Börsiteade

Pealkiri

Sales results for the 1st quarter of 2012

Teade

The consolidated unaudited sales revenue of the Tallinna Kaubamaja Group in the
1st quarter of 2012 was 106.0 million euros. Compared to the 1st quarter of
2011, when the sales revenue was 96.1 million euros, the growth was 10.3%. The
sales revenue increased in all the segments of the Group, while the vehicle
trade segment and the footwear segment indicated the greatest growth among the
retail business segments. 

The consolidated sales revenue of the business segment of supermarkets in the
1st quarter of 2012 and the sales revenue in Estonia were 77.3 million euros,
having increased by 7.1% compared to the period of a year earlier. The average
monthly sales revenue of goods per a square metre of selling space in the 1st
quarter of 2012 was 0.36 thousand euros, having increased by 6.3% compared to
the year 2011. The sales revenue of comparable goods per a square metre of
selling space in the 1st quarter was an average of 0.37 thousand euros per
month, thus showing a growth of 7.7%. In the first three months of 2012, 6.4
million purchases were made from the Selver stores located in Estonia,
exceeding the number of purchases made in the 1st quarter of the previous year
by 1.5%. The increase in the sales revenue of the Selver stores in the 1st
quarter has been promoted by successful sales campaigns and the fact that sales
during the holiday season of the 1st quarter grew more than on average. In
addition, the impact of the leap year was significant, as it added an extra
selling day to the period under observation. Compared to the low reference base
of the previous year, the sales revenue of industrial and convenience goods
showed an improvement in the 1st quarter. The impact that the rise in prices
had on the growth of the sales revenue of food products has started to reduce
and the decrease of sales volumes has slowed down. Selver stores continue to
focus on adapting the selection of goods to the changes in demand and on
ensuring the availability of goods – the results are also becoming apparent in
the improving sales results. Compared to the same period of the previous year,
the increase in the sales revenue has been greatly affected by the tougher
competition in the retail business market as well as the higher reference base
on the account of the Soldino Selver, which was closed last year. Selver stores
in Latvia have been closed down and no sales revenue of goods was earned in the
1st quarter of 2012 in Latvia. Similarly to last year, the sales revenue of the
Latvian enterprise in the 1st quarter was 0.004 million euros. As of the end of
the 1st quarter of 2012, the Selver chain included 34 stores and a central
kitchen. 

The sales revenue of the department store business segment in the first three
months of 2012 was 19.0 million euros, thus having increased by 12.6% compared
to the same period of the previous year. The sales revenue of department stores
per one square metre of selling space in the first three months was 0.77
thousand euros per month, which is 14.7% more than during the same period of
the previous year. The sales revenues were positively influenced by a
successful end-of-the-season final campaign of winter goods, which was
organised in January. Compared to the same period of the previous year,
renovating works were done in the women’s department of Tallinna Kaubamaja from
mid-January to March. The women’s department expanded and became 1,000 square
metres larger than it had been so far; the completely renewed department was
fully opened to customers on March 8. Due to renovations, 12.6% of the entire
selling space, i.e. 2,100 square metres were closed for two months. In that
space, the biggest children’s department was opened on March 22 to replace the
departments of sports goods and digital devices. In the 1st quarter of 2012,
the sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. beauty
stores, was 0.8 million euros, having grown by 51.8% compared to the same
period of the previous year. Compared to the first quarter of last year, in
April 2011 the I.L.U. chain also opened a fifth store in the Ülemiste Centre in
Tallinn. 

The external sales revenue of the real estate business segment in the first
quarter of 2012 increased by 6.1% compared to the same period of the previous
year and totalled 0.7 million euros. 

The sales revenue of the vehicle segment in the 1st quarter of 2012 without
inter-segment transactions was 6.1 million euros, thus exceeding the revenue of
the same period of the previous year by 59.9%. In the first three months of the
year, a total of 349 cars were sold – 147 cars more than during the same period
a year before. KIA’s market share in the 1st quarter of 2012 in the Baltic
states was 3.7%, at the same period of the previous year the market share was
2.6%. 

The sales revenue of the footwear segment in the 1st quarter of 2012 was 2.9
million euros, indicating a growth of 13.9% compared to the same period of
2011. The considerable increase in sales was caused by the low reference base,
favourable weather conditions (the sales of the 2010/2011 winter season
remained in November-December of 2010, while in the 2011/2012 season, the
majority of winter goods were sold in January and February), and the general
boost in consumption, especially in the clothing and footwear sector. In the
first quarter of 2012, two ABC King stores and one Nero store were closed in
Riga due to their long-term losses. Thus, the activities of the footwear
segment in Latvia have been temporarily suspended. In the second quarter,
preparation works will continue to open one ABC King store (Pärnu) and one Shu
store (Viljandi). The Pärnu store is planned to be opened in the beginning of
July and the Viljandi store in the end of the 4th quarter. The two footwear
store chains of the Group currently include 23 stores. 


         Raul Puusepp
         Chairman of the Board
         Phone +372 731 5000