Börsiteade

Pealkiri

Sales results of the 1st half-year and 2nd quarter of 2012

Teade

The consolidated unaudited sales revenue of the Tallinna Kaubamaja Group in the
1st half-year of 2012 was 224.9 million euros, having increased by 9.1%
compared to the 1st half-year of 2011, when the sales revenue was 206.2 million
euros. In the second quarter, the Group’s sales revenue reached 118.8 million
euros, exceeding the sales revenue of a year earlier by 7.9%. The renewed
Partner Card loyalty programme was launched on May 10. A joint purchase bonus
valid in all stores of the Group was added to the discounts valid so far – this
will improve cross-group synergy, offering greater and greater discounts to the
customers who make all their everyday purchases in the Group’s various stores.
Within the renewed programme, a joint international credit card was also
introduced to the market in cooperation with LHV Bank. Feedback from customers
has been very positive and the number of issued cards has exceeded preliminary
prognoses – almost 2,600 LHV Partner Credit Cards had been issued by the end of
June. 

The consolidated sales revenue of the business segment of supermarkets and the
segment’s sales revenue earned in Estonia in the 1st half-year of 2012 were
161.3 million euros, having grown by 5.2% compared to the year before. The
consolidated sales revenue and the sales revenue earned in Estonia in the 2nd
quarter were 84.1 million euros, which is 3.6% higher than the result of the
same period of the previous year. The average monthly sales revenue of goods
per one square metre of selling space both in the consolidated view and in
relation to the Estonian market was 0.37 thousand euros in the 1st half-year of
2012, thus having grown by 3.8% compared to the previous year; in the 2nd
quarter, this figure was 0.39 thousand euros, thus having grown by 1.4%. The
sales revenue of the goods of comparable stores per one square metre of selling
space was an average of 0.38 thousand euros in the 1st half-year of 2012 and
0.39 thousand euros in the 2nd quarter, indicating an increase of 4.4% and
1.6%, respectively. 16.1 million purchases were made from Selver stores in the
1st half-year of 2012, remaining 0.8% lower than the number of purchases made a
year earlier; 12.9 million purchases were made from comparable stores, which is
1.0% less than in the previous year. In the first half-year of 2012, no sales
revenue was earned in Latvia. The sales revenue of Selver earned in Latvia in
the 1st half-year of 2012 was 0.9 thousand euros; 0.4 thousand euros were
earned in the 1st quarter, thus remaining at the same level as the previous
year. 

A Selver store was opened in Saku on May 17. There are plans to open additional
new stores within this year: in Rapla, in the Vahi neighbourhood of Tartu and
in the Pääsküla sub-district of Tallinn. More new stores may be added to this
list before the end of the year. Lease contracts have also been entered into,
stating that according to current estimates, Selver will open two supermarkets
in 2013 – in spring on Läänemere tee in Tallinn, and in the 2nd half of the
year in the Astri Centre in Narva. Selver, which has so far only been active in
the super- and hypermarket segment, has created a new convenient store concept
“Koduselver” and plans to open several small stores in various cities during
the few coming years. The first Koduselver will be opened in the beginning of
December on the border between Tallinn and Laagri – in Pääsküla, Pärnu mnt
536b. The first Koduselver will provide work for 20 people and the size of the
selling space will be 588 m². The aim of the convenient stores is to save the
customers' time and offer a range of food products and consumer goods capable
of satisfying people's primary needs. It is planned to mainly establish
Koduselver in the hearts of residential districts, but also in the immediate
vicinity of institutions that are important for locals, near public transport
stops or by main roads used by people to drive home. As of the end of the 1st
half-year of 2012, the Selver chain includes 35 stores with a selling space of
70.3 thousand square metres, and a central kitchen. 

The sales revenue of the business segment of department stores in the first 6
months of 2012 was 40.0 million euros, having grown by 10.3% compared to the
same period of the previous year. Of that sum, 21.0 million euros of sales
revenue was earned in the second quarter; the sales revenue was 8.2% higher
than the revenue of the 2nd quarter of 2011. The sales revenue of department
stores per one square metre of selling space was 0.27 thousand euros a month,
which is 11.2% more than during the same period of a year before. In the second
quarter, the sales revenue was positively influenced by the final campaign of
the Sports Department in the Tartu store, as well as the preliminary discount
campaign targeted at best customers. The sales results of the first half-year
were negatively influenced by renovation works in the Women’s Department of
Tallinna Kaubamaja, which lasted from mid-January to March and had a temporary
impact on selling activities on 3,500 square metres. In addition, 12.6% of the
total selling space or 2,100 square metres were completely closed for two
months due to alteration works – Estonia's largest Children’s Department was
opened on March 22 instead of the earlier Sports and Digital Departments. The
sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. beauty stores,
was 1.7 million euros in the first half-year of 2012, having grown by 39.1%
compared to the same period of the year before. Of that sum, the sales revenue
of the 2nd quarter was 0.9 million euros, which was 29.0% higher than the sum
earned in the respective period of 2011. Compared to the first half-year of the
previous year, the I.L.U. chain also opened a fifth store in the Ülemiste
Centre in Tallinn – in April 2011. There are plans to open a sixth I.L.U. chain
store in the Tasku Centre in Tartu – in August. 

The extra-group sales revenue of the real estate business segment earned in the
first 6 months of 2012 was 1.4 million euros, having grown by 5.2% compared to
the same period of the previous year. The extra-group sales revenue of the real
estate business segment earned in the 2nd quarter of 2012 was 0.7 million
euros, having increased by 4.2% compared to the same period of the previous
year. The increase was mainly due to the rearrangement of the lessees and
rented spaces of Tartu Kaubamaja Kinnisvara OÜ. 

The sales revenue of the car trade segment earned in the 1st half-year of 2012
without inter-segment transactions was 15.5 million euros, thus exceeding the
revenue of the same period of the year before by 73.1%. The sales revenue of
the second quarter in the sum of 9.4 million euros was greater than the revenue
of the year before by 82.9%. These good results were chiefly brought about by
the successful launch of the new Cee'd and the considerably improved supply of
the triumphant crossover SUV Kia Sportage. In addition, the new small car KIA
Rio has enjoyed booming sales. KIA’s market share in the 2nd quarter was 5% in
Estonia and Lithuania, and 3.2% in Latvia. 

The turnover of the footwear trade segment in the 1st half-year of 2012 was 6.6
million euros, having grown by 5.3% in a year. In the 2nd quarter, the turnover
was 3.6 million euros, which is 0.7% less compared to the same period of 2011.
The decrease of the sales revenue in the 2nd quarter was caused by the drop in
the number of stores – compared to the 2nd quarter of 2011, by the 2nd quarter
of this year the group had lost one store in Estonia and 3 stores in Latvia.
The turnover growth in the comparable stores was 14% in the 1st half-year and
8.4% in the 2nd quarter. On July 5, an ABC King store was reopened in the Pärnu
Kaubamajakas. There are plans to open the Viljandi Shu store in November 2012. 


         Raul Puusepp
         Chairman of the Board
         Phone +372 731 5000