2010-02-05 08:00:00 CET
2010-02-05 08:01:52 CET
REGULATED INFORMATION
Kesko Oyj - Financial Statement Release
Financial statements for the period 1 Jan.-31 Dec. 2009
KESKO CORPORATION STOCK EXCHANGE RELEASE 05.02.2010 AT 09.00 1(29)
In January-December 2009, the Group's net sales from continuing operations were
€8,447 million, representing a decrease of 11.9% over the previous year (€9,591
million). The operating profit excluding non-recurring items for
January-December 2009 was €155.4 million (€217.0 million). The profit before tax
was €216.6 million (€288.5 million). The whole Group's profit for
January-December was €125.2 million (€219.8 million). The whole Group's earnings
per share were €1.27 (€2.24).
Key performance indicators
Continuing operations 1-12 /2009 1-12 /2008 10-12 /2009 10-12 /2008
Net sales, € million 8,447 9,591 2,153 2,333
Operating profit, € million 232 286 118 7
Operating profit excl.
non-recurring items, € million 155 217 68 27
Profit before tax, € million 217 289 116 8
Earnings/share, €, diluted 1.27 1.81 0.73 -0.05
Investments, € million 198 338 42 105
Whole Group
Earnings/share, € , diluted 1.27 2.24 0.73 -0.04
Earnings/share excl.
non-recurring items, €, basic 0.71 1.44 0.36 0.15
Cash flow from operating
activities, € million 379 131 123 15
Cash flow from investing
activities, € million 31 -46 96 -96
Return on equity, % 6.6 12.1 14.7 0.6
Return on capital employed, % 11.0 15.2 22.9 1.4
Whole Group 31.12.2009 31.12.2008
Equity ratio, % 54.1 52.4
Equity/share, € 20.39 20.09
JANUARY-DECEMBER 2009
CONTINUING OPERATIONS
Net sales and profit
The Group's net sales in January-December 2009 were €8,447 million, which is
11.9% down on the corresponding period of the previous year (€9,591 million).
The net sales decreased by 7.5% in Finland and by 28.1% abroad. Exports and
foreign operations accounted for 17.5% (21.5%) of net sales.The deterioration of
the general economic situation especially affected the sales performance of the
Group's car and machinery trade and building and home improvement trade. The
sales performance of the food trade remained steady during the reporting period.
In January-December, the K-Group's (i.e. Kesko's and the chain stores') retail
and B2B sales, including VAT, were €12,614 million, a decrease of 9.1% compared
with the previous year. The K-Group chains' sales entitling to K-Plussa loyalty
award credits were €6,181 million, up 3.8% compared with the previous year. In
2009, the K-Plussa customer loyalty programme gained 101,608 new households. At
the end of the year, there were 2,033,884 K-Plussa households.
The Group's profit before tax for January-December was €216.6 million (€288.5
million). The operating profit was €232.3 million (€285.6 million).
Non-recurring items excluded, the operating profit was €155.4 million (€217.0
million), representing 1.8% (2.3%) of net sales. The non-recurring income
includes a €91.4 million amount of gains on the disposals of real estate to
Varma Mutual Pension Insurance Company and the Kesko Pension Fund. The
non-recurring expenses include a €14.4 million amount of real estate impairment
charges. The non-recurring gains on disposals and impairment charges for the
comparable period totalled €68.7 million.
The smaller year-on-year operating profit excluding non-recurring items was due
to a decreased demand especially in the building and home improvement trade and
the car and machinery trade. Due to cost adjustments, the Group's fixed costs
decreased by some €69 million compared with the previous year, regardless of new
store site openings.
The Group's earnings per share from continuing operations were €1.27 (€1.81).
The Group's equity per share was €20.39 (€20.09).
Investments
In January-December, the Group's investments totalled €198.0 million (€338.4
million), which is 2.3% (3.5%) of net sales. Investments in store sites were
€161.2 million (€279.0 million) and other investments €36.7 million (€59.5
million). Investments in foreign operations represented 35.5% (29.0%) of total
investments.
Finance
In January-December, the cash flow from operating activities increased by €247.4
million on the comparative year to €378.8 million (€131.4 million). The increase
is especially attributable to capital released from inventories. The net cash
from investing activities was €31.0 million positive (€-45.8 million). The cash
flow from investing activities included a €252.0 million (€281.4 million) amount
of proceeds from the sale of fixed assets.
Throughout the reporting period, the Group's liquidity and solvency remained at
an excellent level. At the end of the period, liquid assets totalled €715
million (€443 million). Interest-bearing liabilities were €456 million (€491
million) and interest-bearing net liabilities €-259 million (€47 million) at the
end of the reporting period. Equity ratio was 54.1% (52.4%) at the end of the
period.
In January-December, the Group's net financial expenses were €16.0 million (net
financial income €1.0 million). Net financial expenses were increased by €17.9
million for hedging the Baltic and Russian currency exposures resulting from
increased interest rate differences between currencies. Interest income on
liquid assets decreased following a decline in the market interest rate level.
Taxes
In January-December, the Group's tax expense was €82.4 million (€89.4 million).
The effective tax rate was 38.0% (30.9%), affected by loss-making foreign
operations.
Personnel
In January-December, the average number of employees in the Kesko Group was
19,184 (21,327) converted into full-time employees. In Finland, the average
decrease was 530 employees, while outside Finland, it was 1,613.
At the end of December 2009, the total number of employees was 22,200 (24,668),
of whom 12,959 (13,651) worked in Finland and 9,241 (11,017) outside Finland.
Compared with the end of 2008, there was a decrease of 692 employees in Finland
and 1,776 outside Finland.
As a result of the decline in consumer demand, measures aimed at adjusting the
number and cost of staff were continued. During the reporting period, the
Group's staff cost decreased by €43.0 million, or 7.4%, compared with the
previous year.
Seasonal nature of operations
The Group's operating activities are affected by seasonal fluctuations. The net
sales and operating profits of the reportable segments are not earned evenly
throughout the year. Instead they vary by quarter depending on the
characteristics of each segment.
Segment performances in January-December
Food trade
The food trade comprises the food business based on the K-retailer business
model and Kespro Ltd's grocery wholesaling in Finland.
In the food trade, the net sales in January-December were €3,798 million (€3,707
million), up 2.4%. During the same period, the grocery sales of K-food stores
increased by 5.6%, adjusted for the change in VAT (4.7% incl. VAT). K-food
stores' total retail sales in January-December were €4,891 million (€4,685
million), representing a 5.3% year-on-year growth, adjusted for the change in
VAT (4.4% incl. VAT). Good sales performance was achieved especially by Pirkka
products and K-citymarket, the retail food sales of which grew by 14.3%,
adjusted for the change in VAT. The growth rate of the total grocery trade
market in Finland in January-December is estimated at some 3-4% up on the
previous year. In January-December, prices increased at an average monthly rate
of 3.3%, compared with the previous year (Statistics Finland).
In January-December, the operating profit excluding non-recurring items of the
food trade was €133.1 million (€122.5 million), which is about €10.5 million up
on the previous year. The operating profit excluding non-recurring items in
relation to net sales was 3.5% (3.3%), or 0.2 percentage points higher than in
the previous year. The operating profit was €170.6 million (€185.5 million). The
non-recurring gains on property sales were €46.4 million in January-December.
The comparative year's operating profit was increased by €68.5 million of
non-recurring gains on property sale and lease arrangements.
In January-December, investments in the food trade were €69.4 million (€139.7
million), of which investments in store sites were €56.2 million (€116.0
million).
In 2009, five new K-citymarkets, four K-supermarkets and 15 K-markets were
opened. In addition, renovations and extensions were carried out.
Home and speciality goods trade
The home and speciality goods trade comprises Anttila, K-citymarket's home and
speciality goods trade, Intersport Finland, Indoor Group, Musta Pörssi and
Kenkäkesko.
In the home and speciality goods trade, the net sales in January-December were
€1,558 million (€1,606 million), down 3.0%. Owing to the deteriorated economic
situation and a rise of the unemployment rate, consumer demand in the home and
speciality goods trade declined especially for home electronics and interior
decoration products.
The operating profit of the home and speciality goods trade excluding
non-recurring items in January-December was €29.5 million (1.9% of net sales), a
€1.7 million year-on-year decrease due to the fall in sales. In
January-December, the operating profit was €66.5 million (€63.6 million).
Non-recurring gains on property sales and impairment charges were €37.0 million
in January-December and €32.4 million in the comparative period.
Investments in the home and speciality goods trade in January-December were
€29.6 million (€60.5 million).
In January-December, Anttila's net sales were €513 million (€558 million), down
8.0%. The sales of the Anttila department stores were €303 million, down 5.7%.
The sales of the Kodin Ykkönen department stores for home goods and interior
decoration were €132 million, down 10.7%. NetAnttila's sales were €80 million, a
decrease of 12.5%, mainly due to the weakened economic conditions in Estonia and
Latvia.
The net sales of K-citymarket's home and speciality goods trade in
January-December were €595 million (€566 million), up 5.1%. The net sales
performance was affected by the store site network expansion and especially the
good year-end sales performance.
Intersport Finland's net sales in January-December were €165 million (€158
million), up 4.3%, which is especially attributable to the increased sales of
winter sports equipment. Indoor's net sales in January-December were €155
million (€177 million), down 12.4%. The performance was affected by the
discontinuation of Indoor's business activities in Sweden during the first
quarter of 2008, and the weakened economic conditions in Estonia and Latvia.
Musta Pörssi Ltd's net sales in January-December were €107 million (€123
million), down 12.5%. Kenkäkesko Ltd's net sales in January-December were €24
million (€26 million), down 7.9%.
Building and home improvement trade
The building and home improvement trade comprises Rautakesko and the
agricultural supplies trade in Finland.
In the building and home improvement trade, the net sales in January-December
were €2,312 million (€2,978 million), down 22.4%.
In January-December, the net sales in Finland were €1,041 million, a decrease of
21.1%. The building and home improvement trade contributed €744 million, and the
agricultural supplies trade €297 million to the net sales in Finland. The net
sales of the building and home improvement trade in Finland were down 15.4%,
especially due to a fall in the sales to professional customers. The net sales
of the agricultural supplies trade decreased by 32.6%. The net sales from
foreign operations in the building and home improvement trade were €1,271
million (€1,659 million), a decrease of 23.4%. In addition to a decline in
demand, the sales performance of foreign operations was affected by the
weakening of the Swedish krona, the Norwegian krone and the Russian ruble. The
net sales from foreign operations dropped by 17.2% in terms of the local
currencies. Foreign operations contributed 55.0% to the net sales of the
building and home improvement trade.
In Sweden, the net sales of K-rauta AB increased by 0.6% to €187 million in
January-December. In terms of the local currency, K-rauta AB's net sales grew by
11.1%. In Norway, Byggmakker's net sales decreased by 16.4% to €477 million. In
terms of the local currency, Byggmakker's net sales dropped by 11.2%. In
Estonia, Rautakesko's net sales were down 22.1% to €63 million. In Latvia,
Rautakesko's net sales decreased by 32.9% to €48 million. In Lithuania,
Senukai's net sales fell by 42.1% to €260 million. In Russia, the net sales of
the building and home improvement trade decreased by 16.8% to €169 million. In
terms of the local currency, the net sales increased by 0.8%. The net sales of
the Belarusian OMA were down by 25.5% to €53 million. In terms of the local
currency, OMA's net sales decreased by 7.8%.
In January-December, the operating profit excluding non-recurring items of the
building and home improvement trade was €11.9 million (0.5% of net sales), which
was €44.4 million, or 1.4 percentage points, lower than in the previous year.
The profit performance was affected by a substantial contraction in the Nordic,
Baltic and Russian construction markets. In Finland, the building and home
improvement trade market declined in January-December by some 15%, in Sweden by
some 5%, in Norway by some 10%, and in the Baltic countries by some 30-40%
(Rautakesko's estimate). The staff cost was down €42.1 million, or 21.9%, on the
comparative period. The operating profit of the building and home improvement
trade was €19.6 million (€19.4 million) in January-December. The operating
profit includes a €7.7 million non-recurring gain on a property sale. The
comparative period's operating profit includes a non-recurring €47.0 million
impairment charge on Byggmakker Norge's intangible assets, and a €5.4 million
non-recurring gain on a property sale.
In January-December, investments in the building and home improvement trade were
€84.7 million (€122.7 million), of which 82.8% (79.1%) abroad.
In January-December, two new K-rauta stores were opened in Sweden and one in
Russia, Estonia and Latvia. In addition, the store site network was strengthened
by other new and replacement stores.
The retail sales of the K-rauta and Rautia chains in January-December decreased
by 5.5% to €1,158 million, including VAT, in Finland. The sales of Rautakesko
B2B Service decreased by 29.5%. The retail sales of the K-maatalous chain were
€448 million, including VAT, down 28.8%.
Car and machinery trade
The car and machinery trade comprises VV-Auto and Konekesko. Konekesko includes,
in addition to the machinery trade, the tractor and combine harvester trade in
Finland and the agricultural and machinery trade companies in the Baltic
countries.
In January-December, the net sales of the car and machinery trade were €947
million (€1,480 million), down 36.0%.
VV-Auto's net sales in January-December were €598 million (€884 million), a
decrease of 32.3%. The net sales performance was affected by a decline in
consumer demand in the car trade, coupled with the car tax change effective at
the beginning of April, causing the car tax levied on cars after 1 April 2009 to
be excluded from the net sales. Adjusted for the tax change, the net sales fell
by 24.3%. In January-December, the combined market share of passenger cars and
vans imported by VV-Auto rose to 18.5% (17.1%).
Konekesko's net sales in January-December were €350 million (€597 million), down
41.3% on the previous year, as a result of the weakened machinery market and the
discontinuation of the Baltic grain and agricultural supplies trade. The net
sales in Finland were €185 million, a decrease of 31.9%. The net sales from
Konekesko's foreign operations were €165 million, down 49.3%. In line with its
strategy, Konekesko concentrates on the machinery trade also in the Baltic
countries and disposes of its grain and agricultural inputs trade.
In January-December, the operating profit excluding non-recurring items of the
car and machinery trade was €0.3 million (0.0% of net sales), which was €30.1
million lower than in the previous year. The profit performance was especially
affected by the decline of Konekesko's profitability as a result of the decline
in the machinery market and the discontinuation of the Baltic grain and
agricultural supplies trade.
Investments in the car and machinery trade were €13.4 million (€15.6 million) in
January-December.
Discontinued operations
In the comparative year 2008, the Group's profit from discontinued operations
was €41.5 million. Discontinued operations included Kauko-Telko Ltd and the €31
million gain on its disposal, and TähtiOptikko Group Oy, with the about €8.5
million gain on its disposal.
OCTOBER-DECEMBER 2009
CONTINUING OPERATIONS
Net sales and profit
The Group's net sales in October-December 2009 were €2,153 million, which is
7.7% down on the corresponding period of the previous year (€2,333 million). Net
sales decreased by 4.4% in Finland and by 21.4% abroad. Exports and foreign
operations accounted for 16.6% (19.5%) of net sales.The net sales performance of
the food trade was steady. The net sales of the home and speciality goods trade
took an upward turn during the reporting period. As a result of the weak market
situation, the sales in the building and home improvement trade and in the car
and machinery trade decreased compared with the comparative year.
In October-December, the K-Group's (i.e. Kesko's and the chain stores') retail
and B2B sales, including VAT, were €3,226 million, a decrease of 5.4% on the
corresponding period of the previous year.
The Group's profit before tax for October-December was €116.3 million (€7.7
million). The operating profit was €118.1 million (€6.9 million). The operating
profit excluding non-recurring items was €68.0 million (€27.3 million),
representing 3.2% of net sales (1.2%). The non-recurring items include a €63.5
million gain on the sale of properties to Varma Mutual Pension Insurance
Company. The non-recurring expenses include a €14.4 million amount of
impairments on real estate.
The higher year-on-year operating profit excluding non-recurring items was due
to increased operational efficiency, cost savings and the fact that the
profitability of the comparative year was negatively affected by impairments on
trade receivables and inventories. Successful Christmas trading also contributed
to the higher operating profit.
The Group's earnings per share from continuing operations were €0.73 (€-0.05).
The Group's equity per share was €20.39 (€20.09).
Investments
The Group's investments in October-December totalled €41.5 million (€105.2
million), which is 1.9% (4.5%) of net sales. Investments in store sites were
€30.0 million (€84.1 million), and other investments €11.5 million (€21.1
million). Investments in foreign operations represented 40.1% (37.8%) of total
investments.
Finance
In October-December, the cash flow from operating activities was €123.1 million
(€15.1 million), improved by adjustments in costs and inventories. The net cash
flow from investing activities was €96.4 million (€-95.7 million). The cash flow
from investing activities included a €157.8 million (€3.7 million) amount of
proceeds received from the disposal of fixed assets. This amount was increased
by a property sale at a debt-free price of €156 million completed in December.
In October-December, the Group's net financial expenses were €1.8 million (net
financial income €0.8 million). They were increased by the costs of currency
exposure hedging and the income from liquid assets reduced by lowered Euribor
rates.
Taxes
In October-December, the Group's tax expense was €41.8 million (€5.5 million).
The effective tax rate was 35.9% (71.2%), affected by foreign companies'
loss-making performances.
Personnel
In October-December, the average number of personnel in the Kesko Group was
18,126 (20,920) converted into full-time employees. In Finland, the average
decrease was 626 employees, while outside Finland, it was 2,168 employees.
Segment performances in October-December
Food trade
In the food trade, the net sales in October-December were €970 million (€982
million), down 1.2%. During the same period, the grocery sales of K-food stores
increased by 3.6%, adjusted for the change in VAT (0.7% incl. VAT). Good sales
performance was achieved especially by the K-citymarket chain and the Pirkka
products. There were 1,030 K-food stores at the end of December.
In October-December, the operating profit excluding non-recurring items of the
food trade was €33.7 million (€31.6 million), which is €2.1 million up on the
previous year. The operating profit excluding non-recurring items in relation
to net sales was 3.5% (3.2%), or 0.3 percentage points higher than in the
previous year. The operating profit of the food trade was €58.7 million (€27.4
million). The non-recurring gains on property sales were €33.1 million.
In October-December, investments in the food trade were €9.9 million (€31.8
million), of which investments in store sites were €6.4 million (€21.9 million).
Kesko Food continued to develop the K-food store network. In October, a
K-citymarket was opened in Kirkkonummi and a K-supermarket in Eurajoki and
Porvoo. In November, a K-citymarket was opened in Linnainmaa, Tampere, and in
Koivukylä, Vantaa. In addition, several new K-markets were opened.
The most significant store sites being built are the K-supermarkets in Kotka, in
Koivuhaka, Vantaa, in Kangasala, Rovaniemi, Kouvola and in Paloheinä, Helsinki.
K-citymarket Keljo in Jyväskylä is being extended.
Home and speciality goods trade
In the home and speciality goods trade, the net sales in October-December were
€500 million (€490 million), up 2.0%. The growth is attributable to the good
sales performance of clothing and sports goods, coupled with successful
Christmas trading.
The operating profit of the home and speciality goods trade excluding
non-recurring items in October-December was €39.7 million (7.9% of net sales), a
€12.0 million year-on-year increase due to increased operational efficiency,
cost savings and successful Christmas trading (€27.7 million, or 5.7%, of net
sales). In October-December, the operating profit was €66.5 million (€10.6
million). Non-recurring gains on property sales and impairment charges were
€26.8 million (€-17.1 million).
Investments in the home and speciality goods trade in October-December were €6.8
million (€20.6 million).
In October-December, Anttila's net sales were €179 million (€183 million), down
2.0%. The sales of the Anttila department stores were €110 million, down 2.5%.
The sales of the Kodin Ykkönen department stores for home goods and interior
decoration were €46 million, up 0.9%. NetAnttila's sales were €24 million, a
decrease of 4.7%. The decline was sharp in Estonia and Latvia. In October, a new
Kodin Ykkönen store was opened in Lielahti, Tampere. Kodin Ykkönen in
Kaisaniemi, Helsinki will be closed down in early 2010, due to the termination
of the lease. The Anttila department store in Jyväskylä will relocate to a new
site in spring 2010.
The net sales of K-citymarket's home and speciality goods trade in
October-December were €198 million (€187 million), up 5.5%. The net sales
performance was affected by store site network expansions and an increased
number of customers. In October, a K-citymarket was opened in Kirkkonummi and an
extended K-citymarket in Mikkeli. In November, K-citymarkets were opened in
Koivukylä, Vantaa, and in Linnainmaa, Tampere.
Intersport Finland's net sales in October-December were €46 million (€40
million), up 14.8% owing to the good sales performance of winter sports
equipment. Indoor's net sales in October-December were €39 million (€42
million), down 7.0%. Indoor's net sales in Finland matched the level of the
comparative period. Musta Pörssi Ltd's net sales in October-December were €35
million (€35 million), up 0.7%. Kenkäkesko Ltd's net sales in October-December
were €4 million (€4 million), down 7.5%.
Building and home improvement trade
In the building and home improvement trade, the net sales in October-December
were €525 million (€617 million), down 14.9%.
In October-December, the net sales in Finland were €223 million, a decrease of
14.9%. The building and home improvement trade contributed €159 million and the
agricultural supplies trade €63 million to the net sales in Finland. The net
sales of the building and home improvement trade in Finland were down 3.6%, and
the net sales of the agricultural supplies trade decreased by 34.7%.
The net sales from foreign operations in the building and home improvement trade
were €302 million (€356 million), a decrease of 15.0%. In addition to a decline
in demand, the sales performance of foreign operations was affected by the
weakening of the Russian ruble. The net sales from foreign operations dropped by
14.9% in terms of the local currencies. Foreign operations contributed 57.6% to
the net sales of the building and home improvement trade.
In Sweden, the net sales of K-rauta AB increased by 16.3% to €43 million in
October-December. In terms of the local currency, K-rauta AB's net sales grew by
14.7%. In Norway, Byggmakker's net sales increased by 11.9% to €120 million. In
terms of the local currency, Byggmakker's net sales grew by 1.5%. In Estonia,
Rautakesko's net sales were down 22.4% to €14 million. In Latvia, Rautakesko's
net sales decreased by 31.6% to €10 million. In Lithuania, Senukai's net sales
fell by 45,2% to €57 million. In Russia, the net sales of the building and home
improvement trade decreased by 22.7% to €42 million. In terms of the local
currency, the net sales decreased by 6.5%. The net sales of the Belarusian OMA
were down by 32.4% to €13 million. In terms of the local currency, OMA's net
sales decreased by 2.9%.
In October-December, the operating loss excluding non-recurring items of the
building and home improvement trade was €2.1 million, or -0.4% of net sales,
compared to €7.5 million (-1.2% of net sales) in the previous year. Regardless
of net sales decrease, profitability improved as a result of cost adjustments,
and the impairments on inventories and trade receivables negatively affecting
the profit of the comparative year. The operating profit of the building and
home improvement trade was €1.6 million (€-6.5 million) in October-December.
In October-December, investments in the building and home improvement trade were
€19.4 million (€44.9 million), of which 85.6% (87.5%) abroad.
The retail sales of the K-rauta and Rautia chains in October-December increased
by 0.2% to €266 million, including VAT, in Finland. The sales of Rautakesko B2B
Service decreased by 14.1%. The retail sales of the K-maatalous chain were €96
million, including VAT, down 37.3%.
In October-December, a new Rautia store was opened in Kiiminki, and a
replacement K-rauta store in Vaasa.
Rautakesko is building a new K-rauta store in Jyväskylä, Finland, another in
Stockholm, Sweden, and two new K-rauta stores in Russia, one in Tula and the
other in Kaluga. OMA is building a new store in Minsk, Belarus.
Car and machinery trade
In October-December, the net sales of the car and machinery trade were €205
million (€295 million), down 30.5%.
VV-Auto's net sales in October-December were €125 million (€161 million), a
decrease of 22.2%. The net sales performance was affected by a decline in demand
in the car trade, coupled with the car tax change effective at the beginning of
April, causing the car tax levied on cars after 1 April 2009 to be excluded from
the net sales. The comparable net sales, adjusted for the tax change, decreased
by 7.4% in October-December. However, the number of new customer orders in
October-December was clearly up on the previous year. The combined market share
of passenger cars and vans imported by VV-Auto rose to 18.8% (18.4%) in
October-December.
Konekesko's net sales in October-December were €80 million (€134 million), down
40.5% on the corresponding period of the previous year, as a result of the
weakened machinery market and the discontinuation of the Baltic grain and
agricultural supplies trade. The net sales in Finland were €36 million, a
decrease of 29.5%. The net sales from Konekesko's foreign operations were €44
million, down 47.2%.
In October-December, the operating profit excluding non-recurring items of the
car and machinery trade was €2.7 million (1.3% of net sales), which was €19.8
million, or 7.1 percentage points, higher than in the corresponding period of
the previous year. The profit performance was affected by substantial cost
adjustments and the impairments on the inventories and trade receivables of the
machinery and agricultural trade negatively affecting the profitability of the
comparative year.
Changes in the Group composition
Effective 1 January 2009, the Kesko Group's segments are the food trade, the
home and speciality goods trade, the building and home improvement trade, and
the car and machinery trade (stock exchange release on 12 December 2008).
Resolutions of the Annual General Meeting 2009 and decisions of the Board's
organisational meeting
Kesko Corporation's Annual General Meeting held on 30 March 2009 adopted the
financial statements for 2008 and discharged the Board of Directors' members and
the Managing Director from liability. The Annual General Meeting also resolved
to distribute a dividend of €1.00 per share, or a total amount of €97,851,050,
as proposed by the Board. The dividend pay date was 9 April 2009. The Annual
General Meeting elected PricewaterhouseCoopers Oy as the company's auditor, with
APA Johan Kronberg as the auditor with principal responsibility, and approved
the Board's proposal to amend the article of the Articles of Association
providing for the convocation period so that the notice of the General Meeting
shall be given at the latest 21 days before the General Meeting, and the Board's
proposal to authorise the Board to decide on the issuance of a maximum of
20,000,000 new B shares. The share issue authorisation is valid until 30 March
2012.
The Annual General Meeting resolved to leave the number of members of the Board
of Directors unchanged at seven, and elected Heikki Takamäki, Seppo Paatelainen,
Maarit Näkyvä, Ilpo Kokkila, Esa Kiiskinen (new member), Mikko Kosonen (new
member) and Rauno Törrönen (new member) as members of the company's Board of
Directors for a three-year term defined in the Articles of Association, which
will expire at the close of the 2012 Annual General Meeting.
The resolutions of the Annual General Meeting were announced in more detail in a
stock exchange release on 30 March 2009.
The organisational meeting of Kesko Corporation's Board of Directors, held after
the Annual General Meeting on 30 March 2009, elected Heikki Takamäki as its
Chair and Seppo Paatelainen as its Deputy Chair. Maarit Näkyvä (Ch.), Seppo
Paatelainen and Mikko Kosonen were appointed to the Board of Directors' Audit
Committee. Heikki Takamäki (Ch.), Seppo Paatelainen and Ilpo Kokkila were
appointed to the Board of Directors' Remuneration Committee. The terms of the
Committees expire at the close of the next Annual General Meeting. The decisions
of the Board's organisational meeting were announced in a stock exchange release
on 30 March 2009.
Shares, securities market and Board authorisations
At the end of December 2009, Kesko Corporation's share capital totalled
€196,643,058. Of all shares 31,737,007, or 32.3%, were A shares and 66,584,522,
or 67.7%, were B shares. The aggregate number of shares was 98,321,529. Each A
share entitles to ten (10) votes and each B share to one (1) vote. During the
reporting period, the share capital was increased four times corresponding to
share subscriptions with the stock options of the year 2003 option scheme. The
increases were made on 11 February 2009 (€52,392), 5 May 2009 (€51,250), 5 June
2009 (€673,146) and 17 December 2009 (€216,562), and announced in stock exchange
notifications on the same days. The subscribed shares were included on the main
list of the Helsinki stock exchange for public trading with the old B shares on
12 February 2009, 6 May 2009, 8 June 2009 and 18 December 2009.
The price of a Kesko A share quoted on NASDAQ OMX Helsinki (the Helsinki stock
exchange) was €22.00 at the end of 2008, and €23.60 at the end of 2009,
representing an increase of 7.3%. The price of a B share was €17.80 at the end
of 2008, and €23.08 at the end of 2009, representing an increase of 29.7%. In
January-December, the highest A share quotation was €25.00 and the lowest was
€18.73. For B shares, they were €24.00 and €14.99 respectively. In
January-December, the OMX Helsinki All Share index of the Helsinki stock
exchange rose by 19.5%, the weighted OMX Helsinki CAP index by 36.2%, while the
Consumer Staples Index was up 30.8% during the same period.
At the end of 2009, the market capitalisation of A shares was €749 million,
while that of B shares was €1,537 million. Their combined market capitalisation
was €2,286 million, an increase of €411 million compared with the end of 2008.
In 2009, 993,444 A shares were traded on the Helsinki stock exchange at a total
value of €22 million, while 78.2 million B shares were traded at a total value
of €1,501 million.
The 2003E stock options of the year 2003 option scheme were available for
trading until the end of April 2009, and a total of some 116,000 options were
traded at a total value of €981,000. A total of some 153,000 2003F stock options
were traded during the reporting period at a total value of €1,122,000.
The Board of Directors was authorised by the Annual General Meeting of 30 March
2009 to issue a maximum of 20,000,000 new B shares against payment or other
consideration. The authorisation also includes a rights issue. The authorisation
has not been used. In addition to the 2003 stock option scheme, the company
operates the 2007 scheme of stock options 2007A, 2007B and 2007C. Their exercise
period has not started. Further information on the Board's authorisations is
available at www.kesko.fi.
At the end of the reporting period, the number of shareholders was 38,888. In
2009, it increased by 808 shareholders. At the end of 2009, foreign ownership of
all shares was 20%, and foreign ownership of B shares was 30%.
Flagging notifications
Kesko Corporation did not receive flagging notifications during the reporting
period.
Main events during the reporting period
Kesko Corporation's Board of Directors approved the Group's revised financial
objectives.The objective for return on investment has been replaced by the
objective for return on capital employed. The new objective for return on equity
has been set at 12% (previously 14%) and the objective for return on capital
employed has been set at 14%. The objective range of the equity ratio has been
broadened to 40-50% (previously 40-45%). The Board of Directors also revised
Kesko's dividend policy, published on 6 April 2005. In accordance with the new
dividend policy, Kesko Corporation distributes at least 50% of its earnings per
share excluding non-recurring items as dividends, taking however the company's
financial position and operating strategy into account (stock exchange release
on 5 February 2009).
On 31 March 2009, Kesko sold four store properties to the Kesko Pension Fund.
The debt-free selling price was about €50 million. The Kesko Group's gain on the
sale was €19.7 million, which was treated as a non-recurring item in the
operating profit for the first quarter (stock exchange release on 31 March
2009).
The Annual General Meeting was held on 30 March 2009 (stock exchange releases on
30 March 2009).
The Supreme Administrative Court decided not to grant leave to appeal against
the Helsinki Administrative Court's prior decision not to accept the €22.5
million write-down made by Rautakesko Ltd on the shares of its Swedish
subsidiary, K-rauta AB, in its taxation for the year 2001. The Supreme
Administrative Court also decided not to grant leave to appeal against the
Helsinki Administrative Court's prior decision to dismiss Kesko Corporation's
appeal concerning the deductibility of expenses added to its taxable income for
the years 1997-1999 (stock exchange release on 11 June 2009).
Kesko sold 13 retail store properties in different parts of Finland to Varma
Mutual Pension Insurance Company. The debt-free selling price of the properties
was €156 million. The Kesko Group's gain on the sale was €63 million, which was
treated as a non-recurring item in Kesko's fourth quarter operating profit
(stock exchange release on 22 December 2009).
Kesko decided to transfer the management of the statutory pension provision and
the insurance portfolio to Ilmarinen Mutual Pension Insurance Company in two
phases, starting from 1 June 2010. The Kesko Pension Fund's statutory employee
pension insurance (department B) covers about 8,700 people. The first phase of
the transfer will concern some 3,600 people. The transfer is estimated to have a
positive effect on Kesko's cash flow. The transfer is subject to the approval of
the Financial Supervisory Authority and the Finnish Competition Authority. The
second phase will be implemented at the beginning of 2012 at the earliest.
An agreement has also been made to sell store sites and shares owned by the
Kesko Pension Fund and Kesko, in a total value of some €440 million, partly to
Ilmarinen and partly to a joint venture owned by Kesko, the Kesko Pension Fund
and Ilmarinen, in connection with the transfer of pension liabilities. The
completion of the arrangements will have a positive non-recurring income
statement impact for Kesko and the Kesko Pension Fund. The implementation of the
arrangements under the letter of intent is subject to the approval of the bodies
of the contracting parties (stock exchange release on 30 December 2009).
Risk management
The Kesko Group has established a risk management process, based on the risk
management policy confirmed by the Board. The divisions have made risk
assessments and updated them in accordance with the strategy process and the
rolling planningframework. The divisions' risks and their management responses
have been discussed by the division parent companies' and the Group's
management. In their respective responsibility areas, the Group units have
assessed the risks threatening the Group's objectives and the management of such
risks.
On the basis of the divisions' and Group units' risk analyses, the Corporate
Risk Management Unit has prepared summaries of major risks and their management
on a quarterly basis. The resulting risk report has been handled by Kesko
Corporation's Board of Directors' Audit Committee. The main risks and
uncertainties have been reported in the interim financial reports. The following
is a description of the risks and uncertainties assessed to be significant.
Significant risks and uncertainties
The general economic development continues to involve significant uncertainties.
Developments in the employment situation, tax increases resulting from the debt
burden of the public sector, and consumers' confidence in the future have an
essential impact on consumers' purchasing power, consumer demand and businesses'
investment readiness. The biggest uncertainty relates to the building and home
improvement trade, and the car and machinery trade, as well as the consumer
demand trends in Kesko's operating countries, especially in Latvia, Lithuania,
Estonia and Russia.
Kesko aims to achieve growth also through international expansion in selected
business areas. Failures in these projects may put growth and profitability at
risk. On the other hand, business and stores site acquisitions may be easier to
complete and with better terms. Expansion and operations in Russia involve both
opportunities and risks. The unpredictability of officials and sudden changes in
the interpretation and application of laws may complicate operating activities
or delay expansion in Russia.
Changes in consumer behaviour, technological developments and an increasing
supply of electronic services are significantly changing the operating systems
of trade. Kesko's challenge is to combine the possibilities of online trading,
electronic customer communication and the retailer business model into an
efficient system.
The automation of financial administration routines may be delayed by suppliers'
and retailers' technical facilities and abilities to adopt new operating
systems. Kesko is carrying out several significant information system projects.
There is a risk that the expected benefits are delayed or that the project costs
are exceeded.
The trading sector is characterised by increasingly complicated and long supply
chains and a dependency on information systems, telecommunications and external
service providers. Disturbances in the supply chain can cause major losses in
sales and profit.
Failure in the protection of personal information and card payments could cause
losses, claims for damages and the degrading of reputation.
Shrinkage causes significant financial losses for the retail trade. Shrinkage
results, for example, from spoiled or damaged goods, theft or other malpractice,
and unsuccessful purchasing. Recession entails a growing risk of financial
malpractice.
In business divisions that are strongly dependent on individual principals and
suppliers, such as the car and machinery trade, ownership arrangements, changes
in a principal's or supplier's strategy concerning the product selection,
pricing and distribution channel solutions can mean a reduction in
competitiveness or sales or loss of business.
Considerable amounts of capital or lease liabilities are tied up in store
properties for years. As a result of the recession or changes in local
competitive situations, the operations in a store site can run risk of becoming
unprofitable and the operation ends while non-current liabilities remain.
A failure in product control or in the quality assurance of the supply chain may
result in financial losses, the loss of customer confidence or, in the worst
case, a health hazard.
Compliance with legislation, agreements and Kesko's responsibility guidelines or
ethical principles is an important basic value. Non-compliance may result in
fines, compensation for damages and other financial losses, and a loss of
confidence or reputation.
Further information about the risks, uncertainties and management responses
relating to Kesko's operating activities, and about Kesko's risk management
system and principles is available on the company's website at www.kesko.fi.
Other risks and uncertainties relating to profit performance are described in
the Group's future outlook.
Future outlook
Estimates of the future outlook for the Kesko Group's net sales and operating
profit excluding non-recurring items are given for the 12 months following the
reporting period (1/2010-12/2010) in comparison with the 12 months preceding the
reporting period (1/2009-12/2009). The performance of the Group's operating
activities is affected by the economic outlook in its different market areas and
especially by the growth rate of private consumption. Substantial uncertainties
are related to the economic outlook and developments in the real economy in the
near future. In Finland, the unemployment rate is expected to rise further,
which is why private consumer demand is not expected to return to growth during
the next twelve months.
The steady development of the grocery trade is expected to continue, although
grocery prices are expected to turn down. The market situation is expected to
remain difficult in the building sector and in the car and machinery trade.
Making any statement about the Group's future outlook continues to be impacted
by the economic outlook and the increasing unemployment. In 2010, the Kesko
Group's net sales and operating profit excluding non-recurring items from
continuing operations are expected to match the level of 2009. The Group's
liquidity and solvency are expected to remain excellent.
Proposal for profit distribution
The parent's distributable profits are €1,051,861,023.07, of which the profit
for the period is €138,776,973.11.
The Board of Directors proposes to the Annual General Meeting to be held on 29
March 2010 that the distributable profits be used as follows:
€0.90 per share, or a total of €88,547,166.90, be distributed as dividends.
€1,300,000.00 are reserved for charitable donations at the discretion of the
Board of Directors.
€962,013,856.17 are carried forward in equity.
Annual General Meeting
The Board of Directors decided to convene the Annual General Meeting at the
Helsinki Fair Centre on 29 March 2010 at 13.00. Kesko Corporation will publish a
notice of the Annual General Meeting at a later date.
Annual Report 2009 and corporate governance statement
Kesko will publish the 2009 Annual Report, which contains the report by Kesko's
Board of Directors and the financial statements for 2009, and a separate
Corporate Governance Statement on week 9 on its website at www.kesko.fi.
Helsinki, 4 February 2010
Kesko Corporation
Board of Directors
The information in the financial statements report is unaudited.
Further information is available from Arja Talma, Senior Vice President, CFO,
telephone +358 1053 22113, and Jukka Erlund, Vice President, Corporate
Controller, telephone +358 1053 22338. A Finnish-language webcast from the media
and analyst briefing on the financial statements can be accessed at www.kesko.fi
at 11.00. An English-language web conference on the financial statements will be
held today at 14.30 (Finnish time). The web conference login is available at
www.kesko.fi.
KESKO CORPORATION
Paavo Moilanen
Senior Vice President, Corporate Communications and Responsibility
ATTACHMENTS
Accounting policies
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated cash flow statement
Group performance indicators
Net sales by segment
Operating profit by segment
Segments' operating profits excl. non-recurring items
Segment's operating margins excl. non-recurring items
Capital employed by segment
Return on capital employed by segment
Investments by segment
Segment information by quarter
Personnel average and at 31 Dec.
Group contingent liabilities
Calculation of performance indicators
K-Group's retail and B2B sales
Kesko Corporation's interim report for January-March will be released on 27
April 2010. In addition, the Kesko Group's sales figures will be published each
month. News releases and other company information are available on Kesko's
website at www.kesko.fi.
DISTRIBUTION
NASDAQ OMX Helsinki
Main news media
www.kesko.fi
********
ATTACHMENTS:
Accounting policies
This financial statements report has been prepared in accordance with the IAS
34 standard. The interim financial report has been prepared in accordance with
the same principles as the annual financial statements for 2008, with the
exception of the following changes due to the adoption of new and revised IFRS
standards and IFRIC interpretations.
IFRS 8 Operating segments
The Kesko Group's reportable segments are the same as its business divisions,
which, effective 1 January 2009, are the food trade, the home and speciality
goods trade, the building and home improvement trade, and the car and machinery
trade (stock exchange release on 12 December 2008). The segment information for
the 2008 financial period has been restated accordingly (stock exchange release
on 26 March 2009). The adoption of the IFRS 8 has not changed the Group's
reportable segments, because the Group's prior segment information was already
based on the management's internal reporting, with the measurement principles of
assets and liabilities complying with the IFRS regulations.
The food trade comprises the food business based on the K-retailer business
model and Kespro Ltd's grocery wholesaling in Finland. The home and speciality
goods trade comprises Anttila's department store business, K-citymarket's home
and speciality goods business, Intersport Finland's sports business, Indoor
Group's furniture and interior decoration business, Musta Pörssi's home
technology business, and Kenkäkesko's shoe business. The building and home
improvement trade includes, in addition to the previously reported Rautakesko,
the K-maatalous chain and the agricultural business in Finland. The car and
machinery trade comprises the previously reported VV-Auto and Konekesko.
Konekesko includes, in addition to the previously reported machinery business,
the tractor and combine harvester business in Finland and the agricultural and
machinery business entities in the Baltic countries.
Segment assets and liabilities comprise items used by a segment in its business
activities or items that can be allocated to segments. Unallocated items consist
of the Group's common items.
IAS 1 Presentation of financial statements
At the beginning of 2009, the Kesko Group adopted the revised IAS 1 standard.
Consequently, the interim financial report presents a statement of comprehensive
income specifying non-owner changes in equity. At the same time, the statement
of changes in equity has been modified to comply with the requirements of the
revised standard.
IFRIC 13 Customer Loyalty Programmes
At the beginning of 2009, the Kesko Group adopted a new IFRIC interpretation,
IFRIC 13 Customer Loyalty Programmes. According to the interpretation, the
loyalty award credits relating to the K-Plussa customer loyalty programme are
recognised in sales adjustment items. In consequence, the net sales figures for
2008 of certain retail companies of the Group have been restated to comply with
the new interpretation. The adoption of the interpretation does not impact the
Group's operating profit.
IAS 23 Borrowing Costs, capitalisation of borrowing costs attributable to a
qualifying asset
The amended standard removes the option of immediately expensing borrowing costs
attributable to the acquisition, construction or production of a qualifying
asset as part of the cost of that asset. These borrowing costs are eligible for
capitalisation as part of the cost of the asset. The Group previously expensed
borrowing costs in the accounting period in which they incurred. The amendment
has not impacted the profit for the reporting period.
In addition, the Group has adopted the following revised or amended IFRS
standards and IFRIC interpretations endorsed by the EU as from 1 January 2009:
- IAS 32 Financial Instruments: presentation, and IAS 1 Presentation of
Financial Statements - Puttable financial instruments and obligations arising on
liquidation (amendment)
- IFRS 1 First-time adoption of IFRS, and IAS 27 Consolidated and Separate
Financial Statements - Cost of an investment in a Subsidiary, Jointly controlled
Entity or Associate (amendment)
- IFRS 2 Share-based Payments - Vesting conditions and cancellations (amendment)
- Annual amendments to the IFRSs (Annual Improvements 2007)
- IFRIC 16 Hedges of a Net Investment in a Foreign Operation
The following standards became effective on 1 January 2009, but have not yet
been endorsed by the EU:
- IFRS 7 Financial Instruments: Disclosures (amendment)
- IFRIC 9 Reassessment of Embedded Derivatives (amendment) and IAS 39
Financial Instruments: Recognition and Measurement (amendment)
- IFRIC 15 Agreements for the Construction of Real Estate
The above amendments to standards and interpretations have not had a material
impact on the reported income statement, statement of financial position or
notes.
Other changes
The credit entry corresponding to granted share options in compliance with IFRS
2 is presented in retained earnings instead of share premium. The change was
made retrospectively for the first quarter and does not impact the Group's
equity.
The cost for hedging foreign currency denominated items of the statement of
financial position is presented in the cash flow from operating activities
instead of the cash flow from financing activities. The change has been made
retrospectively.
Previously, retained earnings included the currency translation differences of
retained earnings, but the item has been retrospectively presented in currency
translation differences (€0.7 million transferred from retained earnings to
currency translation differences on 1 Jan. 2008).
Consolidated income statement (€
million)
1-12/ 1-12/ Change, 10-12/ 10-12/ Change,
2009 2008 % 2009 2008 %
Net sales 8,447 9,591 -11.9 2,153 2,333 -7.7
Cost of sales -7,298 -8,293 -12.0 -1,832 -2,012 -9.0
Gross profit 1,149 1,299 -11.5 321 321 0.2
Other operating income 710 730 -2.7 232 153 51.6
Staff cost -535 -578 -7.4 -137 -145 -5.6
Depreciation and impairment
charges -131 -178 -26.3 -43 -44 -2.2
Other operating expenses -961 -987 -2.7 -255 -278 -8.1
Operating profit 232 286 -18.7 118 7 (..)
Interest income 21 36 -41.0 5 10 -52.9
Interest expenses -20 -30 -33.0 -5 -7 -38.6
Exchange differences and other
financial items -17 -4 (..) -2 -1 30.6
Income from associates 0 2 -88.6 0 0 (..)
Profit before tax 217 289 -24.9 116 8 (..)
Income tax -82 -89 -7.9 -42 -5 (..)
Profit for the period from
continuing operations 134 199 -32.6 75 2 (..)
Profit for the period from
discontinued operations - 42 (..) - 1 (..)
Net profit for the period 134 241 -44.2 75 3 (..)
Attributable to
Owners of the parent 125 220 -43.0 71 -4 (..)
Non-controlling interests 9 21 -56.8 3 7 -52.0
Earnings per share (€) for
profit attributable to equity
holders of the parent
Continuing operations
Basic 1.28 1.82 -29.9 0.73 -0.05 (..)
Diluted 1.27 1.81 -29.8 0.73 -0.05 (..)
Whole Group
Basic 1.28 2.25 -43.2 0.73 -0.04 (..)
Diluted 1.27 2.24 -43.1 0.73 -0.04 (..)
Consolidated statement of
comprehensive income
(€ million)
1-12/ 1-12/ Change, 10-12/ 10-12/ Change,
2009 2008 % 2009 2008 %
Net profit for the period 134 241 -44.2 75 3 (..)
Other comprehensive income
Exchange differences on
translating foreign operations -3 -6 60.0 0 -6 (..)
Cash flow hedge revaluation -4 -13 69.6 6 -15 (..)
Revaluation of available-for-sale
financial assets -2 2 (..) -2 2 (..)
Tax relating to other
comprehensive income 2 3 -45.5 -1 4 (..)
Total other comprehensive income
for the period, net of tax -7 -14 (..) 3 -17 (..)
Total comprehensive income
for the period 127 226 (..) 78 -14 (..)
Attributable to
Owners of the parent 123 205 -39.9 75 -20 (..)
Non-controlling interests 4 21 (..) 3 7 (..)
(..) Change over 100%
Consolidated statement of financial
position (€ million), condensed
31.12.2009 31.12.2008 Change,%
ASSETS
Non-current assets
Intangible assets 185 170 9.0
Tangible assets 1,111 1,210 -8.2
Interests in associates and other
financial assets 36 34 5.5
Loans and receivables 71 76 -6.6
Pension assets 315 300 5.0
Total 1,717 1,789 -4.0
Current assets
Inventories 665 871 -23.6
Trade receivables 594 633 -6.2
Other receivables 150 152 -1.7
Financial assets at fair value through
profit or loss 213 94 (..)
Available-for-sale financial assets 428 291 47.0
Cash and cash equivalents 74 58 27.8
Total 2,124 2,100 1.1
Non-current assets held for sale 1 3 -68.8
Total assets 3,842 3,892 -1.3
31.12.2009 31.12.2008 Change,%
EQUITY AND LIABILITIES
Equity 2,005 1,966 2.0
Non-controlling interests 64 61 6.3
Total equity 2,069 2,026 2.1
Non-current liabilities
Pension obligations 2 2 -5.0
Interest-bearing liabilities 262 197 33.0
Non-interest-bearing liabilities 6 12 -52.1
Deferred tax 128 132 -3.3
Provisions 14 20 -27.9
Total 412 363 13.5
Current liabilities
Interest-bearing liabilities 194 294 -33.9
Trade payables 704 756 -6.9
Other non-interest-bearing liabilities 434 430 0.9
Provisions 29 24 24.2
Total 1,361 1,503 -9.4
Total equity and liabilities 3,842 3,892 -1.3
(..) Change over 100%
Consolidated statement of changes in equity (€ million)
Share Issue Share Other Cur- Revalu- Re- Non Total
capital of premi- reser- rency ation tained control-
share um ves trans surplus ear- ling-
capital lation nings inte-
differ- rests
ences
Balance at
1.1.2008 196 0 190 247 -3 10 1,269 55 1,964
Shares
subscribed
for with
options 0 0 0 0
Option
cost 6 6
Subsidiary
sales -4 4 0
Dividends -156 -16 -172
Other
changes 2 2
Total
compre-
hensive
income
for the
period 0 -7 -8 220 21 226
Balance at
31.12.2008 196 0 191 243 -10 2 1,344 61 2,026
Balance at
1.1.2009 196 0 191 243 -10 2 1,344 61 2,026
Shares
subscribed
for with
options 1 0 4 5
Option
cost 8 8
Dividends -98 0 -98
Other
changes 2
Total
compre-
hensive
income for
the period 2 -4 125 4 127
Balance at
31.12.2009 197 0 194 243 -7 -3 1,381 64 2,069
Consolidated cash flow statement (€ million), condensed
1-12/ 1-12/ Change 10-12/ 10-12/ Change
2009 2008 % 2009 2008 %
Cash flow from operating
activities
Profit before tax 217 331 -34.5 116 8 (..)
Planned depreciation 117 118 -1.0 31 30 2.2
Financial income and
expenses 16 -1 (..) 2 -1 (..)
Other adjustments -74 -130 -43.2 -50 31 (..)
Working capital
Current non-interest-bearing
trade and other receivables,
increase (-)/ decrease (+) 39 -10 (..) 43 93 -53.2
Inventories
increase (-)/ decrease (+) 207 2 (..) 40 41 -2.8
Current non-interest-bearing
liabilities,
increase (+)/decrease (-) -84 -78 7.0 -47 -156 -70.0
Financial items and tax -59 -100 -41.1 -12 -31 -61.6
Net cash from operating
activities 379 131 (..) 123 15 (..)
Cash flow from investing
activities
Investments -223 -320 -30.4 -61 -97 -37.0
Sales of fixed assets 252 281 -10.5 158 4 (..)
Increase of non-current
receivables 0 -7 (..) 0 -2 (..)
Decrease of non-current
receivables 2 0 (..) 0 0 (..)
Net cash used in investing
activities 31 -46 (..) 96 -96 (..)
Cash flow from financing
activities
Increase (+)/ decrease (-) in
interest-bearing liabilities -33 -53 -37.4 -27 -27 -1.3
Increase (-)/decrease (+) in
current interest-bearing
receivables -14 216 (..) -13 3 (..)
Dividends paid -98 -172 -42.9 0 0 (..)
Equity increase 5 0 (..) 2 0 (..)
Short-term money market
investments -98 -17 (..) -78 37 (..)
Other items 4 11 -68.2 -3 10 (..)
Net cash used in financing
activities -234 -14 (..) -119 23 (..)
Change in cash and cash
equivalents 175 71 (..) 100 -58 (..)
Cash and cash equivalents
and current portion of
available-for-sale financial
assets at 1 Jan. 319 245 30.1 391 377 3.8
Exchange difference and
revaluation -3 1 (..) 0 0 -94.8
Cash and cash equivalents
relating to available-for-sale
assets 0 -2 (..) 0 0 (..)
Cash and cash equivalents
and current portion of
available-for-sale financial
assets at 31 Dec. 491 319 53.9 491 319 53.9
(..) Change over 100%
Group performance indicators
1-12/2009 1-12/2008 Change, pp
Return on capital employed, % 11.0 15.2 -4.2
Return on capital employed, %, excl.
non-recurring items 7.3 10.2 -2.9
Return on equity, % 6.6 12.1 -5.5
Return on equity, excl. non-recurring items, % 3.8 8.1 -4.3
Equity ratio, % 54.1 52.4 1.8
Gearing, % -12.5 2.3 -14.8
Change,%
Investments, € million* 198 338 -41.5
Investments, % of net sales* 2.3 3.5 -33.6
Earnings per share, basic, €* 1.28 1.82 -29.9
Earnings per share, diluted, €* 1.27 1.81 -29.8
Earnings per share, basic, €** 1.28 2.25 -43.2
Earnings per share, diluted, €** 1.27 2.24 -43.1
Earnings per share excl. non-recurring items,
basic, €** 0.71 1.44 -50.8
Cash flow from operating activities,
€ million** 379 131 (..)
Cash flow from investing activities,
€ million** 31 -46 (..)
Equity per share, € 20.39 20.09 1.5
Personnel, average* 19,184 21,327 -10.0
* Continuing operations
** Whole Group
Group performance indicators 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ 7-9/ 10-12/
by quarter 2008 2008 2008 2008 2009 2009 2009 2009
Net sales, € million 2,277 2,547 2,435 2,333 2,018 2,143 2,133 2,153
Change in net sales, % 6.8 6.1 3.0 -2.4 -11.4 -15.9 -12.4 -7.7
Operating profit, € million 150.1 84.8 43.8 6.9 23.2 42.7 48.3 118.1
Operating margin, % 6.6 3.3 1.8 0.3 1.1 2.0 2.3 5.5
Operating profit excl.
non-recurring items, €
million 36.6 81.1 72.0 27.3 3.4 36.4 47.5 68.0
Operating margin excl.
non-recurring items, % 1.6 3.2 3.0 1.2 0.2 1.7 2.2 3.2
Financial income/expenses,
€ million -1.4 -0.2 1.8 0.8 -5.1 -4.4 -4.7 -1.8
Profit before tax, € million 148.6 84.3 48.0 7.7 18.2 38.2 43.8 116.3
Profit before tax, % 6.5 3.3 2.0 0.3 0.9 1.8 2.1 5.4
Return on capital employed,
% 30.1 22.2 8.2 1.4 4.2 8.0 9.4 22.9
Return on capital employed
excl. non-recurring items, % 7.3 15.6 13.6 4.9 0.6 6.8 9.2 13.2
Return on equity, % 25.1 19.1 4.2 0.6 2.4 4.6 5.2 14.7
Return on equity excl.
non-recurring items, % 5.6 12.3 10.4 4.3 -0.6 3.7 5.0 7.7
Equity ratio, % 46.3 49.0 50.2 52.4 49.8 51.0 52.3 54.1
Investments, € million* 60.3 83.0 89.9 105.2 51.5 55.8 49.2 41.5
Earnings per share, diluted,
€* 1.11 0.58 0.17 -0.05 0.12 0.19 0.24 0.73
Equity per share, € 19.13 20.17 20.29 20.09 19.16 19.36 19.60 20.39
* Continuing operations
Segment information
Net sales by segment, 1-12/ 1-12/ Change, 10-12/ 10-12/ Change,
continuing operations 2009 2008 % 2009 2008 %
(€ million)
Food trade, Finland 3,790 3,696 2.6 968 979 -1.1
Food trade, other countries* 7 11 -33.1 2 3 -15.6
Food trade total 3,798 3,707 2.4 970 982 -1.2
- of which intersegment trade 161 177 -8.9 43 45 -4.7
Home and speciality goods trade,
Finland 1,530 1,560 -1.9 494 480 2.8
Home and speciality goods trade,
other countries* 28 46 -39.6 6 10 -36.6
Home and speciality goods
trade total 1,558 1,606 -3.0 500 490 2.0
- of which intersegment trade 26 25 6.2 10 9 8.7
Building and home improvement trade,
Finland 1,041 1,319 -21.1 223 262 -14.9
Building and home improvement trade,
other countries* 1,271 1,659 -23.4 302 356 -15.0
Building and home improvement trade
total 2,312 2,978 -22.4 525 617 -14.9
- of which intersegment trade 2 2 -31.7 0 0 -52.1
Car and machinery trade, Finland 773 1,137 -32.0 159 209 -24.1
Car and machinery trade, other
countries* 175 343 -49.1 46 86 -46.1
Car and machinery trade total 947 1,480 -36.0 205 295 -30.5
- of which intersegment trade 1 1 -46.0 0 0 (..)
Common operations and eliminations -168 -178 -5.7 -47 -51 -7.5
Finland total 6,966 7,533 -7.5 1,796 1,879 -4.4
Other countries total* 1,481 2,059 -28.1 357 454 -21.4
Group total 8,447 9,591 -11.9 2,153 2,333 -7.7
* exports and net sales in countries other than Finland
Operating profit by
segment, continuing 1-12/ 1-12/ 10-12/ 10-12/
operations (€ million) 2009 2008 Change 2009 2008 Change
Food trade 170.6 185.5 -14.9 58.7 27.4 31.3
Home and speciality goods trade 66.5 63.6 3.0 66.5 10.6 55.9
Building and home improvement trade 19.6 19.4 0.2 1.6 -6.5 8.1
Car and machinery trade -5.1 30.5 -35.6 -2.7 -17.0 14.3
Common operations and eliminations -19.3 -13.3 -6.0 -5.9 -7.6 1.6
Total 232.3 285.6 -53.3 118.1 6.9 111.2
Segments' operating profits
excl. non-recurring items,
continuing operations 1-12/ 1-12/ 10-12/ 10-12/
(€ million) 2009 2008 Change 2009 2008 Change
Food trade 133.1 122.5 10.5 33.7 31.6 2.1
Home and speciality goods trade 29.5 31.2 -1.7 39.7 27.7 12.0
Building and home improvement trade 11.9 56.4 -44.4 -2.1 -7.5 5.4
Car and machinery trade 0.3 30.4 -30.1 2.7 -17.1 19.8
Common operations and eliminations -19.4 -23.6 4.1 -6.0 -7.5 1.5
Total 155.4 217.0 -61.6 68.0 27.3 40.7
Segments' 1-12/ 1-12/ Change 10-12/ 10-12/ Change
operating 2009 2008 pp 2009 2008 pp
margins excl. % of net % of net % of net % of net
non-recurring sales sales sales sales
items, continuing
operations
Food trade 3.5 3.3 0.2 3.5 3.2 0.3
Home and
speciality goods
trade 1.9 1.9 -0.1 7.9 5.7 2.3
Building and home
improvement trade 0.5 1.9 -1.4 -0.4 -1.2 0.8
Car and machinery
trade 0.0 2.1 -2.0 1.3 -5.8 7.1
Total 1.8 2.3 -0.4 3.2 1.2 2.0
Capital employed by segment,
cumulative 1-12/ 1-12/ 10-12/ 10-12/
average (€ million) 2009 2008 Change 2009 2008 Change
Food trade 636 635 1 642 654 -7
Home and speciality goods trade 510 507 2 493 536 -43
Building and home improvement trade 645 629 16 624 620 4
Car and machinery trade 244 281 -37 225 309 -83
Common operations and eliminations 80 83 -21 80 88 -13
Group total 2,115 2,135 -37 2,064 2,207 -143
Return on capital employed
by segment excl. non- 1-12/ 1-12/ Changepp 10-12/ 10-12/ Changepp
recurring items, % 2009 2008 2009 2008
Food trade 20.9 19.3 1.6 21.0 19.3 1.6
Home and speciality goods trade 5.8 6.2 -0.4 32.2 20.7 11.5
Building and home improvement
trade 1.8 9.0 -7.1 -1.3 -4.8 3.5
Car and machinery trade 0.1 10.8 -10.7 4.8 -22.2 27.0
Group total 7.3 10.2 -2.9 13.2 4.9 8.2
Investments by segment,
continuing operations 1-12/ 1-12/ 10-12/ 10-12/
(€ million) 2009 2008 Change 2009 2008 Change
Food trade 69 140 -70 10 32 -22
Home and speciality goods trade 30 60 -31 7 21 -14
Building and home improvement trade 85 123 -38 19 45 -25
Car and machinery trade 13 16 -2 5 5 -1
Group total 198 338 -140 42 105 -64
Segment information by quarter
Net sales by segment, 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ 7-9/ 10-12/
continuing operations 2008 2008 2008 2008 2009 2009 2009 2009
(€ million)
Food trade 853 939 933 982 888 974 966 970
Home and speciality goods
trade 364 355 396 490 346 331 381 500
Building and home
improvement trade 695 870 795 617 529 643 614 525
Car and machinery trade 402 426 357 295 296 233 213 205
Common operations and
eliminations -37 -44 -46 -51 -41 -39 -41 -47
Group total 2,277 2,547 2,435 2,333 2,018 2,143 2,133 2,153
Segments' operating profits, 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ 7-9/ 10-12/
continuing operations (€ 2008 2008 2008 2008 2009 2009 2009 2009
million)
Food trade 81.3 31.5 45.3 27.4 42.3 33.8 35.8 58.7
Home and speciality goods
trade 40.1 3.7 9.2 10.6 -3.3 -3.6 7.0 66.5
Building and home improvement
trade 7.3 34.6 -16.1 -6.5 -5.2 14.8 8.5 1.6
Car and machinery trade 15.8 21.3 10.4 -17.0 -6.0 1.9 1.7 -2.7
Common operations and
eliminations 5.6 -6.3 -4.9 -7.6 -4.6 -4.3 -4.5 -5.9
Group total 150.1 84.8 43.8 6.9 23.2 42.7 48.3 118.1
Segments' operating profits excl. 1-3/ 4-6/ 7-9/ 10-12/ 1-3/ 4-6/ 7-9/ 10-12/
non-recurring items, continuing 2008 2008 2008 2008 2009 2009 2009 2009
operations
(€ million)
Food trade 25.0 31.5 34.4 31.6 33.8 30.1 35.5 33.7
Home and speciality goods trade -6.8 3.5 6.8 27.7 -10.7 -6.0 6.5 39.7
Building and home improvement
trade 7.3 31.0 25.5 -7.5 -9.1 14.8 8.4 -2.1
Car and machinery trade 15.8 21.3 10.4 -17.1 -6.0 1.9 1.7 2.7
Common operations and
eliminations -4.8 -6.2 -5.1 -7.5 -4.6 -4.4 -4.5 -6.0
Group total 36.6 81.1 72.0 27.3 3.4 36.4 47.5 68.0
Personnel average and at 31 Dec.
Personnel, average by segment, continuing
operations
1-12/2009 1-12/2008 Change
Food trade 3,035 3,440 -405
Home and speciality goods trade 5,666 5,801 -135
Building and home improvement trade 8,789 10,400 -1,611
Car and machinery trade 1,291 1,451 -160
Common operations 403 236 167
Group total 19,184 21,327 -2,143
Personnel at 31 Dec.*
by segment,
continuing operations 2009 2008 Change
Food trade 3,288 3,830 -542
Home and speciality goods trade 8,073 8,229 -156
Building and home improvement trade 9,219 10,972 -1,753
Car and machinery trade 1,196 1,402 -206
Common operations 424 235 189
Group total 22,200 24,668 -2,468
* total number incl. part-time employees
Group contingent liabilities (€ million)
31.12.2009 31.12.2008 Change,%
For own commitments 214 125 70.6
For shareholders 0 0 0.0
For others 7 8 -21.3
Lease liabilities for machinery and fixtures 22 25 -11.5
Lease liabilities for real estate 2,337 2,084 12.1
Contingent liabilities arising from
derivative financial instruments
Fair value
Values of underlying instruments at 31 Dec. 31.12.2009 31.12.2008 31.12.2009
Interest rate derivatives
Forward and future contracts 12 - -0.08
Interest rate swap contracts 207 205 0.63
Currency derivatives
Forward and future contracts 441 333 -6.81
Currency swap contracts 100 100 -17.20
Commodity derivatives
Electricity derivatives 40 46 -5.02
Grain derivatives - 1 -
Calculation of performance indicators
Return on capital employed, % Operating profit x 100 / (Non-current
assets + Inventories + Receivables +
Other current assets - Non-interest-bearing liabilities) on
average for the reporting period
Operating profit excl. non-recurring
items x 100 / (Non-current assets +
Inventories + Receivables + Other current
assets - Non-interest-bearing
Return on capital employed, liabilities) on average for the reporting
excluding non-recurring items, % period
(Profit/loss before tax - income tax) x
Return on equity, % 100 /
Shareholders' equity
Return on equity excluding (Profit/loss adjusted for non-recurring
non-recurring items, % items before tax - income tax adjusted
for the tax effect of non-recurring
items) x 100 /
Shareholders' equity
Shareholders' equity x 100 /
Equity ratio, % (Statement of financial position total -
advances received)
(Profit - non-controlling interests) /
Earnings/share, diluted Average number of shares adjusted for the
dilutive effect of options
Earnings/share, basic (Profit - non-controlling interests) /
Average number of shares
(Profit adjusted for non-recurring items
Earnings/share excl. non-recurring - non-controlling interests)/
items, basic Average number of shares
Equity attributable to equity holders of
Equity/share the parent / Basic number of shares at reporting date
Gearing, % Interest-bearing net liabilities x 100 /
Shareholders' equity
K-Group's retail and B2B sales in euros, incl. VAT (preliminary data):
1.1.-31.12.2009 1.10.-31.12.2009
K-Group retail and B2B sales € million Change, % € million Change, %
K-Group food trade
K-food stores, Finland 4,891 4.4 1,245 1.0
Kespro 811 -3.0 199 -6.7
Food trade total 5,703 3.3 1,444 -0.2
K-Group home and speciality goods
trade
Home and speciality goods stores,
Finland 2,026 -2.1 643 2.5
Home and speciality goods stores,
Baltic countries 24 -45.4 5 -43.7
Home and speciality goods trade total 2,050 -3.0 648 1.8
K-Group building and home improvement
trade
K-rauta and Rautia 1,158 -5.5 266 0.2
Rautakesko B2B Service 197 -29.5 51 -14.1
K-maatalous 448 -28.8 96 -37.3
Finland total 1,803 -15.5 413 -13.6
Building and home improvement stores,
other Nordic countries 1,198 -11.3 317 12.5
Building and home improvement stores,
Baltic countries 447 -37.5 99 -39.2
Building and home improvement stores,
other countries 262 -19.2 64 -25.3
Building and home improvement trade
total 3,710 -18.0 893 -11.4
K-Group car and machinery trade
VV-Autotalot 374 -23.5 83 -22.5
VV-Auto, import 372 -38.5 73 -19.6
Konekesko, Finland 230 -34.4 44 -27.3
Finland total 977 -32.4 200 -22.6
Konekesko, Baltic countries 175 -36.7 42 -33.2
Car and machinery trade total 1,152 -33.1 242 -24.7
Finland total 10,509 -5.9 2,700 -3.9
Other countries total 2,105 -22.3 527 -12.4
Retail and B2B sales total 12,614 -9.1 3,227 -5.4
[HUG#1381026]
© 2024 Nasdaq, Inc. All Rights Reserved |