The consolidated non-audited sales revenue of the Tallinna Kaubamaja Group for the 1st half-year of 2011 was 206.2 million euros, having grown by 4.6% compared to the results of the 1st half-year of 2010, when the sales revenue was 197.2 million euros. In the 2nd quarter, the Group’s sales revenue was 110.1 million euros, thus exceeding the sales revenues of the same period last year by 6.6%. The reference base was influenced by the sales tax, levied in Tallinn since June 2010, which decreased the Group’s sales revenue for the 1st half-year of 2011 by 1.0 million euros (by 0.2 million euros during the 1st half-year of 2010). As of 01.01.2011, the principles for calculating the sales revenue of the Group changed and the reference data of 2010 have been adapted to the new principles. As a result, an additional 4.8 million euros have been recorded in the sales revenue of the 1st half-year. The consolidated unaudited net profit of the Group, generated in the first six months of 2011, was 5.1 million euros – 12.7% higher than the revenue of the same period of the previous year, which was 4.6 million euros. The Group's net profit, generated in the second quarter, was 3.6 million euros, which makes up 71.9% of the comparable period of the previous year, when the relevant indicator was 4.9 million euros. The net profit of the half-year and especially the second quarter was greatly influenced by the June payment of the income tax on dividends that amounted to 3.0 million euros. The pre-tax profit in the 1st half-year was 8.2 million euros, while it was 4.6 million euros in 2010. In the 2nd quarter, the pre-tax profit grew by 33.2% compared to the same period of the previous year, amounting to 6.6 million euros.
The first half-year was profitable for the Group. Sales revenue and economic results have showed a constant improvement in all of the Group’s business segments. The customers’ consumption habits have changed drastically over the past years – they are selective and price-sensitive, which is why improving the selection of goods is of vital importance for the Group. Great importance has also been paid within the Group to the better management of inventory, which is made apparent by the increase in the gross profit margin. Operating costs is still under focus. Centralized of Group IT management and joining security activities into one single centre help the Group to better manage the related costs and support activities. The restructuring of work processes that was carried out in the second half of 2010 has enabled to save 2.9% on labour costs, compared to a year before.
The sales revenue of the department store business segment in the first half-year was 36.3 million euros, an increase of 4.2% compared to the same period of the previous year. Of that, the sales revenue of the second quarter was 19.5 million euros, which was by 6.2% higher than the income of the 2nd quarter of 2010. The sales revenue was positively influenced by a successful selection of seasonal goods and various campaigns. The loss sustained by department stores in the first half-year of 2011 was 0.007 million euros, having improved by 0.3 million euros compared to the result of a year before. Of that, the profit in the second quarter was 0.6 million euros, higher than the profit of 2010 by 70.3% or 0.3 million euros. In addition to successful wholesale purchases, the profit was positively influenced by a better management of the margin during the whole season – this was also helped along by the new ERP system introduced at the beginning of the year. In the first half-year of 2011, the separately highlighted sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. cosmetic stores and is recorded in the composition of the department store segment, was 1.2 million euros – an increase of 33.3% compared to the same period of the previous year. Of that, the sales revenue earned in the 2nd quarter was 0.7 million euros, which was by 39.8% higher that the corresponding period of 2010. The net loss of the I.L.U. chain in the first half-year was 0.4 million euros; compared to the same period a year ago, 0.1 million euros higher due to the expenses incurred in connection with the launch of a new store. In the 2nd quarter, the loss was 0.2 million euros, also having increased by 0.1 million euros.
The consolidated sales revenue of the business segment of supermarkets in the 1st half-year of 2011 was 153.3 million euros, having grown by 2.9% compared to the same period of the previous year. The consolidated sales revenue of the 2nd quarter was 81.2 million euros, having grown by 4.4% compared to the same period of the previous year. The reference base was influenced by the sales tax, levied in Tallinn since June 2010, which decreased the Group’s sales revenue for the 1st half-year of 2011 by 0.7 million euros and by 0.1 million euros during the 1st half-year of 2010. Selver did not generate any sales revenue from the sale of goods in Latvia due to the closing of stores in Latvia, sales revenue from other activities was 0.8 thousand euros. The consolidated pre-tax net profit of the supermarket business segment generated in the 1st half-year was 4.6 million euros and 3.5 million euros in the 2nd quarter. The profit of the half-year exceeded the profit of the same period of the previous year by more than two times, and the profit of the 2nd quarter grew by 26.3%. The consolidated profit of the 1st half-year was 1.5 million euros, having decreased by 0.6 million euros compared to the result of a year before. The consolidated net profit of the 2nd quarter was 0.5 million euros. The pre-tax profit earned in Estonia in the 1st half-year of 2011 was 5.7 million euros, an increase of 53.3% compared to the period of a year before. In the 2nd quarter, the pre-tax profit earned by Selver was 4.1 million euros. The half-year’s net profit in Estonia was 2.7 million euros and 1.1 million euros in the 2nd quarter, which is lower than the result of the previous year by 1.0 million euros for the 1st half-year and by 2.0 million euros for the 2nd quarter. The difference in the pre-tax profit and net profit arises from the dividends paid out in May 2011, whose income tax of 3.0 million euros has been recorded in the results for the 2nd quarter. The income tax on the dividends paid out in 2010 was 0.5 million euros, but this has been recorded in the 2nd half-year of 2010 according to the time when the dividends were paid out. The loss sustained in Latvia in the 1st half-year was 1.2 million euros and 0.6 million euros in the 2nd quarter. Compared to last year, the half-year’s loss decreased by 0.4 million euros, but grew by 0.3 million euros in the 2nd quarter. Economic activities in Latvia have been frozen. The profit growth in Estonia has mainly been a result of introducing a more effective organisation of work – thanks to that, labour costs in the 1st half-year decreased by a total of 9%. In relation to a slowing down of investment activities, depreciation costs have also decreased.
The external sales revenue of the real estate business segment for the 1st half-year of 2011 was 1.4 million euros, having increased by 5.2% compared to the same period of the previous year. The sales revenue of the second quarter of the accounting year was 0.7 million euros, which is 10.4% more than the result of the 2nd quarter of 2010. Increase in revenues is mainly due to increased rental rates. The segment’s profit for the first six months was 3.4 million euros, while the profit of the 2nd quarter was 1.7 million euros. This result was 0.1 million euros better than both the first half-year and the 2nd quarter of the previous year and was mainly a result of a decrease in interest costs.
The sales revenue of the vehicle trade segment in the 1st half-year of 2011 without the intra-segment transactions was 9.0 million euros, exceeding the revenue generated in the same period of the previous year by 44.9%. The sales revenue of 5.1 million euros generated in the second quarter exceeded the sales revenue of the year before by 56.9%. The segment earned a profit of 0.6 million euros during the half-year. 0.4 million euros of it was earned in the second quarter. The respective profit indicators of 2010 were 0.0 million euros and 0.1 million euros.
The turnover of the footwear trade segment in the 1st half-year of 2011 was 6.2 million euros, having grown by 6.0% in a year. In the 2nd quarter, the turnover was 3.7 million euros, having increased by 8.1% compared to the same period of 2010. The loss of the first half-year was 0.4 million euros, which means a decrease of nearly 0.2 million euros compared to the same period of the previous accounting year. The 2nd quarter was profitable for the footwear trade segment – the profit of the segment was 0.3 million euros, exceeding the profit generated in the 2nd quarter of 2010 by 0.2 million euros.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In thousands of euros
| 30.06.2011 | 31.12.2010 | |
| ASSETS | ||
| Current assets | ||
| Cash and bank | 6,288 | 15,734 |
| Trade receivables | 6,399 | 6,082 |
| Other short-term receivables | 2,962 | 5,549 |
| Prepaid and refundable taxes | 107 | 349 |
| Other prepayments | 766 | 748 |
| Inventories | 43,202 | 39,385 |
| Total current assets | 59,724 | 67,847 |
| Fixed assets | ||
| Prepaid expenses | 1,346 | 1,272 |
| Investments in associates | 1,550 | 1,504 |
| Other long-term receivables | 68 | 141 |
| Investment property | 3,566 | 3,566 |
| Tangible fixed assets | 173,882 | 175,638 |
| Intangible fixed assets | 3,316 | 3,533 |
| Goodwill | 6,710 | 6,710 |
| Total fixed assets | 190,438 | 192,364 |
| TOTAL ASSETS | 250,162 | 260,211 |
| LIABILITIES AND EQUITY | , | |
| Current liabilities | ||
| Borrowings | 9,033 | 17,635 |
| Prepayments received | 56 | 573 |
| Trade payables | 46,244 | 40,377 |
| Tax liabilities | 3,972 | 4,677 |
| Other current liabilities | 4,160 | 4,079 |
| Provisions | 103 | 127 |
| Total current liabilities | 63,568 | 67,468 |
| Long-term liabilities | ||
| Borrowings | 63,884 | 63,844 |
| Provisions | 78 | 88 |
| Total long-term liabilities | 63,962 | 63,932 |
| TOTAL LIABILITIES | 127,530 | 131,400 |
| Equity | ||
| Share capital | 24,438 | 26,031 |
| Statutory reserve capital | 2,603 | 2,603 |
| Revaluation reserve | 52,752 | 53,308 |
| Retained earnings | 43,389 | 47,495 |
| Currency translation differences | -550 | -626 |
| TOTAL EQUITY | 122,632 | 128,811 |
| TOTAL LIABILITIES AND EQUITY | 250,162 | 260,211 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In thousands of euros
| 6 months 2011 | 6 months 2010 | 2nd quarter 2011 | 2nd quarter 2010 | |
| Revenue | 206,224 | 197,184 | 110,084 | 103 296 |
| Other operating income | 120 | 364 | 37 | 209 |
| Materials and consumables used | -153,458 | -147,376 | -80,953 | -76 086 |
| Other operating expenses | -22,008 | -21,611 | -10,811 | -10 381 |
| Staff costs | -16,976 | -17,490 | -8,856 | -8 869 |
| Depreciation and amortisation | -4,936 | -5,394 | -2,504 | -2 689 |
| Other expenses | -166 | -363 | -63 | -141 |
| Operating profit | 8,800 | 5,314 | 6,934 | 5 339 |
| Financial income | 131 | 150 | 55 | 67 |
| Financial costs | -852 | -991 | -446 | -515 |
| Financial income on shares of associates | 101 | 97 | 46 | 55 |
| Profit before income tax | 8,180 | 4,570 | 6,589 | 4 946 |
| Income tax | -3,031 | 0 | -3,031 | 0 |
| Net profit for the reporting period | 5,149 | 4,570 | 3,558 | 4 946 |
| Other comprehensive income/(loss) | ||||
| Exchange differences | 76 | -36 | 5 | -19 |
| Other comprehensive income for the reporting period | 76 | -36 | 5 | -19 |
| TOTAL COMPREHENSIVE INCOME FOR THE REPORTING PERIOD | 5,225 | 4,534 | 3,563 | 4,927 |
Raul Puusepp
Chairman of the Board
Phone +372 731 5000
