|Total net profit||8.2||8.7||-5.7%||20.9||21.5||-3.1%|
The consolidated unaudited sales revenue of the Tallinna Kaubamaja Group in 2012 was 467.8 million euros, having grown by 7.3% compared to the result of 2011. In the 4th quarter, the group’s sales revenue was 127.4 million euros, which is 6.6% more than the sales revenue earned the year before. The Group’s consolidated unaudited net profit of 2012 was 20.9 million euros, which is 3.1% less than the net profit of the previous year (21.5 million euros). The Group's net profit earned in the 4th quarter was 8.2 million euros, having decreased by 5.7% compared to the result of 2011, which was 8.7 million euros. The pre-tax profit of 2012 was 24.6 million euros, having grown by 0.2% in a year.
The fourth quarter of the Tallinna Kaubamaja Group was characterised by a steady growth in sales revenue and the opening of six new stores. In December, Selver opened two new supermarkets; the KoduSelver, which represents the corner shop concept, entered the market; and a new Selver gourmet store was opened. In November 2012 the footwear chain opened Shu stores in Viljandi and Pärnu, and in December, an ABC King store in Lõunakeskus in Tartu was reopened. In the fourth quarter of 2012 at almost the same gross margin, the profit earned by the group was almost 0.5 million euros smaller compared to the fourth quarter of 2011. The main factors influencing the result were the one-time opening costs of new stores as well as the 14% increase in heating and energy expenditure, which is reflected in various operating costs. Wage costs grew due to the increased number of employees as well as sales result-dependent performance pay. In the 2012 summary, net profit was also influenced by the write-off of software that had lost its usefulness in the sum of 0.9 million euros, recorded in the depreciation of fixed assets.
The keywords characterising the entire year 2012 were the large-scale launch of new concepts and the renovation of sales environments. During the last months of the year, the loyalty programme and bonus system, which was launched in May 2012, gave the group the opportunity to begin group-wide analytical marketing campaigns by using the purchase potential of loyal customers more efficiently and finding synergy between different segments. The group also intends to devote considerable attention to analytical marketing in 2013. In 2013, the group will focus on improving the profitability of segments and increasing their competitive strength, but also on making innovations in trade systems and continuing to improve internal work organisation.
The consolidated sales revenue of the supermarket business segment and the sales revenue earned in Estonia in 2012 was 330.0 million euros, having increased by 3.8% compared to the previous year. Of that, the consolidated sales revenue of the 4th quarter and the sales revenue earned in Estonia was 86.9 million euros, which shows an increase of 4.7% compared to the same period of the previous year. Compared to 2011, the Selver chain grew by one supermarket opened in May in Saku and one gourmet store opened in October in Tallinna Kaubamaja. In November, another gourmet store was opened in the Solaris Centre in Tallinn. Furthermore, another three Selver stores were added to the Selver chain in the end of the 4th quarter. December saw the opening of two supermarkets – the Vahi Selver in Tartu and a Selver in Rapla – and one convenient store Koduselver in Tallinn. Opening new stores in the end of the 4th quarter did not have a significant impact on the sales results of the entire Selver chain as of yet. The larger share of campaigns, incl. campaigns directed at loyal customers, has had a positive effect on the increase of an average purchase. In addition, the turnover seen during the Christmas and end-of-the-year period was greater than the average increase in turnover in 2011. The renewed loyalty programme and the efforts made to improve service quality made further contributions to the increase of the sales revenue. The peculiarities of the renewed loyalty programme will have an impact on sales revenue, since the bonus points awarded to customers decrease the sales revenue in accounting terms. Compared to the previous year, the growth of the sales revenue has been positively influenced by increasing competition in the retail trade market, where competitors opened more new stores in both 2011 and 2012. New stores inevitably bring about the division of customers among stores.
The consolidated pre-tax profit of supermarkets in 2012 was 11.8 million euros, having decreased by 15.8% in relation to the comparable period. The net profit was 9.0 million euros, having decreased by 18.0% in relation to the comparable period. The consolidated pre-tax profit and net profit of the 4th quarter was 3.5 million euros, indicating a 21.4% decrease in both compared to the period of a year before. The pre-tax profit earned in Estonia in 2012 was 14.2 million euros, 4.1 million euros of which was generated in the 4th quarter. The profit biases compared to the period of a year before were -13.4% and -18.8%, respectively. The net profit earned in Estonia in 2012 was 11.4 million euros, having decreased by 14.8% in relation to the comparable reference period. The net profit of the 4th quarter was 4.1 million euros, which made up 81.2% of the profit earned a year before. No sales revenue from goods was generated in Latvia in 2012. The pre-tax loss and net loss earned in Latvia in 2012 was 2.3 million euros, 0.6 million euros of which were incurred in the 4th quarter. The loss remained on the level of the year earlier, changing -0.6% and +1.4%, respectively. Business activities in Latvia are frozen.
Selver’s profit in Estonia has been positively influenced by increased labour efficiency, which was achieved by reviewing the employees’ work processes and introducing a multifunctional organisation of work. In addition, the income tax paid on dividends was 7.6% lower this year than the year before. Compared to the year before, this year’s profit was influenced by the increase in depreciation costs and operating costs, which were caused by the renovation of four stores carried out during last year; the introduction of the novel SelveEkspress shopping system in four stores in 2011 and in three stores in 2012; the creation of the Selver Bakeries concept, which was completed in the 1st quarter of 2012 and resulted in taking over the baking stalls of stores; the opening of four new Selver stores and two Selver gourmet stores. Pursuant to the above, the amount spent on investments and operating costs in 2011 and 2012 was higher than during previous years. In addition, results were influenced by the launching costs of the loyalty programme, which was renewed in May 2012, and the volume of marketing campaigns, which had increased compared to the previous year. In June 2012 it was decided to replace IT software, which resulted in the write-off of software investments in the sum of 0.9 million euros.
The plans for 2013 foresee continued active expansion. Lease contracts have been entered into for four new stores, which are to be opened in 2013. It is likely that more new stores will be added. As of the end of December 2012 the chain of Selver stores included 38 Selver stores and two gourmet stores. The selling space of the stores as of the end of 2012 was 73.1 thousand square meters.
The sales revenue of the department store business segment in 2012 was 86.3 million euros, having grown by 7.1% compared to the previous year. The sales revenue earned in the 4th quarter was 26.0 million euros, which was 2.9% higher than the revenue earned in the 4th quarter of 2011. In 2012, the month’s average sales revenue of department stores per one square metre of selling space was 0.29 thousand euros, which is 8.9% more than in 2011. The summarised sales revenue of 2012 was negatively impacted by extensive renovation works carried out in the Women’s and Children’s Departments of Tallinna Kaubamaja since mid-January to March and the renovation works done in the Women’s, Beauty and Shoe Departments of Tartu Kaubamaja in the 3rd quarter. On the other hand, the thorough reorganisation of sales spaces has in conclusion increased the sales efficiency of the department stores. The updated selection of brands in the Women’s Department as well as ongoing marketing activities have considerably (by 11%) increased the number of young (below 35) loyal customers. The improved inclusion of young customers was also one of the main goals of updating our visual identity during 2012 and the introduction of a new advertising language. The launch of the new internal training system and constant focus on the improvement of service quality during the year have increased the average purchase amount by 7.1%, and also improved service indicators. The net-profit of department stores in the 2012 was 3.4 million euros, exceeding the result of the year before by 24.1%. The business profit of the department store segment was 3.1 million euros, having grown by 26.7% compared to the previous year. The net-profit of the 4th quarter was 2.4 million euros, which exceeded the profit of 2011 by 5%.
The sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. beauty stores, was 4.1 million euros in 2012, having increased by 28.3% compared to 2011. Of that, the sales revenue earned in the 4th quarter was 1.4 million euros, which was 20.1% more than the result achieved during the same period in 2011. The net loss of the I.L.U. chain in the 2012 was 0.4 million euros, which is 0.1 million euros smaller than the loss of 2011. The net loss in the 4th quarter of 2012 amounted to 0.007 million euro, which is 0.26 million euros smaller compared to the 4th quarter of the previous year.
The sales revenue of the car trade segment earned in the 2012 without inter-segment transactions was 34.2 million euros, thus exceeding the revenue of the same period of the year before by 64.8%. The sales revenue of the fourth quarter in the sum of 9.8 million euros was greater than the revenue of the year before by 48.9%. The sales of the Opel and Cadillac models sold by Viking Motors AS, which were added to the vehicle segment in July 2012 reached 32 in the 4th quarter. The sales revenue of Viking Motors in the 4th quarter of this year was 1.6 million euros. The segment earned a profit 1.8 million euros in 2012, of that, 0.3 million was generated in the 4th quarter. The respective profits of 2011 were 1.3 million euros and 0.3 million euros.
The turnover of the footwear segment in 2012 was 14.4 million euros, having increased by 3.1% by the end of the year. In the 4th quarter, the turnover was 4.1 million euros, which is 2.6% higher than the result achieved during the same period in 2011. The loss of 2012 was 0.1 million euros, which has decreased by approximately 0.1 million euros compared to the same period of the previous accounting year. In the 4th quarter of year 2012 the Footwear trade segment earned 0.2 million euros profit and it increased by 3.5% compared to the 4th quarter of 2011. Three new stores were opened in the 4th quarter of 2012. As of the end of December, Suurtüki NK OÜ owns 16 stores and ABC King AS owns 10 stores. Plans for February 2013 include opening a Shu store in the shopping centre Tsentraal in Jõhvi.
The external sales revenue of the real estate business segment earned in 2012 was 2.9 million euros, having grown by 2.7% compared to the previous year. The external sales revenue of the real estate business segment earned in the 4th quarter of 2012 was 0.7 million euros, which indicates a decrease of 0.9% compared to the same period of the previous year. The increase in revenue that occurred in the beginning of the year was mainly caused by the reorganisation of the tenants and leased spaces of Tartu Kaubamaja Kinnisvara OÜ in the first half of 2012. In the second half of 2012, the group needed to start using some spaces that were previously rented out for its own purposes; this caused a slight decrease in the external sales revenue in the end of the year. The pre-tax profit of the segment of real estate of 2012 was 7.7 million euros and the pre-tax profit of the 4th quarter was 1.9 million euros. This result exceeded the pre-tax profit of 2011 by 1.0 million euros and the pre-tax profit of the 4th quarter by 0.4 million euros, which is based on an increase in sales revenues. The segment’s net profit of 2012 was 6.7 million euros, which is 0.1 million euros more than the net profit earned year earlier.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In thousands of euros
|Cash and bank||13,494||11 948|
|Trade receivables and prepayments||18,497||20 702|
|Total current assets||80,255||74 228|
|Receivables and prepayments||667||1,041|
|Investments in associates||1,628||1,550|
|Property. plant and equipment||190,298||172,272|
|Total non-current assets||207,585||188,238|
|LIABILITIES AND EQUITY|
|Trade payables and other liabilities||64,151||56,081|
|Total current liabilities||81,361||67,342|
|Provisions and prepayments||519||73|
|Total non-current liabilities||60,300||55,664|
|Statutory reserve capital||2,603||2,603|
|Currency translation differences||-7||-111|
|TOTAL LIABILITIES AND EQUITY||287,840||262,466|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In thousands of euros
|IV quarter 2012||IV quarter 2011||12 months 2012||12 months 2011|
|Other operating income||187||138||820||420|
|Materials, consumables used and services||-93,061||-86,977||-347,119||-321,503|
|Other operating expenses||-12,983||-11,544||-47,242||-44,353|
|Depreciation, amortisation and impairment losses||-2,687||-2,544||-11,481||-9,976|
|Finance income on shares of associates||26||17||126||150|
|Profit before tax||8,204||8,706||24,631||24,573|
|NET PROFIT FOR THE FINANCIAL YEAR||8,206||8,702||20,870||21,538|
|Other comprehensive income:|
|Currency translation differences||-57||442||104||515|
|Other comprehensive income for the financial year||-57||442||104||515|
|TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR||8,149||9,144||20,974||22,053|
Chairman of the Board
Phone +372 731 5000