2013-08-15 07:30:00 CEST
2013-08-15 07:30:04 CEST
REGULATED INFORMATION
Marimekko - Interim report (Q1 and Q3)
MARIMEKKO CORPORATION, INTERIM REPORT 1 JANUARY - 30 JUNE 2013
Marimekko Corporation, Interim Report 15 August 2013 at 8.30 AM
In the January-June period of 2013, the Marimekko Group's net sales grew by 13
percent relative to the same period last year. International sales rose by 28
percent, particularly due to the stores opened in North America and the
Asia-Pacific region in 2012 and during the period under review. In the
April-June period of 2013, the Group's net sales rose by 17 percent, fuelled by
international sales.
Operating result for the January-June period of 2013 includes EUR 1.5 million
in nonrecurring expenses due to arrangements arising from the statutory
employer-employee negotiations concluded during the second quarter. Operating
result excluding nonrecurring items was EUR -1.0 million (-1.5). In the
April-June period of 2013, operating result excluding nonrecurring items was
EUR 0.8 million higher than in the same period last year. Operating result was
improved by growth in wholesale sales in the Asia-Pacific region and in Central
and Southern Europe, an improvement in the profitability of company-owned
stores in Finland in spite of a fall in comparable sales, and by growth in the
company's textile printing factory's output as well as enhanced operational
efficiency.
In 2013, Marimekko will continue to make moderate investments in growth,
concentrating on improving profitability, particularly by enhancing the
operations of the stores opened in 2012.
Key indicators 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
2013 2012 , % 2013 2012 , % 2012
--------------------------------------------------------------------------------
Net sales, EUR million 23.0 19.7 17 43.7 38.5 13 88.5
--------------------------------------------------------------------------------
International sales, EUR 10.3 7.4 38 20.5 16.0 28 36.1
million
--------------------------------------------------------------------------------
% of net sales 45 38 47 42 41
--------------------------------------------------------------------------------
EBITDA, EUR million 0.2 0.3 -19 0.0 0.1 -64 5.6
--------------------------------------------------------------------------------
EBITDA excluding nonrecurring 1.7 0.3 504 1.5 0.1 1,179 5.6
items, EUR million*
--------------------------------------------------------------------------------
Operating result, EUR million -1.2 -0.5 -112 -2.4 -1.5 -65 2.0
--------------------------------------------------------------------------------
Operating result excluding 0.3 -0.5 -1.0 -1.5 33 2.0
nonrecurring items, EUR
million*
--------------------------------------------------------------------------------
Operating result margin, % -5.0 -2.8 -5.6 -3.8 2.3
--------------------------------------------------------------------------------
Operating result margin 1.4 -2.8 -2.2 -3.8 2.3
excluding nonrecurring
items, %*
--------------------------------------------------------------------------------
Result for the period, EUR -1.1 -0.2 -402 -2.2 -1.0 -113 1.1
million
--------------------------------------------------------------------------------
Earnings per share, EUR -0.13 -0.03 -333 -0.27 -0.13 -108 0.14
--------------------------------------------------------------------------------
Cash flow from operating 0.0 2.0 -98 -2.3 -0.5 -325 8.6
activities, EUR million
--------------------------------------------------------------------------------
Return on investment (ROI), % -13.2 -2.6 -12.1 -6.4 4.1
--------------------------------------------------------------------------------
Equity ratio, % 46.3 49.7 54.6
--------------------------------------------------------------------------------
Gross investments, EUR 0.4 1.7 -76 1.1 3.9 -71 7.6
million
--------------------------------------------------------------------------------
Personnel at the end of the 559 493 13 559 493 13 535
period
--------------------------------------------------------------------------------
outside Finland 109 75 45 109 75 45 103
--------------------------------------------------------------------------------
Brand sales**, EUR million 46.9 40.7 15 91.2 83.2 10 187.2
--------------------------------------------------------------------------------
outside Finland, EUR million 29.7 22.9 29 57.8 48.4 20 100.7
--------------------------------------------------------------------------------
proportion of international 63 56 63 58 54
sales, %
--------------------------------------------------------------------------------
Number of stores*** 120 94 28 120 94 28 108
--------------------------------------------------------------------------------
* Operating result includes EUR 1.5 million in nonrecurring expenses due to
arrangements arising from the statutory employer-employee negotiations
concluded during the second quarter of 2013.
** 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 50 at the end of June 2013 (40). Information on changes is
available in the section Internationalisation and changes in the store network.
Mika Ihamuotila, President and CEO:
“Our net sales continued to grow fairly strongly in spite of challenging market
conditions in our main market areas. The investments we have made in recent
years in line with our long-term internationalisation strategy are now
beginning to make themselves felt. Net sales in the second quarter this year
grew by 17 percent relative to the same period last year; net sales outside
Finland were up by 38 percent. In 2013, a total of 30 to 35 new Marimekko
stores are opening.
“Our operating result for the second quarter, excluding the nonrecurring
expenses during the period, was EUR 0.3 million or EUR 0.8 million higher than
in the same period last year. Growth in wholesale sales improved the operating
result: sales increased especially in the Asia-Pacific region due to initial
inventory purchases by new retailer-owned stores. The trend in wholesale sales
was also fairly strong in Central and Southern Europe. Another important
achievement is that the profitability of both our company-owned store network
in Finland and our textile printing factory improved in the second quarter. We
have recently invested particularly much in enhancing our operational
efficiency, and it is great to see that these efforts are now also making a
difference in the form of improving our profitability.
“I am pleased that we decided as part of our internationalisation strategy
some years ago to target our growth on Asia in particular. I am optimistic
about the growth prospects for Asian retail trade and about strengthening the
attractiveness of the Marimekko brand in this region. The first Marimekko store
in mainland China opened in Beijing during the second quarter, and at the
beginning of August our network of stores also expanded to Shanghai. The
profitability of the company-owned stores we have opened in the United States
in the past few years has been lower than expected, but we have already seen
that these stores have boosted our profile around the world and thus opened up
new kinds of opportunities. An example of this is the design partnership with
the clothing brand Banana Republic owned by Gap Inc., which we announced in the
second quarter; the capsule collection will hit stores in summer 2014.
“The authenticity of two Marimekko designs has been under debate in recent
months. This debate has had no impact on Marimekko's business. I require
Marimekko to have an absolute zero tolerance with regard to creative
authenticity; copyright infringements of any kind are unacceptable.
Infringements of Marimekko's own copyright are regrettably common in many
countries. I have decided to further tighten copyright control in our own
design process as well as in respect of outside infringements of Marimekko's
copyright.
“In spite of challenging market conditions, I see the prospects for growth by
Marimekko as good, and I believe our long-term growth strategy will also result
in an improvement in our profitability in the next few years.”
Market outlook and growth targets
General uncertainty in the global economy is forecast to continue, and this may
affect consumers' purchasing behaviour in all of Marimekko's market areas. The
economic prospects for Europe are still gloomy, and growth is slow in the
region. However, the economic outlook has taken a slight upturn. In the United
States and Asia, economic forecasts are better than in Europe, but growth is
anticipated to continue to be sluggish. In Finland, market conditions are
moderate, but economic forecasts by trade and industry for the next few months
have gone into a downturn. Economic conditions are expected to remain weak, and
retail sales are forecast to decline. (Confederation of Finnish Industries EK:
Business Tendency Survey, August 2013). The sluggish trend in Marimekko's own
stores in Finland at the end of 2012 and a decline in comparable retail sales
in the first half of 2013, combined with low consumer confidence, cast a shadow
over prospects for this year in Finland.
The stores opened in 2012 and other major investments in expanding the
distribution network will bring a considerable increase in sales in 2013. The
main thrust in expansion this year is on openings of retailer-owned Marimekko
stores and shop-in-shops. The company will also invest in developing the
operations of the stores it opened in 2012. Marimekko announced in January that
the aim was to open 15 to 24 new stores this year. The number of stores to be
opened has been confirmed as 30 to 35, 4 to 6 of which will be company-owned.
The planned total investments for 2013 of the Marimekko Group are estimated as
being in excess of EUR 3 million. Most of the investments will be devoted to
building new retail facilities and purchases of fittings.
Financial guidance
Due to the current market conditions and the change undergone by the company
recently, it is very difficult to forecast the financial result for 2013.
Marimekko revised its estimate of the 2013 operating profit on 16 May 2013 due
to the nonrecurring expenses arising from the statutory employer-employee
negotiations conducted by the company. The estimate of net sales for 2013 is
unchanged. The company reiterates the estimate it announced on 16 May 2012,
whereby the Marimekko Group's net sales are estimated to grow by over 5 percent
and operating profit excluding nonrecurring items is forecast to be, at the
most, at the same level as in 2012. The increased proportion of retail sales
will further boost the seasonal nature of business, so the major portion of
operating profit will, as is typical, accrue in the second half of the year.
Further information:
Thomas Ekström, CFO and acting CEO, tel. +358 50 381 9751
MARIMEKKO CORPORATION
Corporate Communications
Merja Paulamäki
Tel. +358 9 758 7473
merja.paulamaki@marimekko.fi
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
Marimekko is a Finnish textile and clothing design company renowned for its
original prints and colours. The company designs and manufactures high-quality
interior decoration items ranging from furnishing fabrics to tableware as well
as clothing, bags and other accessories. When Marimekko was founded in 1951,
its unparalleled printed fabrics gave it a strong and unique identity.
Marimekko products are sold in approximately 40 countries. In 2012, brand sales
of Marimekko products worldwide amounted to approximately EUR 187 million and
the company's net sales were EUR 88 million. The number of Marimekko stores
totalled 108 at the year end. The key markets are North America, Northern
Europe and the Asia-Pacific region. The Group employs around 500 people. The
company's share is quoted on NASDAQ OMX Helsinki Ltd. www.marimekko.com
INTERIM REPORT OF MARIMEKKO CORPORATION, 1 JANUARY - 30 JUNE 2013
MARKET REVIEW
The widespread uncertainty over the global economy continued during the period
under review and consumers' purchasing behaviour remained cautious. In Europe,
the serious debt crisis of the EU states retreated somewhat, but the region's
economic growth continued to be weak. In the United States and Asia, the
situation was better, although growth was fairly slow. In Finland, market
conditions continued to be worse than the average and the economic prospects
deteriorated. The short-term economic outlook for trade and industry continued
to be sluggish and has further weakened. Consumer confidence was low during the
period under review, but this went into a cautious upswing during the summer.
(Confederation of Finnish Industries EK: Business Tendency Survey, August
2013).
In the January-June period of 2013, retail net sales in Finland rose by 0.9
percent, but the quantity of sales - which measures real growth in sales -
declined by 0.5 percent. (Statistics Finland: Turnover of trade, retail trade
flash estimate, July 2013). From January to May 2013, retail sales of clothing
(excluding sportswear) grew by 1.5 percent. Sales of women's clothing rose by
0.3 percent and menswear by 8.3 percent, while sales of children's clothing
fell by 6.3 percent. Sales of bags grew by 0.5 percent (Textile and Fashion
Industries TMA). In the January-May period of 2013, clothing (SITC 84) exports
fell by 18 percent and imports by 1 percent; exports of textiles (SITC 65)
declined by 8 percent and imports by 5 percent (National Board of Customs,
monthly review, July 2013).
INTERNATIONALISATION AND CHANGES IN THE STORE NETWORK
In 2012, Marimekko invested more than before in expanding its network of
company-owned stores in Northern Europe and the United States in order to raise
its profile and to enhance prospects for the opening of retailer-owned
Marimekko stores and shop-in-shops. This changed the ratio of wholesale to
retail and tied up a larger proportion of the company's capital and resources
than before.
In 2013, the main thrust in Marimekko's expansion is on openings of
retailer-owned Marimekko stores and shop-in-shops. The company is also
investing in enhancing the operations of the stores it opened in 2012. In
January, Marimekko announced that the aim was to open 15 to 24 new stores this
year. The number of stores to be opened has been confirmed as 30 to 35, 4 to 6
of which will be company-owned. During the second quarter, 14 Marimekko stores
were opened: company-owned stores in Oulu and Kotka in Finland and in Täby near
Stockholm in Sweden, retailer-owned stores in Beijing and Guam, and three
shop-in-shops in Finland, one in Denmark, four in Mexico and one in New
Zealand.
During the second quarter, two Marimekko shop-in-shops closed down in the
United States.
Since the end of the period under review, 11 new stores have been opened: a
company-owned store in Copenhagen, Denmark, retailer-owned stores in
Hämeenlinna, Finland, Shanghai, China, Pangyo near Seoul, South Korea, and
Kagoshima, Japan, and six shop-in-shops, five of which are in Canada and one in
the United States. Among the shops to be opened towards the end of the year are
retailer-owned Marimekko stores in Hong Kong and in Tokyo and Osaka, Japan.
Number of stores and shop-in-shops* 30.6.2013 30.6.2012 31.12.2012
---------------------------------------------------------------------
Finland 53 43 48
---------------------------------------------------------------------
Company-owned stores 30 27 28
---------------------------------------------------------------------
Scandinavia 14 12 12
---------------------------------------------------------------------
Company-owned stores 8 7 7
---------------------------------------------------------------------
Central and Southern Europe 5 5 5
---------------------------------------------------------------------
Company-owned stores 4 4 4
---------------------------------------------------------------------
North America 18 11 16
---------------------------------------------------------------------
Company-owned stores 6 2 6
---------------------------------------------------------------------
Asia-Pacific 30 23 27
---------------------------------------------------------------------
Company-owned stores 2 - 2
---------------------------------------------------------------------
Total 120 94 108
---------------------------------------------------------------------
Company-owned stores 50 40 47
---------------------------------------------------------------------
** Includes the company's own retail stores, retailer-owned Marimekko stores
and shop-in-shops with an area exceeding 30 sqm.
NET SALES
In the January-June period of 2013, the Group's net sales, boosted by
international sales, rose by 13 percent to EUR 43,667 thousand (38,509). In
Finland, net sales grew by 3 percent relative to the same period last year.
International sales rose by 28 percent.
In the April-June period, the Group's net sales rose by 17 percent, fuelled by
international sales, reaching EUR 22,957 thousand (19,701). In Finland, net
sales grew by 3 percent relative to the same period last year. International
sales rose by 38 percent.
Net sales by market area
(EUR 1,000) 4-6/ 4-6/ Change, 1-6/ 1-6/ Change, 1-12/
2013 2012 % 2013 2012 % 2012
--------------------------------------------------------------------------------
Finland 12,696 12,283 3 23,182 22,511 3 52,344
--------------------------------------------------------------------------------
Retail sales 9,212 8,320 11 15,508 14,136 10 34,000
--------------------------------------------------------------------------------
Wholesale sales 3,376 3,836 -12 7,446 8,106 -8 17,546
--------------------------------------------------------------------------------
Royalties 108 127 -15 228 269 -15 798
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 1,720 1,825 -6 3,599 3,727 -3 7,856
--------------------------------------------------------------------------------
Retail sales 1,041 873 19 1,846 1,409 31 3,299
--------------------------------------------------------------------------------
Wholesale sales 679 952 -29 1,753 2,315 -24 4,554
--------------------------------------------------------------------------------
Royalties - - - 3 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Central and Southern 1,909 1,693 13 3,910 3,741 5 7,783
Europe
--------------------------------------------------------------------------------
Retail sales 347 360 -4 631 700 -10 1,492
--------------------------------------------------------------------------------
Wholesale sales 1,538 1,306 18 3,230 2,986 8 6,185
--------------------------------------------------------------------------------
Royalties 25 27 -8 50 55 -9 106
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North America 2,404 1,468 64 4,275 2,720 57 7,743
--------------------------------------------------------------------------------
Retail sales 1,497 614 144 2,600 1,080 141 4,020
--------------------------------------------------------------------------------
Wholesale sales 749 646 16 1,406 1,323 6 3,193
--------------------------------------------------------------------------------
Royalties 159 208 -24 270 317 -15 530
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacific 4,227 2,432 74 8,700 5,810 50 12,745
--------------------------------------------------------------------------------
Retail sales 504 - 1,008 - 655
--------------------------------------------------------------------------------
Wholesale sales 3,722 2,432 53 7,691 5,808 32 12,087
--------------------------------------------------------------------------------
Royalties 2 - 2 2 -15 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
International sales, 10,261 7,418 38 20,485 15,998 28 36,127
total
--------------------------------------------------------------------------------
Retail sales 3,388 1,847 83 6,084 3,189 91 9,466
--------------------------------------------------------------------------------
Wholesale sales 6,687 5,336 25 14,079 12,432 13 26,019
--------------------------------------------------------------------------------
Royalties 185 235 -21 321 377 -15 642
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 22,957 19,701 17 43,667 38,509 13 88,471
--------------------------------------------------------------------------------
Retail sales 12,600 10,167 24 21,592 17,325 25 43,466
--------------------------------------------------------------------------------
Wholesale sales 10,063 9,172 10 21,525 20,538 5 43,565
--------------------------------------------------------------------------------
Royalties 294 362 -19 550 646 -15 1,440
--------------------------------------------------------------------------------
Finland
In the January-June period, sales in Finland grew by 3 percent and reached EUR
23,182 thousand. Retail sales rose by 10 percent. Sales were boosted by three
company-owned stores opened in 2012 as well as two stores opened in the second
quarter of 2013. Comparable sales by company-owned stores fell by 3 percent.
Wholesale sales fell by 8 percent.
During the second quarter, retail sales rose by 3 percent. Comparable sales by
company-owned stores fell by 3 percent. Wholesale sales fell by 12 percent.
Scandinavia
In Scandinavia, sales in the January-June period fell by 3 percent relative to
the same period last year and amounted to EUR 3,599 thousand. Retail sales rose
by 31 percent. Retail sales were boosted by two company-owned stores opened in
Sweden in 2012, the extension of Marimekko's e-commerce into Sweden, and a
company-owned store opened at the beginning of June 2013. Comparable sales
growth for company-owned stores was 9 percent. Most of the growth was generated
from the January sales. The trend in comparable sales was negatively impacted
by the refurbishment of a company-owned store in Stockholm lasting for roughly
one month, during which the store was closed. Wholesale sales fell in the
January-June period by 24 percent. Consumers' purchasing behaviour continued to
be cautious, especially in Sweden and Denmark, which affected wholesale sales
in particular.
During the second quarter, retail sales rose by 19 percent. Comparable sales by
company-owned stores were on a par with the same period last year. Wholesale
sales fell by 29 percent.
Central and Southern Europe
In Central and Southern Europe, net sales for the January-June period rose by 5
percent, reaching EUR 3,910 thousand. Retail sales fell by 10 percent.
Wholesale sales grew by 8 percent. Sales rose in Italy and Switzerland but fell
in the UK, France and Belgium.
During the second quarter, retail sales fell by 4 percent. Wholesale sales grew
by 18 percent.
North America
In North America, net sales for the January-June period grew by 57 percent and
were EUR 4,275 thousand. In terms of the sales currency (mostly the US dollar),
growth amounted to roughly 58 percent. The growth in net sales came from the
four company-owned stores opened in the United States in the second half of
2012 and four shop-in-shops opened in Mexico during the period under review.
Retail sales grew by 141 percent. Comparable sales by company-owned stores fell
by 6 percent. Wholesale sales grew by 6 percent, mainly due to the
shop-in-shops opened in Mexico. Initial inventory purchases by shop-in-shops
opened in Canada and the United States after the period under review also
boosted wholesale sales.
During the second quarter, retail sales rose by 144 percent. Comparable sales
by company-owned stores fell by 4 percent. Wholesale sales grew by 16 percent.
Asia-Pacific region
Net sales in the Asia-Pacific region grew in the January-June period by 50
percent and were EUR 8,700 thousand. Wholesale sales rose by 32 percent. Sales
were improved by the opening in 2012 of two new stores in Japan and one in Hong
Kong, as well as investments in Australia. Initial inventory purchases by
stores opened in China, South Korea and Japan after the period under review
also increased wholesale sales. Net sales were also boosted by two
company-owned stores opened in Australia at the end of 2012.
During the second quarter, wholesale sales rose by 53 percent.
FINANCIAL RESULT
The Group's financial result is typically weak during the first half of the
year because net sales are low relative to operating expenses for seasonal
reasons, in addition to which profits from retail operations in particular are
generated predominantly in the second half of the year. This was emphasised
during the period under review, as a larger proportion of net sales than before
came from retail. In the January-June period of 2013, the Group's operating
result was EUR -2,448 thousand (-1,480). Operating result includes EUR 1,485
thousand in nonrecurring expenses due to arrangements arising from the
statutory employer-employee negotiations concluded during the second quarter.
Operating result excluding nonrecurring items was EUR -963 thousand (-1,480).
Operating result was improved by growth in wholesale sales in the Asia-Pacific
region and in Central and Southern Europe, an improvement in the profitability
of company-owned stores in Finland in spite of a fall in comparable sales, and
by growth in the company's textile printing factory's output as well as
enhanced operational efficiency. Wholesale sales were boosted particularly by
initial inventory purchases by new stores in the second quarter. Operating
result was weakened by the loss posted by stores in the launch phase in the
United States as well as by a downturn in wholesale sales in Finland and
Scandinavia.
In the April-June period of 2013, the Group's operating result was EUR -1,158
thousand (-545). Operating result excluding nonrecurring items was EUR 326
thousand (-545). The second quarter's operating result was improved by growth
in wholesale sales in the Asia-Pacific region and in Central and Southern
Europe, an improvement in the profitability of company-owned stores in Finland
in spite of a fall in comparable sales, and by growth in the company's textile
printing factory's output as well as enhanced operational efficiency. Operating
result was weakened by the loss posted by stores in the launch phase in the
United States as well as by a downturn in wholesale sales in Finland.
Marketing expenses during the period under review were EUR 2,235 thousand
(1,998), or 5 percent of the Group's net sales (5).
The Group's depreciation grew due to considerable investments during the past
few years and stood at EUR 2,491 thousand (1,599), representing 6 percent of
net sales (4).
Operating result margin for the January-June period of 2013 was -5.6 percent
(-3.8). The second-quarter operating result margin was -5.0 percent (-2.8).
Net financial expenses were EUR 343 thousand (-5), or 1 percent of net sales
(0).
Result for the review period before taxes was EUR -2,791 thousand (-1,475).
Result after taxes was EUR ‑2,203 thousand (-1,034) and earnings per share were
EUR -0.27 (-0.13).
BALANCE SHEET
The consolidated balance sheet total as at 30 June 2013 was EUR 55,708 thousand
(54,687). Equity attributable to the equity holders of the parent company was
EUR 25,809 thousand (27,176), or EUR 3.19 per share (3.38).
Non-current assets at the end of June 2013 were EUR 23,730 thousand (23,316).
As of March 2012, tangible assets include a finance lease asset related to the
new, 30-year land lease on the property of the Helsinki head office and
printing factory. The book value of the finance lease asset at the end of the
review period was EUR 3,288 thousand (3,402).
At the end of the period under review, net working capital was EUR 17,380
thousand (19,821). Inventories were EUR 18,963 thousand (20,405).
CASH FLOW AND FINANCING
In the January-June period, cash flow from operating activities was EUR -2,254
thousand (-530), or EUR ‑0.28 per share (-0.07). Cash flow before cash flow
from financing activities was EUR -3,374 thousand (‑4,420).
In the April-June period, cash flow from operating activities was EUR 42
thousand (1,988), or EUR 0.01 per share (0.25). Cash flow before cash flow from
financing activities was EUR -317 thousand (317).
The Group's financial liabilities at the end of the period under review stood
at EUR 18,293 thousand (17,141). As of March 2012, non-current liabilities also
include a finance lease liability related to the new, 30-year land lease on the
property of the Helsinki head office and printing factory. The present value of
the finance lease liability at the end of the review period was EUR 3,359
thousand (3,426).
At the end of the period under review, the Group's cash and cash equivalents
amounted to EUR 3,292 thousand (1,548). In addition, the Group had unused
committed long- and short-term credit lines of EUR 11,066 thousand (6,286).
The Group's equity ratio at the end of the period was 46.3 percent (49.7).
Gearing was 58.1 percent (57.1).
INVESTMENTS
The Group's gross investments in the January-June period were EUR 1,120
thousand (3,890), or 3 percent of net sales (10). Most of the investments were
devoted to building store premises and to refurbishing the property in
Herttoniemi.
PERSONNEL
In the January-June period of 2013, the number of employees averaged 529 (475).
At the end of the period, the Group had 559 employees (493), of whom 109 worked
outside Finland (75). The number of employees working outside Finland was
broken down as follows: Scandinavia 34 (26), Central and Southern Europe 14
(12), North America 51 (35) and the Asia-Pacific region 10 (2). The personnel
at company-owned stores totalled 255 at the end of the period (203).
STATUTORY EMPLOYER-EMPLOYEE NEGOTIATIONS REGARDING MARIMEKKO'S OPERATIONS IN
SULKAVA AND KITEE
During the period, Marimekko conducted statutory employer-employee negotiations
on permanent staff reductions concerning the personnel of its manufacturing
operations located in Sulkava and Kitee, Finland, as well as the adjacent
factory outlets. The personnel of the production plant in Helsinki was not
affected by the negotiations. As a result of the negotiations, Marimekko
decided to close down its production plants in Kitee and Sulkava as well as the
adjacent factory outlets. The arrangements will result in the loss of a total
of 60 jobs.
The reductions in staffing and other actions to be effected are expected to
bring an approximate total of EUR 1.0 million in annual cost savings. The
savings will be realised gradually from the beginning of 2014, and the full
impact of the profit improvement will start to be felt in the third quarter of
2014. The aim of the actions is to make it possible to manufacture even more
profitable products and to secure business competitiveness also in the future.
Due to the arrangements, the company incurred nonrecurring expenses in the
amount of EUR 1,485 thousand in the second quarter of 2013.
COLLABORATION BETWEEN MARIMEKKO AND BANANA REPUBLIC
During the period under review, Marimekko announced it had signed an agreement
with the clothing brand Banana Republic, which is owned by Gap Inc., to
collaborate and design a capsule collection for summer 2014. The collection
will be sold in select Banana Republic stores and online channels worldwide.
The collaboration is expected to significantly boost Marimekko's royalty
earnings in the final quarter of 2014.
RESOLUTIONS OF THE ANNUAL GENERAL MEETING
The resolutions of Marimekko Corporation's Annual General Meeting have been
reported in the stock exchange release of 23 April 2013 and in the interim
report of 7 May 2013.
SHARES AND SHAREHOLDERS
Share capital and number of shares
At the end of June 2013, 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 7,528 shareholders at the
end of June 2013 (6,979). Of the shares, 21.1 percent were owned by
nominee-registered or non-Finnish holders (27.8). The number of shares owned
either directly or indirectly by members of the Board of Directors and the
President and CEO of the company was 1,338,930 (1,168,930), representing 16.6
percent of the number and voting rights of the company's shares (14.5).
The largest shareholders according to the book-entry register on 30 June 2013
Number of shares Percentage of shares
and votes and votes
--------------------------------------------------------------------------------
1. Muotitila Ltd 1,297,700 16.04
--------------------------------------------------------------------------------
2. Semerca Investments SA 850,377 10.51
--------------------------------------------------------------------------------
3. Varma Mutual Employment Pension 385,920 4.77
Insurance Company
--------------------------------------------------------------------------------
4. ODIN Finland 344,251 4.26
--------------------------------------------------------------------------------
5. Keva 220,845 2.73
--------------------------------------------------------------------------------
6. Veritas Pension Insurance Company 219,710 2.72
--------------------------------------------------------------------------------
7. Ilmarinen Mutual Pension 215,419 2.66
Insurance Company
--------------------------------------------------------------------------------
8. Danske Fund Finnish Small Cap 155,000 1.92
--------------------------------------------------------------------------------
9. OP-Finland Small Firm Fund 150,414 1.86
--------------------------------------------------------------------------------
10. Mutual Fund Tapiola Finland 136,395 1.69
--------------------------------------------------------------------------------
Total 3,976,031 49.15
--------------------------------------------------------------------------------
Nominee-registered and 1,706,446 21.09
non-Finnish holders
--------------------------------------------------------------------------------
Others 2,407,133 29.76
--------------------------------------------------------------------------------
Total 8,089,610 100.00
--------------------------------------------------------------------------------
Share trading and the company's market capitalisation
In the January-June period of 2013, a total of 351,717 Marimekko shares were
traded, representing 4.3 percent of the shares outstanding. The total value of
Marimekko's share turnover was EUR 4,211,197. The lowest price of the Marimekko
share was EUR 10.00, the highest was EUR 14.54 and the average price was EUR
11.97. At the end of June, the closing price of the share was EUR 10.25. The
company's market capitalisation on 30 June 2013 was EUR 82,918,503
(103,716,000).
Authorisations
At the end of the period, Marimekko's Board of Directors had an authorisation,
granted by the Annual General Meeting of 17 April 2012, to decide on a directed
offering of shares to the personnel, in deviation from the shareholders'
pre-emptive right, in one or more offerings. The total number of new shares to
be offered for subscription pursuant to the authorisation may not exceed
150,000 shares. The authorisation is in effect for two years from the date of
the Annual General Meeting's resolution. Marimekko arranged a personnel share
offering in 2012, in which a total of 49,610 new shares were subscribed for.
EVENTS AFTER THE END OF THE PERIOD UNDER REVIEW
In 2011, Marimekko's President and CEO Mika Ihamuotila underwent a minor repeat
neurosurgical operation. The after-effects of these operations sometimes
include epileptic symptoms which are treated with regular preventative
medication. Marimekko announced on 6 August 2013 that Ihamuotila will be taking
sick leave, estimated at 4 to 6 weeks, to adjust to epilepsy medication. For
this time, his deputy is the company's Chief Financial Officer Thomas Ekström,
and Ihamuotila will participate in the company's decision-making on a part-time
basis.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
The key strategic risks for the near future are associated with overall
economic trends and the consequent uncertainty in the operating environment as
well as the management of the company's expansion. The global economic cycle
and factors of uncertainty affect consumers' purchasing behaviour and buying
power in all of the company's market areas. The severe problems of the
international financial markets continue to dampen the prospects for retail
sales as well as Marimekko's growth and earnings outlook.
Marimekko is undergoing a phase of dynamic internationalisation and change. The
distribution of products is being expanded in all key market areas. Unlike
before, the focus of growth has increasingly been on opening company-owned
stores outside Finland. This calls for larger or brand-new country
organisations in these market areas, which will exert a drag on the
cost-effectiveness of the company, especially in the early stages of expansion.
Moreover, expanding the network of company-owned stores will increase the
company's investments, lease liabilities of store premises, inventories, and
the company's fixed costs. It follows from this that a larger portion of Group
net sales will come from sales by the company's own retail stores, which will
add to the seasonality of the business and shift the bulk of net sales and
profit accumulation to the last quarter, thus having a negative impact on
profitability in the first half of the year. Furthermore, partnerships and the
choice of partners in the company's key market areas also involve risks.
The company's ability to develop and commercialise new products that meet
consumers' expectations while maintaining profitable and effective in-house
production has an impact on the company's sales and profitability.
The company's operational risks prominently include those related to the
management of expansion projects, the operational reliability of procurement
and logistics processes, and changes in cost of raw materials and other
procurement items. As a result of new products, the share of in-house
production has diminished, 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 temporary 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, customers' liquidity, and changes in exchange rates may have an
impact on the company's financial status.
MARKET OUTLOOK AND GROWTH TARGETS
General uncertainty in the global economy is forecast to continue, and this may
affect consumers' purchasing behaviour in all of Marimekko's market areas. The
economic prospects for Europe are still gloomy, and growth is slow in the
region. However, the economic outlook has taken a slight upturn. In the United
States and Asia, economic forecasts are better than in Europe, but growth is
anticipated to continue to be sluggish. In Finland, market conditions are
moderate, but economic forecasts by trade and industry for the next few months
have gone into a downturn. Economic conditions are expected to remain weak, and
retail sales are forecast to decline. (Confederation of Finnish Industries EK:
Business Tendency Survey, August 2013). The sluggish trend in Marimekko's own
stores in Finland at the end of 2012 and a decline in comparable retail sales
in the first half of 2013, combined with low consumer confidence, cast a shadow
over prospects for this year in Finland.
The stores opened in 2012 and other major investments in expanding the
distribution network will bring a considerable increase in sales in 2013. The
main thrust in expansion this year is on openings of retailer-owned Marimekko
stores and shop-in-shops. The company will also invest in developing the
operations of the stores it opened in 2012. Marimekko announced in January that
the aim was to open 15 to 24 new stores this year. The number of stores to be
opened has been confirmed as 30 to 35, 4 to 6 of which will be company-owned.
The planned total investments for 2013 of the Marimekko Group are estimated as
being in excess of EUR 3 million. Most of the investments will be devoted to
building new retail facilities and purchases of fittings.
FINANCIAL GUIDANCE
Due to the current market conditions and the change undergone by the company
recently, it is very difficult to forecast the financial result for 2013.
Marimekko revised its estimate of the 2013 operating profit on 16 May 2013 due
to the nonrecurring expenses arising from the statutory employer-employee
negotiations conducted by the company. The estimate of net sales for 2013 is
unchanged. The company reiterates the estimate it announced on 16 May 2012,
whereby the Marimekko Group's net sales are estimated to grow by over 5 percent
and operating profit excluding nonrecurring items is forecast to be, at the
most, at the same level as in 2012. The increased proportion of retail sales
will further boost the seasonal nature of business, so the major portion of
operating profit will, as is typical, accrue in the second half of the year.
Helsinki, 15 August 2013
MARIMEKKO CORPORATION
Board of Directors
INTERIM REPORT 1 JANUARY - 30 JUNE 2013, TABLE SECTION
The information presented in the interim report 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 interim report was prepared in accordance with IAS 34. The same accounting
principles were applied as in the 2012 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 2012. The adoption of
new and updated standards has had no effect on the figures stated during the
period under review.
FORMULAS FOR KEY FIGURES
Earnings per share (EPS), EUR:
(Profit before taxes - income taxes) / Number of shares (average for the
financial year)
Equity per share, EUR:
Shareholders' equity / Number of shares, 30 June
Return on equity (ROE), %:
(Profit before taxes - income taxes) X 100 / Shareholders' equity (average for
the financial year)
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
year))
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 liability
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 4-6/20 4-6/20 1-6/201 1-6/201 1-12/20
13 12 3 2 12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 22,957 19,701 43,667 38,509 88,471
--------------------------------------------------------------------------------
Other operating income 56 8 112 9 97
--------------------------------------------------------------------------------
Increase or decrease in inventories 552 -475 968 -475 -2,192
of completed and unfinished products
--------------------------------------------------------------------------------
Raw materials and consumables -7,897 -6,179 -16,487 -13,242 -29,515
--------------------------------------------------------------------------------
Employee benefit expenses -8,568 -5,918 -14,761 -11,621 -24,384
--------------------------------------------------------------------------------
Depreciation and impairments -1,386 -828 -2,491 -1,599 -3,550
--------------------------------------------------------------------------------
Other operating expenses -6,873 -6,854 -13,456 -13,061 -26,908
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OPERATING RESULT -1,159 -545 -2,448 -1,480 2,019
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income -26 132 46 138 48
--------------------------------------------------------------------------------
Financial expenses -351 78 -389 -133 -654
--------------------------------------------------------------------------------
-377 210 -343 5 -606
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
RESULT BEFORE TAXES -1,536 -335 -2,791 -1,475 1,413
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes 462 121 588 441 -313
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET RESULT FOR THE PERIOD -1,074 -214 -2,203 -1,034 1,100
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity -1,074 -214 -2,203 -1,034 1,100
holders of the parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic and diluted earnings per share -0.13 -0.03 -0.27 -0.13 0.14
calculated on the result
attributable to equity holders of
the parent company, EUR
--------------------------------------------------------------------------------
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 4-6/20 4-6/20 1-6/20 1-6/20 1-12/2
13 12 13 12 012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period -1,074 -214 -2,203 -1,034 1,100
--------------------------------------------------------------------------------
Items that could be reclassified to
profit or loss at a future point in
time
--------------------------------------------------------------------------------
Translation differences 40 -3 38 -31 10
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPREHENSIVE RESULT FOR THE PERIOD -1,034 -217 -2,165 -1,065 1,110
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity -1,034 -217 -2,165 -1,065 1,110
holders of the parent company
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 30.6.2013 30.6.2012 31.12.2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 2,382 1,620 2,663
--------------------------------------------------------------------------------
Tangible assets 20,887 21,336 21,976
--------------------------------------------------------------------------------
Available-for-sale financial assets 16 16 16
--------------------------------------------------------------------------------
Deferred tax assets 446 344 322
--------------------------------------------------------------------------------
23,730 23,316 24,977
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 18,963 20,405 18,502
--------------------------------------------------------------------------------
Trade and other receivables 9,254 8,410 7,016
--------------------------------------------------------------------------------
Current tax assets 469 1,008 1,360
--------------------------------------------------------------------------------
Cash and cash equivalents 3,292 1,548 3,106
--------------------------------------------------------------------------------
31,978 31,371 29,984
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS, TOTAL 55,708 54,687 54,961
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
PARENT COMPANY
--------------------------------------------------------------------------------
Share capital 8,040 8,040 8,040
--------------------------------------------------------------------------------
Invested non-restricted equity reserve 502 - 502
--------------------------------------------------------------------------------
Translation differences 30 -49 -8
--------------------------------------------------------------------------------
Retained earnings 17,237 19,185 21,462
--------------------------------------------------------------------------------
Shareholders' equity, total 25,809 27,176 29,996
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liabilities - 368 480
--------------------------------------------------------------------------------
Provisions 101 - -
--------------------------------------------------------------------------------
Financial liabilities 8,934 13,715 9,317
--------------------------------------------------------------------------------
Finance lease liabilities 3,288 3,358 3,324
--------------------------------------------------------------------------------
12,323 17,441 13,121
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Trade and other payables 11,506 10,002 11,775
--------------------------------------------------------------------------------
Finance lease liabilities 6,000 - -
--------------------------------------------------------------------------------
Current tax liabilities 71 68 69
--------------------------------------------------------------------------------
17,576 10,070 11,844
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities, total 29,899 27,511 24,965
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 55,708 54,687 54,961
--------------------------------------------------------------------------------
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) 1-6/201 1-6/201 1-12/201
3 2 2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period -2,203 -1,034 1,100
--------------------------------------------------------------------------------
Adjustments
--------------------------------------------------------------------------------
Depreciation and impairments 2,491 1,599 3,550
--------------------------------------------------------------------------------
Other non-cash transactions 101 - 143
--------------------------------------------------------------------------------
Financial income and expenses 343 -5 606
--------------------------------------------------------------------------------
Taxes -588 -441 313
--------------------------------------------------------------------------------
Cash flow before change in working capital 144 119 5,712
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in working capital -1,579 -1,086 4,674
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in current -864 -1,034 930
non-interest-bearing trade
receivables
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in -15 564 2,401
inventories
--------------------------------------------------------------------------------
Increase (+) / decrease (-) in current -700 -616 1,343
non-interest-bearing liabilities
--------------------------------------------------------------------------------
Cash flow from operating activities before financial -1,435 -967 10,386
items and taxes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Paid interest and payments on other financial -396 -112 -650
expenses
--------------------------------------------------------------------------------
Interest received 46 138 47
--------------------------------------------------------------------------------
Taxes paid -469 411 -1,178
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES -2,254 -530 8,605
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in tangible and intangible assets -1,120 -3,890 -7,572
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES -1,120 -3,890 -7,572
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Proceeds from share issue - - 502
--------------------------------------------------------------------------------
Short-term loans drawn 6,000 - -
--------------------------------------------------------------------------------
Long-term loans drawn - 8,770 4,373
--------------------------------------------------------------------------------
Payments of long-term loans -383 - -
--------------------------------------------------------------------------------
Payments of finance lease liabilities -35 - -
--------------------------------------------------------------------------------
Dividends paid -2,022 -4,422 -4,422
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES 3,560 4,348 453
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents 186 -72 1,486
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the 3,106 1,620 1,620
period
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 3,292 1,548 3,106
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(EUR 1,000) Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
Share Invested Translation Retained Shareholde
capita non-restricted differences earnings rs'
l equity reserve equity,
total
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 -18 24,641 32,663
equity
1 January 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the -1,034 -1,034
period
--------------------------------------------------------------------------------
Translation -31 -31
differences
--------------------------------------------------------------------------------
Total -31 -1,034 -1,065
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -4,422 -4,422
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -49 19,185 27,176
equity
30 June 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -8 21,462 29,996
equity
1 January 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the -2,203 -2,203
period
--------------------------------------------------------------------------------
Translation 38 38
differences
--------------------------------------------------------------------------------
Total 38 -2,203 -2,165
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 30 17,237 25,809
equity
30 June 2013
--------------------------------------------------------------------------------
KEY FIGURES
1-6/2013 1-6/2012 Change, % 1-12/2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR -0.27 -0.13 -108 0.14
--------------------------------------------------------------------------------
Equity per share, EUR 3.19 3.38 -6 3.71
--------------------------------------------------------------------------------
Return on equity (ROE), % -15.8 -6.9 3.5
--------------------------------------------------------------------------------
Return on investment (ROI), % -12.1 -6.4 4.1
--------------------------------------------------------------------------------
Equity ratio, % 46.3 49.7 54.6
--------------------------------------------------------------------------------
Gearing, % 58.1 57.1 32.0
--------------------------------------------------------------------------------
Gross investments, EUR 1,000 1,120 3,890 -71 7,582
--------------------------------------------------------------------------------
Gross investments, % of net sales 3 10 9
--------------------------------------------------------------------------------
Contingent liabilities, EUR 1,000 40,425 26,029 55 39,986
--------------------------------------------------------------------------------
Average personnel 529 475 11 497
--------------------------------------------------------------------------------
Personnel at the end of the period 559 493 13 535
--------------------------------------------------------------------------------
Number of shares at the end of the 8,089,610 8,040,000 8,089,610
period
--------------------------------------------------------------------------------
Number of shares outstanding, 8,089,610 8,040,000 8,046,252
average
--------------------------------------------------------------------------------
SEGMENT INFORMATION
(EUR 1,000) 1-6/2013 1-6/2012 Change, % 1-12/2012
------------------------------------------------------------
------------------------------------------------------------
Marimekko business
------------------------------------------------------------
Net sales 43,667 38,509 13 88,471
------------------------------------------------------------
Operating result -2,448 -1,480 -65 2,019
------------------------------------------------------------
Assets 55,708 54,687 2 54,961
------------------------------------------------------------
NET SALES BY MARKET AREA
(EUR 1,000) 4-6/2013 4-6/2012 1-6/2013 1-6/2012 1-12/2012
------------------------------------------------------------------------------
Finland 12,696 12,283 23,182 22,511 52,344
------------------------------------------------------------------------------
Retail sales 9,212 8,320 15,508 14,136 34,000
------------------------------------------------------------------------------
Wholesale sales 3,376 3,836 7,446 8,106 17,546
------------------------------------------------------------------------------
Royalties 108 127 228 269 798
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Scandinavia 1,720 1,825 3,599 3,727 7,856
------------------------------------------------------------------------------
Retail sales 1,041 873 1,846 1,409 3,299
------------------------------------------------------------------------------
Wholesale sales 679 952 1,753 2,315 4,554
------------------------------------------------------------------------------
Royalties - - - 3 3
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Central and Southern Europe 1,909 1,693 3,910 3,741 7,783
------------------------------------------------------------------------------
Retail sales 347 360 631 700 1,492
------------------------------------------------------------------------------
Wholesale sales 1,538 1,306 3,230 2,986 6,185
------------------------------------------------------------------------------
Royalties 25 27 50 55 106
------------------------------------------------------------------------------
------------------------------------------------------------------------------
North America 2,404 1,468 4,275 2,720 7,743
------------------------------------------------------------------------------
Retail sales 1,497 614 2,600 1,080 4,020
------------------------------------------------------------------------------
Wholesale sales 749 646 1,406 1,323 3,193
------------------------------------------------------------------------------
Royalties 159 208 270 317 530
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Asia-Pacific 4,227 2,432 8,700 5,810 12,745
------------------------------------------------------------------------------
Retail sales 504 - 1,008 - 655
------------------------------------------------------------------------------
Wholesale sales 3,722 2,432 7,691 5,808 12,087
------------------------------------------------------------------------------
Royalties 2 - 2 2 3
------------------------------------------------------------------------------
------------------------------------------------------------------------------
International sales, total 10,261 7,418 20,485 15,998 36,127
------------------------------------------------------------------------------
Retail sales 3,388 1,847 6,084 3,189 9,466
------------------------------------------------------------------------------
Wholesale sales 6,687 5,336 14,079 12,432 26,019
------------------------------------------------------------------------------
Royalties 185 235 321 377 642
------------------------------------------------------------------------------
------------------------------------------------------------------------------
TOTAL 22,957 19,701 43,667 38,509 88,471
------------------------------------------------------------------------------
Retail sales 12,600 10,167 21,592 17,325 43,466
------------------------------------------------------------------------------
Wholesale sales 10,063 9,172 21,525 20,538 43,565
------------------------------------------------------------------------------
Royalties 294 362 550 646 1,440
------------------------------------------------------------------------------
NET SALES BY PRODUCT LINE
(EUR 1,000) 4-6/2013 4-6/2012 1-6/2013 1-6/2012 1-12/2012
----------------------------------------------------------------------
----------------------------------------------------------------------
Clothing 8,300 6,958 16,325 13,936 30,936
----------------------------------------------------------------------
Interior decoration 9,235 8,443 17,422 16,276 38,122
----------------------------------------------------------------------
Bags 5,422 4,300 9,920 8,297 19,413
----------------------------------------------------------------------
TOTAL 22,957 19,701 43,667 38,509 88,471
----------------------------------------------------------------------
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 4-6/2013 1-3/2013 10-12/2012 7-9/2012
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 22,957 20,710 25,748 24,214
-----------------------------------------------------------------
Operating result -1,158 -1,290 13 3,486
-----------------------------------------------------------------
Earnings per share, EUR -0.13 -0.14 -0.04 0.31
-----------------------------------------------------------------
-----------------------------------------------------------------
(EUR 1,000) 4-6/2012 1-3/2012 10-12/2011 7-9/2011
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 19,701 18,808 23,581 19,812
-----------------------------------------------------------------
Operating result -545 -935 1,645 2,321
-----------------------------------------------------------------
Earnings per share, EUR -0.03 -0.10 0.18 0.21
-----------------------------------------------------------------
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