2011-05-03 08:00:00 CEST
2011-05-03 08:00:10 CEST
REGULATED INFORMATION
Marimekko - Interim report (Q1 and Q3)
MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 31 MARCH 2011
Marimekko Corporation, Interim Report 3 May 2011 at 9.00 a.m.
MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 31 MARCH 2011
During the January-March period of 2011, the Marimekko Group's net sales
increased in line with expectations. Investments in distribution network and
development of business operations caused operating profit to fall.
-- Net sales grew by 7.7% to EUR 17.2 million (EUR 16.0 million). Sales in
Finland increased by 3.7% and international sales rose by 14.5%.
-- Operating profit was EUR 0.4 million (EUR 1.2 million), which was down
70.6%. Operating profit for the period includes a non-recurring expense of
EUR 0.2 million related to personnel reductions. Operating profit excluding
non-recurring items decreased by 56.7% to EUR 0.5 million (EUR 1.2
million).
-- Profit after taxes for the period was EUR 0.3 million (EUR 0.9 million).
-- Earnings per share were EUR 0.04 (EUR 0.12).
-- Investments amounted to EUR 1.6 million (EUR 0.3 million).
-- The full-year forecast for 2011 remains unchanged: the Group's net sales
are estimated to grow by roughly 5-10%, but operating profit is forecast to
decline by some 40-60% compared with the previous year.
-- Brand sales* of Marimekko products were EUR 38.9 million (EUR 34.4
million), up 13.0%.
1-3/2011 1-3/2010 Change, % 1-12/2010
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Net sales, EUR 1,000 17,234 16,008 7.7 73,297
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Operating profit, EUR 1,000 360 1,223 -70.6 8,169
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Operating profit without 529 1,223 -56.7 8,169
non-recurring items, EUR 1,000
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Profit for the period, EUR 1,000 284 928 -69.4 6,072
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Earnings per share, EUR 0.04 0.12 -66.7 0.76
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Cash flow from operating activities, -1,936 -1,961 1.3 4,559
EUR 1,000
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Return on investment (ROI), % 3.5 15.1 25.0
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Equity ratio, % 78.6 78.8 78.8
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Brand sales*, EUR 1,000 38,869 34,407 13.0 149,717
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* 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.
Mika Ihamuotila, President and CEO:
“Development in the first quarter of the year was as expected. Net sales of the
company increased as anticipated, by 7.7%, reaching EUR 17.2 million. Estimated
brand sales of Marimekko products during the period rose by 13.0%. The Group's
profitability, however, fell significantly: operating profit declined by 70.6%
and was EUR 0.4 million. Operating profit for the period includes a
non-recurring expense of EUR 0.2 million related to personnel reductions.
Operating profit excluding non-recurring items decreased by 56.7% to EUR 0.5
million. Earnings were depressed by substantial investments in developing our
business operations and distribution network in the United States, increased
personnel expenses as well as a decrease in royalty income. In addition,
marketing costs for the period were higher than in the comparison period.
Marketing expenses in the corresponding period of 2010 were exceptionally low,
while store openings and different events celebrating the company's anniversary
raised marketing costs in the first quarter of the current year. Earnings were
improved by increased sales in Japan, North America, Finland as well as Central
and Southern Europe.
During the review period, a new flagship store was opened in Helsinki, and
Japan saw the opening of its 21st Marimekko concept store. In February, we
announced a machinery investment for our textile printing facility, which will
triple the output capacity of the factory. The added capacity will be deployed
in stages; the investment will enable us to prepare for higher demand in the
future. Our special focus during the period was on the United Sates where we
were working closely on building e-commerce and related logistics as well as
our flagship store which will be opened in New York City. Our collaboration
with the American company Converse, launched globally in February, has been a
success both commercially and in terms of international media coverage. Our
collaboration with the home furnishings retailer Crate and Barrel is expanding.
A new shop-in-shop was opened on Madison Avenue in New York in April, and May
will see the opening of Marimekko shops in Chicago, Los Angeles and San
Francisco. The product development projects carried out in the past few years
are also bearing fruit, and the new products, such as ceramic and glass
tableware, are very profitable. This spring, the glass series was augmented
with new items.
The current year will see substantial investments in the future and in
international growth. These were already reflected as a significant increase in
fixed costs and a considerable drag on earnings in the first quarter. As we
have reported earlier, this trend will continue throughout the year. In
addition, increased raw material costs, the rise in the general cost level and
the high price of cotton continue to create pressures for price increases. In
my opinion, however, Marimekko is proceeding steadily and confidently in the
direction that we have charted in recent years. We strongly believe that these
investments in the future will bear fruit, although not necessarily in the
short term.”
2011 calendar
The interim report for the January-June period of 2011 will be published on
Wednesday, 17 August 2011 at 9 a.m., and the interim report for the
January-September period on Thursday, 10 November 2011 at 9 a.m.
For additional information, contact:
Mika Ihamuotila, President and CEO, tel. +358 9 758 71
Thomas Ekström, CFO, tel. +358 9 758 7261
MARIMEKKO CORPORATION
Group Communications
Piia Pakarinen
Tel. +358 9 758 7293
Fax +358 9 755 3051
Email: piia.pakarinen@marimekko.fi
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Principal media
Marimekko is a Finnish textile and clothing design house 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 2010, Marimekko's
net sales amounted to EUR 73.3 million; the number of Marimekko stores totalled
84 at the year end. The key markets in 2011 are North America, Northern Europe
and the Asia-Pacific region. The Group employs around 390 people. The company's
shares are quoted on NASDAQ OMX Helsinki Ltd. www.marimekko.com
MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 31 MARCH 2011
MARKET SITUATION
In Finland, the positive economic growth continues and Finland is one the
stronger economies within the EU. Inflation has clearly accelerated both in
Finland and elsewhere in the world. Considering the world situation, economic
development has been steady. Led by Asian countries, economic trends have been
favourable in the United States and Europe. The catastrophe in Japan is
estimated to have a relatively minor effect on the world economy. The estimate
is based on the fact that the significance of the catastrophe areas within the
Japanese economy is small. The economic situation is predicted to remain strong
at least until the end of the current year, but the debt crises of weak
European countries are likely to turn even more severe. (Confederation of
Finnish Industries EK: Economic Review, 24 March 2011).
From January to March 2011, the value of retail sales in Finland rose by 3.0%
(Statistics Finland: Turnover of trade 2011, March, quick estimate). From
January to February 2011, retail sales of clothing (excluding sportswear) grew
by 0.6% (Textile and Fashion Industries TMA). Sales of womenswear rose by 0.4%
and sales of menswear by 4.5%. Sales of childrenswear fell by 5.0%. Sales of
bags rose by 14.2%. From January to February 2011, exports of clothing (SITC
84) rose by 18% and imports by 17%; exports of textiles (SITC 65) grew by 4%
and imports by 17% (National Board of Customs: monthly review, February 2011).
NET SALES
In the January-March period of 2011, the Marimekko Group's net sales rose by
7.7% to EUR 17,234 thousand (EUR 16,008 thousand) largely due to an increase in
sales in Japan. Net sales in Finland increased by 3.7% to EUR 10,566 thousand
(EUR 10,185 thousand). Sales grew strongly in Japan, Central and Southern
Europe, and North America. New stores opened at the end 2010 and early this
year increased sales in these market areas. In North America, net sales for the
corresponding period of 2010 included some one-off royalty income. Excluding
the negative impact of the fall in royalty income, net sales in North America
rose noticeably, by about 10%. Sales in Scandinavia decreased slightly.
Overall, international sales rose by 14.5% to EUR 6,668 thousand (EUR 5,823
thousand), accounting for 38.7% (36.4%) of the Group's net sales.
The breakdown of the Group's net sales by product line was as follows: clothing
40.5%, interior decoration 40.9%, and bags 18.6%. Net sales by market area
were: Finland 61.3%, Scandinavia 10.1%, Central and Southern Europe 9.8%, North
America 4.1%, and the Asia-Pacific region 14.6%.
REVIEWS BY BUSINESS UNIT
Clothing
In the January-March period of 2011, net sales of clothing declined by 3.3% to
EUR 6,975 thousand (EUR 7,216 thousand). Sales grew significantly in the
Asia-Pacific region in which the growth was partly attributable to purchases by
new stores. Sales in other market areas fell. International sales accounted for
32.2% of net sales of clothing.
Interior decoration
Net sales of interior decoration products increased by 12.1% to EUR 7,051
thousand (EUR 6,289 thousand). The growth came from the Asia-Pacific region,
North America, and Central and Southern Europe. Purchases by new stores
contributed to the growth. In Finland, sales increased, but in Scandinavia they
fell slightly. International sales accounted for 43.3% of net sales of interior
decoration products.
Bags
Net sales of bags grew by 28.2% to EUR 3,208 thousand (EUR 2,503 thousand).
Sales increased significantly in North America and in Central and Southern
Europe. The growth was partly attributable to initial inventory purchases by
new stores. Sales in Finland and the Asia-Pacific region also grew well. Sales
in Scandinavia declined slightly. International sales accounted for 42.6% of
net sales of bags.
Finland
In the January-March period of 2011, sales in Finland increased by 3.7% to EUR
10,566 thousand (EUR 10,185 thousand). Marimekko's retail sales, i.e. sales by
Marimekko's own retail shops in Finland, rose by 0.7%. Sales growth slowed
partly due to changes implemented in sales areas in the Helsinki shops in 2010.
Wholesale sales in Finland grew by 0.5%.
Scandinavia
Sales in Scandinavia (previously “the other Nordic countries”) fell by 12.2% to
EUR 1,744 thousand (EUR 1,986 thousand). Sales of all product lines decreased.
The decline was partly due to the difficult economic situation in Denmark.
Central and Southern Europe
In Central and Southern Europe (previously “the rest of Europe”), net sales
rose to EUR 1,697 thousand, up 17.6% on the previous year (EUR 1,443 thousand).
Sales of bags increased substantially. Sales of interior decoration products
grew well, but clothing sales fell slightly. The growth was partly accounted
for by sales by the retail shop opened in Berlin at the end of 2010.
North America
In North America, net sales were down 2.6% to EUR 713 thousand (EUR 732
thousand). Net sales for the corresponding period of 2010 included some one-off
royalty income. Excluding the negative impact of the fall in royalty income,
net sales in North America rose noticeably, by about 10%. Very strong growth
was seen in bag sales. Sales of interior decoration products also grew well,
while clothing sales fell. Purchases by the shop-in-shop opened in the United
States at the end of 2010 accounted for a significant part of the increase in
sales of bags and interior decoration products.
Asia-Pacific
Net sales in the Asia-Pacific region (previously “other countries”) grew by
51.3% to EUR 2,514 thousand (EUR 1,662 thousand). Sales of clothing and
interior decoration products rose significantly; sales of bags increased
slightly. The growth was largely due to the initial purchases by a new concept
store opened in Japan in the review period as well as to purchases by the
concept store opened in Seoul at the end of 2010. Royalty earnings in Japan
diminished.
Production
In the January-March period of 2011, the output of the Herttoniemi textile
printing factory increased by 71% compared with the corresponding period of the
previous year. The capacity of the factory was fully utilised. In the
comparison period, the production volume was reduced by lower-than-normal
demand. Increased staff resources and improved production processes also
contributed to the rise in output. The production volume of the Sulkava factory
decreased slightly on the comparison period; the factory had a good order book.
The output of the Kitee factory declined substantially due to changes in the
production structure; the capacity of the factory was fully utilised.
EARNINGS
In the January-March period of 2011, the Group's operating profit fell by 70.6%
on the comparison period, amounting to EUR 360 thousand (EUR 1,223 thousand).
Operating profit for the period includes a non-recurring expense of EUR 169
thousand related to personnel reductions. Operating profit excluding
non-recurring items amounted to EUR 529 thousand (EUR 1,223 thousand), which
was down 56.7% on the comparison period. Profit after taxes was EUR 284
thousand (EUR 928 thousand) and earnings per share were EUR 0.04 (EUR 0.12).
Earnings decreased due to substantial investments in developing business
operations and the distribution network in the United States. Increased
personnel expenses and a decrease in royalty income also had a negative impact
on profitability. In addition, marketing costs for the period were higher than
in the comparison period: EUR 1,051 thousand (EUR 666 thousand), representing
6.1% (4.2%) of the Group's net sales. Marketing expenses in the comparison
period were exceptionally low, while store openings and different events
celebrating the company's anniversary raised marketing costs in the first
quarter of the current year. Earnings were improved by increased sales in
Japan, North America, Finland as well as Central and Southern Europe.
The Group's depreciation amounted to EUR 420 thousand (EUR 357 thousand),
representing 2.4% (2.2%) of net sales. Net financial expenses totalled EUR 23
thousand (net financial income EUR 10 thousand), or 0.1% (0.1%) of net sales.
INVESTMENTS
The Group's gross investments rose to EUR 1,600 thousand (EUR 275 thousand),
representing 9.3% (1.7%) of net sales. The majority of investments were
directed at improving business operations in the United States, and at building
new store premises and purchasing new equipment and furniture.
EQUITY RATIO AND FINANCING
The Group's equity ratio was 78.6% at the end of the period (78.8% on 31 March
2010; 78.8% on 31 December 2010). The ratio of interest-bearing liabilities
minus financial assets to shareholders' equity (gearing) was -17.7%, while it
was -24.5% at the end of the corresponding period in the previous year.
At the end of the period, the Group's financial liabilities stood at EUR 0 (EUR
0). The Group's financial assets at the end of the period amounted to EUR 6,131
thousand (EUR 8,009 thousand).
SHARES AND SHARE PRICE TREND
Share capital
At the end of the period, 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 8,040,000.
Shareholdings
According to the book-entry register, Marimekko had 6,957 (6,778) shareholders
at the end of the period. Of the shares, 13.9% were registered in a nominee's
name and 15.9% were in foreign ownership. The number of shares owned either
directly or indirectly by members of the Board of Directors and the President
of the company was 1,168,940, representing 14.5% of the total share capital and
of the votes conferred by the company's shares.
The largest shareholders according to the book-entry register on 31 March 2011
Number of shares Percentage of holding
and votes and votes
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1. Muotitila Ltd 1,127,700 14.03
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2. Semerca Investment Ltd 850,377 10.58
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3. ODIN Finland 405,418 5.04
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4. Varma Mutual Employment Pension 385,920 4.80
Insurance Company
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5. Nordea Nordic Small Cap Fund 270,994 3.37
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6. Ilmarinen Mutual Pension 265,419 3.30
Insurance Company
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7. Veritas Pension Insurance 220,000 2.74
Company
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8. Mutual Fund Tapiola Finland 66,395 0.82
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9. Foundation for Economic 50,000 0.62
Education
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10. Scanmagnetics Oy 40,000 0.50
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Total 3,682,223 45.80
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Nominee-registered 1,117,311 13.90
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Others 3,240,466 40.30
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Total 8,040,000 100.00
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Authorisations
At the end of the review period, the Board of Directors had no valid
authorisations to carry out share issues or issue convertible bonds or bonds
with warrants, or to acquire or surrender Marimekko shares.
Share trading
During the review period, a total of 602,007 Marimekko shares were traded,
representing 7.5% of the shares outstanding. The total value of Marimekko's
share turnover was EUR 8,246,327. The lowest price of the Marimekko share was
EUR 12.50, the highest was EUR 15.90 and the average price was EUR 13.84. At
the end of the period, the final price of the share was EUR 14.05. The
company's market capitalisation on 31 March 2011 was EUR 112,962,000 (EUR
95,595,600 on 31 March 2010; EUR 115,776,000 on 31 December 2010).
PERSONNEL
During the January-March period of 2011, the number of employees averaged 395
(371). At the end of the period, the Group employed 396 (370) people, of whom
27 (18) worked abroad.
RISK MANAGEMENT AND MAJOR RISKS
No changes have occurred in the general risk factors since the review presented
in the report of the Board of Directors on 7 February 2011. The particular
risks in the near future are associated with general economic development and
the resulting uncertainty in the operating environment, growth management,
changes in raw material prices and other purchase prices, and the rise in the
general cost level.
RESEARCH AND DEVELOPMENT
Marimekko's product planning and development costs arise from the design of
collections. Design costs are recorded in expenses.
THE ENVIRONMENT, HEALTH AND SAFETY
Responsibility for the environment and nature is an integral aspect of
Marimekko's business. In environmental matters, the company's business
supervision is largely based on legislation and other regulations.
Environmental, health and safety issues are reported in the 2010 Annual Report.
INVESTMENT IN A PRINTING MACHINE
On 2 February 2011, Marimekko announced that it will invest in a new printing
machine and screen-making equipment at the company's textile printing factory
in Helsinki. The value of the investment is roughly EUR 1.5 million. The
investment will triple the textile printing factory's output capacity compared
to present levels. In 2010, a total of 1.1 million metres of fabric were
printed at the factory. The new machinery will be taken into use towards the
end of 2011, and the added capacity will be deployed in stages. The investment
will also enable the company to prepare for higher demand in the long term.
MANAGEMENT GROUP'S LONG-TERM BONUS SYSTEM
On 7 February 2011, the Board of Directors of Marimekko Corporation agreed on
establishing a new long-term bonus system targeted at the company's Management
Group. The purpose of the bonus system is to encourage the Management Group to
operate with a business mentality and to add to the company's value in the long
term in particular. The aim is to combine the owners' and the Management
Group's targets in order to increase the company's value and to elicit the
Management Group's commitment to the company in the span of several years. The
bonus system is described in more detail in the financial statement bulletin
dated 8 February 2011 and in the Annual Report for 2010.
INTERNATIONAL PROJECTS
Marimekko announced on 4 February 2011 that it was expanding its cooperation
with the home furnishings retailer Crate and Barrel. By the end of 2013, Crate
and Barrel plans to open 22 new Marimekko shop-in-shops in its stores. In April
2011, Crate and Barrel opened a Marimekko shop on Madison Avenue in New York as
well as launched an online shop specialising in Marimekko products within its
website. New shop-in-shops in Chicago, Los Angeles and San Francisco will be
opened in May.
On 3 March 2011, the company announced that it was building international
e-commerce. The first online shop will be opened in the United States, and the
aim is to have it up and running in summer 2011. Online retailing will augment
and strengthen Marimekko's existing distribution channels. After that, it is
intended to start e-commerce in Finland, currently planned for the beginning of
2012. The investment is valued this year at roughly EUR 1.0 million.
On 18 March 2011, the company announced that it was opening its own flagship
store in Manhattan, New York, during the autumn of 2011. The shop, with a sales
floor area of 350 square metres, will be in one of the busiest blocks in
Manhattan's Flatiron District at the intersection of Fifth Avenue and Broadway.
The Marimekko showroom opened in New York last autumn will move during the
summer to larger premises, near to the new shop.
Marimekko North America Retail LLC, a subsidiary established in the United
States this year, will manage the operations of the new flagship store and the
online shop. The subsidiary founded in 2010, Marimekko North America LLC, will
be leading the expansion of the brand in the United States.
MARIMEKKO TUOTANTO OY'S STATUTORY EMPLOYER-EMPLOYEE NEGOTIATIONS
Marimekko Corporation's subsidiary Marimekko Tuotanto Oy announced on 8 March
2011 its intention to reorganise its warehousing operations in the Herttoniemi
district of Helsinki and the start of statutory employer-employee negotiations
on possible permanent reductions in staffing. The estimated overall need for
reductions in personnel was at most 18 jobs. The decision to start negotiations
was made in the light of the operational changes required by the Marimekko
Group's e-commerce project as well as measures aimed at enhancing the general
cost-effectiveness of warehousing operations. At present, goods deliveries are
handled by two main warehouses. The company's aim is to boost the efficiency of
warehousing operations and to consolidate them in a single location.
MAJOR EVENTS AFTER THE CLOSE OF THE REVIEW PERIOD
Decisions of the Annual General Meeting
Marimekko Corporation's Annual General Meeting, held on 19 April 2011, adopted
the company's financial statements for 2010 and discharged the President and
members of the Board from liability. The Annual General Meeting approved the
Board of Directors' proposal for a dividend payment of EUR 0.55 per share for
the 2010 financial year, totalling EUR 4,422,000. The dividend payout record
date was 26 April 2011; the dividend payout date is 3 May 2011.
The Annual General Meeting confirmed that the company's Board of Directors
shall have six (6) members. Ami Hasan, Mika Ihamuotila, Joakim Karske and Pekka
Lundmark were re-elected to the Board of Directors. Arthur Engel and Elina
Björklund were elected as new members. The Board is chaired by Pekka Lundmark
and vice-chaired by Mika Ihamuotila. The term of office for the Board runs
until the end of the next Annual General Meeting.
The Annual General Meeting re-elected PricewaterhouseCoopers Oy, Authorised
Public Accountants, as the company's auditor, with Kim Karhu, Authorised PublicAccountant, as chief auditor. It was decided that the auditor's fee would be
paid as per invoice.
Flaggings
SEB Asset Management S.A.'s share of Marimekko Corporation's share capital and
voting rights declined to 2.05%, or 164,560 shares, due to a stock loan on 19
April 2011 and will revert to 5.77% in due course. The loan period has not been
disclosed to the company.
Completion of Marimekko Tuotanto Oy's statutory employer-employee negotiations
On 28 April 2011, Marimekko announced that the statutory employer-employee
negotiations related to the warehousing operations of its subsidiary, Marimekko
Tuotanto Oy, had been concluded. The boosting of the efficiency of the
warehousing operations and their consolidation in a single location will result
in the elimination of 11 positions. The estimated overall need for permanent
reductions in personnel in the negotiation proposal was at most 18 jobs.
However, the number of different positions filled by transfers within the Group
exceeded the original estimates.
OUTLOOK FOR THE REMAINDER OF 2011
In 2011, sales are forecast to continue on their growth track, and openings of
new shops and other actions to develop the distribution network are expected to
accelerate sales, particularly in the second half of the year. The planned
measures and considerable investments in internationalisation, particularly in
the United States, and in developing business operations and the distribution
network are so extensive that they will make themselves felt in the form of a
significant increase in fixed costs and they will exert a substantial drag on
earnings this year. With these measures and investments, of which many occur
predominantly during this year, the structure of Marimekko's business is
transformed and a more solid foundation for long-term growth and improved
profitability is laid.
Moreover, increases in the costs of raw materials and in particular the record
price of cotton as well as the rise in overall cost levels put the company
under pressure to raise prices. Revenues generated from deliveries for
individual promotions are expected to be very low. By cutting down on price-led
promotions, the company aims further to improve the average sales margin and
the brand's pricing power.
The total investments planned by the Marimekko Group for 2011 are estimated at
about EUR 5 million. This includes the roughly EUR 1.5 million investment in
machinery for the Helsinki textile printing factory, the roughly EUR 1 million
investment in e-commerce, and the construction costs for the flagship store and
the showroom in New York.
The full-year estimate for 2011 remains unchanged: the Marimekko Group's net
sales are estimated to grow by roughly 5-10%, but operating profit is forecast
to decline by some 40-60% compared with the previous year.
Helsinki, 3 May 2011
MARIMEKKO CORPORATION
Board of Directors
Information presented in the interim report has not been audited.
APPENDICES
Accounting principles
Consolidated income statement and comprehensive consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in shareholders' equity
Key figures
Consolidated net sales by market area and product line
Segment information
Quarterly trend in net sales and earnings
Accounting principles
This interim report was prepared in accordance with IAS 34: Interim Financial
Reporting. The same accounting principles were applied as in the 2010 financial
statements.
FORMULAS FOR THE KEY FIGURES
Earnings per share (EPS), EUR:
(Profit before taxes - income taxes) / Number of shares (average for the
financial period)
Equity per share, EUR:
Shareholders' equity / Number of shares, 31 March
Return on equity (ROE), %:
(Profit before taxes - income taxes) X 100 / Shareholders' equity (average for
the financial period)
Return on investment (ROI), %:
(Profit before taxes + interest and other financial expenses) X 100 / (Balance
sheet total - non-interest-bearing liabilities (average for the financial
period))
Equity ratio, %
Shareholders' equity X 100 / (Balance sheet total - advances received)
Gearing, %:
Interest-bearing net debt X 100 / Shareholders' equity
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 1-3/2011 1-3/2010 Change, % 1-12/2010
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NET SALES 17,234 16,008 7.7 73,297
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Other operating income 2 7 -71.4 16
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Increase or decrease in inventories of 1,931 1,517 27.3 -1,173
completed and unfinished products
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Raw materials and consumables 8,116 7,490 8.4 28,496
--------------------------------------------------------------------------------
Employee benefit expenses 4,668 4,216 10.7 17,311
--------------------------------------------------------------------------------
Depreciation 420 357 17.7 1,478
--------------------------------------------------------------------------------
Other operating expenses 5,603 4,246 32.0 19,032
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--------------------------------------------------------------------------------
OPERATING PROFIT 360 1,223 -70.6 8,169
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--------------------------------------------------------------------------------
Financial income 13 -2 83
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Financial expenses -36 12 -29
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-23 10 54
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PROFIT BEFORE TAXES 337 1,233 -72.7 8,223
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Income taxes 53 305 -82.6 2,151
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NET INCOME FOR THE PERIOD 284 928 -69.4 6,072
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net income to equity 284 928 6,072
holders of the parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic and diluted earnings per share 0.04 0.12 0.76
calculated on the profit attributable
to
equity holders of the parent company,
EUR
--------------------------------------------------------------------------------
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 1-3/2011 1-3/2010 1-12/2010
-------------------------------------------------------------------
-------------------------------------------------------------------
Net income for the period 284 928 6,072
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Other comprehensive income
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Change in translation difference 12 - 8
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COMPREHENSIVE INCOME FOR THE PERIOD 296 928 6,080
-------------------------------------------------------------------
-------------------------------------------------------------------
Distribution of net income to equity 296 928 6,080
holders of the parent company
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CONSOLIDATED BALANCE SHEET
(EUR 1,000) 31.3.2011 31.3.2010 31.12.2010
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ASSETS
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NON-CURRENT ASSETS
-----------------------------------------------------------------------------
Tangible assets 10,386 9,553 9,390
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Intangible assets 1,048 578 869
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Available-for-sale financial assets 20 20 16
-----------------------------------------------------------------------------
11,454 10,151 10,275
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CURRENT ASSETS
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Inventories 18,981 16,162 17,172
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Trade and other receivables 7,483 7,247 6,437
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Current tax assets - 18 -
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Cash and cash equivalents 6,131 8,009 9,667
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32,595 31,436 33,276
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
ASSETS, TOTAL 44,049 41,587 43,551
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF
THE PARENT COMPANY
-----------------------------------------------------------------------------
Share capital 8,040 8,040 8,040
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Translation differences 22 2 10
-----------------------------------------------------------------------------
Retained earnings 26,521 24,711 26,237
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Shareholders' equity, total 34,583 32,753 34,287
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
NON-CURRENT LIABILITIES
-----------------------------------------------------------------------------
Deferred tax liabilities 645 693 651
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-----------------------------------------------------------------------------
CURRENT LIABILITIES
-----------------------------------------------------------------------------
Trade and other payables 8,791 7,557 8,583
-----------------------------------------------------------------------------
Current tax liabilities 30 584 30
-----------------------------------------------------------------------------
8,821 8,141 8,613
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Liabilities, total 9,466 8,834 9,264
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 44,049 41,587 43,551
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-----------------------------------------------------------------------------
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) 1-3/2011 1-3/2010 1-12/2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net profit for the period 284 928 6,072
--------------------------------------------------------------------------------
Adjustments
--------------------------------------------------------------------------------
Depreciation according to plan 420 357 1,478
--------------------------------------------------------------------------------
Financial income and expenses 23 -10 -54
--------------------------------------------------------------------------------
Taxes 53 305 2,151
--------------------------------------------------------------------------------
Cash flow before change in working capital 780 1,580 9,647
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in working capital -2,282 -2,905 -2,452
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in current -688 -1,664 -1,193
non-interest-bearing trade receivables
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in inventories -1,808 -933 -1,943
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in current 214 -308 684
non-interest-bearing liabilities
--------------------------------------------------------------------------------
Cash flow from operating activities before -1,502 -1,325 7,195
financial items and taxes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Paid interest and payments on other -36 12 -30
financial expenses
--------------------------------------------------------------------------------
Interest received 13 -2 81
--------------------------------------------------------------------------------
Taxes paid -411 -646 -2,687
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES -1,936 -1,961 4,559
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in tangible and intangible assets -1,600 -275 -1,519
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES -1,600 -275 -1,519
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Dividends paid - - -3,618
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES - - -3,618
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents -3,536 -2,236 -578
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the 9,667 10,245 10,245
period
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the 6,131 8,009 9,667
period
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(EUR 1,000) Equity attributable to equity holders of the
parent company
--------------------------------------------------------------------------------
Share Translatio Retained Shareholder
capital n earnings s'
difference equity,
s total
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity 1 Jan. 8,040 2 23,783 31,825
2010
--------------------------------------------------------------------------------
Comprehensive income for the - 928 928
period
--------------------------------------------------------------------------------
Dividends paid - -
--------------------------------------------------------------------------------
Shareholders' equity 31 March 8,040 2 24,711 32,753
2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity 1 Jan. 8,040 10 26,237 34,287
2011
--------------------------------------------------------------------------------
Comprehensive income for the 12 284 296
period
--------------------------------------------------------------------------------
Dividends paid - -
--------------------------------------------------------------------------------
Shareholders' equity 31 March 8,040 22 26,521 34,583
2011
--------------------------------------------------------------------------------
KEY FIGURES
1-3/2011 1-3/2010 Change, % 1-12/2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.04 0.12 -66.7 0.76
--------------------------------------------------------------------------------
Equity per share, EUR 4.30 4.07 5.7 4.26
--------------------------------------------------------------------------------
Return on equity (ROE), % 3.3 11.5 18.4
--------------------------------------------------------------------------------
Return on investment (ROI), % 3.5 15.1 25.0
--------------------------------------------------------------------------------
Equity ratio, % 78.6 78.8 78.8
--------------------------------------------------------------------------------
Gearing, % -17.7 -24.5 -28.2
--------------------------------------------------------------------------------
Gross investments, EUR 1,000 1,600 275 481.8 1,519
--------------------------------------------------------------------------------
Gross investments, % of net sales 9.3 1.7 2.1
--------------------------------------------------------------------------------
Contingent liabilities, EUR 1,000 19,592 10,645 84.0 11,147
--------------------------------------------------------------------------------
Average personnel 395 371 6.5 375
--------------------------------------------------------------------------------
Personnel at the end of the period 396 370 7.0 388
--------------------------------------------------------------------------------
Number of shares at the end of the 8,040 8,040 8,040
period
(1,000)
--------------------------------------------------------------------------------
Number of shares outstanding, average 8,040 8,040 8,040
(1,000)
--------------------------------------------------------------------------------
NET SALES BY MARKET AREA
(EUR 1,000) 1-3/2011 1-3/2010 Change, % 1-12/2010
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---------------------------------------------------------------------
Finland 10,566 10,185 3.7 51,768
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Scandinavia 1,744 1,986 -12.2 7,101
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Central and Southern Europe 1,697 1,443 17.6 5,284
---------------------------------------------------------------------
North America 713 732 -2.6 3,814
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Asia-Pacific 2,514 1,662 51.3 5,330
---------------------------------------------------------------------
TOTAL 17,234 16,008 7.7 73,297
---------------------------------------------------------------------
NET SALES BY PRODUCT LINE
(EUR 1,000) 1-3/2011 1-3/2010 Change, % 1-12/2010
-------------------------------------------------------------
-------------------------------------------------------------
Clothing 6,975 7,216 -3.3 26,384
-------------------------------------------------------------
Interior decoration 7,051 6,289 12.1 34,006
-------------------------------------------------------------
Bags 3,208 2,503 28.2 12,907
-------------------------------------------------------------
TOTAL 17,234 16,008 7.7 73,297
-------------------------------------------------------------
SEGMENT INFORMATION
(EUR 1,000) 1-3/2011 1-3/2010 Change, % 1-12/2010
------------------------------------------------------------
------------------------------------------------------------
Marimekko business
------------------------------------------------------------
Net sales 17,234 16,008 7.7 73,297
------------------------------------------------------------
Operating result 360 1,223 -70.6 8,169
------------------------------------------------------------
Assets 44,049 41,587 5.9 43,551
------------------------------------------------------------
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 1-3/2011 10-12/2010 7-9/2010 4-6/2010
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 17,234 22,074 19,468 15,747
-----------------------------------------------------------------
Operating profit 360 2,188 4,170 588
-----------------------------------------------------------------
Earnings per share, EUR 0.04 0.21 0.38 0.05
-----------------------------------------------------------------
-----------------------------------------------------------------
(EUR 1,000) 1-3/2010 10-12/2009 7-9/2009 4-6/2009
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 16,008 20,719 19,492 15,999
-----------------------------------------------------------------
Operating profit 1,223 2,353 2,901 1,058
-----------------------------------------------------------------
Earnings per share, EUR 0.12 0.22 0.27 0.10
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