Börsiteade

Pealkiri

SALES RESULTS FOR THE FIRST HALF-YEAR OF 2010

Teade

The non-audited sales revenue of Tallinna Kaubamaja Group for the first
half-year of 2010 was 3.0 billion kroons (192.3 million euros), including the
sales in the second quarter that amounted to 1.6 billion kroons (100.8 million
euros). The sales revenue for the first half-year of 2009 totalled to 3.2
billion kroons (203.6 million euros) and in the second quarter to 1.7 billion
kroons (106.2 million euros). In the first half-year, the sales revenue dropped
by 5.5% and in the second quarter by 5.0%. The sales tax, levied in Tallinn
since June, reduced the sales revenue by 2.4 million kroons (0.2 million
euros). Compared to the first half-year of 2009, the turnover tax rates for the
financial year and reference year are also different, but the sales prices in
the stores of the group have not been raised in relation to the taxes. 

The consolidated sales revenue in the business segment of supermarkets for the
first half of 2010 was 2.3 billion kroons (144.7 million euros), of which the
sales revenue of the second quarter amounted to 1.2 billion kroons (75.5
million euros). The sales revenue of both periods dropped by 3% compared to the
same periods of the previous year.  In the first half year, the average monthly
consolidated sales revenue per square metre of the selling space was 5.5
thousand kroons per month, exhibiting a growth of 1% compared to the same
period of the previous year. In the second quarter, the sales revenue per
square meter of the selling space was 5.7 thousand kroons per month, growing by
6% compared to the same period of the previous year. 
The sales revenue of the supermarket segment in Estonia for the first half-year
was 2.3 billion kroons (144.7 million euros), achieving the level comparable to
2009. At the same time, in Estonia the retail sales in non-specialised stores,
selling predominantly food products, beverages and tobacco products, dropped by
7% in the first five months of the year. The sales revenue for the second
quarter was 1.2 billion kroons (75.5 million euros), exceeding the sales
revenue of the same period of the previous year by 2%. In the first half-year,
the sales revenue per square metre of selling space was an average of 5.5
thousand kroons per month and in the second half year 5.7 thousand kroons,
exhibiting a drop of 3% and 1%, respectively, compared to the same period of
the previous year. In comparable stores, the sales revenue per square metre of
selling space for the first half-year was 5.6 thousand kroons, i.e. it dropped
by 3% as compared to the benchmark. In Selvers located in Estonia, the number
of purchases made in the first half-year of 2010 amounted to 16.3 million,
exceeding the number of purchases made during the earlier period of the year by
1%. 
The sales results of the first half-year were promoted by a rise in the number
of clients, successful marketing activities and sales campaigns. The sunny
weather in the week of Midsummer Day also contributed to good sales results.
The sales revenue in the week of Midsummer Day grew 8% compared to the earlier
period of the year. More attention than before has been paid to the
availability of goods throughout the opening hours of each store and to the
display of goods. The sales revenue has been negatively affected by the
tightened competition and the levy of the sales tax in some regions, also by
the rise in the turnover tax. 
As a result of the decision, passed in the autumn of 2009, to freeze the
business activity in Latvia, 5 out of the 6 Selver stores in Latvia were closed
by the end of 2009. The last of the stores, the one operating in Daugavpils,
was closed in March of this year. In the first half-year of 2010, the sales
revenue of Selver in Latvia was, thus, 0.2 million kroons (10 thousand euros)
compared to the 77.9 million kroons (5.0 million euros) of the same period of
the previous year. In the second quarter, there was no sales revenue in Latvia. 
In March, a Selver store was opened at Rannarootsi Centre in Haapsalu. The
store has a total selling space of 1.5 thousand square metres. After the
opening of Rannarootsi Selver, there are altogether 35 Selver stores in
Estonia. 

In the first half year of 2010, the sales revenue of the business segment of
department stores was 537,7 million kroons (34.4 million euros), dropping by 8%
compared to the same period of the previous year. This included the sales
revenue for the second quarter of 283.3 million kroons (18.1 million euros)
that was 8% lower than revenue of the II quarter of 2009. In the first half
year, the sales revenue of the department stores per square meter was 3.6
thousand kroons per month, i.e. 12% lower than in the same period of the
previous year. At the same time, the total selling space of the department
stores has grown by 2%, i.e. 529 m2 compared to the last year. Last year the
summer sales campaigns started as early as in mid-June that definitely
influences the benchmark of the second quarter of the previous year. The sales
revenue of the OÜ TKM Beauty Eesti, the operator of the three I.L.U. Beauty
cosmetics stores, was 14.0 million kroons (0.9 million euros) in the first half
year of 2010 and 7.4 million kroons (0.5 million euros) in the second quarter
of 2010. In the comparable periods of the year 2009 only the Pärnu I.L.U. store
was operating with sales revenue respectively 0.5 and 2.0 million kroons (0.03
and 0.1 million euros). The fourth store of the chain is planned to be opened
this autumn at Kristiine Centre in Tallinn. 

The first half-year sales revenue of real estate business segment outside the
Group was 19.8 million kroons (1.3 million euros) and in the second quarter
sales was 9.7 million kroons (0.6 million euros). The first half-year sales
dropped by 9% and in the second quarter dropped by 7% compared to the same
period of the previous year due to the reduction of renting activities in
Latvia. 

The sales revenue of the car segment for the first half-year of 2010 with the
exclusion of inter-segmental transactions was 96.8 million kroons (6.2 million
euros), falling short of the revenue for the same period of the previous year
by 34%. The sales revenue of second quarter of 2010 decreased by 40% compared
to the last year result and totalled to 51.2 million kroons (3.3 million
euros). 

The turnover of the footwear retail segment for the first half year of 2010 was
91.8 million kroons (5.9 million euros), growing by 8% in a year. In the second
quarter, the turnover was 52.9 million kroons (3.4 million euros), growing by
17% compared to the same period of 2009. The expansion of SHU footwear chain
continued in the second quarter leading to the opening of SHU stores in the
previous spaces of Suurtüki stores in Saaremaa, Hiiumaa, Krooni Centre in
Rakvere and Eeden Centre in Tartu. The active expansion of SHU footwear chain
will continue in the third quarter. Today, 28 stores of the 31 stores in the
two footwear chains belonging to the group are located in Estonia and 3 in
Latvia. 

Raul Puusepp
Chairman of the Board
Phone: +372 731 5000