Börsiteade

Pealkiri

Unaudited consolidated interim accounts for the second quarter and first six months 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 8.0%. The consolidated
unaudited net profit of the group, generated in the first six months of 2012,
was 5.5 million euros, which is 7.6% higher than the 5.1 million euros of the
same period last year. The Group’s net profit of the second quarter was 2.3
million euros, which forms 65.1% of the comparable period of the previous year,
when the corresponding indicator was 3.6 million euros. The net profit of the
six months and especially the second quarter were considerably influenced by
the income tax of 3.8 million euros paid on dividends in June. The pre-tax
profit in the first six months was 9.3 million euros, having increased by 13.8%
compared to the year before. The pre-tax profit of the 2nd quarter amounted to
6.1 million euros, but was 7.7% lower compared to the same period of the year
before due to the write-off of the software which had lost its disposable value
recognised in the depreciation of fixed assets in the amount of 0.9 million
euros. 

The sales revenue and the pre-tax profit of all business segments of the group
increased, which allows the group to be satisfied with the result of the first
six months. The priorities of the first six months have been looking for growth
possibilities for the segments and increasing competitiveness through internal
rearrangements. In late June, the group founded three new subsidiaries:
Kaubamaja AS, Kulinaaria OÜ and Topsec Turvateenused OÜ, with the aim to
reorganize the structure of the companies within the group and make management
more transparent. The business activities of the segment of department stores
which has been operating the department stores in Tallinn and Tartu in the
parent company of the group are scheduled to be transferred to Kaubamaja AS in
the course of the division. The security-related activities of the group which
have been operated under Tartu Kaubamaja AS are scheduled to be transferred to
Topsec Turvateenused OÜ. Selver AS is planning to transfer the business
activities of the central kitchen to Kulinaaria OÜ in the course of the
division. On 3 July, 2012, the group finalized the transaction to acquire 100%
participation in AS Viking Motors. With this purchase, the group expands its
segment of vehicle trade, which has been one of the strategic segments of the
business activities of the group since 2007. By virtue of this transaction, in
parallel to the export and sale of KIA vehicles in all the Baltic States, the
salon in Tallinn will launch the sale and service of Opel and Cadillac, also
the service of Saab, Corvette, and Hummer vehicles, providing an opportunity to
expand the group's activities to the segment of commercial vehicles, and
additional sale and service premises for better customer service. 

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 profit of department stores in
the first six months of 2012 was 0.5 million euros, exceeding the result of the
year before by 0.5 million euros. The profit of the 2nd quarter was 0.8 million
euros, which exceeded the profit of 2011 by 21.4% or 0.14 million euros. 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. The net loss
of the I.L.U. chain in the first six months was 0.3 million euros, which is
0.03 million euros less than in the same period the year before. 

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. In the first half-year of 2012, no sales
revenue of goods 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 2nd quarter, thus remaining at the same level as the
previous year. The consolidated pre-tax profit of the segment of supermarkets 
in the 1st half-year of 2012 was 4.6 million euros, which means an increase of
0.02% compared to the period of a year before, and the net profit 1.8 million
euros, which means an increase of 15.1% compared to the period of a year
before. The consolidated pre-tax profit of the 2nd quarter was 2.7 million
euros, a decrease of 23.2%, and the net loss was -0.1 million euros, which was
0.6 million euros lower compared to the net profit of the period of the year
before. The pre-tax profit earned in Estonia in the first six months was 5.7
million euros, of that 3.3 million euros were generated in the 2nd quarter. The
deflections in the profits, compared to the period of the year before, were
-0.1% and -19.9%, respectively. The net profit of the segment of supermarkets
generated in Estonia in the first six months was 2.9 million euros, having
increased by 8.3% compared to the base period, of that, 0.5 million euros was
the net profit of the 2nd quarter, which formed 45% of the profit of the year
before. The pre-tax loss and net loss generated in Latvia in the first six
months was 1.2 million euros, of that, 0.6 million euros were generated in the
2nd quarter. The loss remained on the same level as earlier in the year,
decreasing by 0.5% and 0.2%, respectively. Business activities in Latvia have
been brought to a halt. The increase in sales revenue has been affected by the
significantly increased competition in the retail trade market. The reference
base of last year’s sales revenue includes the influence of the sales tax
levied in Tallinn. In the background of last year’s low reference base, the
sales results of manufactured and staple goods have improved in the first six
months. The influence of an increase in prices on the growth of the sales
revenue of food products has decreased and the decrease in sales volumes has
stopped. The profit formation of Selver in Estonia has been positively
influenced by an increase in the efficiency of labour as a result of reviewing
the work processes of the employees and the introduction of multifunctional
organization of work. Also, the income tax paid on dividends is 7.6% lower than
before this year. The profit was also influenced by depreciation costs, which
have increased by 40% compared to the year before due to the renovation of four
stores in the course of the year before, the introduction of the SelveEkspress
purchase system, which is innovative in Estonia, in three stores last year and
this year, and the creation of the bakers’ concept, which was finalized in the
first quarter of this year, which involved taking over the bakery stalls in the
stores. Due to the abovementioned, the volume of investments in 2011 and 2012
has been higher than in previous years. In this June, it was decided to replace
IT software, as a result of which software investments, which had lost its
disposable value, in the amount of 0.9 million euros were written off. 

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 4.4% 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 pre-tax profit of the
segment of real estate of the first six months was 3.6 million euros and the
pre-tax profit of the 2nd quarter was 1.8 million euros. This result exceeded
the pre-tax profit of the first six months of the year before by 0.2 million
euros and the pre-tax profit of the 2nd quarter by 0.1 million euros, which is
based on an increase in sales revenues. The segment’s net profit of the six
months was 2.6 million euros and the net profit of the 2nd quarter 0.8 million
euros, which is 0.7 million euros less than the net profit of the first six
months of 2011 and 0.9 million euros less than the net profit of the 2nd
quarter of 2011. The net profit was influenced by the income tax paid on
dividends in the 2nd quarter of 2012. 

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. The segment earned a profit of 0.9 million euros
in six months, of that, 0.6 million was generated in the 2nd quarter. The
respective profits of 2011 were 0.6 million euros and 0.4 million euros. 

The turnover of the footwear trade segment in the 1st half-year of 2012 was 6.6
million euros, having grown by 5.4% in a year. In the 2nd quarter, the turnover
was 3.6 million euros, which is 0.6% 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 14.0% in the 1st half-year and
8.4% in the 2nd quarter. The loss of the first six months was 0.3 million
euros, which has decreased by approximately 0.1 million euros compared to the
same period of the previous accounting year. The profit of the 2nd quarter was
0.2 million euros, which is 0.1 million euros less than the result of the 2nd
quarter of 2011. The main reason for the decrease in profit in the 2nd quarter
compared to the year before were the weather conditions (especially in April),
which had an unfavourable effect on consumption and resulted in more discounts
and a lower gross margin than planned. 



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 In thousands of euros



                                     30.06.2012  31.12.2011
-----------------------------------------------------------
ASSETS                                                     
-----------------------------------------------------------
Current assets                                             
Cash and bank                             7,088      11,948
Trade receivables                         8,923       9,976
Other short-term receivables                233       9,372
Prepaid taxes and other prepayments       1,142         959
Inventories                              47,243      41,973
Total current assets                     64,629      74,228
-----------------------------------------------------------
Non-current assets                                         
Prepayments                                 982         985
Investments in associates                 1,629       1,550
Other long-term receivables                  40          56
Investment property                       3,566       3,566
Property, plant and equipment           185,033     172,272
Intangible assets                         9,827       9,809
Total non-current assets                201,077     188,238
-----------------------------------------------------------
TOTAL ASSETS                            265,706     262,466
-----------------------------------------------------------
                                                           
LIABILITIES AND EQUITY                                     
-----------------------------------------------------------
Current liabilities                                        
Borrowings                                8,891      11,261
Trade payables                           49,715      46,419
Tax liabilities                           3,957       5,038
Other current liabilities                 4,393       4,489
Provisions                                   92         135
Total current liabilities                67,048      67,342
-----------------------------------------------------------
Non-current liabilities                                    
Borrowings                               67,163      55,591
Provisions and prepayments                  611          73
-----------------------------------------------------------
Total non-current liabilities            67,774      55,664
TOTAL LIABILITIES                       134,822     123,006
-----------------------------------------------------------
Equity                                                     
Share capital                            24,438      24,438
Statutory reserve capital                 2,603       2,603
Revaluation reserve                      51,638      52,197
Retained earnings                        52,178      60,333
Currency translation differences             27        -111
TOTAL EQUITY                            130,884     139,460
-----------------------------------------------------------
TOTAL LIABILITIES AND EQUITY            265,706     262,466
-----------------------------------------------------------



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In thousands of euros

                                      6 months   6 months     II     II quarter 
                                        2012       2011    quarter      2011    
                                                            2012                
--------------------------------------------------------------------------------
                                                           
Revenue                                 224,867   206,180  118,833       110,081
Other operating income                      250       120      102            37
                                                                                
Materials, consumables used and        -167,879  -153,436  -87,986       -80,918
 services                                                                       
Other operating expenses                -23,133   -21,986  -11,627       -10,843
Staff costs                             -17,663   -16,976   -9,101        -8,856
Depreciation, amortisation and           -6,109    -4,936   -3,571        -2,504
 impairment losses                                                              
Other expenses                             -205      -166      -65           -63
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Operating profit                         10,128     8,800    6,585         6,934
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Finance income                               88       131       33            55
Finance costs                              -988      -852     -579          -446
Finance income on shares of                  79       101       40            46
 associates                                                                     
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Profit before tax                         9,307     8,180    6,079         6,589
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Income tax                               -3,766    -3,031   -3,762        -3,031
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NET PROFIT FOR THE FINANCIAL YEAR         5,541     5,149    2,317         3,558
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Other comprehensive income:                                                     
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Currency translation differences            138        76      169             5
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Other comprehensive income for the          138        76      169             5
 financial year                                                                 
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TOTAL COMPREHENSIVE INCOME FOR THE        5,679     5,225    2,486         3,563
 FINANCIAL YEAR                                                                 
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         Raul Puusepp
         Chairman of the Board
         Phone +372 731 5000