In the first quarter of 2010, the consolidated non-audited sales revenue of
Tallinna Kaubamaja Group amounted to 1.4 billion kroons (91.5 million euros).
The sales revenue of the group in the same period of 2009 was 1.5 billion kroons
(97.4 million euros), which amounts to a decrease of 6% compared to the previous
year. The loss of the first quarter amounted to 5.9 million kroons (0.4 million
euros). The loss of the first quarter of 2009 was 52.3 million kroons (3.3
million euros). As of 31 March 2010, the balance sheet total of the Tallinna
Kaubamaja Group was 3.9 billion kroons (249.9 million euros), which means a
decrease by 71.6 million kroons (4.6 million euros) compared to the end of 2009.
Assets decreased by 2%.
The continual decrease of the turnover still exerted pressure on the Group's
activities in the first quarter. The company is actively trying to increase
efficiency and to find synergies within the Group. In the quarter's summation,
the company was able to improve profit by 46.4 million kroons (3.0 million
euros) mainly due to cutting operating expenses and renumerations. The sales
marginal improved a little due to the closure of uneconomic stores and improved
inventory management. The volume of financial expenses decreased in the first
quarter compared to the same period of the previous year due to the lower level
of EURIBOR. The expenses related to the decision to freeze the activities of
Selver in Latvia in the autumn 2009, were still incurred in the first quarter of
this year. The last Selver store operating in Latvia was closed in March 2010.
In the first quarter of 2010, the sales revenue of the business segment of
department stores was 254.5 million kroons (16.3 million euros), decreasing 8%
compared to the previous year. Signs of economic stabilisation could be observed
in the second half of the first quarter, when the sales revenue of Kaubamaja
department stores in March was on the same level with the previous year. In the
first quarter of 2010, the loss of Kaubamaja department stores was 11.1 million
kroons (0.7 million euros), a result that is better than the result of previous
year by 0.3 million kroons (0.02 million euros). The operating expenses of
Kaubamaja department stores were 8% less in the first quarter and the operating
loss decreased by 3.6 million kroons (0.2 million euros) compared to the same
period of the previous year.
In the first quarter of 2010, the consolidated sales revenue of the business
segment of supermarkets amounted to 1.1 billion kroons (69.2 million euros),
which is 4% less than in the same period of the previous year. In the first
quarter of 2010, the consolidated net loss of segment of supermarkets was 9.8
million kroons (0.6 million euros), showing an improvement of 19.4 million
kroons (1.2 million euros) compared to the same period of 2009, when the
consolidated pre-tax loss and net loss was 29.2 million kroons (1.9 million
euros). The quarter's sales revenue of the segment of supermarkets in Estonia
was 1.1 billion kroons (69.2 million euros), decreasing by 2% compared to the
first three months of the previous year. In the first quarter of 2010, the
market share of the Selver chain in Estonia was 18.7%, increasing 1.1 percentage
points compared to the first quarter of 2009. The net profit earned in Estonia
in the first quarter of 2010 was 9.9 million kroons (0.6 million euros), growing
by 18.3 million kroons (1.2 million euros) compared to the same period of the
previous year. The economic results of the first quarter have been positively
influenced by marketing activities and sales campaigns. In a situation where the
profit increase is limited with the reduced purchasing power of the consumers,
Selver has continued to work on improving the levels of cost efficiency.
Agreements have been concluded to decrease fixed costs, contracts and variable
costs have been reviewed for economising. Labour costs have been cut by 14%
compared to the same period of the previous year.As a consequence of the
decision adopted in autumn 2009 to freeze the business activities of the
subsidiary SIA Selver Latvia in Latvia, all the 6 Selver stores located in
Latvia had been closed by the end of the first quarter of this year and monthly
costs had been minimised. Therefore, the sales revenue of Selver in Latvia in
the first quarter of 2010 was 0.2 million kroons (10 thousand euros) compared to
25.8 million kroons (1.7 million euros) in the same period of the previous year.
In the first quarter of 2010, the net loss of SIA Selver Latvia was 19.8 million
kroons (1.3 million euros), showing a decrease of 1.2 million kroons (75
thousand euros) compared to the same period of previous year.
In the first quarter of 2010, the sales revenue of the business segment of real
estate outside the group was 10.0 million kroons (0.6 million euros) and the
sales revenue decreased by 11 % compared to the same period of the previous year
due to the decrease of rental activities in Latvia. The segment's profit of the
first three months amounted to 24.9 million kroons (1.6 million euros). This
result is 8.9 million kroons (0.6 million euros) better than the profit of the
first quarter of the previous year and it is caused by the reduction of
operating expenses in Latvia, reduced financial expenses caused by favourable
interest rates and decrease of depreciable costs.
The car trade market is still at a low level, altogether 2,090 cars were sold in
the first quarter which is 18% less than a year ago. In Latvia, the sales fell
37%, i.e. 825 vehicles were sold. In Lithuania, 1,371 cars were sold and the
drop was 27%. The sales revenue of the car trade segment with the exclusion of
inter-segmental transactions in the first quarter of 2010 was 45.7 million
kroons (2.9 million euros), which is 27% less than the income of the respective
period of the previous year. A total of 141 cars were sold in the first three
months of the year which is 173 cars less than in the same period of the
previous year. The market share of KIA vehicles surpassed the limit of 3%, a
year ago this figure was 2.14%. The car trade segment has decreased loss by 5.5
million kroons (0.4 million euros) compared to the first three months of the
previous year. The segment's loss in the first quarter of 2010 was 0.4 million
kroons (0.02 million euros).
The sales revenue of the footwear trade in the first quarter of 2010 was 38.9
million kroons (2.5 million euros), decreasing by 3% in comparison with the
respective period of 2009. The loss in the first quarter amounted to 9.6 million
kroons (0.6 million euros), of which the loss of Latvian businesses amounts to
0.6 million kroons (0.04 million euros). The total loss of footwear trade in the
first quarter of 2009 was 21.8 million kroons (1.4 million euros) (including the
loss of Latvian companies of 4.8 million kroons, 0.3 million euros). The loss
mainly stems from the seasonal discount of winter goods.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In thousands of
--------------------------------------------------------------------------------
| | EEK | EUR |
--------------------------------------------------------------------------------
| | 31.03.201 | 31.12.200 | 31.03.201 | 31.12.200 |
| | 0 | 9 | 0 | 9 |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Cash and bank | 182,173 | 223,691 | 11,643 | 14,296 |
--------------------------------------------------------------------------------
| Trade receivables | 58,916 | 75,655 | 3,765 | 4,835 |
--------------------------------------------------------------------------------
| Other short-term receivables | 56,929 | 82,032 | 3,639 | 5,242 |
--------------------------------------------------------------------------------
| Prepaid and refundable taxes | 7,762 | 8,820 | 496 | 564 |
--------------------------------------------------------------------------------
| Other prepayments | 12,142 | 12,404 | 776 | 793 |
--------------------------------------------------------------------------------
| Inventories | 656,107 | 616,554 | 41,933 | 39,405 |
--------------------------------------------------------------------------------
| Total current assets | 974,029 | 1,019,156 | 62,252 | 65,135 |
--------------------------------------------------------------------------------
| Fixed assets | | | | |
--------------------------------------------------------------------------------
| Prepaid expenses | 25,479 | 25,499 | 1,629 | 1,630 |
--------------------------------------------------------------------------------
| Shares in affiliated | 20,989 | 20,323 | 1,341 | 1,299 |
| companies | | | | |
--------------------------------------------------------------------------------
| Other long-term receivables | 3,965 | 3,613 | 253 | 231 |
--------------------------------------------------------------------------------
| Investment property | 55,800 | 55,800 | 3,566 | 3,566 |
--------------------------------------------------------------------------------
| Tangible fixed assets | 2,663,896 | 2,689,639 | 170,254 | 171,900 |
--------------------------------------------------------------------------------
| Intangible fixed assets | 60,340 | 62,018 | 3,857 | 3,964 |
--------------------------------------------------------------------------------
| Goodwill | 104,993 | 104,993 | 6,710 | 6,710 |
--------------------------------------------------------------------------------
| Total fixed assets | 2,935,462 | 2,961,885 | 187,610 | 189,300 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 3,909,491 | 3,981,041 | 249,862 | 254,435 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES AND EQUITY | , | , | , | , |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Borrowings | 194,050 | 254,524 | 12,402 | 16,267 |
--------------------------------------------------------------------------------
| Prepayments received | 5,039 | 2,983 | 322 | 190 |
--------------------------------------------------------------------------------
| Trade payables | 715,556 | 713,855 | 45,733 | 45,623 |
--------------------------------------------------------------------------------
| Tax liabilities | 45,972 | 63,490 | 2,938 | 4,058 |
--------------------------------------------------------------------------------
| Other current liabilities | 71,473 | 62,720 | 4,568 | 4,009 |
--------------------------------------------------------------------------------
| Provisions | 521 | 445 | 33 | 28 |
--------------------------------------------------------------------------------
| Total current liabilities | 1,032,611 | 1,098,017 | 65,996 | 70,175 |
--------------------------------------------------------------------------------
| Long-term liabilities | | | | |
--------------------------------------------------------------------------------
| Borrowings | 1,267,152 | 1,267,096 | 80,986 | 80,982 |
--------------------------------------------------------------------------------
| Provisions | 1,667 | 1,736 | 106 | 111 |
--------------------------------------------------------------------------------
| Total long-term liabilities | 1,268,819 | 1,268,832 | 81,092 | 81,093 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 2,301,430 | 2,366,849 | 147,088 | 151,268 |
--------------------------------------------------------------------------------
| Equity | | | | |
--------------------------------------------------------------------------------
| Share capital | 407,292 | 407,292 | 26,031 | 26,031 |
--------------------------------------------------------------------------------
| Statutory reserve capital | 40,729 | 40,729 | 2,603 | 2,603 |
--------------------------------------------------------------------------------
| Revaluation reserve | 670,602 | 673,976 | 42,859 | 43,075 |
--------------------------------------------------------------------------------
| Retained earnings | 498,226 | 500,730 | 31,844 | 32,004 |
--------------------------------------------------------------------------------
| Currency translation | -8,788 | -8,535 | -563 | -546 |
| differences | | | | |
--------------------------------------------------------------------------------
| TOTAL EQUITY | 1,608,061 | 1,614,192 | 102,774 | 103,167 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY | 3,909,491 | 3,981,041 | 249,862 | 254,435 |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In thousands of
--------------------------------------------------------------------------------
| | EEK | EUR |
--------------------------------------------------------------------------------
| | 3 months | 3 months | 3 months | 3 months |
| | 2010 | 2009 | 2010 | 2009 |
--------------------------------------------------------------------------------
| Revenue | 1,431,91 | 1,524,60 | 91,516 | 97,440 |
| | 3 | 3 | | |
--------------------------------------------------------------------------------
| Other operating income | 41,884 | 37,954 | 2,677 | 2,425 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Materials and consumables used | -1,115,6 | -1,207,0 | -71,306 | -77,142 |
| | 89 | 03 | | |
--------------------------------------------------------------------------------
| Other operating expenses | -177,815 | -186,684 | -11,364 | -11,931 |
--------------------------------------------------------------------------------
| Staff costs | -134,889 | -164,192 | -8,621 | -10,494 |
--------------------------------------------------------------------------------
| Depreciation and amortisation | -42,326 | -46,402 | -2,705 | -2,966 |
--------------------------------------------------------------------------------
| Other expenses | -3,470 | -2,297 | -222 | -147 |
--------------------------------------------------------------------------------
| Operating loss | -392 | -44,021 | -25 | -2,815 |
--------------------------------------------------------------------------------
| Financial income | 1,292 | 1,080 | 83 | 69 |
--------------------------------------------------------------------------------
| Financial costs | -7,444 | -10,160 | -476 | -649 |
--------------------------------------------------------------------------------
| Financial income on shares of | 666 | 825 | 42 | 53 |
| associates | | | | |
--------------------------------------------------------------------------------
| Net loss for the reporting | -5,878 | -52,276 | -376 | -3,342 |
| period | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income/loss | | | | |
--------------------------------------------------------------------------------
| Exchange differences on | -253 | 323 | -17 | 21 |
| translating foreign operations | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income for | -253 | 323 | -17 | 21 |
| the reporting period | | | | |
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE LOSS FOR | -6,131 | -51,953 | -393 | -3,321 |
| THE REPORTING PERIOD | | | | |
--------------------------------------------------------------------------------
Raul Puusepp
Chairman of the Board
Phone +372 731 5000
UNAUDITED CONSOLIDATED INTERIM ACCOUNTS FOR FIRST QUARTER OF 2010
| Source: Tallinna Kaubamaja Grupp
Attachments
