The consolidated non-audited revenue of Tallinna Kaubamaja for the first six
months of 2008 was 3.0 billion kroons (194.7 million euros). The return on sales
of the Group of 1st half of 2007 was 2.8 billion kroons (179.2 million euros).
The growth in turnover was 9 %. Net profit was 42 % less than that of the 1st
half of the last year, i.e. 98.3 million kroons (6.3 million euros), which is
71.1 million kroons (4.5 million euros) less than in the 1st half of 2007 when
net profit constituted 169.4 million kroons (10.8 million euros).
Lower net profit compared to the last year's result was actually expected in the
company's plans, taking into account the development of the company and also the
change in economic environment. There are 14.8 million kroons (1.0 million
euros) non-capitalized development costs in the 1st half year operating
expenses. In the 1st half of 2007 the corresponding costs were 3.2 million
kroons (0.2 million euros). The main factors for decrease in net profit were
partly or entirely closed shops for reconstruction works (bearing operating
costs) and pre-opening costs of seven new Selver shops. Other factors for
decrease in profit were expected growth of energy and maintenance and labour
costs, increase in depreciation resulting from the
revaluation of fixed assets, undertaken at the end of 2007, also the income tax
21.7 million kroons (1.4 million euros, 2007: 11.5 million kroons, 0.7 million
euros) expense on the dividends distributed for the prior financial years.
As of 30 June 2008, the balance sheet total of the Tallinna Kaubamaja Group was
4.1 billion kroons (262.6 million euros), which means an increase by 1.4 billion
kroons (90.1 million euros) compared to the end of 1st half of 2007. In the 1st
half year of 2008, assets and shareholders' equity increased by 23% and 1%
respectively.
Sales revenue of the first six months of 2008 of the business segment of the
Kaubamaja department stores was 733.0 million kroons (46.9 million euros),
showing a growth of 6 % in comparison with the same period of the previous year,
regardless of decrease in retail sales in stores selling manufactured goods in
whole Estonia. Net profit of the Kaubamaja department stores in the 1st half of
2008 was 62.7 million kroons (4.0 million euros), which fell behind the result
achieved a year ago by 1.1 million kroons (0.1 million euros). Financing cost
used for acquisitions and growth of energy and maintenance costs have had the
most negative impact on the profit of Kaubamaja department stores..
In the 1st half year of 2008 the net turnover of of A-Selver was 1,932.1 million
kroons (123.5 million euros), which exceeds that of the same period of last year
by 12%. The turnover for the same period last year was 1,723.8 million kroons
(110.2 million euros). The pre-tax profit for the supermarket segment for the
reporting period was 46.5 million kroons (3.0 million euros), decreasing by 43.2
million kroons (2.8 million euros) compared to the previous year. Extensive
reconstructions in three strategic locations of Selver store chain (Järve Selver
in Tallinn, Pirita Selver and Krooni Selver) had a negative impact on the
increase of profit. Because of reconstruction works Pirita Selver was closed for
the customers for one and a half months and Krooni Selver for two weeks. In
Järve Selver the reconstruction works were carried out during four months, which
affected sales. Pre-opening costs of the six new shops opened in 2008 and costs
related to the start-up of a subsidiary Selver Latvia SIA had an impact on the
profit. In 2008 new shops were opened in Narva, Kohtla-Järve, Hiiumaa, Mustamäe
in Tallinn, Põlva and Pärnu. Additional impact on the profit had two shops
(Põltsamaa and Jõgeva) opened in the second half of 2007 continuing starting
period and pre-opening costs of Paide Selver, which will be opened in August.
The sales revenue of the 1st half of 2008 of the real estate segment was 56.0
million kroons (3.6 million euros), and in comparison with the 1st half of 2007,
sales revenue increased by 21%. Sales revenue of the 1st half of 2008 of the
real estate segment without inter-segmental sales was 20.5 million kroons (1.3
million euros), increasing by 17% in comparison with last year. Net profit for
the first six months was 16.4 million kroons (1.1 million euros), decreasing by
4.7 million kroons or 22 % compared to the previous year. The decrease in net
profit is caused by the increase in financial costs and the depreciation of
fixed assets.
The sales revenue car trade segment of 1st six months of 2008 was 315.4 million
kroons (20.2 million euros). In the first six months, 1325 vehicles were sold,
which exceeds the number of vehicles sold during the same period a year ago by
193. KIA has a 3.6% market share in the Baltic countries (growth with six months
20%).The net loss of car trade segment of 1st six months of 2008 amounted to 2.4
million kroons (0.2 million euros). The net profit of 1st six months of 2007 was
6.2 million kroons (0.4 million euros). The market share growth took its toll on
declining margins and growing advertising costs. Establishing the Latvian
subsidiary SIA KIA Automobiles and entering the Latvian market fell in the same
period with rapidly diminishing car market of Latvia in 2007 and had its
negative impact on profit in the 1st half year. Gained market share allows to
expect better results in the future.
Sales of Suurtüki NK AS and Suurtuki SIA, acquired on 1 April 2008, made up 45.1
million kroons (2.9 million euros) of the sales in group total. In addition to
12 already existing stores, new stores were opened in Maardu, Võru and Hiiumaa
in the 2nd quarter. Reporting period ended with loss of 3.3 million kroons (0.2
million euros). The result was influenced by costs for opening new stores and
leap in personnel costs (39%).
On 30 June 2008 the Tallinna Kaubamaja group acquired ABC King AS with its
subsidiary ABC King SIA and OÜ ABC Saare footwear shops. 5 shops in Tallinn, 4
shops in other Estonian towns and 5 shops in Latvia were added with this to
Tallinna Kaubamaja group footwear trading. New ABC King shops will be opened in
Tartu, Rakvere and Saaremaa in the near future.
Raul Puusepp
Chairman of the Board
Phone: +372 731 5000
CONSOLIDATED BALANCE SHEET
EEK/EUR thousand
--------------------------------------------------------------------------------
| | | 30 June 2008 | 31 December 2007 |
--------------------------------------------------------------------------------
| | Not | EEK | EUR | EEK | EUR |
| | e | | | | |
--------------------------------------------------------------------------------
| ASSETS | | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | | |
--------------------------------------------------------------------------------
| Cash at bank and in hand | 2 | 263,82 | 16,861 | 282,635 | 18,064 |
| | | 2 | | | |
--------------------------------------------------------------------------------
| Trade receivables | 3 | 52,508 | 3,356 | 50,966 | 3,257 |
--------------------------------------------------------------------------------
| Other receivables | 4 | 30,438 | 1,945 | 50,755 | 3,244 |
--------------------------------------------------------------------------------
| Prepaid expenses | 5 | 45,997 | 2,940 | 20,133 | 1,287 |
--------------------------------------------------------------------------------
| Inventories | 6 | 718,44 | 45,917 | 519,630 | 33,209 |
| | | 8 | | | |
--------------------------------------------------------------------------------
| Total current assets | | 1,111, | 71,019 | 924,119 | 59,061 |
| | | 213 | | | |
--------------------------------------------------------------------------------
| Fixed assets | | | | | |
--------------------------------------------------------------------------------
| Prepaid expenses | 5 | 36,127 | 2,309 | 37,291 | 2,383 |
--------------------------------------------------------------------------------
| Shares in affiliated | 8 | 15,754 | 1,007 | 14,201 | 908 |
| companies | | | | | |
--------------------------------------------------------------------------------
| Long term investment (ABC | 7 | 167,35 | 10,696 | 0 | 0 |
| King) | | 6 | | | |
--------------------------------------------------------------------------------
| Other long-term receivables | 9 | 2,828 | 181 | 2,828 | 181 |
--------------------------------------------------------------------------------
| Tangible fixed assets | 10 | 2,683, | 171,486 | 2,300,87 | 147,053 |
| | | 176 | | 8 | |
--------------------------------------------------------------------------------
| Intangible fixed assets | | | | | |
--------------------------------------------------------------------------------
| Goodwill | 11, | 91,874 | 5,872 | 49,388 | 3,156 |
| | 7 | | | | |
--------------------------------------------------------------------------------
| Total intangible assets | | 91,874 | 5,872 | 49,388 | 3,156 |
--------------------------------------------------------------------------------
| Total fixed assets | | 2,997, | 191,551 | 2,404,58 | 153,681 |
| | | 115 | | 6 | |
--------------------------------------------------------------------------------
| TOTAL ASSETS | | 4,108, | 262,570 | 3,328,70 | 212,742 |
| | | 338 | | 5 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES AND OWNERS' | | | | | |
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | | |
--------------------------------------------------------------------------------
| Debts | 12 | 254,92 | 16,292 | 120,626 | 7,709 |
| | | 1 | | | |
--------------------------------------------------------------------------------
| Prepayments received for | | 9,042 | 578 | 11,673 | 745 |
| goods and services | | | | | |
--------------------------------------------------------------------------------
| Trade payables | | 642,84 | 41,086 | 611,454 | 39,080 |
| | | 3 | | | |
--------------------------------------------------------------------------------
| Other current payables | 14 | 118,40 | 7,566 | 166,756 | 10,657 |
| | | 0 | | | |
--------------------------------------------------------------------------------
| Total current liabilities | | 1,025, | 65,522 | 910,509 | 58,191 |
| | | 206 | | | |
--------------------------------------------------------------------------------
| Long-term liabilities | | | | | |
--------------------------------------------------------------------------------
| Debts | 12, | 1,170, | 74,799 | 522,214 | 33,375 |
| | 13 | 349 | | | |
--------------------------------------------------------------------------------
| Long term reserve | | 1,913 | 122 | 2,075 | 132 |
--------------------------------------------------------------------------------
| Total long-term liabilities | | 1,172, | 74,921 | 524,289 | 33,507 |
| | | 262 | | | |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | | 2,197, | 140,443 | 1,434,79 | 91,698 |
| | | 468 | | 8 | |
--------------------------------------------------------------------------------
| Owners' equity | | | | | |
--------------------------------------------------------------------------------
| Share capital | 15 | 407,29 | 26,031 | 407,292 | 26,031 |
| | | 2 | | | |
--------------------------------------------------------------------------------
| Statutory reserve | | 40,729 | 2,603 | 40,729 | 2,603 |
--------------------------------------------------------------------------------
| Fixed assets revaluation | | 742,92 | 47,481 | 759,721 | 48,555 |
| reserve | | 0 | | | |
--------------------------------------------------------------------------------
| Retained earnings | | 719,75 | 46,001 | 686,155 | 43,854 |
| | | 2 | | | |
--------------------------------------------------------------------------------
| Currency exchange | | 167 | 11 | 10 | 1 |
| differences | | | | | |
--------------------------------------------------------------------------------
| TOTAL OWNERS' EQUITY | | 1,910, | 122,127 | 1,893,90 | 121,044 |
| | | 860 | | 7 | |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND | | 4,108, | 262,570 | 3,328,70 | 212,742 |
| OWNERS' EQUITY | | 328 | | 5 | |
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT
EEK/EUR thousand
--------------------------------------------------------------------------------
| | | 6 months 2008 | 6 months 2007 |
--------------------------------------------------------------------------------
| | Not | EEK | EUR | EEK | EUR |
| | e | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating revenue | | | | |
--------------------------------------------------------------------------------
| Sales revenue | 16 | 3,046,1 | 194,685 | 2,803,98 | 179,207 |
| | | 63 | | 4 | |
--------------------------------------------------------------------------------
| Other operating revenue | 17 | 75,937 | 4,853 | 57,596 | 3,681 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cost of goods sold | | -2,302, | -147,13 | -2,126,8 | -135,934 |
| | | 141 | 2 | 96 | |
--------------------------------------------------------------------------------
| Other operating expenses | 18 | -327,90 | -20,957 | -258,959 | -16,550 |
| | | 3 | | | |
--------------------------------------------------------------------------------
| Staff costs | 19 | -300,24 | -19,189 | -228,062 | -14,576 |
| | | 0 | | | |
--------------------------------------------------------------------------------
| Depreciation and impairment | 10 | -61,001 | -3,899 | -49,710 | -3,177 |
| of fixed assets | | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | | -6,847 | -438 | -9,094 | -581 |
--------------------------------------------------------------------------------
| Operating profit | | 123,968 | 7,923 | 188,859 | 12,070 |
--------------------------------------------------------------------------------
| Financial expenses | 20 | -10,218 | -653 | -18,364 | -1,174 |
--------------------------------------------------------------------------------
| Financial income | 20 | 4,605 | 294 | 9,435 | 603 |
--------------------------------------------------------------------------------
| Financial income from shares | 8 | 1,553 | 99 | 916 | 59 |
| in affiliated companies | | | | | |
--------------------------------------------------------------------------------
| Total financial income and | | -4,060 | -260 | -8,013 | -512 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Profit before income tax | | 119,908 | 7,663 | 180,846 | 11,558 |
--------------------------------------------------------------------------------
| Income tax | | -21,653 | -1,384 | -11,487 | -734 |
--------------------------------------------------------------------------------
| NET PROFIT FOR ACCOUNTING | | 98,255 | 6,279 | 169,359 | 10,824 |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | | | | | |
--------------------------------------------------------------------------------
| (EEK/EUR) | 14 | 2.41 | 0.15 | 4.16 | 0.27 |
--------------------------------------------------------------------------------
| Diluted earnings per share | | | | | |
--------------------------------------------------------------------------------
| (EEK/EUR) | 14 | 2.41 | 0.15 | 4.16 | 0.27 |
--------------------------------------------------------------------------------
