Puuilo (PUUILO) was added to the HM1 portfolio in November following a recommendation from Emerson Moore of Ampfield Investments (Ampfield) at the 2025 Sohn Hearts & Minds Conference. The stock was a standout performer in June, rising 37% over the month.
Puuilo is a Finnish retail chain known for its wide product range, affordable prices, convenient locations and easy shopping experience. The company focuses on DIY, home goods and pet food products. It has over 50 stores across Finland, as well as an online store, which forms an important part of Puuilo's multi-channel business model. Puuilo has become one of the leading players in the Finnish discount retail market, and is one of Finland's largest consumer goods chains by turnover.
Puuilo's fiscal Q1 (ending April) was its strongest quarter since Ampfield invested in September 2023, with like-for-like sales up 7.7% YoY and adjusted EBITA increasing 50% YoY. Performance was driven by cost discipline and record gross margins, with private label sales increasing 28% YoY. The warm spring provided some help, but the result was more than a weather-related event. The prior-year comparison (+6.5% like-for-like) already included a record-warm April, and this year’s growth was broad across categories. The quarter is seasonally the smallest contributor and should not be extrapolated linearly. However, it does reinforce the investment thesis.
Puuilo’s like-for-like growth remains predominantly volume-driven, signalling strong customer reception of its discount price point. Ampfield believes Puulio can continue growing, with room to almost double the store count in the Finnish home market alone. The growth opportunity could be further extended through the expansion into Sweden, where Puuilo is planning pilot stores and will compete against many of the same retailers it faces in its home market.
Gross margins also have room to expand through further margin-accretive private label penetration, which is currently ~24% of total versus a long-term target of ~35%. On a multi-year basis, Ampfield believe these factors support mid-teens earnings growth, plus a mid-single-digit dividend yield, enabled by the company’s exceptional unit economics.
