| Segments (EURm) | Q4/13 | Q4/12 | yoy | 12m/13 | 12m/12 | yoy |
| Supermarkets | 92.1 | 86.9 | 6.1% | 343.1 | 330.0 | 4.0% |
| Department stores | 27.0 | 26.0 | 3.9% | 89.6 | 86.3 | 3.9% |
| Cars | 14.1 | 9.8 | 44.3% | 48.0 | 34.2 | 40.3% |
| Footwear | 4.1 | 4.1 | -0.8% | 14.7 | 14.4 | 1.7% |
| Real Estate | 0.9 | 0.7 | 28.3% | 3.3 | 2.9 | 14.0% |
| Total sales | 138.2 | 127.4 | 8.5% | 498.7 | 467.8 | 6.6% |
| Supermarkets | 3.5 | 3.5 | 2.4% | 4.7 | 9.0 | -48.5% |
| Department stores | 2.7 | 2.4 | 13.8% | 3.2 | 3.4 | -7.2% |
| Cars | 0.4 | 0.3 | 45.5% | 1.9 | 1.8 | 7.7% |
| Footwear | 0.1 | 0.2 | -19.7% | -0.1 | -0.1 | -11.1% |
| Real Estate | 2.1 | 1.9 | 12.3% | 7.8 | 6.7 | 16.1% |
| Total net profit | 8.9 | 8.2 | 8.9% | 17.5 | 20.9 | -16.3% |
The consolidated unaudited sales revenue of the Tallinna Kaubamaja Group in 2013 was 498.7 million euros, having grown by 6.6% compared to the result of 2012, when the sales revenue was 467.8 million euros. In the 4th quarter, the group’s sales revenue was 138.2 million euros, which is 8.5% more than the sales revenue earned the year before. The Group’s consolidated unaudited net profit of 2013 was 17.5 million euros, which is 16.3% less than the net profit of the previous year, when the net profit was 20.9 million euros. The Group's net profit earned in the 4th quarter was 8.9 million euros, having increased by 8.9% compared to the result of 2012. The pre-tax profit of 2013 was 21.2 million euros, having dropped by 13.8% in a year.
The accelerated growth in turnover in the second half of the year was satisfying and resulted in strong sales revenue numbers for the entire year. The growth of turnover was driven by the strong sales of food products and vehicles in the group. The sales of footwear and clothes were affected by the long warm autumn that lasted until the end of the year and strongly inhibited the sale of winter goods. The targeted actions of the group to improve the gross margin, especially in the supermarkets segment, increased profits by almost 9% year-on-year in 4th quarter, although labour costs and other operating costs, especially heating and electricity costs, continued to increase faster than turnover. The continued increase in competition in the Estonian retail market due to the addition of retail spaces generally dilutes the results of market participants and adds tension to price competition. The group has been actively dealing with this problem in the recent years. We have focused on increasing the ratio of direct delivery of goods and own production that gives us an opportunity to offer better prices to customers without losing our margins. For example, the sales revenue of the ready-to-eat foods produced by the group under the Selveri Köök trademark has increased by 11.0% in 2013. Another major challenge in 2013 has been the scarcity of labour leading to the rapid growth of labour costs. The positive sides of the growth of labour costs include a decrease in employee turnover and tying the growth in pay rates to growth in efficiency.
Selver supermarkets
In 2013, the consolidated sales revenue of the supermarkets business segment was 343.1 million euros, an increase of 4.0% year-on-year. The consolidated sales revenue earned in the 4th quarter was 92.1 million euros, a 6.1% increase year-on-year. In 2013, 33.8 million purchases were made in Selver stores, a result that exceeded the year-on-year number of purchases by 3.7%.
In 2013, the consolidated pre-tax profit of the supermarket segment was 6.4 million euros. Profit after taxes earned for 2013 was 4.7 million euros. Consolidated profit before taxes in the 4th quarter and net profit was 3.5 million euros. Net profit earned in the 4th quarter is up by 2.4% year-on-year; net profit earned in 2013 was down by 4.4 million euros compared to the previous period. Profit before taxes and net profit earned in Estonia in the 4th quarter was 4.1 million euros. Profit before taxes for 2013 was 8.8 million euros, with a net profit of 7.0 million euros. The difference between net profit and profit before income tax is due to the income tax paid on dividends. Pre-tax loss and net loss sustained in Latvia was 2.4 million euros in 2013, with a 0.6 million euro loss in 4th quarter. Net loss remained equal to last year’s. Business activity in Latvia has been frozen.
The growth of turnover in 2013, especially in the 4th quarter, has been driven by the opening of new stores. In the 4th quarter, as well as throughout the year, positive results have been observed in the sales of food products, the share of which in total turnover and total margin has continued to increase. The competitive situation has had a significant effect on Selver`s turnover and economic results. The continued scarcity of labour and difficulties in finding employees with the requisite skills has had a negative effect on profits. Profits are also influenced by the costs incurred in connection with the opening and launching of new stores and renovating the existing stores. In 2013, the Läänemere Selver in Tallinn and the Aardla Selver in Tartu were opened and the Saare Selver in Saaremaa expanded. In the 4th quarter, three new stores were opened: in the Baltic Railway Station in Tallinn, in Peetri small town, and in the centre of Viljandi. A positive result was the growth in sales revenue of Kulinaaria OÜ, an independent subsidiary operating Selveri Köök from October 2012, by 11.0% in 2013 compared to the previous year.
Department stores
The sales revenue of the department stores business segment was 89.6 million euros in 2013, growing 3.9% year-on-year. Sales revenue earned in the 4th quarter was 27.0 million euros, 3.9% higher than the revenue earned in the 4th quarter 2012. Renovation works undertaken in July and August in the Home department and Kidswear and Toys department in Tartu to open the largest Kidswear and Toys department in Southern Estonia in August had a negative effect on Department stores overall results in 2013. This completed the cycle of extensive renovation of all departments over the last two years. Sales revenue was also negatively affected by the unusually warm autumn and winter months that allowed the customers to postpone purchasing clothing and footwear. The profit before taxes of the department stores was 4.4 million euros in 2013, a 27.7% year-on-year increase. Profit before taxes in the 4th quarter was 2.7 million euros, a 13.8% increase over 2012. The reorganisation and renovation of retail spaces and the best ever service quality indicators have increased the average sum of purchase by 7%.
The sales revenue of OÜ TKM Beauty Eesti that operates the I.L.U. cosmetics stores was 4.6 million euros in 2013, an 11.5% increase over 2012. The 4th quarter sales revenue was 1.5 million euros, up by 5.1% year-on-year. The net loss of the I.L.U. chain in 2013 was 0.4 million euros, or 13.2% better result than last year. The profit of the I.L.U. chain earned in the 4th quarter, similarly to the fourth quarter of 2012, was nil. In August 2012, the I.L.U. chain opened its sixth store in the Tasku Centre in Tartu. Overall, sales were depressed in the accounting period compared to 2012 due to the aggressive sales campaigns and fast growth in sales by web stores, especially in the second half of the year.
Car Trade
The sales revenue of the car trade segment, excluding intra-segment transactions, was 48.0 million euros in 2013. Sales revenue exceeded year-on-year revenue by 40.3%, whereas the sales revenue of KIAs increased by 14.7%. The sales revenue of 14.1 million euros earned in the 4th quarter marked a 44.3% increase year-on-year, including a 5.8% growth in the sales revenue from selling KIAs. The net profit of the segment reached 1.9 million euros in 2013, with a 0.4 million euro net profit in the 4th quarter. This result exceeded the profit earned in the previous year by 7.7% and the profit earned in the 4th quarter 2012 by 45.6%.
The reason behind the growth of sales revenue and the significant improvement in profits earned in the 4th quarter was that the sales operations of Viking Motors AS, obtained in the middle of 2012, and Ülemiste Autokeskus OÜ were merged in Estonia in 2013 and the synergy from this reorganisation has resulted in a significant improvement in growth and investment capacity. The car trade segment was also positively influenced by the Latvian subsidiary Forum Auto SIA beginning to sell Peugeot passenger and commercial vehicles in the 3rd quarter. In addition, due to the renewed team and reorganised operational plan, the sale of KIA passenger cars in Forum Auto SIA has also increased.
Footwear trade
The turnover of the footwear trade segment was 14.7 million euros in 2013, a 1.7% increase over last year. The 4th quarter turnover was 4.1 million euros and remained on par with the same period in 2012. The footwear segment made a 0.1 million euro loss in 2013, which is similar to 2012 results. The footwear segment earned a profit of 0.1 million euros in the 4th quarter, 0.04 million euros less than in the 4th quarter 2012. The turnover and profit earned in 2013 were lower than planned. The main reasons were delays in delivery of goods and the unusually late arrival of winter, which significantly slowed down the sale of winter shoes.
Real Estate
The sales revenue of the business segment of real estate outside the Group totalled to 3.3 million euros in 2013 (2.9 million euros in 2012), having grown 14.0% compared to the same period of the previous year. The extra-Group sales revenue of the the 4th quarter was 0.9 million euros (0.7 million euros in the the 4th quarter of 2012), showing an increase of 28.3% from the same period of the previous year. The profit before taxes of the real estate segment in 2013 was 8.6 million euros, 0.96 million euros more than in the previous financial year (7.7 million euros in 2012), a year-on-year increase of 12.5%. The net profit of the segment was 7.8 million euros in 2013, up 1.1 million euros compared to the result of the year before (6.7 million euros in 2012), a year-on-year increase of 16.1%. The profit before taxes of the real estate segment in the 4th quarter was 2.1 million euros – 0.2 million euros more than in the same period of the previous financial year (1.9 million euros in 2012), a year-on-year increase of 12.3%. The growth of profit results from the increase in the leased space belonging to the company in 2013. In the first quarter of 2013, the premises of Valga Selver in Valga and Sõbra Selver in Tartu were acquired. In the 4th quarter of 2013, the Peetri Selver was completed in Rae rural municipality and a building in Riga in Ulmana Street was reconstructed into a modern car dealership.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In thousands of euros
| 31.12.2013 | 31.12.2012 | |
| ASSETS | ||
| Current assets | ||
| Cash and bank | 14,766 | 13,494 |
| Trade receivables and prepayments | 15,991 | 18,497 |
| Inventories | 51,937 | 48,264 |
| Total current assets | 82,694 | 80,255 |
| Non-current assets | ||
| Receivables and prepayments | 313 | 667 |
| Investments in associates | 1,711 | 1,628 |
| Investment property | 3,035 | 3,756 |
| Property, plant and equipment | 229,406 | 190,298 |
| Intangible assets | 10,636 | 11,236 |
| Total non-current assets | 245,101 | 207,585 |
| TOTAL ASSETS | 327,795 | 287,840 |
| LIABILITIES AND EQUITY | , | |
| Current liabilities | ||
| Borrowings | 14,300 | 17,210 |
| Trade payables and other liabilities | 67,725 | 64,151 |
| Total current liabilities | 82,025 | 81,361 |
| Non-current liabilities | ||
| Borrowings | 77,104 | 59,781 |
| Provisions and prepayments | 878 | 519 |
| Total non-current liabilities | 77,982 | 60,300 |
| TOTAL LIABILITIES | 160,007 | 141,661 |
| Equity | ||
| Share capital | 24,438 | 24,438 |
| Statutory reserve capital | 2,603 | 2,603 |
| Revaluation reserve | 68,617 | 51,079 |
| Currency translation differences | -257 | -7 |
| Retained earnings | 72,387 | 68,066 |
| TOTAL EQUITY | 167,788 | 146,179 |
| TOTAL LIABILITIES AND EQUITY | 327,795 | 287,840 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In thousands of euros
|
IV quarter 2013 |
IV quarter 2012 |
12 months 2013 |
12 months 2012 |
|||
| Revenue | 138,205 | 127,436 | 498,721 | 467,800 | ||
| Other operating income | 399 | 187 | 966 | 820 | ||
| Materials, consumables used and services | -100,722 | -93,061 | -372,930 | -347,119 | ||
| Other operating expenses | -13,885 | -12,983 | -51,365 | -47,242 | ||
| Staff costs | -11,843 | -10,241 | -41,571 | -36,376 | ||
| Depreciation, amortisation and impairment losses | -2,509 | -2,687 | -10,730 | -11,481 | ||
| Other expenses | -364 | -113 | -726 | -383 | ||
| Operating profit | 9,281 | 8,538 | 22,365 | 26,019 | ||
| Finance income | 7 | 24 | 31 | 133 | ||
| Finance costs | -378 | -384 | -1,322 | -1,647 | ||
| Finance income on shares of associates | 29 | 26 | 163 | 126 | ||
| Profit before tax | 8,939 | 8,204 | 21,237 | 24,631 | ||
| Income tax | -3 | 2 | -3,773 | -3,761 | ||
| NET PROFIT FOR THE FINANCIAL YEAR | 8,936 | 8,206 | 17,464 | 20,870 | ||
| Other comprehensive income: | ||||||
| Items that will be reclassified subsequently to profit or loss | ||||||
| Currency translation differences | 18 650 | 0 | 18 650 | 0 | ||
| Other comprehensive income/loss for the financial year | -7 | -57 | -250 | 104 | ||
| TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR | 18,643 | -57 | 18,400 | 104 | ||
Raul Puusepp
Chairman of the Board
Phone +372 731 5000
