Marimekko Corporation INTERIM REPORT
5 November 2009 at 9 a.m.
MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2009
In the January-September period of 2009, the Marimekko Group's net sales fell by
12% to EUR 51.8 million (EUR 59.0 million). Operating profit fell to EUR 3.9
million (EUR 8.1 million). Operating profit without non-recurring items amounted
to EUR 4.5 million (EUR 8.1 million). Profit after taxes for the period was EUR
3.0 million (EUR 6.0 million); earnings per share were EUR 0.37 (EUR 0.75). Cash
flow from operating activities before financial items and taxes stood at EUR 6.4
million (EUR 5.5 million). The full-year estimate for 2009 is unchanged: net
sales are forecast to decrease by about 10% from the year 2008 and operating
result is expected to decline distinctly.
1-9/ 1-9/ Change, 1-12/
2009 2008 % 2008
Net sales, EUR 1,000 51,754 59,046 -12.3 81,107
Exports and income from
international operations,
% of net sales 30.1 29.9 27.0
Operating profit, EUR 1,000 3,938 8,111 -51.5 9,956
Operating profit without
non-recurring items,
EUR 1,000 4,450 8,111 -45.1 9,956
Profit before taxes,
EUR 1,000 3,985 8,124 -51.0 9,964
Profit for the period,
EUR 1,000 2,962 6,012 -50.7 7,378
Earnings per share, EUR 0.37 0.75 -50.7 0.92
Earnings per share without
non-recurring items, EUR 0.44 0.75 -41.3 0.92
Equity per share, EUR 3.74 3.75 -0.3 3.92
Return on equity (ROE), % 12.8 26.9 24.2
Return on investment (ROI), % 17.3 33.8 32.3
Equity ratio, % 77.8 71.8 78.7
Mika Ihamuotila, President and CEO:
“The current year 2009 has been characterised by challenging market conditions.
The sharp decline in consumer demand has reduced Marimekko's sales both in
Finland and abroad. The situation varies in different markets, but there are no
clear signs of improvement on the horizon so far. In these difficult market
conditions, positive news comes from Japan where trends have been good; during
the period under review, five new Marimekko concept stores were opened in Japan.
A new concept store was also opened in Copenhagen in July. After the review
period, Marimekko has opened its refurbished shop in Stockholm and a new one in
Tampere, Finland.
During the current year, we have taken action to improve the cost structure and
efficiency of operations in order to adjust our operations to reduced demand and
slow down the fall in profitability. We have managed to improve the company's
cash flow by cutting fixed costs and enhancing the efficiency of working capital
management; in the January-September period of 2009, the change in working
capital was EUR 1.4 million (EUR -3.6 million) and cash flow from operating
activities before financial items and taxes amounted to EUR 6.4 million (EUR 5.5
million). We believe that the reorganisation of operations, enhanced efficiency,
and the actions aimed at cutting fixed costs will increase our potential for
growth in the coming years.
Despite the difficult operating environment, we are confident that Marimekko is
heading in the right direction, and we will continue our long-term investment in
product development and internationalisation.”
All of Marimekko's stock exchange releases are available on the company's
website www.marimekko.com under Investors/Releases.
For additional information, contact:
Mika Ihamuotila, President and CEO, tel. +358 9 758 71
Thomas Ekström, CFO, tel. +358 9 758 7261
MARIMEKKO CORPORATION
Group Communications
Piia Pakarinen
Tel. +358 9 758 7293
Fax +358 9 755 3051
Email: piia.pakarinen@marimekko.fi
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Principal media
Marimekko's website www.marimekko.com
Marimekko, established in 1951, is a leading Finnish textile and clothing design
company renowned for its original prints and colours. The company designs and
manufactures high-quality clothing, interior decoration textiles, bags and other
accessories. Marimekko products are sold in over 40 countries. Products with
Marimekko designs are also manufactured under licence in various countries. In
2008, the company's net sales amounted to EUR 81.1 million. Exports and
international operations accounted for 27.0% of the Group's net sales. The Group
employs about 400 people. The company's share is quoted on the NASDAQ OMX
Helsinki Ltd.
MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2009
NET SALES
July-September
In the July-September period of 2009, the Marimekko Group's net sales fell by
11.0% to EUR 19,492 thousand (EUR 21,913 thousand). In Finland, net sales fell
by 10.1% to EUR 14,183 thousand (EUR 15,776 thousand). The difference in
relation to the comparison period is partly due to revenues from a one-off
promotion in the corresponding period of the previous year. Exports and income
from international operations fell by 13.5%, totalling EUR 5,309 thousand (EUR
6,137 thousand).
January-September
In the January-September period of 2009, the Marimekko Group's net sales fell by
12.3% to EUR 51,754 thousand (EUR 59,046 thousand). Net sales in Finland
decreased by 12.7% to EUR 36,173 thousand (EUR 41,413 thousand). Exports and
income from international operations fell by 11.6%, totalling EUR 15,581
thousand (EUR 17,633 thousand). Exports and income from international operations
accounted for 30.1% (29.9%) of the Group's net sales. The fall in net sales was
largely due to a slowdown in demand caused by weak market conditions. Wholesale
sales both in Finland and abroad were especially affected by the slowdown. The
difference in relation to the comparison period was also increased by revenues
from individual promotions and one-off income from sales of licensed products in
the corresponding period of the previous year.
The breakdown of the Group's net sales by product line was as follows: clothing,
41.1%; interior decoration, 40.6%; and bags, 18.3%. Net sales by market area
were: Finland, 69.9%; the other Nordic countries, 10.3%; the rest of Europe,
7.4%; North America, 4.5%; and other countries (Japan and other regions outside
Europe and North America), 7.9%.
During the January-September period of 2009, the sales from Marimekko's own
retail shops in Finland fell by 1.8% compared with the corresponding period in
2008.
Sales to retailers in Finland decreased by 23.6%. The sharp fall in sales from
the comparison period was partly due to significant one-off orders for
promotions in the first and third quarters of 2008.
MARKET SITUATION
The recovery of the world economy seems to have begun, but the economic outlook
for the near future is still bleak. Retail sales in Finland are forecast to
continue to fall during the rest of the year, and employment is expected to
decline sharply. (Confederation of Finnish Industries EK: Economic Review, 9
October 2009). Consumers' confidence in the Finnish economy has improved, but
people feel insecure about their own employment prospects. (Statistics Finland:
Consumer Barometer, October 2009). In the January-September period of 2009, the
value of retail sales in Finland fell by 3.3% (Statistics Finland: Retail trade
quick estimate, September 2009). Retail sales of clothing (excluding sportswear)
fell by 2.9% (Textile and Fashion Industries TMA). Sales of womenswear fell by
2.2%, sales of menswear by 5.2%, and sales of childrenswear by 2.5%. Sales of
bags declined by 9.2% and sales of home textiles by 8.7%. In the January-August
period of 2009, exports of clothing (SITC 84) fell by 16% and imports by 7%;
exports of textiles (SITC 65) decreased by 24% and imports by 26% (National
Board of Customs, monthly review, August 2009).
REVIEWS BY BUSINESS UNIT
Clothing
In the January-September period of 2009, net sales of clothing fell by 9.0% to
EUR 21,253 thousand (EUR 23,367 thousand). In Japan, extremely vigorous growth
continued. Sales also increased slightly in the market area referred to as “the
rest of Europe”. Sales in Finland fell somewhat. In North America and the market
area referred to as “the other Nordic countries”, sales declined significantly.
Exports and income from international operations accounted for 25.8% of net
sales of clothing.
Interior decoration
Net sales of interior decoration products fell by 15.2% to EUR 21,029 thousand
(EUR 24,812 thousand). Good growth continued in Japan. Sales fell sharply in
Finland and the other Nordic countries. In North America and the market area
referred to as “the rest of Europe”, sales declined slightly. Exports and income
from international operations accounted for 33.3% of net sales of interior
decoration products.
Bags
Net sales of bags fell by 12.8% to EUR 9,472 thousand (EUR 10,867 thousand). In
Japan and in the market area referred to as “the rest of Europe”, good growth
continued. Sales in other export markets and in Finland decreased substantially.
Exports and income from international operations accounted for 32.8% of net
sales of bags.
Business-to-business sales
Business-to-business sales fell by 9.2%. The fall was mainly due to substantial
deliveries for one-off promotions in the corresponding period in 2008, higher
than one-off orders for promotions during this year. The continuing downtrend in
the economy during the current year has also significantly reduced purchases by
corporate clients.
Exports and international operations
During the review period, uncertainty about economic conditions continued,
consumer demand declined further, and customers were cautious about making
purchases. In the January-September period of 2009, Marimekko's exports and
income from international operations fell by 11.6% and totalled EUR 15,581
thousand (EUR 17,633 thousand). Sales trends varied greatly by country. Japan
showed vigorous growth, while sales increased slightly in the market area
referred to as “the rest of Europe”. In other export markets, sales fell. The
major countries for exports were Japan, Sweden, the United States, Denmark and
Norway.
In the market area referred to as “the other Nordic countries”, sales in all
product lines decreased considerably. Net sales fell to EUR 5,317 thousand,
which was 31.9% less than the previous year (EUR 7,809 thousand). In addition to
a decrease in sales volumes, the weakening of the Swedish krona (by about 20%)
as well as one-off income generated from sales of licensed products in the
second quarter of 2008 contributed to the fall in net sales.
In the market area referred to as “the rest of Europe”, net sales rose by 2.0%
to EUR 3,843 thousand (EUR 3,767 thousand). Sales of bags showed good growth;
clothing sales grew slightly. Sales of interior decoration products fell
somewhat.
In North America, net sales fell by 19.7% to EUR 2,309 thousand (EUR 2,877
thousand). Bag and clothing sales declined very sharply; sales of interior
decoration products fell slightly.
In the market area referred to as "other countries", net sales rose from the
comparison period by 29.3%, totalling EUR 4,112 thousand (EUR 3,180 thousand).
The growth was wholly generated by Japan, where sales of clothing, in
particular, increased extremely vigorously. The five new Marimekko concept
stores that were opened during the review period were the main source of growth.
At the end of the period, there were a total of twenty Marimekko concept stores
and shop-in-shops in Japan.
Licensing
Royalty earnings from sales of licensed products fell significantly compared
with the corresponding period of the previous year. The fall was entirely due to
one-off income from licensing cooperation with H & M Hennes & Mauritz AB,
recognised in the second quarter of 2008. During the review period, royalty
earnings grew considerably in the United States and somewhat in Finland.
Production and sourcing
During the January-September period of 2009, the production volume of the
Herttoniemi textile printing factory fell by 26%. This was mostly due to the
reduction of inventories and collections. After the old printing machine was
taken out of use in June, production capacity has diminished and is in full use.
Production volumes at the Kitee and Sulkava factories remained at the same level
as in the corresponding period of the previous year. Subcontract manufacture of
some products was reduced and their production transferred to the company's own
factories during the period.
EARNINGS
July-September
In the July-September period of 2009, the Group's operating profit fell by 22.6%
on the comparison period, amounting to EUR 2,901 thousand (EUR 3,747 thousand).
Operating profit includes a non-recurring cost provision of EUR 512 thousand
related to personnel reductions resulting from savings and efficiency actions.
The cost provision actually made was lower than announced earlier (EUR 800
thousand), because a larger number than anticipated of the employees dismissed
decided to work during the notice period or found other employment within the
Group.
Operating profit without non-recurring items stood at EUR 3,413 thousand (EUR
3,747 thousand). In addition to reduced sales, profitability was affected by
revenues from one-off promotions in the corresponding quarter of 2008, larger
than in the review period. Increased lease expenses from shops also had a
negative impact on profitability. On the other hand, as a result of efficiency
enhancements and cost saving actions, fixed costs declined from the
corresponding period of 2008.
Earnings per share were EUR 0.27 (EUR 0.35).
January-September
In the January-September period of 2009, the Group's operating profit fell by
51.5% to EUR 3,938 thousand (EUR 8,111 thousand). Operating profit as a
percentage of net sales amounted to 7.6% (13.7%). Operating profit includes a
non-recurring cost provision of EUR 512 thousand related to personnel reductions
resulting from savings and efficiency actions. The cost provision actually made
was lower than announced earlier (EUR 800 thousand), because a larger number
than anticipated of the employees dismissed decided to work during the notice
period or found other employment within the Group.
Operating profit without non-recurring items stood at EUR 4,450 thousand (EUR
8,111 thousand). Operating profit was affected by a sharp fall in sales. The
difference in relation to the comparison period was also increased by revenues
from individual promotions in the corresponding period of 2008, larger than in
the review period, as well as significant one-off income from sales of licensed
products. Furthermore, increased lease expenses from shops had a negative impact
on profitability. On the other hand, savings of about EUR 300 thousand in fixed
costs compared with the corresponding period of 2008 were achieved through
efficiency enhancements and cost saving actions.
Marketing expenses for the period totalled EUR 2,217 thousand (EUR 2,561
thousand), representing 4.3% (4.3%) of net sales. The marketing costs in the
period were lower than usual. Full-year marketing expenses are at the same level
as in 2008.
The Group's depreciation amounted to EUR 1,031 thousand (EUR 983 thousand),
representing 2.0% (1.7%) of net sales. Net financial income totalled EUR 47
thousand (EUR 13 thousand), or 0.1% (0.0%) of net sales.
Profit for the period after taxes fell by 50.7% to EUR 2,962 thousand (EUR 6,012
thousand), representing 5.7% (10.2%) of net sales. Earnings per share were EUR
0.37 (EUR 0.75).
INVESTMENTS
The Group's gross investments amounted to EUR 782 thousand (EUR 803 thousand),
representing 1.5% (1.4%) of net sales. The majority of investments were directed
at the refurbishment of shops and the renovation of the Herttoniemi facilities.
EQUITY RATIO AND FINANCING
The Group's equity ratio was 77.8% at the end of the period (71.8% on 30
September 2008, 78.7% on 31 December 2008). The ratio of interest-bearing
liabilities minus financial assets to shareholders' equity (gearing) was -20.3%,
while it was -6.2% at the end of the corresponding period in the previous year
(-18.8% on 31 December 2008).
At the end of the period, the Group's financial liabilities stood at EUR 0 (EUR
3,820 thousand). The Group's financial assets at the end of the period amounted
to EUR 6,091 thousand (EUR 5,704 thousand).
SHARES AND SHARE PRICE TREND
Share capital
At the end of the period, the company's fully paid-up share capital, as recorded
in the Trade Register, amounted to EUR 8,040,000, and the number of shares
totalled 8,040,000.
Shareholdings
According to the book-entry register, Marimekko had 6,723 (5,967) shareholders
at the end of the period. Of the shares, 13.6% were registered in a nominee's
name and 18.0% were in foreign ownership. At the end of the period, the number
of shares owned either directly or indirectly by members of the Board of
Directors and the President of the company was 1,090,093, representing 13.6% of
the total share capital and of the votes conferred by the company's shares.
The largest shareholders according to the book-entry register on 30 September
2009
Number of Percentage of
shares and votes holding and votes
1. Muotitila Ltd 1,045,200 13.00
2. Semerca Investment Ltd 850,377 10.58
3. ODIN Finland 414,553 5.16
4. Varma Mutual Employment
Pension Insurance Company 385,920 4.80
5. Ilmarinen Mutual
Pension Insurance Company 265,419 3.30
6. Veritas Pension Insurance Company 220,000 2.74
7. Nordea Nordenfonden 173,506 2.16
8. Sairanen Seppo 71,379 0.89
9. Nacawi Ab 60,300 0.75
10. Foundation for
Economic Education 50,000 0.62
11. Mutual Fund Tapiola Finland 50,000 0.62
12. Scanmagnetics Oy 40,000 0.49
13. Nordea Nordic Small Cap Fund 38,904 0.48
14. Haapanala Auvo 33,000 0.41
15. Fromond Elsa 32,200 0.40
Total 3,730,758 46.40
Nominee-registered 1,095,852 13.63
Others 3,213,390 39.97
Total 8,040,000 100.00
Flaggings
As a result of a transaction made on 8 April 2009, Barclays Capital Securities
Limited's share of Marimekko Corporation's share capital and voting rights rose
to 6.09%, or 490,00 shares; and then fell to 0.00%, or 0 shares, as a result of
a transaction made on 14 April 2009.
Fautor S.P.R.L.'s share of Marimekko Corporation's share capital and voting
rights fell to 0.00%, or 0 shares, as a result of a transaction concluded on 18
June 2009. Semerca Investments S.A.'s share of Marimekko Corporation's share
capital and voting rights rose to 10.58%, or 850,377 shares, as a result of a
transaction concluded on 18 June 2009. According to Marimekko Corporation's
knowledge, Semerca Investments S.A. is the parent company of Fautor S.P.R.L.
Authorisations
At the end of the review period, the Board of Directors had no valid
authorisations to carry out share issues or issue convertible bonds or bonds
with warrants, or to acquire or surrender Marimekko shares.
Share trading
During the review period, a total of 1,430,520 Marimekko shares were traded,
representing 17.8% of the shares outstanding. The total value of Marimekko's
share turnover was EUR 13,194,771. The lowest price of the Marimekko share was
EUR 7.50, the highest was EUR 11.44, and the average price was EUR 9.57. At the
end of the review period, the final price of the share was EUR 10.37. The
company's market capitalisation on 30 September 2009 was EUR 83,374,800 (EUR
95,676,000 on 30 September 2008, EUR 67,134,000 on 31 December 2008).
PERSONNEL
During the January-September period of 2009, the number of employees averaged
408 (410). At the end of the period, the Group employed 403 (409) people, of
whom 16 (16) worked abroad.
RISK MANAGEMENT AND MAJOR RISKS
Marimekko's risk management policy and the major risks to the company's business
operations have been detailed in the 2008 Annual Report and Financial Statements
as well as in the interim report for the first quarter of 2009. No changes have
taken place in these risk factors during the period under review.
In the near future, the main risks for Marimekko's business are associated with
general economic development and the consequent increased uncertainty in the
operating environment. In order to manage the risks, business activity
monitoring and especially cost management have been enhanced.
RESEARCH AND DEVELOPMENT
Marimekko's product planning and development costs arise from the design of
collections. Design costs are recorded in expenses.
ENVIRONMENT, HEALTH, AND SAFETY
Responsibility for the environment and nature is an integral aspect of
Marimekko's business. In environmental matters, the company's business
supervision is largely based on legislation and other regulations. The framework
for Marimekko's social responsibility reporting is provided by the G3 guidelines
of the Global Reporting Initiative (GRI). Detailed information on environmental
issues and their reporting can be found in the 2008 Annual Report.
MARIMEKKO-OWNED RETAIL SHOP AND SUBSIDIARY IN THE UNITED KINGDOM
The Marimekko store in London was acquired from Skandium Ltd on 1 April 2009.
The store's operations are administered by Marimekko UK Ltd, a subsidiary
established at the end of March 2009.
DECISIONS OF THE ANNUAL GENERAL MEETING
Marimekko Corporation's Annual General Meeting, held on 8 April 2009, adopted
the company's financial statements for 2008 and discharged the President and
members of the Board from liability. The Annual General Meeting approved the
Board of Directors' proposal for a dividend payment of EUR 0.55 per share for
the 2008 financial year, totalling EUR 4,422,000.00. The dividend payout record
date was 15 April 2009, and the dividend payout date 22 April 2009.
The Annual General Meeting confirmed that the company's Board of Directors shall
have five (5) members. Ami Hasan, Mika Ihamuotila, Joakim Karske, Pekka Lundmark
and Tarja Pääkkönen were re-elected to the Board of Directors. The term of
office for the Board runs until the end of the next Annual General Meeting. At
its organisation meeting held after the Annual General Meeting, the Board of
Directors elected Pekka Lundmark as Chairman and Mika Ihamuotila as Vice
Chairman of the Board.
The Annual General Meeting re-elected PricewaterhouseCoopers Oy, Authorised
Public Accountants, as the company's regular auditor, with Kim Karhu, Authorised
Public Accountant, as chief auditor. It was decided that the auditors' fee would
be paid as per invoice.
Amendment of the Articles of Association
The Annual General Meeting approved the Board of Directors' proposal to amend
the Articles 3, 4, 5, 6, 8, 9, 11, 12 and 13 of Marimekko Corporation's Articles
of Association. The amendments have been detailed in the Notice of the Annual
General Meeting published on 16 March 2009. The Articles of Association approved
at the Annual General Meeting are appended to the stock exchange release dated 8
April 2009.
CHANGES IN COMPANY MANAGEMENT
Ms Malin Groop, Marimekko's Marketing Manager, was appointed as the Group's
Marketing Director and member of the Management Group as of 1 August 2009. Ms
Marja Korkeela, Head of Group Communications and Investor Relations and member
of the Management Group, left the company on 31 August 2009.
EFFICIENCY ENHANCEMENT AND STATUTORY EMPLOYER-EMPLOYEE NEGOTIATIONS REGARDING
OPERATIONS IN FINLAND
On 13 August 2009, Marimekko announced the start of Group-wide statutory
employer-employee negotiations regarding possible temporary lay-offs and a
permanent reduction in the number of employees in Finland. The maximum number of
permanent reductions was not expected to exceed 35 employees. The aim of the
negotiations was to adapt the company's cost structure to the rapidly
deteriorating market situation and improve the company's ability to develop its
operations as well as safeguard the conditions for the stable development of the
company. Annual cost savings of about EUR 1.5 million were being sought by
various measures.
MAJOR EVENTS AFTER THE CLOSE OF THE REVIEW PERIOD
Completion of statutory employer-employee negotiations
On 7 October 2009, Marimekko announced that its Group-wide statutory
employer-employee negotiations concerning the entire Group, begun in August
2009, had been completed. The company stated that reorganisation of functions
and rationalisation of operations would result in the elimination of 35
positions. In addition, the company announced that it needed to fill eight new
positions; where possible, these positions would be filled by internal
transfers. Temporary layoffs have been rejected for the rest of 2009, but
certain functions will be prepared for possible lay-offs until 31 May 2010. The
personnel cutbacks and other measures to be taken are expected to bring annual
cost savings of approximately EUR 1.5 million in total. The annual costs of the
new positions are estimated at about EUR 0.4 million. The company announced
that, in connection with the personnel reductions, it would make a non-recurring
cost provision of EUR 0.8 million for the third quarter of 2009. The cost
provision actually made amounted to EUR 0.5 million, because a larger number
than anticipated of the employees dismissed decided to work during the notice
period or found other employment within the Group.
Changes in company management
Ms Mervi Metsänen-Kalliovaara, Marimekko's Sales Director and a member of its
Management Group left the company on 7 October 2009. As of 7 October 2009, the
Marimekko Group's Management Group is composed of Mika Ihamuotila as Chairman,
with members Thomas Ekström (finance, control and investor relations), Malin
Groop (marketing) Päivi Lonka (international sales), Niina Nenonen (clothing,
bags and accessories), Piia Rossi (company-owned retail stores), and Helinä
Uotila (production, purchases, and interior decoration).
OUTLOOK FOR THE REMAINDER OF 2009
Marimekko Corporation operates in a field where economic trends affect its
business activities. The majority of the Group's net sales come from Finland. In
recent years, however, exports have increasingly been driving Marimekko's net
sales growth. A significant part of the growth has been attributable to the
acquisition of new customers and the opening of concept stores. In 2008, the
Group's earnings and growth in net sales were largely attributable to
significant individual promotional deliveries in Finland and one-off income from
sales of licensed products.
In the first nine months of 2009, Marimekko's net sales decreased and profit
fell considerably due to a sharp decline in demand caused by the economic
recession. The difficult market situation continues with no signs of recovery
yet. The downtrend in trade is expected to continue during the rest of the year,
and it is still difficult to estimate the trend in consumer demand. Sales trends
in Marimekko's own retail shops will have a substantial impact on the Group's
net sales and earnings in the final quarter of the year. Deliveries during the
last quarter of 2009 will include some one-off items that increase net sales and
improve earnings, but the value of these items will be smaller than in 2008.
However, the decline in sales is expected to slow towards the end of the year,
compared with the corresponding period the year before, as sales already fell
considerably both in Finland and abroad in the last quarter of 2008 as a result
of the rapid deterioration in market conditions.
The full-year estimate for 2009 is unchanged: net sales are forecast to decrease
by about 10% from the year 2008 and operating result is expected to decline
distinctly.
Helsinki, 5 November 2009
MARIMEKKO CORPORATION
Board of Directors
Information presented in the interim report has not been audited.
APPENDICES
Accounting principles
Consolidated income statement and comprehensive consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in shareholders' equity
Key indicators
Consolidated net sales by market area and product line
Segment information
Quarterly trend in net sales and earnings
Accounting principles
This interim report has been prepared in accordance with IAS 34:
Interim Financial Reporting and applying the same accounting policy as for the
2008 financial statements. In addition, on 1 January 2009 the Group adopted the
following new or amended standards published by the IASB in 2008:
IAS 1 standard (amended)
In accordance with the amended IAS 1 standard, Marimekko Corporation presents
both the consolidated and comprehensive consolidated income statements.
IFRS 8
The operational segment reported by the Marimekko Group is the Marimekko
business.
FORMULAS FOR THE KEY FIGURES
Earnings per share (EPS), EUR:
(Profit before extraordinary items - taxes (excl. of taxes on extraordinary
items)) / Number of shares (average for the financial period)
Equity per share, EUR:
Shareholders' equity / Number of shares, 30 June
Return on equity (ROE), %:
(Profit before extraordinary items - taxes (excl. of taxes on extraordinary
items)) X 100 / Shareholders' equity (average for the financial period)
Return on investment (ROI), %:
(Profit before extraordinary items + interest and other financial expenses) X
100 / (Balance sheet total - non-interest-bearing liabilities (average for the
financial period))
Equity ratio, %:
Shareholders' equity X 100 / (Balance sheet total - advances received)
Gearing, %:
Interest-bearing net debt X 100 / Shareholders' equity
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2009 2008 2009 2008 2008
NET SALES 19,492 21,913 51,754 59,046 81,107
Other operating
income 4 17 35 41 244
Increase or decrease
in inventories of
completed and
unfinished products 1,163 -528 1,396 2,036 185
Raw materials and
consumables 6,695 8,749 19,212 25,500 33,597
Employee benefit
expenses 4,349 3,946 13,542 13,154 18,287
Depreciation 334 328 1,031 983 1,324
Other operating
expenses 4,054 4,632 12,670 13,375 18,372
OPERATING PROFIT 2,901 3,747 3,938 8,111 9,956
Financial income 7 52 60 153 205
Financial expenses -7 -53 -13 -140 -197
0 -1 47 13 8
PROFIT BEFORE TAXES 2,901 3,746 3,985 8,124 9,964
Income taxes 741 971 1,023 2,112 2,586
NET INCOME FOR
THE PERIOD 2,160 2,775 2,962 6,012 7,378
Distribution of
net income to equity
holders of
the parent company 2,160 2,775 2,962 6,012 7,378
Basic and diluted
earnings per share
calculated on the
profit attributable
to equity holders of
the parent
company, EUR 0.27 0.35 0.37 0.75 0.92
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2009 2008 2009 2008 2008
Net income for the period 2,160 2,775 2,962 6,012 7,378
Other comprehensive income
Change in translation
difference -10 11 -9 14 -5
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 2,150 2,786 2,953 6,026 7,373
Distribution of net income
to equity holders of
the parent company 2,150 2,786 2,953 6,026 7,373
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 30.9.2009 30.9.2008 31.12.2008
ASSETS
NON-CURRENT ASSETS
Tangible assets 9,739 9,807 9,948
Intangible assets 417 380 458
Available-for-sale
financial assets 20 20 20
10,176 10,207 10,426
CURRENT ASSETS
Inventories 15,548 18,958 17,286
Trade and other receivables 6,605 7,309 6,109
Current tax assets 268 220 268
Cash and cash equivalents 6,092 5,704 6,112
28,513 32,191 29,775
ASSETS, TOTAL 38,689 42,398 40,201
SHAREHOLDERS' EQUITY
AND LIABILITIES
EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT COMPANY
Share capital 8,040 8,040 8,040
Translation differences -11 17 -2
Retained earnings 22,044 22,138 23,504
Shareholders' equity, total 30,073 30,195 31,542
NON-CURRENT LIABILITIES
Deferred tax liabilities 688 712 705
Financial liabilities - 185 -
688 897 705
CURRENT LIABILITIES
Trade and other payables 7,928 7,659 7,751
Current tax liabilities - 12 18
Financial liabilities - 3,635 185
7,928 11,306 7,954
Liabilities, total 8,616 12,203 8,659
SHAREHOLDERS' EQUITY AND
LIABILITIES, TOTAL 38,689 42,398 40,201
The Group has no liabilities resulting from derivative contracts, and there are
no outstanding guarantees or any other contingent liabilities which have been
granted on behalf of the management of the company or its shareholders.
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) 1-9/ 1-9/ 1-12/
2009 2008 2008
CASH FLOW FROM OPERATING ACTIVITIES
Net profit for the period 2,962 6,012 7,378
Adjustments
Depreciation according to plan 1,031 983 1,324
Financial income and expenses -47 -13 -8
Taxes 1,024 2,113 2,586
Cash flow before change
in working capital 4,970 9,095 11,280
Change in working capital 1,403 -3,596 -629
Increase (-) / decrease (+) in current
non-interest-bearing trade receivables -486 -1,793 -574
Increase (-) / decrease (+) in
inventories 1,737 -677 995
Increase (-) / decrease (+) in
current non-interest-bearing
liabilities 152 -1,126 -1,050
Cash flow from operating activities
before financial items and taxes 6,373 5,499 10,651
Paid interest and payments on
other financial expenses -14 -132 -200
Interest received 94 168 201
Taxes paid -1,085 -2,101 -2,616
CASH FLOW FROM OPERATING ACTIVITIES 5,368 3,434 8,036
CASH FLOW FROM INVESTING ACTIVITIES
Investments in tangible
and intangible assets -782 -803 -1,362
CASH FLOW FROM INVESTING ACTIVITIES -782 -803 -1,362
CASH FLOW FROM FINANCING ACTIVITIES
Short-term loans drawn - 4,600 4,600
Short-term loans repaid -185 -2,100 -5,550
Long-term loans repaid - -470 -655
Dividends paid -4,422 -5,226 -5,226
CASH FLOW FROM FINANCING ACTIVITIES -4,607 -3,196 -6,831
Change in cash and cash equivalents -21 -565 -157
Cash and cash equivalents
at the beginning of the period 6,112 6,269 6,269
Cash and cash equivalents
at the end of the period 6,091 5,704 6,112
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(EUR 1,000)
Equity attributable to equity holders of the parent company
Shareholders'
Share Translation Retained equity,
capital differences earnings total
Shareholders'
equity
1 Jan. 2008 8,040 3 21,352 29,395
Comprehensive
income for the
period 14 6,012 6,026
Dividends paid -5,226 -5,226
Shareholders'
equity
30 Sept. 2008 8,040 17 22,138 30,195
Shareholders'
equity
1 Jan. 2009 8,040 -2 23,504 31,542
Comprehensive
income for the
period -9 2,962 2,953
Dividends paid -4,422 -4,422
Shareholders'
equity
30 Sept. 2009 8,040 -11 22,044 30,073
KEY INDICATORS
1-9/ 1-9/ Change, 1-12/
2009 2008 % 2008
Earnings per share, EUR 0.37 0.75 -50.7 0.92
Equity per share, EUR 3.74 3.75 -0.3 3.92
Share of exports and
international operations,
% of net sales 30.1 29.9 27.0
Return on equity (ROE), % 12.8 26.9 24.2
Return on investment (ROI), % 17.3 33.8 32.3
Equity ratio, % 77.8 71.8 78.7
Gearing, % -20.3 -6.2 -18.8
Gross investments, EUR 1,000 782 803 -2.7 1,362
Gross investments,
% of net sales 1.5 1.4 1.7
Contingent liabilities,
EUR 1,000 16,828 16,843 -0.1 17,861
Average personnel 408 410 -0.5 411
Personnel at the end of
the period 403 409 -1.5 414
Number of shares at the end
of the period (1,000) 8,040 8,040 8,040
Number of shares outstanding,
average (1,000) 8,040 8,040 8,040
NET SALES BY MARKET AREA
(EUR 1,000) 7-9/ 7-9/ Change, 1-9/ 1-9/ Change, 1-12/
2009 2008 % 2009 2008 % 2008
Finland 14,183 15,776 -10.1 36,173 41,413 -12.7 59,175
Other Nordic
countries 2,029 2,561 -20.8 5,317 7,809 -31.9 9,423
Rest of Europe 1,374 1,316 4.4 3,843 3,767 2.0 4,700
North America 746 964 -22.6 2,309 2,877 -19.7 3,994
Other
countries 1,160 1,296 -10.5 4,112 3,180 29.3 3,815
TOTAL 19,492 21,913 -11.0 51,754 59,046 -12.3 81,107
NET SALES BY PRODUCT LINE
(EUR 1,000) 7-9/ 7-9/ Change, 1-9/ 1-9/ Change, 1-12/
2009 2008 % 2009 2008 % 2008
Clothing 7,693 8,016 -4.0 21,253 23,367 -9.0 29,898
Interior
decoration 8,091 9,847 -17.8 21,029 24,812 -15.2 37,747
Bags 3,708 4,050 -8.4 9,472 10,867 -12.8 13,462
TOTAL 19,492 21,913 -11.0 51,754 59,046 -12.3 81,107
SEGMENT INFORMATION
(EUR 1,000) 1-9/2009 1-9/2008 Change, % 1-12/2008
Marimekko business
Net sales 51,754 59,046 -12.3 81,107
Operating profit 3,938 8,111 -51.5 9,956
Assets 38,689 42,398 -8.7 40,201
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 7-9/ 4-6/ 1-3/ 10-12/
2009 2009 2009 2008
Net sales 19,492 15,999 16,263 22,061
Operating result 2,901 1,058 -21 1,845
Earnings per share, EUR 0.27 0.10 0.00 0.17
(EUR 1,000) 7-9/ 4-6/ 1-3/ 10-12/
2008 2008 2008 2007
Net sales 21,913 18,539 18,594 22,656
Operating result 3,747 2,540 1,824 3,382
Earnings per share, EUR 0.35 0.23 0.17 0.31
