to I think you mentioned you said inventories were at a level where you don't want to go higher at the moment. Do you expect like 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, there on the highest or I don't know, highest. But anyhow, but we will not anymore increase that share and trying to keep it at least on that share, there might be even be a small potential to get some benefit on that side. But today, I don't or I can't say that this will happen, but anyhow, we will not in relative wise to increase inventory anymore.
Okay. And now also I remember that you said you will invest more in online in 2020. What does that entail?
Investing online. Investing online. Yes, as mentioned, we will focus more on the business areas, especially our destination categories with TOKMAINY Online. Well, if you look at the our online store, it's basically offering everything, all our assortment at the moment, but it's not really focusing on any specific area well enough. And 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 like advice and ideas of professionals when it comes to garden, what to do with your garden and things like this.
So we will be bringing some contents also on the web on our online store. But it will be like more focused instead of our full assortment. So yes, that's one of the main investments in the online business.
Yes. And we have to still remember, but most probably you are looking also in money wise, that one. It's not a huge amount of money. And certainly, when I said that for 2020, total amount of investments will be at the level of €60,000,000 That's inside these figures and we are not yes, that's including. And we are not speaking in money wise huge amount of
amounts. Yes. That was the CapEx, right, €16,000,000
Yes. That was the CapEx.
But On OpEx as well you say there is yes. Okay, very good. Thank you very much.
All right. Thanks.
Thank you. And 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 April. Thank you very much. Thank you.