Teate vaade
Ettevõte Tallinna Kaubamaja Grupp AS
Tüüp Korraldatud teave
Kategooria Poolaastaaruanne
Avaldamise aeg 13 juuli 2021 16:30:00 +0300
Manused
Börs_Kaubamaja_2Q2021_eng.pdf
Börs_Kaubamaja_2Q2021_est.pdf
Keeleversioonid
Keel English
Valuuta
Pealkiri Unaudited consolidated interim accounts for the second quarter and first six months of 2021
Tekst
Segments (EURm)           Q2/21   Q2/20   Change    6m/21   6m/20   Change
-----------------------------------------------------------------------------
  Supermarkets              141,2   128,2    10,2%    275,1   246,5   11,6%

  Department stores          20,8    15,8    31,6%     38,8    37,4    3,6%

  Cars                       41,8    24,8    68,6%     78,0    57,9   34,8%

  Security                    2,2     1,3    72,3%      3,7     2,5   48,2%

  Real Estate                 1,2     0,9    24,7%      2,4     2,3    5,7%
-----------------------------------------------------------------------------
  Total sales               207,2   171,0    21,2%    398,0   346,5   14,8%
-----------------------------------------------------------------------------


  Supermarkets                4,9     4,3    14,6%      6,3     7,6   -16,8%

  Department stores           1,3    -0,3   -546,7%    -0,9    -2,1   -58,5%

  Cars                        2,2     0,5   335,7%      3,4     0,8   338,1%

  Security                    0,0     0,0    54,8%      0,0     0,0   -70,8%

  Real Estate                 2,4     2,0    24,1%      5,0     4,6    7,0%

  IFRS 16                    -1,0    -0,6    54,8%     -1,7    -1,0   79,2%
-----------------------------------------------------------------------------
  Total profit before tax     9,9     5,8    70,3%     12,1     9,9   21,9%
-----------------------------------------------------------------------------

As  of the interim  reports for the  second quarter and  the first six months of
2021, the  Group has decided to make a  change in the structure of the reporting
of  operating segments.  A new  security segment  has been  brought out  and the
former  footwear  segment  is  added  to  the  segment of department stores. The
respective comparative data is adjusted retrospectively.

In  the second quarter of 2021, the  consolidated unaudited sales revenue of the
Group  was 207.2 million euros,  which was 21.2% more  than the sales revenue of
the  same period in  2020. The sales revenue  in the first  half of the year was
398.0 million  euros, showing  a growth  of 14.8% compared  to the result of the
first  half  of  2020, when  the  sales  revenue was 346.5 million euros. In the
second  quarter of 2021, the Group's unaudited  consolidated net profit was 9.9
million  euros, which was 70.3% higher than  the profit of the comparable period
in the previous year. The Group's net profit of the first six months of 2021 was
7.7 million  euros,  which  was  89.9% higher  than  the  result of the previous
comparable  period. The  pre-tax profit  earned in  in the  first half was 12.0
million  euros, showing a  21.9% increase compared to  last year. Net profit was
affected by the dividend payment, from which 4.3 million euros of income tax was
calculated  in the  first quarter  of 2021; 5.8 million  euros of income tax was
calculated a year before.

The  excellent increase in the Group's sales  figures in the second quarter was,
on  the one hand, caused by the lower sales result in the first half of 2020 due
to the health crises and by the lower reference base due to the ABC Supermarkets
stores,  which were  added from  1 June 2020 and,  on the  other hand, by better
preparedness  for  fulfilling  online  orders  during the period of restrictions
arising   from  the  crisis.  The  car  trade  segment  provided  a  significant
contribution  to the increase in the sales revenue of the Group, which was based
on  the recovery of the  car market and skilfully  managed stocks, which ensured
smooth car sales in the conditions of the car deficit, which negatively affected
the  market. The sales  revenue of the  department stores segment recovered well
after the lifting of restrictions and an area of activity, which was acquired in
2021, helped  to  increase  the  sales  result  of  the  security  segment.  The
profitability of all segments of the Group improved in the second quarter thanks
to the better sales result and a slight increase in the gross margin. The salary
expenses  increased  by  18.9% in  the  second  quarter;  thereat, the number of
employees   increased   by   10.7% in  connection  with  the  expansion  of  the
supermarkets and security segments.

Most  of the  stores of  the department  stores segment  were again closed by an
order  of the Government  of the Republic  of Estonia from  11 March to 2 May to
prevent  the  spread  of  the  coronavirus.  The  fashion  and  industrial goods
departments  of the department stores segment, all I.L.U. stores, as well as the
ABC  King and SHU shoe stores were  closed for visitors. The period during which
those  stores were closed was approximately a week longer compared to the period
of   restrictions   in  2020. The  Group  applied  for  salary  and  operational
expenditure  state aid measures  based on the  criteria established by the state
for  four of the companies  of the department stores  segment of the Group whose
economic  activities were  extensively disturbed  due to  the crisis.  The state
covered  the operating expenditure in the extent of 1.6 million euros, in total,
within  the framework of the salary  and entrepreneurship support package, incl.
in the extent of 0.4 million euros in the first quarter and 1.2 million euros in
the  second quarter (year before, the government supported the operations of the
Group  in the extent of 1.3 million euros,  incl. 0.3 million euros in the first
quarter  and 1.0 million euros in the second quarter), thereby helping the Group
to  retain almost  800 jobs in  the department  stores segment.  As in  the year
before,  agreements were  achieved with  lessors to  reduce the  rental costs of
closed  sales areas. In spite  of the 3.6% increase in  the sales revenue of the
department stores segment, cuts of expenses, and the state aid support measures,
the  department stores  segment accumulated  a loss  of 1.3 million euros in the
first six months of 2021.

As  of 1 June 2021, the service area of the e-Selver online store service covers
all of Estonia. With this expansion, Selver became the only online grocery store
in  Estonia, which  delivers goods  to all  counties of  mainland Estonia in the
entire  extent. Selver has  been contributing actively  to the development of e-
commerce  in the last six years to be a pioneer in the field of online shopping.
One  innovation allows the customers of e-Selver  to track the journeys of their
orders on the map, which is updated with an interval of 20 seconds.

In  the department stores  segment, the renovation  of the Kaubamaja building in
Tallinn  commenced with the  renovation of the  beauty and food departments. The
new  food department is scheduled to be open in the end of August and the beauty
department in full in the beginning of September.

Earlier,  one of the most significant  large-scale developments of the Group was
completed  in the first half of 2021 - completion of the new production building
of  the central  kitchen of  Kulinaaria OÜ  with the  renovation of the previous
factory  and the  connection of  the two  production buildings. The most labour-
intensive  innovation was  the transfer  of stores  operating under the Comarket
brand  to the Selver ABC  brand and the integration  of Comarket, Delice stores,
and  the Solaris  Food Store  with the  Selver supply  chain and IT systems. The
upgrade  of the e-shop software platform started in the first quarter. Selver is
planning to renovate or expand five stores this year.

Selver supermakets

The consolidated sales revenue of the supermarkets business segment in the first
half  of  2021 was  275.1 million  euros,  increasing  by  11.6% compared to the
previous  year. The  consolidated sales  revenue was  141.2 million euros in the
second  quarter, increasing by 10.2% in comparison  with the same period of last
year.  In  the  first  half  of  2021, 20.3 million purchases were made from the
stores,  which was 11.4% more than in the  reference year. In the second quarter
of  2021, the  pre-tax  profit  and  the  net  profit  were  4.9 million  euros,
increasing  by 0.6 million  euros in  comparison with  the same  period the year
before.  The consolidated  pre-tax profit  of the  supermarkets segment was 6.3
million  euros in the first six months,  dropping by 1.3 million compared to the
year  before. The  net profit  in the  first six  months was  4.8 million euros,
decreasing  by 0.7 million euros compared to the  year before. As of 1 June, the
supermarkets  segment include  the results  of ABC  Supermarkets, which has been
merged with Selver for today.

As  the Estonian economy as a whole,  the supermarkets segment was also impacted
by  the changes in the purchase behaviour and consumption habits of customers in
connection  with the coronavirus, which broke out in March 2020 and has resulted
in  challenges  in  operating  with  the  goods  and  continuously increased the
expenses  on  the  personal  protective  equipment  for customers and employees.
Selver's  result is affected by the ABC  Supermarkets, which was acquired in the
second  quarter of last year and which  increased the number of Selver stores by
19. In February 2021, the sales activities of one acquired store were terminated
and  at the  end of  the half-year,  the sales  activities will  continue in the
eighteen  added stores. The comparability of the results is also affected by the
new  Selver store, which  was opened in  July 2020 and by  the renovation of one
Selver store in the reference period, expansion of the sales area of two stores,
and  the impact  of a  leap year.  Compared to  the same period the year before,
which  already included  the significant  increase in  e-commerce, the number of
orders  received by  e-Selver has  increased further,  doubling in the first six
months.  The service area of e-Selver has  been expanded in several stages since
the  beginning of the year and since June, it covers all of Estonia. The service
area  of e-Selver is the  largest in Estonia and  it was declared the most user-
friendly online store in the category of groceries in 2021.

This  year, the transfer of the stores operating under the Comarket brand to the
Selver  ABC brand was completed and IT software upgrades were made in the Delice
store  and Solaris  Food Store.  In the  Delice and  Solaris stores,  the Delice
Express service is now offered to customers - previously, these stores had self-
service  checkouts, but now, customers can  make their purchases conveniently by
using  barcode scanners. The  process of bringing  the stores together under one
brand  and the process of  updating the IT software  were accompanied by closing
the  stores for a few  days for replacing the  equipment, as well as by one-time
expenses  and investments. In the second quarter, activities have continued with
the  assortment of stores operating  under the Selver ABC  trademark, as well as
the  work continued  on increasing  the efficiency  including the  entire Selver
chain.  Investments were made in the  popular SelveEkspress service in the first
six  months. Additional self-checkout tills have  been added to the stores where
the  customers' interest in the service  has significantly increased and opening
of the SelveEkspress service in the Selver ABC stores has begun.

The  development of  profit has  been affected  by the  faster growth  of labour
costs,  which is temporarily caused by the integration of the store processes of
ABC Supermarkets into the Selver solution, higher labour needs in the e-commerce
segment,  where the provision of the service is more resource-intensive compared
to  the physical store, and higher expenses  to cover the increased sick days of
employees.  The profit  has also  been impacted  by the  cost of depreciation of
fixed assets in connection with the acquisition of ABC Supermarkets and bringing
it  under the Selver trademark.  Selver is planning to  renovate two more Selver
stores  this year, rebrand the smaller-format Selver stores under the Selver ABC
trademark,  and develop  the online  store service  to satisfy the constant high
demand for the service.

Department stores

The sales revenue of the department stores segment in the six months of 2021 was
38.8 million  euros, which was 3.6% better than  in the comparable period of the
previous  year. The sales revenue of  the second quarter was 20.8 million euros,
which  was 31.6% better than in the comparable  period of the previous year. The
average  sales revenue of  the Kaubamaja per  square metre of  selling space was
0.23 thousand  euros per month in  the six months, which  is 2.7% higher than in
the  same period last year. The pre-tax loss of the department stores in the six
months  of 2021 was 0.9 million euros, which was 1.3 million euros better than a
year  ago. The pre-tax profit in the second quarter was 1.3 million euros, which
is 1.6 million euros better than in the comparable period last year.

The  sales result of  the department stores  segment was impacted  by the strict
restrictions  established by  the Government  of the  Republic of Estonia on 11
March,  as a result of which, all industrial goods stores were closed. As in the
previous  year,  the  Kaubamaja  department  stores  closed  all  departments of
industrial  goods in Tallinn and Tartu on 11 March (in 2020, they were closed on
27 March).  Only the grocery stores remained  open. One of the largest campaigns
of  Kaubamaja department  stores, Osturalli,  was only  organised in  the online
store  this year and the turnovers, which had multiplied last year, doubled this
year  as well. The  online store of  Kaubamaja has grown  rapidly throughout the
entire  crisis period and the  turnover of the six  months is 67% better than in
the  comparable  period  in  the  year  before.  The stores were opened one week
earlier,  on 3 May, in  the second quarter  of this year  (last year, the stores
were  opened  on  11 May),  and  customers'  demand  for  summer  goods has been
significantly  higher compared to  last year. Even  though the renovation of the
beauty  department  in  Tallinn  commenced  in  June  and the food department in
Tallinn was closed fully for repair works on 25 June, the turnovers in June even
exceeded the level of 2019.

In  the second quarter of 2021, the sales  revenue of OÜ TKM Beauty Eesti, which
operates  the  I.L.U.  cosmetics  stores,  was  1.0 million euros, increasing by
10.9% compared  to the same period in 2020. The profit was 0.03 million euros in
the  second  quarter  of  2021, which  is  0.01 million  euros  less than in the
comparable period in 2020. The sales revenue in the first six months of 2021 was
2.0 million  euros, which is 0.5% less than in the same period of 2020. The loss
for  the first six months of 2021 was 0.03 million euros, which was 0.02 million
euros higher than the loss of the comparable period of 2020.

The  sales revenue of the  shoe stores of TKM  King AS, which are being reported
under the department stores segment as of 1 April 2021, was 2.6 million euros in
the  first six months of 2021. Compared to the year before, the sales revenue of
the first six months decreased by 11.0%. The loss for the first half of 2021 was
0.6 million  euros, which  decreased by  0.5 million euros  compared to the same
period  in 2020. The sales revenue of shoe stores in the second quarter was 1.6
million euros, which is 22.9% more than in the same period last year. The profit
for the second quarter was 0.04 million euros, which is 0.2 million euros better
than in the same period last year.

Car trade

The  sales revenue of the car trade segment  in the first half of 2021 was 78.0
million  euros. The sales revenue was 34.8% higher than the sales revenue in the
same  period the year before. The  41.8-million-euro sales revenue of the second
quarter was 68.6% higher than the sales revenue in the second quarter of 2020. A
total  of 3,306 new  vehicles were  sold in  the first  six months,  with 1,734
vehicles  sold in the second quarter. The net profit of the segment in the first
six  months of  2021 was 3.1 million  euros, exceeding  the profit  for the same
period  of  the  year  before  by  2.9 million  euros. The pre-tax profit of the
segment  for the first half of  2021 was 3.4 million euros, exceeding the profit
for  the first  half of  2020 by 2.6 million  euros. The  pre-tax profit  of the
second  quarter of 2021 was  2.2 million euros, which  is 1.7 million euros more
than the profit of the same period of the year before.

The  good financial results of the car trade segment in the second quarter arose
from  the recovery  of the  car market  thanks to  the stronger determination of
customers  in replacing their cars  and thanks to the  skilfully planned new car
stocks  of the car trade segment of the  Group, which enabled to deliver cars to
customers in a timely manner during the global deficit and prevented any loss of
sales  transactions due to delivery difficulties. The companies of the car trade
segment  of the Group have also participated successfully in public procurements
and   cooperated  with  car  rental  companies.  The  growing  fleet  of  brands
represented  by the Group's car trade  segment ensures the growth of after-sales
service.  The most  modern Peugeot  dealership in  Estonia, opened in Tallinn in
2020, was  awarded  the  titles  of  the  best sales representative and the best
after-sales  service at  the annual  Baltic Peugeot  Representatives Conference.
Even  though the manufacturers' delivery problems  call for caution, a number of
important  new models are expected,  such as the new  Kia Sportage, an update of
the Kia Ceed model, an updated Shkoda Kodiaq, and the brand new Shkoda Fabia.

Security segment

The  sales revenue earned in the security segment outside the Group in the first
half  of 2021 was 3.7 million euros.  The sales revenue of  the first six months
increased  by 48.2% compared to the year before. The sales revenue in the second
quarter  was 2.2 million euros, which is 72.3% more than in the same period last
year.  The pre-tax loss  of the security  segment in the  first half of 2021 was
0.01 million  euros. The loss decreased by more  than half compared to the first
six  months of 2020. The pre-tax profit of the segment in the second quarter was
0.05 million euros, which is 54.8% more than in the same period last year.

In  March, post-acquisition incorporation of the security service business of P.
Dussmann  Eesti OÜ with Viking Security  was completed successfully, which had a
positive impact of 0.1 million euros per month on the sales revenue. In the same
time,  all areas  of activity  continued to  grow successfully.  As of June, the
situation  on the labour market has clearly changed and has a negative impact on
the  growth of the sector of manned  surveillance and increases the labour costs
through  the conditions of labour shortage, which have occurred. Viking Security
was  declared the best in three of  the four categories by the Estonian Security
Association  this year: the best security worker,  the best security deed of the
year, and an acknowledged security solution.

Real estate

The  sales revenue earned  in the real  estate segment outside  the Group in the
first  half of 2021 was 2.4 million euros.  The sales revenue increased by 5.7%
compared  to the same period last year.  The sales revenue earned in the segment
outside  the  Group  was  1.2 million  euros  in  the second quarter. During the
reference  period, sales revenue  increased by 24.7%. The  pre-tax profit of the
real estate segment in the first half of 2021 was 5.0 million euros. Compared to
the reference period, the profit increased by 7.0%. The pre-tax profit earned in
the  segment was  2.4 million euros  in the  second quarter.  The pre-tax profit
increased by 24.1% in the reference period.

The  remarkable growth in the sales revenue and the profit of the segment in the
second  quarter arose from improved coping in the conditions of the restrictions
established  to prevent the  spread of COVID-19 compared  to the year before. In
the  second quarter, the number of visits to shopping malls increased by up to a
third  compared to the year before.  Only pharmacies, grocery stores, opticians'
shops,  pet stores, and sales  points of telecommunications enterprises remained
open in the spring of 2020. During this shutdown period, service companies could
remain  open,  but  were  required  to  observe the 25% occupancy limit on their
premises. Catering establishments remained open for selling take-out.

The restrictions have had a greater impact on the Tartu Kaubamaja shopping mall.
In  the last few months, the number of visits to the Viimsi Keskus shopping mall
has reached a level which is close to the level of 2019.

Due  to  the  uncertainty  concerning  the  economic impact of the pandemic, the
volume and schedule of future development works are approached cautiously.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of euros

-------------------------------------------------------------------------
                                                 30.06.2021   31.12.2020
-------------------------------------------------------------------------
  ASSETS
-------------------------------------------------------------------------
  Current assets

  Cash and cash equivalents                           9,952       32,757

  Trade and other receivables                        18,009       15,894

  Inventories                                        75,238       77,334
-------------------------------------------------------------------------
  Total current assets                              103,199      125,985
-------------------------------------------------------------------------
  Non-current assets

  Long-term receivables and prepayments                 323          335

  Investments in associates                           1,809        1,712

  Investment property                                60,430       60,347

  Property, plant and equipment                     406,086      388,757

  Intangible assets                                  20,226       20,148
-------------------------------------------------------------------------
  Total non-current assets                          488,874      471,299
-------------------------------------------------------------------------
  TOTAL ASSETS                                      592,073      597,284
-------------------------------------------------------------------------

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

  Borrowings                                         38,165       49,402

  Trade and other payables                           94,128      102,841
-------------------------------------------------------------------------
  Total current liabilities                         132,293      152,243
-------------------------------------------------------------------------
  Non-current liabilities

  Borrowings                                        248,798      217,349

  Deferred tax liabilities                            4,408        4,408

  Provisions for other liabilities and charges          277          277
-------------------------------------------------------------------------
  Total non-current liabilities                     253,483      222,034
-------------------------------------------------------------------------
  TOTAL LIABILITIES                                 385,776      374,277
-------------------------------------------------------------------------
  Equity

  Share capital                                      16,292       16,292

  Statutory reserve capital                           2,603        2,603

  Revaluation reserve                               101,444      102,630

  Currency translation differences                     -149         -149

  Retained earnings                                  86,107      101,631
-------------------------------------------------------------------------
  TOTAL EQUITY                                      206,297      223,007
-------------------------------------------------------------------------
  TOTAL LIABILITIES AND EQUITY                      592,073      597,284
-------------------------------------------------------------------------




CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In thousands of euros

  -----------------------------------------------------------------------------
                                           II quarter    6 months    6 months
                          II quarter 2021     2020         2021        2020
  -----------------------------------------------------------------------------


   Revenue                        207,187       171,008     397,953     346,504

   Other operating income           1,151           417       1,356         660



   Cost of merchandise           -154,986      -129,062    -300,302    -263,092

   Service expenses               -11,337        -9,612     -22,863     -20,146

   Staff costs                    -21,300       -17,913     -42,137     -36,146

   Depreciation,
   amortisation       and
   impairment losses               -9,615        -7,871     -19,472     -15,862

   Other expenses                     -59          -146        -309        -377
  -----------------------------------------------------------------------------
   Operating profit                11,041         6,821      14,226      11,541
  -----------------------------------------------------------------------------
   Finance income                       1             0           2           0

   Finance costs                   -1,189        -1,066      -2,265      -1,763

   Finance    income   on
   shares  of  associates
   accounted   for  using
   the equity method                   49            59          97         114
  -----------------------------------------------------------------------------
   Profit before tax                9,902         5,814      12,060       9,892
  -----------------------------------------------------------------------------
   Income tax expense                   0            -1      -4,333      -5,822
  -----------------------------------------------------------------------------
   NET PROFIT FOR THE
   FINANCIAL YEAR                   9,902         5,813       7,727       4,070
  -----------------------------------------------------------------------------
   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                   9,902         5,813       7,727       4,070
  -----------------------------------------------------------------------------
 Basic     and    diluted
 earnings    per    share
 (euros)                             0.24          0.14        0.19 0.10



Raul Puusepp

Chairman of the Board

Phone +372 731 5000