Tallinna Kaubamaja Group released гnaudited consolidated interim accounts for the fourth quarter and 12 months of 2015
OREANDA-NEWS.The consolidated non-audited sales revenue of Tallinna Kaubamaja Group was 555.4 million euros in 2015, a growth of 3.8% compared to the results of 2014 when the sales revenue was 535.0 million euros. In the fourth quarter, the sales revenue of the group was 152.9 million euros, exceeding the sales results of the previous year by 5.1%. The Group`s consolidated non-audited net profit for the fourth quarter of 2015 was 10.6 million euros, which is 6.9% higher year-on-year. The net profit of the group was 22.1 million euros in 2015, which was better by 8.8% of the profit earned in the previous year. The year`s pre-tax profit was 26.0 million euros, showing a year-on-year growth of 15.4%. The net profit was influenced by the dividend payment, on which an income tax of 3.9 million euros was paid in 2015, whereas the year earlier, 2.2 million euros was paid as income tax.
The year 2015 that offered stability and a strong growth in retail business was not equally generous to all retailing segments, leaving the fashion and foodstuff sellers with a lower growth than average. Compared to Estonian statistics, we can still be satisfied with the Group`s sales revenue growth. We experienced a seasonal shift in the fourth quarter, a usual occurrence in recent years, resulting in a long warm autumn that lasted by the end of December. The latter reduced the expected revenue from the sale of fashion goods. The supermarket segment showed a continued strong sales growth with the help of the new Viimsi store and e-shop. The footwear segment that faces fierce competition achieved a significant sales growth despite unfavourable weather conditions. The car trade segment achieved a superb sales result in the fourth quarter, primarily with the help of sales campaigns; however, they resulted in a slight decrease in the margin compared to the reference base. The Group`s profit earned in the fourth quarter increased by 2.3 million euros on account of revaluation of the assets of the real estate segment. The growth of average wage costs was mainly due to the seasonal calculation of incentive compensation.
The initial consolidated sales revenue of 2015 of the supermarkets business segment was 383.4 million euros, growing 4.2% compared to 2014. The consolidated sales revenue of the fourth quarter was 104.1 million euros, showing a year-on-year growth of 4.9%. The monthly average sales revenue of goods per one square metre of sales space was 0.36 thousand euros in 2015, exceeding the previous year`s result by 1.6%. In the fourth quarter, the sales revenue of goods per one square metre of sales space was on an average 0.38 thousand euros in a month, exceeding the result of the year before by 1.3%. The sales revenue of goods per a square metre of comparable stores was 0.37 thousand euros as an average of 12 months and 0.39 thousand euros in the fourth quarter, showing a respective growth of 2.2% and 1.4%. The turnover of Selver subsidiary Kulinaaria O? outside the Group, especially that of catering service, which does not account for a significant portion of the total turnover of the segment, has grown 35.9% in a year. In 2015, 36.1 million purchases were made in Selver stores and this result exceeds the number of purchases 1.4% year-on-year. The consolidated pre-tax profit of the supermarket segment was 10.8 million euros in 2015 and the net profit was 8.5 million euros, showing a respective growth of 2.7 million euros and 0.8 million euros compared to the previous year. The pre-tax profit earned in Estonia was 13.1 million euros and the net profit was 10.9 million euros. The pre-tax profit and net profit in the fourth quarter was 4.4 million euros, remaining at the same level of the previous year. Of this, the profit earned in Estonia was 4.9 million euros. The difference in the net profit and the profit before income tax is due to the income tax paid on dividends: in 2015, the income tax on dividends was 2.22 million euros; in 2014, 0.37 million euros. The pre-tax loss and net loss earned in Latvia were 2.4 million euros, of which 0.5 million euros in the fourth quarter. The loss decreased in the last quarter by 0.1 million euros.
The fourth quarter of 2015 was influenced by Viimsi Selver, the seventh hypermarket opened in August. The added store not only strengthens competition outside the chain, but also within the chain. However, the number of purchases on year-on-year basis has increased. The average consumer basket has grown in the fourth quarter as well as annually. Successful marketing campaigns and very good year-end sales during the holiday season have supported the growth of turnover in the fourth quarter of 2015. The profit earned in Estonia has been primarily influenced by the greater efficiency achieved in the main process, i.e. selling goods. Stocks have been managed more efficiently, which has resulted in fewer discounts and smaller writing-off costs. The cost efficiency has been improved compared to the previous year in terms of operational costs. Regardless of the fact, that the base year includes the opening costs of one store and this year`s operational costs include the opening costs of one store and renovation costs of one store.
The sales revenue of 2015 of the department stores’ business segment was 95.6 million euros, growing 3.3% in a year. Of this result, the sales revenue in the fourth quarter was 29.0 million euros, which was 2.3% higher of the revenue earned in the fourth quarter of 2014. The pre-tax profit of department stores was 4.4 million euros in 2015, showing a decrease of 8.0% compared to the previous year. The pre-tax profit in the fourth quarter was 2.8 million euros, which was lower compared to the profit of 2014 by 2.2%. The average sales revenue per a square metre of sales space of department stores was 0.3 thousand euros in a month in 2015, remaining at the same level as the previous year. However, the sales space of department stores has grown 1.1% from the last summer on account of the gourmet department at Tallinn sales premises. In the fourth quarter, warmer autumn months that enabled customers to postpone outerwear purchase decisions had an effect on the sales result of Kaubamaja. The total sales in 2015 was influenced by the renovation of Viru bus terminal during summer months and the renovation of Tartu sales premises in the fourth quarter. Although the department stores are in the centre of the city at locations attractive to tourists, the low number of tourists throughout the year had a negative impact on the sales revenue in 2015. At the same time, the warmer autumn months had a positive effect on the profit earned by the department stores due to lower administrative expenditure. The sales revenue of the fourth quarter of 2015 of O? TKM Beauty Eesti that operates I.L.U. cosmetics stores was 1.7 million euros, growing 6.4% year-on-year. The profit was 0.04 million euros in the fourth quarter, which was 0.03 million euros better than the result of the comparable period in 2014. The sales revenue was 5.1 million euros in 2015, growing 9.1% compared to 2014. The loss of 2015 was 0.2 million euros, showing a year-on-year decrease of 0.1 million euros.
The sales revenue of 2015 of the car trade segment was 60.8 million euros. The sales revenue exceeded the revenue earned in the previous year by 5.3%, whereas the sales revenue of KIAs grew 7.1%. The fourth quarter sales revenue in the amount of 15.2 million euros grew compared to the previous year 9.0%, whereas the sales revenue of KIAs grew 3.4%. In 2015, altogether 3,011 new vehicles were sold, of which 745 vehicles in the fourth quarter. The net profit of the segment of 2015 was 1.5 million euros, showing a smaller profit by 9.6% compared to the year before. The pre-tax profit of the segment in 2015 was 2.0 million euros, remaining at the same level as the previous year`s result. The net profit of the fourth quarter was 0.2 million euros, which is lower by 0.4 million euros of the year before. The result of the fourth quarter was influenced by the sales campaign of Opel cars in stock and there were also several successful public procurements for cars that increased the sales. The stable car trade of the group in Lithuania and achieving profitability in 2015 are also worth mentioning. The profit was negatively influenced in the fourth quarter by the devaluation of ?lemiste car showroom by 0.2 million euro.
The sales revenue of the footwear trade segment in 2015 was 11.9 million euros, which decreased 10.7% in a year. The turnover in the fourth quarter was 3.4 million euros, a growth of 7.7% year-on-year. Whereas in the third quarter the decrease in the sales deaccelerated, in the fourth quarter, despite especially unfavourable weather conditions, a growth of sales revenue was achieved. December became the most complicated of months because it was exceptionally warm. The loss of the year was 2.6 million euros. The loss grew compared to the previous year by 1.4 million, by which amount the goodwill of the footwear trade segment was reduced to 2.1 million euro. The same reduction influenced the result of the fourth quarter. The more successful year end allows to believe that the strategic changes introduced in the Group`s footwear segment, such as normalised level of stock, changes in brand portfolio and sales management with the focus on the results, will bear fruit regardless of the continued severe competition situation.
The outside Group sales revenue of the real estate business segment was 3.7 million euros in 2015. The year-on-year sales revenue increased 12.6%. The outside Group sales revenue was 1.2 million euros in the fourth quarter, a growth of 38.4% compared to the same period of the previous year. The pre-tax profit of the real estate segment was 11.4 million euros in 2015, which is 2.6 million or 29.1% better than in the previous financial year. The pre-tax profit of the fourth quarter was 4.7 million euros, growing by 2.6 million euros or 123.1% compared to the same period of the previous financial year. The growth of the sales revenue in the fourth quarter was supported by the successful opening of Viimsi centre in August 2015 and renting out of Rezekne building to a party outside of the Group in Latvia. The profit of the real estate segment was influenced by the revaluation of the assets of the segment, which increased the profit of the quarter by 2.3 million euros. An important development project in the fourth quarter was the renovation of Tartu Kaubamaja centre, which is intended to be completed in the first quarter of 2016.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In thousands of euros
|Cash and cash equivalents||13,911||24,626|
|Trade and other receivables||20,191||17,938|
|Total current assets||95,212||99,440|
|Long-term trade and other receivables||293||338|
|Investments in associates||1,778||1,778|
|Property, plant and equipment||196,691||227,914|
|Total non-current assets||252,768||243,467|
|LIABILITIES AND EQUITY|
|Trade and other payables||77,066||70,317|
|Total current liabilities||110,443||90,722|
|Provisions for other liabilities and charges||502||692|
|Total non-current liabilities||57,928||78,355|
|Statutory reserve capital||2,603||2,603|
|Currency translation differences||-255||-255|
|TOTAL LIABILITIES AND EQUITY||347,980||342,907|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In thousands of euros
|IV quarter 2015||IV quarter 2014||12 months 2015||12 months 2014|
|Other operating income||4,536||195||5,140||715|
|Cost of sales||-113,072||-107,875||-416,134||-403,716|
|Other operating expenses||-11,999||-12,064||-50,776||-50,027|
|Depreciation, amortisation and impairment losses||-6,614||-2,844||-15,234||-10,970|
|Operating profit||10 918||10,145||26,944||23,787|
|Finance income on shares of associates||9||24||142||172|
|Profit before tax||10,648||9,807||25,954||22,489|
|Income tax expense||-10||144||-3,883||-2,194|
|NET PROFIT FOR THE FINANCIAL YEAR||10,638||9,951||22,071||20,295|
|Other comprehensive income:|
|Items that may be subsequently reclassified to profit or loss|
|Currency translation differences||0||0||0||2|
|Other comprehensive income for the financial year||0||0||0||2|
|TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR||10,638||9,951||22,071||20,297|