The consolidated unaudited sales revenue of the Tallinna Kaubamaja Group, generated in the first quarter of 2011, was 96.1 million euros. The sales revenue of the Group was 93.9 million euros in the reference period of 2010, 2011 up by 2.4% year-on-year. The profit earned in the reporting period was 1.6 million euros. The loss sustained in the first quarter of 2010 was 0.4 million euros.
The first quarter was stable for the Group. The sales revenue grew in all the Group’s retail trade segments. Decrease in the volume of consumption due to fears for euro was smaller than was presumed in the beginning of the year, whereas a growth in prices due to the growth in raw material prices has put pressure on the purchase prices of goods. One of the Group’s focuses has been on efforts made to improve the assortment of goods so as to offer customers food and consumer goods at competitive prices and to make favourable offers in all groups of goods. More attention has been paid to developing the Group’s own products that both SHU and Selver customers have accepted well, making it possible to offer products with a better price and quality ratio to customers. In the first quarter, the Group’s own products accounted for 6% and 4% of the sales revenue in the footwear chain and in the Selver stores respectively. Continued attention is paid to the Group’s operating expenses. The reorganisation of work processes completed in the second half of 2010 has enabled saving 5.8% in labour expenses in the first quarter year-on-year.
The sales revenue of the department store business segment was 16.9 million euros in the first three months, an increase of 2.0% year-on-year. The 2=3 campaign held in February had a positive effect on the sales revenue. The loss sustained by the department stores in the first quarter of 2011 was 0.7 million euros, an improvement of 0.05 million euros compared to the figures of the previous year. Kaubamaja was closed on 1 January 2011 due to the introduction of a new management accounting system; therefore, the seasonal discount campaign in January commenced a week later. Department store segment resulted in a smaller operating loss, improved by 0.07 million euros year-on-year. In the first quarter of 2011, the sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. cosmetics stores and is disclosed under Kaubamaja segment, was 0.6 million euros, increasing 27.2% year-on-year. The net loss of the I.L.U. chain in the first quarter was 0.2 million euros, 0.05 million euros higher due to the expenses incurred in connection with the launch of a new store compared to the same period a year ago.
The consolidated sales revenue of the supermarket business segment generated in the first quarter of 2011 was 72.2 million euros, growing 1.3% year-on-year. In the first quarter of 2011, 7.7 million purchases were made in the Selver stores in Estonia, exceeding the figure of purchases made a year ago by 0.4%. The drivers behind the Selver stores’ sales revenue earned in the first quarter are successful sales campaigns and continued work with the assortment of goods. The setback in consumption was more modest after the changeover to the euro than expected. A significant growth in food prices in the country has had a great impact on the sales results bringing along a decrease in the volume of food sold. Compared to the previous year, the continued tightening of competition in retailing and the sales tax imposed in Tallinn has negatively affected the growth of the sales revenue. Selver did not generate any sales revenue from the sale of goods in Latvia due to the closing of stores in Latvia. The sales revenue earned in Latvia in 2010 was 10 thousand euros. The consolidated net profit of the supermarket segment was 1.0 million euros in the first quarter of 2011, showing a growth of 1.7 million euros year-on-year. In the first quarter of 2011, the net profit earned in Estonia was 1.6 million euros, growing by 1.0 million euros from the profit of 0.6 million euro in the previous year. The net loss in Latvia was 0.6 million euros in the first quarter, decreasing by 0.7 million compared to the reference period. The economic activities in Latvia have been frozen. The profit growth in Estonia is the result of the introduction of multi-functional work organisation in the first half of 2010 and a decrease in depreciation cost.
The non-Group sales revenue of the real estate business segment was 0.7 million euros in the first quarter of 2011, growing 0.7% year-on-year. The segment earned a profit of 1.6 million euros in the reporting period, an improvement of 2.9% when compared to the figures of the period a year ago.
The sales revenue of the vehicle trade segment without the intra-segment transactions was 3.8 million euros in the first quarter of 2011, exceeding the revenue generated in the same period last year by 31.4%. The net profit of the vehicle group was 0.2 million euros in the first quarter. A year ago, the car group sustained a loss of 0.02 million euros in the first three months of 2010.
The sales revenue of the footwear business segment earned in the first quarter of 2011 was 2.6 million euros, growing by 3.0% compared to the same period of 2010. The loss earned in the first quarter was 0.6 million euros. The total loss in the footwear trade was 0.6 million euros in the first quarter of 2010. The main reasons for the loss were the seasonal discounts of winter goods and the final sales held in relation to the closing of the Suurtüki and Stepper stores.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In thousands of euros
| 31.03.2011 | 31.12.2010 | |
| ASSETS | ||
| Current assets | ||
| Cash and bank | 18,061 | 15,734 |
| Trade receivables | 4,842 | 6,082 |
| Other short-term receivables | 3,675 | 5,549 |
| Prepaid and refundable taxes | 105 | 349 |
| Other prepayments | 1,168 | 748 |
| Inventories | 41,005 | 39,385 |
| Total current assets | 68,856 | 67,847 |
| Fixed assets | ||
| Prepaid expenses | 1,346 | 1,272 |
| Shares in affiliated companies | 1,559 | 1,504 |
| Other long-term receivables | 68 | 141 |
| Investment property | 3,566 | 3,566 |
| Tangible fixed assets | 174,177 | 175,638 |
| Intangible fixed assets | 3,425 | 3,533 |
| Goodwill | 6,710 | 6,710 |
| Total fixed assets | 190,851 | 192,364 |
| TOTAL ASSETS | 259,707 | 260,211 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Borrowings | 13,108 | 17,635 |
| Prepayments received | 612 | 573 |
| Trade payables | 43,635 | 40,377 |
| Tax liabilities | 3,599 | 4,677 |
| Other current liabilities | 4,194 | 4,079 |
| Provisions | 115 | 127 |
| Total current liabilities | 65,263 | 67,468 |
| Long-term liabilities | ||
| Borrowings | 63,889 | 63,844 |
| Provisions | 82 | 88 |
| Total long-term liabilities | 63,971 | 63,932 |
| TOTAL LIABILITIES | 129,234 | 131,400 |
| Equity | ||
| Share capital | 26,031 | 26,031 |
| Statutory reserve capital | 2,603 | 2,603 |
| Revaluation reserve | 53,030 | 53,308 |
| Retained earnings | 49,364 | 47,495 |
| Currency translation differences | -555 | -626 |
| TOTAL EQUITY | 130,473 | 128,811 |
| TOTAL LIABILITIES AND EQUITY | 259,707 | 260,211 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In thousands of euros
| 3 months 2011 | 3 months 2010 | |
| Revenue | 96,140 | 93,888 |
| Other operating income | 83 | 155 |
| Materials and consumables used | -72,505 | -71,290 |
| Other operating expenses | -11,197 | -11,230 |
| Staff costs | -8,120 | -8,621 |
| Depreciation and amortisation | -2,432 | -2,705 |
| Other expenses | -103 | -222 |
| Operating profit/(-loss) | 1,866 | -25 |
| Financial income | 76 | 83 |
| Financial costs | -406 | -476 |
| Financial income on shares of associates | 55 | 42 |
| Profit/(loss) before income tax | 1,591 | -376 |
| Net profit (loss) for the reporting period | 1,591 | -376 |
| Other comprehensive income/(loss) | ||
| Exchange differences | 71 | -17 |
| Other comprehensive income for the reporting period | 71 | -17 |
| TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE REPORTING PERIOD | 1,662 | -393 |
Raul Puusepp
Chairman of the Board
Phone +372 731 5000
