The consolidated unaudited sales revenue of the Tallinna Kaubamaja Group in the 1st half-year of 2012 was 224.9 million euros, having increased by 9.1% compared to the 1st half-year of 2011, when the sales revenue was 206.2 million euros. In the second quarter, the Group’s sales revenue reached 118.8 million euros, exceeding the sales revenue of a year earlier by 8.0%. The consolidated unaudited net profit of the group, generated in the first six months of 2012, was 5.5 million euros, which is 7.6% higher than the 5.1 million euros of the same period last year. The Group’s net profit of the second quarter was 2.3 million euros, which forms 65.1% of the comparable period of the previous year, when the corresponding indicator was 3.6 million euros. The net profit of the six months and especially the second quarter were considerably influenced by the income tax of 3.8 million euros paid on dividends in June. The pre-tax profit in the first six months was 9.3 million euros, having increased by 13.8% compared to the year before. The pre-tax profit of the 2nd quarter amounted to 6.1 million euros, but was 7.7% lower compared to the same period of the year before due to the write-off of the software which had lost its disposable value recognised in the depreciation of fixed assets in the amount of 0.9 million euros.
The sales revenue and the pre-tax profit of all business segments of the group increased, which allows the group to be satisfied with the result of the first six months. The priorities of the first six months have been looking for growth possibilities for the segments and increasing competitiveness through internal rearrangements. In late June, the group founded three new subsidiaries: Kaubamaja AS, Kulinaaria OÜ and Topsec Turvateenused OÜ, with the aim to reorganize the structure of the companies within the group and make management more transparent. The business activities of the segment of department stores which has been operating the department stores in Tallinn and Tartu in the parent company of the group are scheduled to be transferred to Kaubamaja AS in the course of the division. The security-related activities of the group which have been operated under Tartu Kaubamaja AS are scheduled to be transferred to Topsec Turvateenused OÜ. Selver AS is planning to transfer the business activities of the central kitchen to Kulinaaria OÜ in the course of the division. On 3 July, 2012, the group finalized the transaction to acquire 100% participation in AS Viking Motors. With this purchase, the group expands its segment of vehicle trade, which has been one of the strategic segments of the business activities of the group since 2007. By virtue of this transaction, in parallel to the export and sale of KIA vehicles in all the Baltic States, the salon in Tallinn will launch the sale and service of Opel and Cadillac, also the service of Saab, Corvette, and Hummer vehicles, providing an opportunity to expand the group's activities to the segment of commercial vehicles, and additional sale and service premises for better customer service.
The sales revenue of the business segment of department stores in the first 6 months of 2012 was 40.0 million euros, having grown by 10.3% compared to the same period of the previous year. Of that sum, 21.0 million euros of sales revenue was earned in the second quarter; the sales revenue was 8.2% higher than the revenue of the 2nd quarter of 2011. The profit of department stores in the first six months of 2012 was 0.5 million euros, exceeding the result of the year before by 0.5 million euros. The profit of the 2nd quarter was 0.8 million euros, which exceeded the profit of 2011 by 21.4% or 0.14 million euros. In the second quarter, the sales revenue was positively influenced by the final campaign of the Sports Department in the Tartu store, as well as the preliminary discount campaign targeted at best customers. The sales results of the first half-year were negatively influenced by renovation works in the Women’s Department of Tallinna Kaubamaja, which lasted from mid-January to March and had a temporary impact on selling activities on 3,500 square metres. In addition, 12.6% of the total selling space or 2,100 square metres were completely closed for two months due to alteration works – Estonia's largest Children’s Department was opened on March 22 instead of the earlier Sports and Digital Departments. The sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. beauty stores, was 1.7 million euros in the first half-year of 2012, having grown by 39.1% compared to the same period of the year before. Of that sum, the sales revenue of the 2nd quarter was 0.9 million euros, which was 29.0% higher than the sum earned in the respective period of 2011. The net loss of the I.L.U. chain in the first six months was 0.3 million euros, which is 0.03 million euros less than in the same period the year before.
The consolidated sales revenue of the business segment of supermarkets and the segment’s sales revenue earned in Estonia in the 1st half-year of 2012 were 161.3 million euros, having grown by 5.2% compared to the year before. The consolidated sales revenue and the sales revenue earned in Estonia in the 2nd quarter were 84.1 million euros, which is 3.6% higher than the result of the same period of the previous year. In the first half-year of 2012, no sales revenue of goods was earned in Latvia. The sales revenue of Selver earned in Latvia in the 1st half-year of 2012 was 0.9 thousand euros; 0.4 thousand euros were earned in the 2nd quarter, thus remaining at the same level as the previous year. The consolidated pre-tax profit of the segment of supermarkets in the 1st half-year of 2012 was 4.6 million euros, which means an increase of 0.02% compared to the period of a year before, and the net profit 1.8 million euros, which means an increase of 15.1% compared to the period of a year before. The consolidated pre-tax profit of the 2nd quarter was 2.7 million euros, a decrease of 23.2%, and the net loss was -0.1 million euros, which was 0.6 million euros lower compared to the net profit of the period of the year before. The pre-tax profit earned in Estonia in the first six months was 5.7 million euros, of that 3.3 million euros were generated in the 2nd quarter. The deflections in the profits, compared to the period of the year before, were -0.1% and -19.9%, respectively. The net profit of the segment of supermarkets generated in Estonia in the first six months was 2.9 million euros, having increased by 8.3% compared to the base period, of that, 0.5 million euros was the net profit of the 2nd quarter, which formed 45% of the profit of the year before. The pre-tax loss and net loss generated in Latvia in the first six months was 1.2 million euros, of that, 0.6 million euros were generated in the 2nd quarter. The loss remained on the same level as earlier in the year, decreasing by 0.5% and 0.2%, respectively. Business activities in Latvia have been brought to a halt. The increase in sales revenue has been affected by the significantly increased competition in the retail trade market. The reference base of last year’s sales revenue includes the influence of the sales tax levied in Tallinn. In the background of last year’s low reference base, the sales results of manufactured and staple goods have improved in the first six months. The influence of an increase in prices on the growth of the sales revenue of food products has decreased and the decrease in sales volumes has stopped. The profit formation of Selver in Estonia has been positively influenced by an increase in the efficiency of labour as a result of reviewing the work processes of the employees and the introduction of multifunctional organization of work. Also, the income tax paid on dividends is 7.6% lower than before this year. The profit was also influenced by depreciation costs, which have increased by 40% compared to the year before due to the renovation of four stores in the course of the year before, the introduction of the SelveEkspress purchase system, which is innovative in Estonia, in three stores last year and this year, and the creation of the bakers’ concept, which was finalized in the first quarter of this year, which involved taking over the bakery stalls in the stores. Due to the abovementioned, the volume of investments in 2011 and 2012 has been higher than in previous years. In this June, it was decided to replace IT software, as a result of which software investments, which had lost its disposable value, in the amount of 0.9 million euros were written off.
The extra-group sales revenue of the real estate business segment earned in the first 6 months of 2012 was 1.4 million euros, having grown by 5.2% compared to the same period of the previous year. The extra-group sales revenue of the real estate business segment earned in the 2nd quarter of 2012 was 0.7 million euros, having increased by 4.4% compared to the same period of the previous year. The increase was mainly due to the rearrangement of the lessees and rented spaces of Tartu Kaubamaja Kinnisvara OÜ. The pre-tax profit of the segment of real estate of the first six months was 3.6 million euros and the pre-tax profit of the 2nd quarter was 1.8 million euros. This result exceeded the pre-tax profit of the first six months of the year before by 0.2 million euros and the pre-tax profit of the 2nd quarter by 0.1 million euros, which is based on an increase in sales revenues. The segment’s net profit of the six months was 2.6 million euros and the net profit of the 2nd quarter 0.8 million euros, which is 0.7 million euros less than the net profit of the first six months of 2011 and 0.9 million euros less than the net profit of the 2nd quarter of 2011. The net profit was influenced by the income tax paid on dividends in the 2nd quarter of 2012.
The sales revenue of the car trade segment earned in the 1st half-year of 2012 without inter-segment transactions was 15.5 million euros, thus exceeding the revenue of the same period of the year before by 73.1%. The sales revenue of the second quarter in the sum of 9.4 million euros was greater than the revenue of the year before by 82.9%. These good results were chiefly brought about by the successful launch of the new Cee'd and the considerably improved supply of the triumphant crossover SUV Kia Sportage. In addition, the new small car KIA Rio has enjoyed booming sales. The segment earned a profit of 0.9 million euros in six months, of that, 0.6 million was generated in the 2nd quarter. The respective profits of 2011 were 0.6 million euros and 0.4 million euros.
The turnover of the footwear trade segment in the 1st half-year of 2012 was 6.6 million euros, having grown by 5.4% in a year. In the 2nd quarter, the turnover was 3.6 million euros, which is 0.6% less compared to the same period of 2011. The decrease of the sales revenue in the 2nd quarter was caused by the drop in the number of stores – compared to the 2nd quarter of 2011, by the 2nd quarter of this year the group had lost one store in Estonia and 3 stores in Latvia. The turnover growth in the comparable stores was 14.0% in the 1st half-year and 8.4% in the 2nd quarter. The loss of the first six months was 0.3 million euros, which has decreased by approximately 0.1 million euros compared to the same period of the previous accounting year. The profit of the 2nd quarter was 0.2 million euros, which is 0.1 million euros less than the result of the 2nd quarter of 2011. The main reason for the decrease in profit in the 2nd quarter compared to the year before were the weather conditions (especially in April), which had an unfavourable effect on consumption and resulted in more discounts and a lower gross margin than planned.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In thousands of euros
| 30.06.2012 | 31.12.2011 | |
| ASSETS | ||
| Current assets | ||
| Cash and bank | 7,088 | 11,948 |
| Trade receivables | 8,923 | 9,976 |
| Other short-term receivables | 233 | 9,372 |
| Prepaid taxes and other prepayments | 1,142 | 959 |
| Inventories | 47,243 | 41,973 |
| Total current assets | 64,629 | 74,228 |
| Non-current assets | ||
| Prepayments | 982 | 985 |
| Investments in associates | 1,629 | 1,550 |
| Other long-term receivables | 40 | 56 |
| Investment property | 3,566 | 3,566 |
| Property, plant and equipment | 185,033 | 172,272 |
| Intangible assets | 9,827 | 9,809 |
| Total non-current assets | 201,077 | 188,238 |
| TOTAL ASSETS | 265,706 | 262,466 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Borrowings | 8,891 | 11,261 |
| Trade payables | 49,715 | 46,419 |
| Tax liabilities | 3,957 | 5,038 |
| Other current liabilities | 4,393 | 4,489 |
| Provisions | 92 | 135 |
| Total current liabilities | 67,048 | 67,342 |
| Non-current liabilities | ||
| Borrowings | 67,163 | 55,591 |
| Provisions and prepayments | 611 | 73 |
| Total non-current liabilities | 67,774 | 55,664 |
| TOTAL LIABILITIES | 134,822 | 123,006 |
| Equity | ||
| Share capital | 24,438 | 24,438 |
| Statutory reserve capital | 2,603 | 2,603 |
| Revaluation reserve | 51,638 | 52,197 |
| Retained earnings | 52,178 | 60,333 |
| Currency translation differences | 27 | -111 |
| TOTAL EQUITY | 130,884 | 139,460 |
| TOTAL LIABILITIES AND EQUITY | 265,706 | 262,466 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In thousands of euros
| 6 months 2012 | 6 months 2011 | II quarter 2012 | II quarter 2011 | |||
| Revenue | 224,867 | 206,180 | 118,833 | 110,081 | ||
| Other operating income | 250 | 120 | 102 | 37 | ||
| Materials, consumables used and services | -167,879 | -153,436 | -87,986 | -80,918 | ||
| Other operating expenses | -23,133 | -21,986 | -11,627 | -10,843 | ||
| Staff costs | -17,663 | -16,976 | -9,101 | -8,856 | ||
| Depreciation, amortisation and impairment losses | -6,109 | -4,936 | -3,571 | -2,504 | ||
| Other expenses | -205 | -166 | -65 | -63 | ||
| Operating profit | 10,128 | 8,800 | 6,585 | 6,934 | ||
| Finance income | 88 | 131 | 33 | 55 | ||
| Finance costs | -988 | -852 | -579 | -446 | ||
| Finance income on shares of associates | 79 | 101 | 40 | 46 | ||
| Profit before tax | 9,307 | 8,180 | 6,079 | 6,589 | ||
| Income tax | -3,766 | -3,031 | -3,762 | -3,031 | ||
| NET PROFIT FOR THE FINANCIAL YEAR | 5,541 | 5,149 | 2,317 | 3,558 | ||
| Other comprehensive income: | ||||||
| Currency translation differences | 138 | 76 | 169 | 5 | ||
| Other comprehensive income for the financial year | 138 | 76 | 169 | 5 | ||
| TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR | 5,679 | 5,225 | 2,486 | 3,563 | ||
Raul Puusepp
Chairman of the Board
Phone +372 731 5000
