Nice write-up, very interesting idea! A bit worrying to me though is the deterioration in EBIT(DA) margins since 2020. I see selling and admin (to a lesser extent) expenses have been growing faster than revenues. Could you provide some background on the factors contributing to this trend and whether there are prospects for a reversal in the future?
Thanks! You’re right to highlight the margin deterioration—since 2020, Toya has faced higher SG&A costs driven by rising utilities, transport, and investments in online and international expansion, as well as more recently, higher labor costs due to Poland’s minimum wage hike. While I do expect margins to recover over time, it’s unlikely in the short term given persistent inflation, economic challenges in Poland, and global uncertainty.
Thank you for your comment. Toya benefits from lower costs—primarily in production, labor, and an efficient distribution chain—which give it a strong position in the industry. This is a sector that demands quality, and customer reviews across various online sales channels are generally positive in this regard. However, not all of Toya's products are high quality; some are of lower quality and priced accordingly.
Nice write up! Own shares too and think has room to run.
Happy that the write-up was useful for you. Patience and a long-term focus—the market eventually values companies correctly.
Nice write-up, very interesting idea! A bit worrying to me though is the deterioration in EBIT(DA) margins since 2020. I see selling and admin (to a lesser extent) expenses have been growing faster than revenues. Could you provide some background on the factors contributing to this trend and whether there are prospects for a reversal in the future?
Thanks! You’re right to highlight the margin deterioration—since 2020, Toya has faced higher SG&A costs driven by rising utilities, transport, and investments in online and international expansion, as well as more recently, higher labor costs due to Poland’s minimum wage hike. While I do expect margins to recover over time, it’s unlikely in the short term given persistent inflation, economic challenges in Poland, and global uncertainty.
Great color thanks!
Thank you for the write up. Very interesting company. Reminds me a bit of Hornbach, but different angle.
> Toya delivers high-quality products at a lower price than its competitors, securing a strong position in the industry.
How do they do that exactly?
Thank you for your comment. Toya benefits from lower costs—primarily in production, labor, and an efficient distribution chain—which give it a strong position in the industry. This is a sector that demands quality, and customer reviews across various online sales channels are generally positive in this regard. However, not all of Toya's products are high quality; some are of lower quality and priced accordingly.
Thx for this idea! Looks really interesting
Thanks for your comment! Happy to hear you found it interesting.