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Ettevõte Tallinna Kaubamaja Grupp AS
Tüüp Korraldatud teave
Kategooria Muud korporatiivtoimingud
Avaldamise aeg 12 okt 2020 16:30:00 +0300
Manused
TallinnaKa-10004319061-en.pdf
TallinnaKa-10004319063-et.pdf
Keeleversioonid
Keel English
Valuuta
Pealkiri Unaudited consolidated interim accounts for the third quarter and first nine months of 2020
Tekst
Segments (EURm)           Q3/20   Q3/19      yoy   9m/20   9m/19       yoy
-----------------------------------------------------------------------------
  Supermarkets              134.5   117.6    14.4%   381.0   346.4     10.0%

  Department stores          21.6    23.6    -8.3%    58.6    70.8    -17.3%

  Cars                       34.7    34.9    -0.5%    92.5    96.9     -4.5%

  Footwear                    1.9     2.2   -12.7%     4.8     6.3    -22.6%

  Real Estate                 1.4     1.5    -0.8%     3.7     4.3    -13.1%
-----------------------------------------------------------------------------
  Total sales               194.2   179.7     8.1%   540.7   524.6      3.1%
-----------------------------------------------------------------------------
  Supermarkets                4.4     6.5   -32.0%    12.0    12.5     -3.8%

  Department stores           0.3     0.7   -63.1%    -0.7     1.2   -160.1%

  Cars                        1.0     1.6   -36.3%     1.8     3.8    -52.6%

  Footwear                   -0.4    -0.3    46.0%    -1.6    -0.9     72.2%

  Real Estate                 2.9     2.7     5.8%     7.5     8.1     -7.6%

  IFRS 16                    -0.7    -0.4    92.6%    -1.7    -1.1     49.2%
-----------------------------------------------------------------------------
  Total profit before tax     7.4    10.9   -31.7%    17.3    23.5    -26.3%
-----------------------------------------------------------------------------

In  the  third  quarter  of  2020, the  consolidated  unaudited sales revenue of
Tallinna Kaubamaja Grupp was 194.2 million euros, which was 8.1% higher than the
sales  revenue of the same  period in 2019. The sales  revenue in the first nine
months was 540.7 million euros, which was a 3.1% increase in comparison with the
result  of the  first nine  months of  2019, when the  sales revenue  was 524.6
million  euros.  The  Group's  consolidated  unaudited  net  profit of the third
quarter  of 2020 was 7.4 million  euros, which was  about a third  less than the
profit  of the comparable  period in 2019. The  Group's net profit  of the first
nine  months of 2020 was 11.5 million  euros, which was also  about a third less
than  the result of the previous comparable  period. In the first nine months of
2020, pre-tax  profit was 17.3 million euros, which  is 26.3% less than the year
before.  Net profit was affected by the dividend payment, from which 5.8 million
euros  of income  tax was  calculated in  the first quarter of 2020; 6.5 million
euros of income tax was calculated a year before.

Retail   consumption   in  the  last  months  of  2020 was  characterised  by  a
surprisingly  rapid recovery, where the sales revenue from Estonian retail trade
(except  motor vehicles  and motorcycles)  in current  prices has demonstrated a
slight  growth  after  the  decline  in  April  and  May.  Thereat, the consumer
behaviour  has changed significantly.  The number of  visits to city centres has
decreased  and the consumption has moved more  to rural areas. People attempt to
visit  stores less  frequently, but  buy more  at a time. Understandably, online
stores  are also  preferred more  frequently. The  Group's sales  revenue of the
third  quarter  of  2020 grew  faster  than  the  average  sales revenue for the
Estonian  retail trade, primarily  due to the  sales revenue of ABC Supermarkets
AS,  which was acquired  and added to  the supermarket segment  in May 2020. The
business  volumes of the car  segment of the Group  dropped, but the decline was
smaller  than  the  decline  of  the  car  market  in general. The fashion goods
segments  of the Group were  hit hardest by the  crisis, as the demand for those
items  has dropped  due to  the lower  mobility. In  addition to the expenses on
virus control supplies for retail stores, the profit has been put under pressure
by  the one-off costs of numerous  developments. Labour force expenses increased
by 11.8% in the third quarter, while the number of employees grew by 9.7% due to
expansions and the average wages grew by 2.0%.

The  largest development projects in the third quarter included preparations for
transferring  the stores of  a new chain  acquired at the  end of May, which are
operating under the Comarket trademark, to under the trademark of Selver and the
opening  of ABC KING and SHU e-stores. The adjustment of the new factory and the
renovation  of  an  existing  factory  building  of  Kulinaaria  is in progress.
Renovation  will be completed  in the beginning  of 2021, after which Kulinaaria
will be carrying out its operations in both factories and is focusing on product
development in new as well as current food categories to expand its market share
and  increase  its  production  volumes.  Several developments have already been
completed in the financial year. The Selver store in Võru was successfully moved
to  the new  location in  the Kagukeskus  shopping mall  in March and it was the
latest  Selver  store  to  introduce  the  SelveEkspress  service.  Selver fully
renovated  the  Suurejõe  Selver  in  Pärnu  and  extended the sales area at the
Rannarootsi  Selver in Haapsalu. On 9 July, Selver opened a new store at the WOW
mall  in Saaremaa,  which is  the 54th store  in the  Selver chain.  In the last
quarter  of the year, it is planned  to renovate Mustakivi Selver in Tallinn and
launch the transfer of the Comarket stores to under the trademark of Selver ABC.
The  Group's  attention  continues  to  be  focused on developing e-commerce and
increasing the shopping convenience of customers.

Selver supermarkets

The  consolidated sales revenue of the  supermarkets business segment was 381.0
million  euros  in  the  first  nine  months  of  2020, increasing  by  10.0% in
comparison  with  the  same  period  of  last  year.  Excluding  the  added  ABC
Supermarket stores, the segment grew by 4.5%. The consolidated sales revenue was
134.5 million  euros  in  the  third  quarter  of  2020, increasing  by 14.4% in
comparison  with the same period  of last year. During  the first nine months of
2020, 29.9 million purchases were made from the stores, which was 1.3% less than
the  reference year. The decrease in the  number of purchases is impacted by the
state  of emergency  which was  announced in  spring, during which the customers
visited  the stores more rarely, but in turn, the average total sum of purchases
increased.

In  the third quarter of 2020, both the  pre-tax profit and net profit were 4.4
million  euros, dropping by 2.1 million euros in comparison with the same period
the  year before. The consolidated pre-tax profit of the supermarkets segment in
the nine months of 2020 was 12.0 million euros, dropping by 0.5 million euros in
comparison  with the previous year.  The net profit of  the nine months was 9.9
million  euros, which  is an  increase of  1.4 million euros  in comparison with
2019. The  difference  between  the  net  profit  and  profit  before income tax
compared  to  the  results  from  a  year  earlier  is due to income tax paid on
dividends  - income tax paid  on dividends was 1.8 million  euros lower in 2020
compared  to the year before. All supermarket profit is earned in Estonia. As of
1 June  2020, the results of the supermarkets segment include the results of ABC
Supermarkets.

The  profit was  earned thanks  to the  increased sales revenue, the investments
made  in increasing the efficiency of daily processes, and the warmer weather in
the  beginning of the year, which enabled saving on administrative expenses. The
SelveEkspress  service was extended  to all Selvers  in the first quarter, which
has enabled keeping the labour efficiency at last year's level in the conditions
of  wage  pressure  which  were  prevailing  in  the  beginning of the year. The
economic  results were impacted  by the expenses  made on the  protection of the
customers  and employees due  to COVID-19. The impacts  of COVID-19 were carried
over  to the third quarter  in a lesser extent,  with the customers visiting the
stores  less frequently,  but buying  more per  purchase. In the second quarter,
Selver  acquired the ABC Supermarkets chain, which will improve the availability
of Selver's service and increase the market share thanks to the wider network of
stores.  On the other hand,  the economic result of  supermarkets is impacted by
the  one-off costs related to the purchase of ABC Supermarkets. Selver has fully
renovated  the Suurejõe Selver in Pärnu and the Merimetsa Selver in Tallinn this
year.  Both stores  were closed  to customers  during the  renovation works. The
sales  area of the  Rannarootsi Selver in  Haapsalu has been  expanded. In Võru,
Selver  moved to new premises  at the Kagukeskus shopping  mall. In July, Selver
opened  a new store at the WOW mall  in Saaremaa. Due to the state of emergency,
the  Sepapaja Selver and the  Puhvet café at the  Kadaka Selver were temporarily
closed  in  the  second  quarter.  Selver  is planning to renovate the Mustakivi
Selver  in Tallinn and launch the process  of transferring the stores, which are
operating  under the trademark of Comarket, to under the trademark of Selver ABC
this  year. The result of the first  nine months includes the costs of launching
the  new factory  of Kulinaaria.  The assembly  and delivery volumes of e-Selver
have  been growing rapidly. The e-Selver service  area includes all of Harju and
Tartu  County, Hiiu County,  Saare County, a  large part of  Pärnu County, and a
part  of  Lääne  County.  Development  of  the  e-commerce  remains  one  of the
priorities of the segment.

Department stores

In  the nine  months of  2020, the Kaubamaja  department stores business segment
earned  a sales revenue of  58.6 million euros, which is  17.3% less than in the
same period of last year. The pre-tax loss of the Kaubamaja department stores in
the  first nine months of 2020 was 0.7 million euros, showing a decrease of 1.9
million  euros in  the year-on-year  comparison. The  sales revenue of Kaubamaja
department stores in the third quarter of 2020 was 21.6 million euros, which was
8.3% less  than  during  the  same  period  of  2019. The  pre-tax profit of the
Kaubamaja  department stores in the third quarter was 0.3 million euros, showing
a decrease of 0.5 million euros in the year-on-year comparison. The sales result
of  the Kaubamaja department stores  in the two last  quarters was influenced by
the  emergency situation declared  by the Government  of the Republic of Estonia
due  to the COVID-19 virus, which resulted in  a lower number of visitors to the
department  stores from the middle of March.  On 27 March, the Government of the
Republic of Estonia ordered the closing of all shopping malls and Kaubamaja also
closed  all selling spaces of manufactured goods in Tallinn and Tartu, with only
the  grocery stores remaining  open. The department  stores were reopened on 11
May. Some changes can be observed in the purchasing behaviour of customers. Even
more  value is  placed on  quality and  such products  are sought and purchased.
Fashion  items are purchased somewhat more  modestly, but the sales of household
goods  have been quite successful. The  Kodumaailm (Home department) at Tallinna
Kaubamaja was redesigned for autumn, which has also had a positive impact on the
sales  figures.  On  the  other  hand,  due  to  its  central location, Tallinna
Kaubamaja  has been strongly affected by the  drop in the number of tourists and
the lower number of people working in the offices in the city centre, as well as
the  general decline  in the  visitation of  the city  centre, especially in the
summer  period, which has had a negative impact on the sales result of the third
quarter.  The turnovers of the Kaubamaja  online store have multiplied after the
crisis,  but this has failed  to compensate for the  decline in the sales of the
physical department stores.

In  the third quarter of  2020, the sales revenue of  OÜ TKM Beauty Eesti, which
operates  I.L.U. cosmetics  stores, was  1.3 million euros,  which is 12.3% more
than  in the  third quarter  of 2019. In  the third  quarter of 2020, profit was
0.03 million euros, which was 0.05 million euros more than during the comparable
period  in 2019. The result of the third  quarter was impacted positively by the
continued  increase in the sales revenue of the online store, the refreshment of
the  selection, which was welcomed by  the customers, and the successful changes
in  the marketing campaigns. The sales revenue of the first nine months of 2020
was  3.3 million euros, which is 1.0% less than during the same period of 2019.
In the first nine months of 2020, profit was 0.02 million euros, which was 0.22
million euros more than during the comparable period in 2019.

Car trade

The  sales revenue of the car trade  segment was 92.5 million euros in the first
nine  months of  2020, which was  4.5% less than  the sales  revenue of the same
period in 2019. The sales revenue for KIAs decreased by 29.1%. The sales revenue
of  34.7 million euros of the third quarter of 2020 was 0.5% less than the sales
revenue of the same period in 2019, whereas the sales revenue for KIAs decreased
by 27.3%. During the first nine months, a total of 3,895 new vehicles were sold,
1,482 vehicles  of them in the  third quarter. The net  profit of the segment in
the first nine months of 2020 was 1.2 million euros, which was 2.0 million euros
less than the profit of the same period a year before. The pre-tax profit of the
segment  in the first nine  months of 2020 was 1.8 million  euros, which is 2.0
million euros less than the profit of the first nine months of 2019. The pre-tax
profit  of the third quarter of 2020 was 1.0 million euros, which is 0.6 million
euros less than the profit of the same period a year before.

In  the third quarter, sales revenue and business profit decreased mainly due to
the delivery problems of suppliers, which were caused by the coronavirus crisis.
The  importer of  the brands  sold by  the car  segment of the Group experienced
issues  with the delivery of new cars and the limited stocks. On the other hand,
there  were also  less buyers;  thus, the  demand and  supply were balanced. All
showrooms  were  opened  and  worked  under  normal  conditions. A change in the
consumer  behaviour can be observed  in the sales of  new cars, with the regular
customers  and small  customers having  been replaced  with large  customers and
public  procurements and  with the  operations of  the car  segment of the Group
proving  quite successful. The volumes of  after-sale services have not declined
significantly.  The new Shkoda car showroom of Verte Auto in Riga is still in the
launching phase and is showing a monthly growth trend.

Footwear trade

The  sales revenue of  the footwear trade  segment was 4.8 million  euros in the
first  nine months  of 2020. In  comparison with  2019, the sales revenue of the
same  period decreased by 22.6%. In the third  quarter, the sales revenue of the
segment  was 1.9 million euros, which is  12.7% less than during the same period
in  2019. The loss of the  first nine months of  2020 was 1.6 million euros. The
loss  of the comparable  period in 2019 was  0.9 million euros. The  loss of the
third  quarter was  0.4 million euros,  which is  0.1 million euros  weaker than
during  the same  period of  2019. The sales  revenue of  the third  quarter was
impacted  by the continuing deep  discounts in the realisation  of the stocks of
the  spring season,  which were  left due  to state  of emergency  announced and
closing  of the shopping  centres in connection  the spread of COVID-19. The SHU
store  in Haapsalu  was closed  in September,  while the  SHU store in Jõhvi was
moved  to another location at the recently renovated Jewe centre, which has more
perspective. Taking into consideration the changes in the consumer behaviour and
the  development of e-commerce, online stores of ABC KING and SHU were developed
and opened to customers in the middle of September.

Real estate

The  sales revenue earned in the real  estate segment outside the Group was 3.7
million  euros  in  the  first  nine  months of 2020. Sales revenue decreased by
13.1% in  comparison with  the previous  year. The  sales revenue  earned in the
segment  outside the Group was 1.4 million euros  in the third quarter of 2020.
During the reference period, sales revenue decreased by 0.8%. The pre-tax profit
in  the real estate  segment was 7.5 million  euros in the  first nine months of
2020. Compared  to the reference  period, profit decreased  by 7.6%. The pre-tax
profit of the segment in the third quarter was 2.9 million euros, which is 5.8%
more than during the same period in 2019.

The  segment's sales revenue and profit  of the third quarter recovered quickly.
The drop in the sales result of the real estate segment in the first nine months
reflects  the  impact  of  the  rent  discounts  during  the  state of emergency
announced  by  the  Government  of  the  Republic  and the closing of department
stores.  The Tartu  Kaubamaja department  store and  Viimsi Keskus shopping mall
were  largely closed until 10 May. Grocery stores, telecommunication stores, and
stores  with a  separate entrance  were open  at the malls. Catering enterprises
were  open  only  for  take-away.  The  restriction  on  movement affected Tartu
Kaubamaja department store the hardest - the attendance of the mall decreased by
more than 80% during the period that shopping malls were closed. During the same
period,  the attendance of  the Viimsi Keskus  shopping mall decreased by nearly
40%. Viimsi  Keskus has  recovered from  the impacts  of the  state of emergency
quicker  than  Tartu  Kaubamaja.  Within  the  segment,  the Latvian real estate
company  improved its  results most,  having gained  a new  Shkoda and  used cars
showroom  in Riga in  the end of  last year. The  aftershocks of the coronavirus
epidemic will continue to affect the results of the retail rental market for the
whole  of 2020. As  the economic  impact of  the epidemic  is not yet clear, the
volumes  of and schedule  for future developments  will be adjusted  as and when
needed.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of euros?

-------------------------------------------------------------------------
                                                 30.09.2020   31.12.2019
-------------------------------------------------------------------------
  ASSETS
-------------------------------------------------------------------------
  Current assets

  Cash and cash equivalents                          22,700       40,629

  Trade and other receivables                        14,955       16,904

  Inventories                                        76,197       78,305
-------------------------------------------------------------------------
  Total current assets                              113,852      135,838
-------------------------------------------------------------------------
  Non-current assets

  Long-term trade and other receivables                 275          114

  Investments in associates                           1,892        1,721

  Investment property                                60,641       60,458

  Property, plant and equipment                     378,636      319,192

  Intangible assets                                  21,235        4,990
-------------------------------------------------------------------------
  Total non-current assets                          462,679      386,475
-------------------------------------------------------------------------
  TOTAL ASSETS                                      576,531      522,313
-------------------------------------------------------------------------

-------------------------------------------------------------------------
  LIABILITIES AND EQUITY
-------------------------------------------------------------------------
  Current liabilities

  Borrowings                                         23,465       46,448

  Trade and other payables                           90,995       89,831
-------------------------------------------------------------------------
  Total current liabilities                         114,460      136,279
-------------------------------------------------------------------------
  Non-current liabilities

  Borrowings                                        252,096      157,876

  Provisions for other liabilities and charges          362          322
-------------------------------------------------------------------------
  Total non-current liabilities                     252,458      158,198
-------------------------------------------------------------------------
  TOTAL LIABILITIES                                 366,918      294,477
-------------------------------------------------------------------------
  Equity

  Share capital                                      16,292       16,292

  Statutory reserve capital                           2,603        2,603

  Revaluation reserve                                91,927       93,496

  Currency translation differences                     -149         -149

  Retained earnings                                  98,940      115,594
-------------------------------------------------------------------------
  TOTAL EQUITY                                      209,613      227,836
-------------------------------------------------------------------------
  TOTAL LIABILITIES AND EQUITY                      576,531      522,313
-------------------------------------------------------------------------

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In thousands of euros

-------------------------------------------------------------------------------
                           III quarter    III quarter    9 months
                                  2020           2019        2020 9 months 2019
-------------------------------------------------------------------------------


 Revenue                       194,181        179,683     540,685       524,609

 Other operating
 income                            316            285         976           682



 Cost of sales                -146,012       -133,804    -409,104      -393,038

 Other operating
 expenses                      -11,216         -9,657     -31,362       -30,482

 Staff costs                   -19,139        -17,120     -55,285       -52,665

 Depreciation,
 amortisation and
 impairment losses              -9,387         -7,728     -25,249       -23,058

 Other expenses                   -157            -71        -534          -482
-------------------------------------------------------------------------------
 Operating profit                8,586         11,588      20,127        25,566
-------------------------------------------------------------------------------
 Finance income                      1              1           1             1

 Finance costs                  -1,204           -749      -2,967        -2,215

 Finance income on
 shares of associates               57             60         171           174
-------------------------------------------------------------------------------
 Profit before tax               7,440         10,900      17,332        23,526
-------------------------------------------------------------------------------
 Income tax expense                 -1              0      -5,823        -6,453
-------------------------------------------------------------------------------
 NET PROFIT FOR THE
 FINANCIAL YEAR                  7,439         10,900      11,509        17,073
-------------------------------------------------------------------------------
 Other comprehensive
 income:

 Items that will not
 be subsequently
 reclassified to
 profit or loss
-------------------------------------------------------------------------------
 Other comprehensive
 income for the
 financial year                      0              0           0             0
-------------------------------------------------------------------------------
 TOTAL COMPREHENSIVE
 INCOME FOR THE
 FINANCIAL YEAR                  7,439         10,900      11,509        17,073
-------------------------------------------------------------------------------


Raul Puusepp

Chairman of the Board

Phone +372 731 5000