2016-02-11 07:30:02 CET
2016-02-11 07:30:02 CET
REGULATED INFORMATION
Marimekko - Financial Statement Release
FINANCIAL STATEMENTS BULLETIN OF MARIMEKKO CORPORATION 1 January - 31 December 2015: Net sales grew slightly in weak market conditions; operating profit down as expected
Marimekko Corporation, Financial Statements Bulletin, 11 February 2016, 8.30
a.m.
FINANCIAL STATEMENTS BULLETIN OF MARIMEKKO CORPORATION 1 January - 31 December
2015: Net sales grew slightly in weak market conditions; operating profit down
as expected
The year 2015 in brief
-- Net sales grew by 2 percent on the previous year and were EUR 95.7 million
(1-12/2014: 94.2).
-- Net sales were improved primarily by growth in retail sales in Finland and
by increased royalty income in North America.
-- Net sales at comparable exchange rates fell by 1 percent.
-- Operating profit was down markedly at EUR 1.5 million (5.6).
-- The decrease in operating profit was primarily caused by the considerable
expenses associated with the closure of the store in Beverly Hills, a
downturn in wholesale sales in Finland, Scandinavia and the Asia-Pacific
region, and by a deterioration in relative wholesale margins. In addition,
operating profit was negatively impacted by a downswing in the
profitability of retail sales, and increased design and marketing
investments in building and launching new collections.
-- The Board of Directors will propose to the Annual General Meeting that a
dividend of EUR 0.35 per share be paid for 2015.
The fourth quarter in brief
-- Net sales grew by 5 percent to EUR 27.5 million (Q4/2014: 26.1).
-- Net sales were boosted by successful holiday sales through all sales
channels in Finland and a shift of winter collection deliveries from
September to October.
-- Net sales at comparable exchange rates rose by 3 percent.
-- Operating profit fell to EUR 1.3 million (1.9).
-- Operating profit was negatively impacted by lower retail sales
profitability in North America and Australia together with a deterioration
in royalty income. Operating profit was improved by successful holiday
sales in all sales channels in Finland and a shift in the rhythm of winter
collection deliveries to wholesale customers.
Financial guidance for 2016
The Marimekko Group's net sales for 2016 are forecasted to be at the same level
as in 2015. Operating profit excluding restructuring costs is expected to be
higher than in the previous year.
President Tiina Alahuhta-Kasko:
”The year 2015 was overshadowed by an uncertain global economy and deteriorated
retail trade climate in Finland. In spite of this, Marimekko was able to
increase its net sales more than had been forecast. I am pleased that our
retail sales in Finland grew by 6 percent when sales for the entire Finnish
fashion industry fell by almost 8 percent. Our net sales in Finland were
boosted especially by successful holiday sales and growth in discount-driven
sales by outlet stores and online shop. Wholesale sales in Finland decreased by
10 percent; in the previous year, sales included a substantial one-off
campaign. International retail sales fell by 1 percent, but wholesale sales
rose by 3 percent.
”The company's operating profit declined in line with expectations. Despite the
marked decrease in operating profit, we were able to retain our cash flow at a
moderate level thanks to better management of net working capital. A drag was
exerted on our results by the substantial expenses associated with closing the
Beverly Hills store in the first quarter of the year, a downturn in wholesale
sales in several market areas, and a deterioration in relative wholesale
margins. The profitability of our retail sales also declined. Furthermore, the
results for the previous year were higher thanks to considerable, nonrecurring
promotional deliveries in Finland.
”During the year, we focused in particular on developing our brand's direction
with fashion as a spearhead to enhance our international competitiveness. This
is long-term updating work which will take time, but when it is fulfilled it
will boost the brand's visibility and the opportunities to utilise the brand.
”We continued expansion in line with our internationalisation strategy,
particularly in the Asia-Pacific region. New markets were opened up in Bangkok
and Singapore as well as Dubai in the Middle East. In the autumn, we updated
both our bricks-and-mortar store concept and our online store, which at the
same time was extended in Europe and now reaches customers in 12 countries.
”For Marimekko, 2016 is a year of building and improving efficiency. We will
continue our long-term brand update work and the development of more attractive
products. Collections for this year are the first created entirely under the
direction of our Creative Director Anna Teurnell. We are streamlining our
operations to underpin our international competitiveness and to secure
long-term, profitable growth in Marimekko stores. In addition to a large-scale
scrutiny of expenses, we are developing our sourcing and optimising our
offering for different markets and distribution channels. At the beginning of
the year, we announced plans for streamlining and reorganizing our operations.
If the plans are implemented in full, an improvement in operating result and
annual cost savings of roughly EUR 2.4 million would be achieved.
”We will continue our expansion with the main thrust on openings of
retailer-owned Marimekko stores. The aim is to open around 10-20 new Marimekko
stores and shop-in-shops. Of these, 1-2 would be company-owned stores. This
year, we are focusing strongly on improving the profitability of already
existing Marimekko stores.
”Digitalisation is one of the biggest revolutionary and competition-boosting
phenomena in our industry on the global scale. This year we are continuing the
development of our digital business as an increasingly important part of our
strategy. Our objective is to expand our availability through both our own
online store and e-tailers."
Key indicators
EUR million 10-12/ 10-12/ Change 1-12/ 1-12/ Change
2015 2014 , % 2015 2014 , %
--------------------------------------------------------------------------------
Net sales 27.5 26.1 5 95.7 94.2 2
--------------------------------------------------------------------------------
International sales 11.5 11.3 3 43.0 42.1 2
--------------------------------------------------------------------------------
% of net sales 42 43 - 45 45 -
--------------------------------------------------------------------------------
EBITDA 2.5 3.0 -17 6.1 9.9 -39
--------------------------------------------------------------------------------
EBITDA excluding nonrecurring 2.5 3.0 -17 6.1 10.5 -42
items
--------------------------------------------------------------------------------
Operating profit 1.3 1.9 -31 1.5 5.6 -72
--------------------------------------------------------------------------------
Operating profit excluding 1.3 1.9 -31 1.5 6.3 -75
nonrecurring items
--------------------------------------------------------------------------------
Operating profit margin, % 4.9 7.5 - 1.6 5.9 -
--------------------------------------------------------------------------------
Operating profit margin excluding 4.9 7.5 - 1.6 6.7 -
nonrecurring items, %
--------------------------------------------------------------------------------
Result for the period 1.2 1.3 -4 0.8 4.1 -80
--------------------------------------------------------------------------------
Earnings per share, EUR 0.15 0.15 -1 0.10 0.51 -81
--------------------------------------------------------------------------------
Cash flow from operating 5.6 6.3 -12 6.3 9.9 -36
activities
--------------------------------------------------------------------------------
Return on investment (ROI), % - - - 4.5 15.6 -
--------------------------------------------------------------------------------
Equity ratio, % - - - 59.0 61.6 -
--------------------------------------------------------------------------------
Gross investments* 1.5 0.6 - 3.2 2.1 54
--------------------------------------------------------------------------------
Personnel at the end of the period - - - 476 479 -1
--------------------------------------------------------------------------------
outside Finland - - - 126 129 -2
--------------------------------------------------------------------------------
Brand sales** 46.9 53.9 -13 185.5 186.8 -1
--------------------------------------------------------------------------------
outside Finland 25.4 33.7 -25 114.3 114.6 0
--------------------------------------------------------------------------------
proportion of international 54 63 - 62 61 -
sales, %
--------------------------------------------------------------------------------
Number of stores*** - - - 154 144 7
--------------------------------------------------------------------------------
The change percentages in the table were calculated on exact figures before the
amounts were rounded to millions of euros.
* Excluding finance lease investments
** Estimated sales of Marimekko products at consumer prices. Brand sales are
calculated by adding together the company's own retail sales and the estimated
retail value of Marimekko products sold by other retailers. The estimate, based
on Marimekko's actual wholesale sales to these retailers, is unofficial and
does not include VAT. The key figure is not audited.
*** Includes the company’s own retail stores, retailer-owned Marimekko stores
and shop-in-shops with an area exceeding 30 sqm. The company’s own retail
stores numbered 55 at the end of 2015 (54). Information on changes is available
in the section Changes in the store network.
Briefing for the media and analysts
A briefing for the media and analysts concerning this financial statements
bulletin will be held today, 11 February 2016 starting at 9.00 a.m. in
Marimekko's flagship store at Mikonkatu 1, Helsinki. The presentation material
is available on the company's website at company.marimekko.com under Releases &
publications / Interim reports and financial statements.
Corporate governance statement
The corporate governance statement for 2015 is available on the company's
website at company.marimekko.com under Investors/Management/Corporate
governance.
Financial calendar for 2016
The 2015 financial statements will be published in week 12 at the latest. The
Annual General Meeting will be held on 11 April 2016 at 2 p.m. The Annual
General Meeting was previously planned to be held on 7 April 2016. The
following interim reports will be published in 2016: January to March, on
Thursday 12 May 2016 at 8.30 a.m.; January to June, on Thursday 11 August 2016
at 8.30 a.m.; and January to September, on Thursday 3 November 2016 at 8.30
a.m.
Further information:
Tiina Alahuhta-Kasko, President, Tel. +358 9 758 71
Elina Aalto, Chief Financial Officer, Tel. +358 9 758 7261
MARIMEKKO CORPORATION
Corporate Communications
Asta Halme
Tel. +358 9 7587 233
asta.halme@marimekko.com
DISTRIBUTION:
NASDAQ Helsinki Ltd
Key media
FINANCIAL STATEMENTS BULLETIN OF MARIMEKKO CORPORATION, 1 JANUARY - 31 DECEMBER
2015
OPERATING ENVIRONMENT
The general uncertainty in the global economy is forecast to continue, but the
global growth is still expected to be moderate. In the United States the growth
continues, but strong US dollar and tightening monetary policy cause
uncertainty. In spite of this, consumer confidence is at a strong level. The
presidential elections are believed to guarantee a moderate economic trend,
which also supports consumption demand. In China, the pace is slowing down, but
the real economy has held steady in spite of fluctuations in the financial
market. In Europe, the growth has sparked and consumer confidence has
increased.
In Finland, the prevailing uncertain economic conditions of 2015 are expected
to continue and the situation for retail trade is likely to remain challenging.
Retail trade confidence improved at the beginning of 2016, but it is still
slightly short of the long-term average. Sales expectations are still cautious,
but no dip in sales of the kind seen last autumn is expected. In December,
retail trade confidence in Finland was the lowest in the EU. Consumer
confidence has strengthened since late 2015. Especially views on the Finnish
economy and general unemployment have improved. Also, consumers’ expectations
of their own finances rose slightly in January. Demand is still weak and
profitability is expected to decrease due to lower sales prices.
(Confederation of Finnish Industries EK: Economic Review, 26 January 2016;
Confidence Indicators, January 2016; Business Tendency Survey, February 2016;
Statistics Finland: Consumer Survey, January 2016)
In 2015, retail trade sales in Finland fell by 0.8 percent, but the volume of
sales - which measures real growth in sales - rose by 0.4 percent (Statistics
Finland: Turnover of Trade, retail trade flash estimate, December 2015).
CHANGES IN THE STORE NETWORK
In 2015, the main thrust in expanding the Marimekko store network was on
openings of retailer-owned Marimekko stores, especially in the Asia-Pacific
region. The company attained its goal of opening a total of 10-20 new Marimekko
stores and shop-in-shops: during the year 18 stores were opened, nine of which
were in the company's growth market of the Asia-Pacific region. Of the stores
opened, four were company-owned, nine were retailer-owned Marimekko stores and
five were shop-in-shops. In 2015, Singapore and Thailand (Bangkok) were opened
as new markets in the Asia-Pacific region, and Dubai in the Middle East.
In the course of 2015, a total of eight Marimekko stores and shop-in-shops were
closed. Of these, three were company-owned stores, and they were located in
London, Beverly Hills and Helsinki, where the flagship store was closed for
relocation in the third quarter.
In the closing quarter of the year, five Marimekko stores and one shop-in-shop
were opened. Of the stores opened, four were in the Asia-Pacific region: In
Melbourne, Australia, the company opened its own store; retailer-owned stores
were opened in Taichung and Tainan, Taiwan, and Shanghai, China. In addition,
Marimekko opened a flagship store based on its new store concept in Helsinki.
The target for 2016 is to open around 10-20 new Marimekko stores and
shop-in-shops. Of these, 1-2 would be company-owned stores.
Number of stores & shop-in-shops* 31.12.2015 31.12.2014
-------------------------------------------------------------
Finland 62 62
-------------------------------------------------------------
Company-owned stores 25 24
-------------------------------------------------------------
Company-owned outlet stores 11 10
-------------------------------------------------------------
Retailer-owned stores 16 17
-------------------------------------------------------------
Retailer-owned shop-in-shops 10 11
-------------------------------------------------------------
-------------------------------------------------------------
Scandinavia 11 10
-------------------------------------------------------------
Company-owned stores 8 8
-------------------------------------------------------------
Company-owned outlet stores - -
-------------------------------------------------------------
Retailer-owned stores - -
-------------------------------------------------------------
Retailer-owned shop-in-shops 3 2
-------------------------------------------------------------
-------------------------------------------------------------
EMEA 4 3
-------------------------------------------------------------
Company-owned stores 2 3
-------------------------------------------------------------
Company-owned outlet stores - -
-------------------------------------------------------------
Retailer-owned stores 2 -
-------------------------------------------------------------
Retailer-owned shop-in-shops - -
-------------------------------------------------------------
-------------------------------------------------------------
North America 24 23
-------------------------------------------------------------
Company-owned stores 4 5
-------------------------------------------------------------
Company-owned outlet stores 1 1
-------------------------------------------------------------
Retailer-owned stores 2 2
-------------------------------------------------------------
Retailer-owned shop-in-shops 17 15
-------------------------------------------------------------
-------------------------------------------------------------
Asia-Pacific 53 46
-------------------------------------------------------------
Company-owned stores 4 3
-------------------------------------------------------------
Company-owned outlet stores - -
-------------------------------------------------------------
Retailer-owned stores 46 39
-------------------------------------------------------------
Retailer-owned shop-in-shops 3 4
-------------------------------------------------------------
-------------------------------------------------------------
Total 154 144
-------------------------------------------------------------
Company-owned stores 43 43
-------------------------------------------------------------
Company-owned outlet stores 12 11
-------------------------------------------------------------
Retailer-owned stores 66 58
-------------------------------------------------------------
Retailer-owned shop-in-shops 33 32
-------------------------------------------------------------
* Includes shop-in-shops with an area exceeding 30 sqm.
In 2015, Marimekko expanded its online business by opening an online shop in
France, the UK, Germany, Italy, Spain, the Netherlands and Belgium. In the
final quarter, e-commerce was extended to Norway. The company also has online
stores in Finland, Sweden, Denmark and the United States. At the end of 2015,
Marimekko's e-commerce reached customers in 12 countries.
NET SALES
Net sales in 2015
In 2015, the Group's net sales grew by 2 percent on the previous year, being
EUR 95,652 thousand (94,150). Net sales at comparable exchange rates fell by 1
percent. International sales grew by 2 percent; net sales in Finland rose by 1
percent.
Retail sales grew by 4 percent. Growth was supported by the additional sales of
the stores opened in 2014 and 2015, and an increase in discount-driven sales by
Finnish outlet stores and online shop, combined with a strong US dollar.
Comparable sales rose in Finland and were on a par with the previous year in
Central Europe, but declined in all other market areas.
Wholesale sales fell by 2 percent on the previous year. Sales declined in
Finland, Scandinavia and Asia-Pacific. In 2014, wholesale sales were boosted by
considerable, nonrecurring promotional deliveries in Finland in the last two
quarters. In North America, euro-denominated sales were supported by strong US
dollar.
Royalty income grew, particularly due to a licensing agreement signed in North
America.
Net sales in the fourth quarter
In the fourth quarter, the Group's net sales grew by 5 percent, reaching EUR
27,481 thousand (26,089). Finnish sales rose by 7 percent and international net
sales by 3 percent. Retail sales grew by 4 percent on the previous year and
wholesale sales by 11 percent. The rise in wholesale sales was partly due to a
shift of winter collection deliveries from September to October.
Net sales by market area
(EUR 1,000) 10-12/ 10-12/ Change Change,% 1-12/ 1-12/ Change Change,
2015 2014 , % in 2015 2014 , % %
currency in
terms currency
terms
--------------------------------------------------------------------------------
Finland 15,940 14,837 7 7 52,690 52,034 1 1
--------------------------------------------------------------------------------
Retail sales 11,299 10,551 7 7 37,613 35,363 6 6
--------------------------------------------------------------------------------
Wholesale 4,498 4,137 9 9 14,669 16,245 -10 -10
sales
--------------------------------------------------------------------------------
Royalties 144 149 -3 -3 408 425 -4 -4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 2,137 2,204 -3 0 7,783 8,452 -8 -4
--------------------------------------------------------------------------------
Retail sales 1,300 1,384 -6 -1 4,841 5,151 -6 -3
--------------------------------------------------------------------------------
Wholesale 837 820 2 3 2,942 3,301 -11 -7
sales
--------------------------------------------------------------------------------
Royalties - - - - - - - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA 2,256 1,735 30 30 8,280 7,554 10 10
--------------------------------------------------------------------------------
Retail sales 356 413 -14 -14 1,213 1,509 -20 -20
--------------------------------------------------------------------------------
Wholesale 1,832 1,272 44 44 6,862 5,882 17 17
sales
--------------------------------------------------------------------------------
Royalties 67 51 33 33 205 162 27 27
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North 2,666 2,831 -6 -22 9,227 8,584 7 -10
America
--------------------------------------------------------------------------------
Retail sales 1,738 1,762 -1 -21 5,898 5,983 -1 -19
--------------------------------------------------------------------------------
Wholesale 831 621 34 19 2,380 1,957 22 4
sales
--------------------------------------------------------------------------------
Royalties 98 449 -78 -85 949 644 47 32
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacific 4,481 4,481 0 1 17,672 17,527 1 2
--------------------------------------------------------------------------------
Retail sales 1,136 1,130 1 3 3,159 2,675 18 19
--------------------------------------------------------------------------------
Wholesale 3,345 3,351 0 0 14,513 14,847 -2 -2
sales
--------------------------------------------------------------------------------
Royalties - - - - - 5 - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Internationa 11,541 11,252 3 0 42,962 42,116 2 -3
l sales,
total
--------------------------------------------------------------------------------
Retail sales 4,530 4,688 -3 -3 15,111 15,318 -1 -4
--------------------------------------------------------------------------------
Wholesale 6,845 6,064 13 7 26,696 25,987 3 -2
sales
--------------------------------------------------------------------------------
Royalties 165 500 -67 -75 1,154 811 42 31
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 27,481 26,089 5 3 95,652 94,150 2 -1
--------------------------------------------------------------------------------
Retail sales 15,829 15,240 4 2 52,724 50,682 4 1
--------------------------------------------------------------------------------
Wholesale 11,343 10,201 11 9 41,365 42,232 -2 -4
sales
--------------------------------------------------------------------------------
Royalties 309 649 -52 -60 1,563 1,237 26 20
--------------------------------------------------------------------------------
All figures in the table have been individually rounded to thousands of euros,
so there may be rounding differences in the totals.
Finland
In 2015, net sales in Finland rose by 1 percent to EUR 52,690 thousand
(52,034). The trend in net sales was supported by 6 percent growth in retail
sales and reduced by a 10 percent fall in wholesale sales. Wholesale sales for
2014 were increased by considerable, nonrecurring promotional deliveries in the
last two quarters. Comparable retail sales grew by 2 percent. Sales were
boosted in particular by a rise in discount-driven sales by outlet stores and
the online shop as well as successful holiday sales. Retail sales were further
increased by the new stores opened in 2014 and 2015 as well as by the pop-up
store opened for the summer season at Helsinki-Vantaa Airport.
During the final quarter, retail sales grew by 7 percent due to successful
holiday sales, and growth in discount-driven sales by outlet stores and the
online shop. Retail sales were also boosted by the new stores opened in 2014
and 2015. Comparable retail sales in Finland grew by 3 percent; comparable
sales by prime stores fell by 1 percent. Wholesale sales rose by 9 percent. The
increase was partly due to a shift of winter collection deliveries from
September to October.
Scandinavia
Net sales in Scandinavia fell in 2015 by 8 percent and amounted to EUR 7,783
thousand (8,452). Net sales at comparable exchange rates declined by 4 percent.
Retail sales in euros fell by 6 percent and at comparable exchange rates by 3
percent. Wholesale sales declined by 11 percent.
In the fourth quarter, retail sales in euros fell by 6 percent and wholesale
sales grew by 2 percent. The increase in wholesale sales was partly due to a
shift of winter collection deliveries from September to October.
EMEA
In 2015, net sales in EMEA grew by 10 percent to EUR 8,280 thousand (7,554).
Wholesale sales rose by 17 percent, including large one-off deliveries to
France and Belgium. Wholesale sales were also boosted by start-up stock
deliveries to two retailer-owned stores in the United Arab Emirates. Retail
sales fell by 20 percent, which was due to the closure of two stores in London
in November 2014 and March 2015. Comparable retail sales were at the same level
as in the previous year.
During the final quarter, retail sales fell by 14 percent, but comparable sales
were on a par with the previous year. Wholesale sales grew by 44 percent. The
increase was primarily due to one-off deliveries to France and Belgium as well
as a shift of winter collections deliveries from September to October.
North America
In North America, net sales grew by 7 percent, reaching EUR 9,227 thousand
(8,584). Net sales at comparable exchange rates declined by 10 percent; retail
sales fell but wholesale sales rose. The downturn in retail sales was due to
the closure of the Beverly Hills store in March as well as a 2 percent fall in
sales in comparable stores. Sales were also impacted by changes and
construction works in the vicinity of some stores, which reduced footfall.
In the fourth quarter, retail sales in euros in North America fell by 1 percent
and at comparable exchange rates by 21 percent. The downswing was partly due to
the closure of the Beverly Hills store and changes and construction works in
the vicinity of some stores, which reduced footfall. Wholesale sales at
comparable exchange rates rose by 19 percent. A shift of winter collection
deliveries from September to October increased wholesale sales.
Asia-Pacific region
In 2015, net sales in the Asia-Pacific region grew by 1 percent to EUR 17,672
thousand (17,527). Wholesale sales fell by 2 percent. In the most important
country in this market area, Japan, wholesale sales fell by 7 percent, due
partly to an increase in sales tax which came into force in spring 2014, which
has reduced top-up orders. Retail sales (Australian stores in Sydney and
Melbourne) grew by 18 percent thanks to the additional sales of the store
opened in Melbourne in 2014. Sales in comparable stores fell in euro terms by 9
percent and in terms of the sales currency by 8 percent. The decrease derived
from opening a new store near an already existing one in Melbourne.
During the final quarter, retail sales rose by 1 percent, even though
comparable retail sales fell in euro terms by 20 percent and in terms of the
sales currency by 17 percent. The decrease derived from opening a new store
near an already existing one in Melbourne. Wholesale sales reached the previous
year's level. Wholesale sales in Japan fell by 12 percent on the previous year.
FINANCIAL RESULT
In 2015, the Group's operating profit was EUR 1,542 thousand (5,592). Operating
profit for the comparison period included nonrecurring expenses in the amount
of EUR 669 thousand. Operating profit excluding nonrecurring items for the
comparison period was EUR 6,261 thousand, and it was improved by considerable,
nonrecurring promotional deliveries in Finland during the last two quarters. A
drag was exerted on the 2015 operating profit by the substantial expenses of
closing the Beverly Hills store in the first quarter, a decline in wholesale
sales in Finland, Scandinavia and the Asia-Pacific region, a downturn in
relative wholesale margins, a deterioration in the profitability of retail
sales, and increased design and marketing expenses. On the other hand,
operating profit was improved by an increase in royalty income in North America
in the first and third quarters and by the additional sales of new stores.
In the fourth quarter of 2015, the Group's operating profit was EUR 1,345
thousand (1,946). Operating profit was reduced by lower retail sales
profitability and declined royalty income in North America together with
decrease in profitability in Australian retail sales due to opening expenses of
a new store. Operating profit was boosted by successful holiday sales in all
sales channels in Finland and a shift of winter collection’s wholesale sales
deliveries from September to October.
Marketing expenses for the year 2015 totalled EUR 5,063 thousand (4,674) or 5
percent of the Group's net sales (5).
The Group's depreciation and impairments in 2015 totalled EUR 4,511 thousand
(4,283) or 5 percent of net sales (5).
Operating profit margin for 2015 was 1.6 percent (5.9). Operating profit margin
for 2014 excluding nonrecurring items was 6.7 percent. In the final quarter of
2015, operating profit margin was 4.9 percent (7.5).
Net financial expenses were EUR 247 thousand (108) or 0 percent of net sales
(0). Foreign exchange gains recorded in net financial items amounted to EUR 8
thousand (204).
Result for the financial year before taxes was EUR 1,294 thousand (5,485).
Result after taxes was EUR 803 thousand (4,114) and earnings per share were EUR
0.10 (0.51).
BALANCE SHEET
The consolidated balance sheet total as of 31 December 2015 was EUR 46,061
thousand (47,203). Equity attributable to the equity holders of the parent
company was EUR 27,129 thousand (29,045) or EUR 3.35 per share (3.59).
Non-current assets at the end of 2015 stood at EUR 17,359 thousand (18,279).
At the end of 2015, net working capital was EUR 13,039 thousand (14,013).
Inventories were EUR 18,488 thousand (17,558).
CASH FLOW AND FINANCING
In 2015, cash flow from operating activities was EUR 6,313 thousand (9,851) or
EUR 0.78 per share (1.22). Cash flow before cash flow from financing activities
was EUR 3,142 thousand (7,788).
In the fourth quarter, cash flow from operating activities was EUR 5,567
thousand (6,306), or EUR 0.69 per share (0.78). Cash flow before cash flow from
financing activities was EUR 4,081 thousand (5,667).
The Group's financial liabilities at the end of 2015 were EUR 7,318 thousand
(7,133).
At the end of the year, the Group's cash and cash equivalents amounted to EUR
4,249 thousand (4,079). In addition, the Group had unused committed long- and
short-term credit lines of EUR 15,166 thousand (22,304).
The Group's equity ratio at the end of the year was 59.0 percent (61.6).
Gearing was 11.3 percent (10.5).
INVESTMENTS
The Group's gross investments in 2015 were EUR 3,171 thousand (2,063) or 3
percent of net sales (2). Most of the investments were devoted to IT systems
and building store premises.
PERSONNEL
In 2015, the number of employees averaged 460 (473) and at the end of the year
the total was 476 (479), of whom 126 (129) worked outside Finland. The number
of employees working outside Finland was broken down as follows: Scandinavia 41
(40), EMEA 9 (13), North America 43 (50) and Asia-Pacific 33 (26). The
personnel at company-owned stores totalled 248 (256) at the end of the year.
RESOLUTIONS OF THE ANNUAL GENERAL MEETING
The resolutions of Marimekko Corporation’s Annual General Meeting 2015 have
been reported in the stock exchange release of 9 April 2015 and in the interim
report of 12 May 2015.
CHANGES IN MANAGEMENT AND GOVERNANCE STRUCTURE
On 11 February 2015, the company’s Board of Directors decided to appoint Tiina
Alahuhta-Kasko as the new President of Marimekko Corporation. In connection
with this appointment, the Board of Directors concluded a full-time CEO
agreement with Mika Ihamuotila whereby Ihamuotila will be responsible for
developing and implementing the company's strategy together with the President
and Management Group. Both appointments came into effect after the Annual
General Meeting of 9 April 2015. At the constitutive meeting of Marimekko's
Board of Directors held the same day, Mika Ihamuotila was elected Chairman of
the Board.
In February, the Board of Directors also passed a resolution that, as part of
the change in Marimekko's governance structure, an Audit and Remuneration
Committee be established in the company, all members of which would be
independent of the company and its major shareholders. The Board of Directors
elected at the Annual General Meeting of 9 April 2015 appointed the first Audit
and Remuneration Committee from among its membership, with Elina Björklund
elected as Chairman and Joakim Karske and Catharina Stackelberg-Hammarén as
members. In addition to the conventional duties and supervision allotted to the
Audit and Remuneration Committee, the committee also deals with and prepares
matters related to the senior management's terms of contract and remuneration.
In June 2015, Marimekko announced its appointment of Lasse Lindqvist as the
company's Chief Marketing Officer (CMO) and member of the Management Group as
of 10 August 2015. Furthermore, in August, Marimekko announced the appointment
of Elina Aalto as the company's new Chief Financial Officer (CFO) and member of
the Management Group as of 11 December 2015.
SHARES AND SHAREHOLDERS
Share capital and number of shares
At the end of 2015, the company's fully paid-up share capital, as recorded in
the Trade Register, amounted to EUR 8,040,000 and the number of shares totalled
8,089,610.
Shareholdings
According to the book-entry register, Marimekko had 7,084 shareholders at the
end of 2015 (7,112). Of the shares, 20.1 (21.5) percent were owned by
nominee-registered or non-Finnish holders. On 31 December 2015, the number of
shares owned either directly or indirectly by members of the Board of Directors
and the President of the company was 1,325,806 (1,328,598), representing 16.4
percent of the number and voting rights of the company's shares (16.4).
Information on the largest shareholders can be found on the company's website
at company.marimekko.com under Investors/Share information/Shareholders.
Share trading and the company's market capitalisation
In 2015, a total of 1,062,373 (716,614) Marimekko shares were traded,
representing 13.1 percent of the shares outstanding. The total value of
Marimekko's share turnover was EUR 10,088,409. The lowest price of the
Marimekko share was EUR 8.20, the highest was EUR 10.94 and the average price
was EUR 9.50. At the end of the year, the closing price of the share was EUR
8.30. The company's market capitalisation on 31 December 2015 was EUR
67,143,763 (71,997,529).
Authorisations
At the end of the year, the Board of Directors had no valid authorisations to
carry out share issues or issue convertible bonds or bonds with warrants, or to
acquire or surrender Marimekko shares.
EVENTS AFTER THE CLOSE OF THE FINANCIAL YEAR
On 14 January 2016, Marimekko announced the introduction of measures to improve
the company’s profitability. As part of these measures, the company is planning
to streamline its operations and cost structure, which is estimated to lead to
a reduction of a maximum of 55 jobs in Finland. The company will also
scrutinise all its fixed costs. The initiated consultative negotiations apply
to all of Marimekko's functions in Finland with the exception of retail store
staff. If implemented in full, the reorganisations can yield annual cost
savings estimated at approximately EUR 2.4 million and an improvement in
operating result.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
The major strategic risks for the near future are associated with the weakening
of consumer confidence, overall economic trends, and the consequent uncertainty
in the operating environment especially in Finland. Near-term strategic risks
also include risks related to the management of the company’s expansion,
digitisation of retailing, and changes in Marimekko’s design, product
assortment and the focal points of collections.
Marimekko products are sold in approximately 40 countries. The key markets are
Northern Europe, North America and the Asia-Pacific region. There are Marimekko
stores in 17 countries. In addition to Finland, Marimekko has company-owned
stores in other Nordic countries, Germany, the United States and Australia. The
global economic cycle and factors of uncertainty affect consumers’ purchasing
behaviour and buying power in all of the company’s market areas. The long-term
problems in the global economy continue to overshadow the retail outlook as
well as Marimekko’s prospects for growth and earnings.
Marimekko is undergoing a phase of internationalisation and change. The
distribution of products is being expanded in all key market areas. Growth is
based on opening retailer-owned Marimekko stores and shop-in-shops as well as
on setting up company-owned stores and expanding e-commerce.
In recent years, expansion has called for larger or entirely new country
organisations, which burdens the cost-effectiveness of the company. Expanding
the network of company-owned stores and building international e-commerce have
increased the company’s investments, lease liabilities of store premises and
inventories as well as the company’s fixed costs. Furthermore, partnership
agreements, the selection of partners as well as store lease agreements in the
company’s key market areas involve risks. Maintaining competitiveness demands
efficiency and constant re-evaluation of operations.
The company’s ability to design, develop and commercialise new products that
meet consumers’ expectations while maintaining profitable in-house production,
sustainable sourcing and effective logistics has an impact on the company’s
sales and profitability. Moreover, intellectual property rights play a vital
role in the company's success, and the company’s ability to manage these rights
may have an impact on the company’s value. Agreements with freelance designers
and fees paid to designers based on these agreements are also an essential part
of the management of the intellectual property rights.
The company’s operational risks prominently include those related to the
management and success of expansion projects, the operational reliability of
procurement and logistics processes and information systems, and changes in the
prices of raw materials and other procurement items. As a result of new
products, the share of in-house production has decreased, and the company uses
subcontractors for its manufacturing to an increasing extent. Therefore, the
company’s dependence on the supply chain has increased. Any delays or
disturbances in supply, or fluctuations in the quality of products, may have a
momentary harmful impact on business. As the operations are being expanded and
diversified, risks related to the management of inventories also increase.
Among the company’s economic risks, those related to the structure of sales,
increased investments, price trends for factors of production, changes in cost
structure, increased operational costs, customers’ liquidity, changes in
exchange rates (particularly the US dollar, Swedish krona and Australian
dollar), and taxation may have an impact on the company’s financial status.
RESEARCH AND DEVELOPMENT
Marimekko's product planning and development costs arise from the design of
collections. Design costs are recorded in expenses.
THE ENVIRONMENT, HEALTH AND SAFETY
Care for the environment is one of the cornerstones of Marimekko's business.
The environmental aspects of Marimekko's in-house manufacturing are related to
the operations of the textile printing factory in Herttoniemi. Operating
methods are improved constantly for the monitoring and minimising of
environmental impacts of manufacturing and other business operations.
Subcontractors are contractually obligated to commit themselves to shouldering
their environmental responsibilities. Marimekko seeks to mitigate climate
change through energy efficiency and by using renewable energy sources, by
reducing water consumption, and by minimising, recycling and repurposing waste.
The goal is to continuously reduce environmental impacts and to enhance
resource efficiency. Results are achieved through close collaboration between
design, product development and manufacturing.
Safety and well-being in the workplace are actively monitored and improved at
Marimekko, in collaboration with the workplace safety committee and
occupational healthcare. Occupational wellness is supported by promoting the
employees' health, job and functional capacity as well as their quality of life
in many ways. For instance, Marimekko applies an early-intervention model with
the aim of promoting working fitness. Securing a safe working environment means
the advance prevention of accidents as well as recognising and avoiding hazards
and near-misses. In order to prevent potential hazards, personnel are trained
in issues of occupational safety and safety risks are regularly monitored.
The essential themes for Marimekko's sustainability work in 2015 were
sustainable design, responsible sourcing, the environmental impacts of
manufacturing, personnel wellness and skills, and responsible business. The
development of a corporate sustainability strategy for the period 2016-2020 was
also continued in 2015. Marimekko reports in greater detail on its
sustainability work and on issues of the environment, health and safety in a
separate sustainability review issued annually. The next review will be issued
in spring 2016 and can be found on the company's website at
company.marimekko.com under Sustainability / Sustainability review. The basis
for reporting is the 'core' level of the GRI G4 guidelines.
MARKET OUTLOOK AND GROWTH TARGETS IN 2016
The general uncertainty in the global economy is forecast to continue, and this
is reflected in consumers’ purchasing behaviour and consumption habits in all
of Marimekko’s market areas. The main thrust for Marimekko’s operations in 2016
is on improving efficiency and results. Securing competitiveness will
facilitate stronger growth potential in future years. Growth is forecast to be
modest in 2016 and to be mainly driven by retailer-owned Marimekko stores.
Retailers' wariness towards additional purchases and in selecting new suppliers
continues to be reflected in Marimekko's wholesale expectations in 2016.
Furthermore, developing the company’s own online store and utilising other
online sales channels is growing in importance. The first collections created
entirely under the direction of new Creative Director were brought to the
market at the beginning of 2016. With the updated collections Marimekko is
reaching out to also new target groups in addition to the company’s current
customers.
The situation in the retail trade has become even more difficult especially in
Marimekko’s important domestic market, Finland. Consumer confidence being lower
than the long-term average, weak purchasing power, and uncertainty in the
labour market continue to cast a shadow over Marimekko's prospects for 2016.
Potential nonrecurring promotional deliveries could have a positive effect on
the company's sales this year.
The Asia-Pacific region, Marimekko's second-biggest market, plays an important
part in the company's internationalisation. In recent years, new markets have
opened up in China, Hong Kong, Taiwan, Singapore and Thailand. Although sales
in these markets are expected to grow, their combined proportion of Marimekko's
net sales is still relatively small compared with Japan, which is clearly the
most important single country in this region to the company. Sales in Japan are
forecast to take a more modest trend than in recent years and they are expected
to be generated increasingly by organic growth, which will be promoted by
enhancing the operations of Marimekko stores in the country and by optimising
the product offering. New stores will be opened in Japan at an estimated rate
of a few stores per year. In addition, shop-in-shops located mainly in
department stores are also planned to be opened in Japan. In Australia, the
outlook is positive and the market is expected to grow through in-house
retailing, quality department stores and online channels. The company will open
its own online store in Australia in 2016. Most of the Marimekko stores to be
opened in 2016 will be in the Asia-Pacific region.
The US economy has been growing as a whole, and Marimekko's
foreign-currency-denominated retail and wholesale sales in North America are
expected to increase slightly. The company will continue to improve the
profitability of its existing stores and to lighten the operational cost
structure while seeking new sales channels. Cooperation based on a licensing
agreement concluded in 2015 is expected to support the company in building
international recognition for its brand during the current year.
Sales expectations in Scandinavia are modest. A positive trend can be seen in
the Swedish market. In Norway and Denmark, an update of the distribution
channel structure is still under way. However, these markets are expected to
offer potential for the brand in the long term.
Sales expectations are also modest in EMEA market. In order to raise the global
profile of the brand and to promote growth, Marimekko continues to focus on
cooperation with well-known department stores and other distribution channels
in this market area.
The main thrust in expansion in 2016 will continue to be on openings of
retailer-owned Marimekko stores. The aim is to open around 10-20 new Marimekko
stores and shop-in-shops. Of these, 1-2 would be company-owned. Also, the
company focuses strongly on the operational enhancement and the improvement of
profitability of Marimekko stores opened in recent years.
The expenses of marketing operations in 2016 are expected to be at the same
level or lower than in 2015 (EUR 5.1 million). The total investments for 2016
of the Marimekko Group are estimated at approximately EUR 3 million (3.2). Most
of the investments will be devoted to acquiring a new washing machine for the
company’s printing factory in Helsinki, building new store premises and
purchases of fittings, as well as improving data systems supporting business
operations.
FINANCIAL GUIDANCE FOR 2016
The Marimekko Group's net sales for 2016 are forecasted to be at the same level
as in 2015. Operating profit excluding restructuring costs is expected to be
higher than in the previous year.
FINANCIAL GOALS FOR 2016
Marimekko’s financial goals focus on securing the company’s profitable growth.
The company’s most important financial goals are as follows:
-- annual growth in consolidated net sales over 10%
-- operating profit margin 10%
-- return on equity (ROE) over 15%
-- equity ratio 50%
Marimekko updated its goal for equity ratio for 2016. The company’s previous
goal was 60%.
THE BOARD OF DIRECTORS’ PROPOSAL FOR THE DIVIDEND FOR THE 2015 FINANCIAL YEAR
On 31 December 2015, the parent company’s distributable funds amounted to EUR
14,736,541.31; profit for the financial year was EUR 1,403,845.22. The Board of
Directors will propose to the Annual General Meeting that a dividend of EUR
0.35 per share be paid for 2015. The Board will propose 13 April 2016 as the
dividend record date, and 20 April 2016 for the dividend payout. A dividend of
EUR 0.35 per share was paid for 2014 to a total of EUR 2,831,363.50.
Helsinki, 11 February 2016
Marimekko Corporation
Board of Directors
FINANCIAL STATEMENTS BULLETIN 2015, TABLE SECTION
The information presented in the financial statements bulletin has not been
audited. There may be differences in totals due to rounding to the nearest
thousand euros.
APPENDICES
Accounting principles
Formulas for key figures
Consolidated income statement and comprehensive consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in shareholders' equity
Key figures
Segment information
Net sales by market area
Net sales by product line
Quarterly trend in net sales and earnings
ACCOUNTING PRINCIPLES
This financial statements bulletin was prepared in accordance with IAS 34.
Marimekko has applied the same accounting principles in this financial
statements bulleting as were used in its 2014 financial statements, although at
the start of the financial year the company adopted certain new and amended
IFRS standards as described in the financial statements for 2014. The adoption
of new and updated standards has had no effect on the figures stated for the
financial year.
FORMULAS FOR KEY FIGURES
Earnings per share (EPS), EUR:
(Profit before taxes - income taxes) / Number of shares (average for the
financial period)
Equity per share, EUR:
Shareholders’ equity / Number of shares 31 December
Return on equity (ROE), %:
(Profit before taxes - income taxes) X 100 / Shareholders’ equity (average for
the financial period)
Return on investment (ROI), %:
(Profit before taxes + interest and other financial expenses) X 100 / (Balance
sheet total - non-interest-bearing liabilities (average for the financial
period)
Equity ratio, %:
Shareholders’ equity X 100 / (Balance sheet total - advances received)
Gearing, %:
Interest-bearing net debt X 100 / Shareholders’ equity
Net working capital:
Inventories + trade and other receivables + current tax assets - trade and
other payables - current tax liabilities
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 10-12/2 10-12/ 1-12/20 1-12/20
015 2014 15 14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 27,481 26,089 95,652 94,150
--------------------------------------------------------------------------------
Other operating income 166 69 335 230
--------------------------------------------------------------------------------
Increase or decrease in inventories of -673 -1,028 367 -692
completed and unfinished products
--------------------------------------------------------------------------------
Raw materials and consumables -10,085 -8,384 -35,208 -32,767
--------------------------------------------------------------------------------
Employee benefit expenses -6,968 -6,819 -26,232 -25,543
--------------------------------------------------------------------------------
Depreciation and impairments -1,174 -1,075 -4,511 -4,283
--------------------------------------------------------------------------------
Other operating expenses -7,402 -6,906 -28,861 -25,503
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OPERATING PROFIT 1,345 1,946 1,542 5,592
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 26 25 49 252
--------------------------------------------------------------------------------
Financial expenses 113 -245 -297 -360
--------------------------------------------------------------------------------
139 -220 -247 -108
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
RESULT BEFORE TAXES 1,483 1,726 1,294 5,485
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -286 -475 -491 -1,370
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET RESULT FOR THE PERIOD 1,198 1,250 803 4,114
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity holders 1,198 1,250 803 4,114
of the parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic and diluted earnings per share 0.15 0.15 0.10 0.51
calculated on the result attributable to
equity holders of the parent company, EUR
--------------------------------------------------------------------------------
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 10-12/2 10-12/2 1-12/2 1-12/2
015 014 015 014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period 1,198 1,250 803 4,114
--------------------------------------------------------------------------------
Items that could be reclassified to profit or
loss at a future point in time
--------------------------------------------------------------------------------
Change in translation difference -60 149 112 -36
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPREHENSIVE RESULT FOR THE PERIOD 1,138 1,399 915 4,078
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity holders 1,138 1,399 915 4,078
of the parent company
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 31.12.2015 31.12.2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 1,856 1,561
--------------------------------------------------------------------------------
Tangible assets* 15,486 16,702
--------------------------------------------------------------------------------
Available-for-sale financial assets 16 16
--------------------------------------------------------------------------------
17,359 18,279
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 18,488 17,558
--------------------------------------------------------------------------------
Trade and other receivables 5,966 7,286
--------------------------------------------------------------------------------
Cash and cash equivalents 4,249 4,079
--------------------------------------------------------------------------------
28,703 28,924
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS, TOTAL 46,061 47,203
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS’ EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
COMPANY
--------------------------------------------------------------------------------
Share capital 8,040 8,040
--------------------------------------------------------------------------------
Reserve for invested non-restricted equity 502 502
--------------------------------------------------------------------------------
Translation differences 38 -74
--------------------------------------------------------------------------------
Retained earnings 18,549 20,577
--------------------------------------------------------------------------------
Shareholders’ equity, total 27,129 29,045
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liabilities 9 4
--------------------------------------------------------------------------------
Provisions 190 190
--------------------------------------------------------------------------------
Financial liabilities 3,834 3,696
--------------------------------------------------------------------------------
Finance lease liabilities 3,231 3,261
--------------------------------------------------------------------------------
7,264 7,150
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Trade and other payables 11,189 10,053
--------------------------------------------------------------------------------
Current tax liabilities 226 778
--------------------------------------------------------------------------------
Finance lease liabilities 253 176
--------------------------------------------------------------------------------
11,668 11,008
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities, total 18,932 18,158
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS’ EQUITY AND LIABILITIES, TOTAL 46,061 47,203
--------------------------------------------------------------------------------
*At the end of 2015, tangible assets included assets acquired under finance
lease agreements in the amount of EUR 3,301 thousand (31 December 2014: 3,297).
The Group has no liabilities resulting from derivative contracts, and there are
no outstanding guarantees or any other contingent liabilities which have been
granted on behalf of the management of the company or its shareholders.
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) 1-12/201 1-12/201
5 4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period 803 4,114
--------------------------------------------------------------------------------
Adjustments
--------------------------------------------------------------------------------
Depreciation and impairments 4,511 4,283
--------------------------------------------------------------------------------
Other non-cash transactions 0 89
--------------------------------------------------------------------------------
Financial income and expenses 247 108
--------------------------------------------------------------------------------
Taxes 491 1,370
--------------------------------------------------------------------------------
Cash flow before change in working capital 6,054 9,965
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in working capital 1,502 45
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in current non-interest-bearing 1,216 -460
trade receivables
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in inventories -930 547
--------------------------------------------------------------------------------
Increase (+) / decrease (-) in current non-interest-bearing 1,216 -42
liabilities
--------------------------------------------------------------------------------
Cash flow from operating activities before financial items 7,556 10,010
and taxes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Paid interest and payments on other financial expenses -305 -360
--------------------------------------------------------------------------------
Interest received 49 45
--------------------------------------------------------------------------------
Taxes paid -986 156
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES 6,313 9,851
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in tangible and intangible assets -3,171 -2,063
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FORM INVESTING ACTIVITIES -3,171 -2,063
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Long-term loans drawn 139 -
--------------------------------------------------------------------------------
Long-term loans paid 0 -4,538
--------------------------------------------------------------------------------
Finance lease liabilities paid -280 -150
--------------------------------------------------------------------------------
Dividends paid -2,831 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES -2,973 -6,710
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents 170 1,078
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the period 4,079 3,001
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 4,249 4,079
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(EUR 1,000) Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
Share Reserve for Translatio Retained Shareholde
capita invested n earnings rs’
l non-restricted difference equity,
equity s total
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 -38 18,485 26,989
equity
1 January 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the 4,114 4,114
period
--------------------------------------------------------------------------------
Translation -36 -36
differences
--------------------------------------------------------------------------------
Total -36 4,114 4,078
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 -74 20,577 29,045
equity
31 December 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 -74 20,577 29,045
equity
1 January 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the 803 803
period
--------------------------------------------------------------------------------
Translation 112 112
differences
--------------------------------------------------------------------------------
Total 112 803 915
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,831 -2,831
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 38 18,549 27,129
equity
31 December 2015
--------------------------------------------------------------------------------
KEY FIGURES
1-12/2015 1-12/2014 Change, %
--------------------------------------------------------------------------
Earnings per share, EUR 0.10 0.51 -81
--------------------------------------------------------------------------
Equity per share, EUR 3.35 3.59 -7
--------------------------------------------------------------------------
Return on equity (ROE), % 2.9 14.7 -
--------------------------------------------------------------------------
Return on investment (ROI), % 4.5 15.6 -
--------------------------------------------------------------------------
Equity ratio, % 59.0 61.6 -
--------------------------------------------------------------------------
Gearing, % 11.3 10.5 -
--------------------------------------------------------------------------
Gross investments*, EUR 1,000 3,171 2,063 54
--------------------------------------------------------------------------
Gross investments*, % of net sales 3 2 -
--------------------------------------------------------------------------
Contingent liabilities, EUR 1,000 36,252 28,889 25
--------------------------------------------------------------------------
Average personnel 460 473 -3
--------------------------------------------------------------------------
Personnel at the end of the period 476 479 -1
--------------------------------------------------------------------------
Number of shares at the end of the period 8,089,610 8,089,610 -
--------------------------------------------------------------------------
Number of shares outstanding, average 8,089,610 8,089,610 -
--------------------------------------------------------------------------
* Excluding finance lease investments
SEGMENT INFORMATION
(EUR 1,000) 1-12/2015 1-12/2014 Change, %
---------------------------------------------------
Marimekko business
---------------------------------------------------
Net sales 95,652 94,150 2
---------------------------------------------------
Operating profit 1,542 5,592 -72
---------------------------------------------------
Assets 46,061 47,203 -2
---------------------------------------------------
NET SALES BY MARKET AREA
(EUR 1,000) 10-12/ 10-12/ Change Change,% 1-12/ 1-12/ Change Change,
2015 2014 , % in 2015 2014 , % %
currency in
terms currency
terms
--------------------------------------------------------------------------------
Finland 15,940 14,837 7 7 52,690 52,034 1 1
--------------------------------------------------------------------------------
Retail sales 11,299 10,551 7 7 37,613 35,363 6 6
--------------------------------------------------------------------------------
Wholesale 4,498 4,137 9 9 14,669 16,245 -10 -10
sales
--------------------------------------------------------------------------------
Royalties 144 149 -3 -3 408 425 -4 -4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 2,137 2,204 -3 0 7,783 8,452 -8 -4
--------------------------------------------------------------------------------
Retail sales 1,300 1,384 -6 -1 4,841 5,151 -6 -3
--------------------------------------------------------------------------------
Wholesale 837 820 2 3 2,942 3,301 -11 -7
sales
--------------------------------------------------------------------------------
Royalties - - - - - - - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA 2,256 1,735 30 30 8,280 7,554 10 10
--------------------------------------------------------------------------------
Retail sales 356 413 -14 -14 1,213 1,509 -20 -20
--------------------------------------------------------------------------------
Wholesale 1,832 1,272 44 44 6,862 5,882 17 17
sales
--------------------------------------------------------------------------------
Royalties 67 51 33 33 205 162 27 27
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North 2,666 2,831 -6 -22 9,227 8,584 7 -10
America
--------------------------------------------------------------------------------
Retail sales 1,738 1,762 -1 -21 5,898 5,983 -1 -19
--------------------------------------------------------------------------------
Wholesale 831 621 34 19 2,380 1,957 22 4
sales
--------------------------------------------------------------------------------
Royalties 98 449 -78 -85 949 644 47 32
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacific 4,481 4,481 0 1 17,672 17,527 1 2
--------------------------------------------------------------------------------
Retail sales 1,136 1,130 1 3 3,159 2,675 18 19
--------------------------------------------------------------------------------
Wholesale 3,345 3,351 0 0 14,513 14,847 -2 -2
sales
--------------------------------------------------------------------------------
Royalties - - - - - 5 - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Internationa 11,541 11,252 3 0 42,962 42,116 2 -3
l sales,
total
--------------------------------------------------------------------------------
Retail sales 4,530 4,688 -3 -3 15,111 15,318 -1 -4
--------------------------------------------------------------------------------
Wholesale 6,845 6,064 13 7 26,696 25,987 3 -2
sales
--------------------------------------------------------------------------------
Royalties 165 500 -67 -75 1,154 811 42 31
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 27,481 26,089 5 3 95,652 94,150 2 -1
--------------------------------------------------------------------------------
Retail sales 15,829 15,240 4 2 52,724 50,682 4 1
--------------------------------------------------------------------------------
Wholesale 11,343 10,201 11 9 41,365 42,232 -2 -4
sales
--------------------------------------------------------------------------------
Royalties 309 649 -52 -60 1,563 1,237 26 20
--------------------------------------------------------------------------------
All figures in the table have been individually rounded to thousands of euros,
so there may be rounding differences in the totals.
NET SALES BY PRODUCT LINE
(EUR 1,000) 10-12/ 10-12/ Change, % 1-12/ 1-12/ Change, %
2015 2014 2015 2014
--------------------------------------------------------------------------
Fashion 10,237 9,590 7 38,810 36,256 7
--------------------------------------------------------------------------
Home 11,198 11,174 0 34,715 37,703 -8
--------------------------------------------------------------------------
Bags and accessories 6,046 5,324 14 22,127 20,191 10
--------------------------------------------------------------------------
Total 27,481 26,089 5 95,652 94,150 2
--------------------------------------------------------------------------
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 10-12/2015 7-9/2015 4-6/2015 1-3/2015
-----------------------------------------------------------------
Net sales 27,481 24,590 23,446 20,135
-----------------------------------------------------------------
Operating result 1,345 1,228 294 -1,325
-----------------------------------------------------------------
Earnings per share, EUR 0.15 0.08 0.01 -0.14
-----------------------------------------------------------------
-----------------------------------------------------------------
(EUR 1,000) 10-12/2014 7-9/2014 4-6/2014 1-3/2014
-----------------------------------------------------------------
Net sales 26,089 26,811 21,874 19,376
-----------------------------------------------------------------
Operating result 1,946 4,875 519 -1,748
-----------------------------------------------------------------
Earnings per share, EUR 0.15 0.49 0.05 -0.19
-----------------------------------------------------------------
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