2012-10-31 07:00:00 CET
2012-10-31 07:00:11 CET
REGULATED INFORMATION
Stockmann - Interim report (Q1 and Q3)
Stockmann Group’s Interim Report, 1 January - 30 September 2012
Steady growth in operating profit in the third quarter
Helsinki, Finland, 2012-10-31 07:00 CET (GLOBE NEWSWIRE) -- STOCKMANN plc,
Interim Report 31.10.2012 at 8:00 EET
July - September 2012:
Consolidated revenue was up 5.2 per cent to EUR 485.1 million (EUR 461.3
million).
Operating profit was up 12.5 per cent to EUR 17.1 million (EUR 15.2 million).
January - September 2012:
Consolidated revenue was up 6.8 per cent to EUR 1 472.6 million (EUR 1 379.2
million).
Operating profit increased by EUR 19.7 million to EUR 30.5 million (EUR 10.8
million).
Profit for the period was 5.8 EUR million (EUR -14.4 million).
Earnings per share came to EUR 0.08 (EUR -0.20).
Full-year outlook unchanged: Revenue and operating profit expected to be above
the figures for 2011, provided that the market sentiment does not significantly
worsen.
CEO Hannu Penttilä:
The Stockmann Group's revenue and operating profit continued to grow steadily
in the third quarter of 2012. The strongest sales growth was achieved by
Lindex, which gained market share in all markets except Norway. The growth was
mainly due to the successful campaign against breast cancer that was carried
out in September together with Missoni. As a result, Lindex posted a clear
improvement in its earnings.
Seppälä was not as successful as it was in the third quarter of 2011. We are
confident that the new organisational structure and the Fashion Chain Division
that was established in June will help Seppälä's operations become more
profitable again. The brand renewal project which was started during the
quarter is expected to have a positive impact on Seppälä's operations in the
coming years.
Stockmann's department stores in Russia continued to perform well, with the St
Petersburg flagship store leading the way. Operating profit improved again in
Russia, despite the loss-making Bestseller operations which will be closed by
the end of the year. The Baltic department stores also continued their good
performance. Operating profit was lower than the previous year in Finland where
there are signs of weakening consumer purchasing behaviour.
The Crazy Days campaign after the quarter continued to boost the Department
Store Division's revenue. We achieved a revenue growth of 8 per cent in total
in the campaign, with 21 per cent growth in Russia and 3 per cent in the Baltic
countries. In Finland the campaign was also launched online and this
contributed to the growth in Finland reaching 3 per cent. The Group's sales
development in September and the Crazy Days campaign provide us with confidence
for the important final months of the year. We are well positioned to achieve
the targeted revenue and operating profit growth for the full year.
Stockmann is currently investigating two important projects in order to
strengthen its financial position and implement its long-term strategy.
Firstly, the company will investigate opportunities to issue a corporate bond
on the credit market. With bond financing the company would diversify its
sources of finance and maturity profile by replacing a part of its existing
bank loans and credit facilities.
Secondly, Stockmann has successfully completed the construction of the Nevsky
Centre shopping centre in St Petersburg, the operation of which is in full
swing. The positive development of the Russian real estate market has
encouraged Stockmann to evaluate the commercial value of the shopping centre
and potentially strengthen the company's financial position by finding an
outside investor for the real estate property. If acceptable terms can be
achieved, Stockmann could consider completing this transaction during 2013.
Outlook for the rest of 2012
The unstable state of the world economy and the unresolved European debt crisis
create a challenging basis for assessing the future outlook, especially the
long-term retail market development. There are indications of weakening
consumer behaviour in particular in Finland, where consumers' confidence in
their own economy declined in the summer.
The Russian market is likely to continue to perform better than the Nordic
countries, mainly provided that the price of oil does not drop significantly
from its current level. The growth of consumer markets in the Baltic countries
is expected to continue. However, high uncertainty and weakening consumer
confidence may continue to affect consumers' purchasing behaviour in all
markets.
The market for affordable fashion developed poorly in 2011 and in the first
half of 2012, particularly in Sweden. The market started to grow in September
but the outlook for the rest of the year is still uncertain.
Stockmann's decision to discontinue the loss-making Bestseller franchising
operation during 2012 will have an impact on revenue in Russia, but will
improve operating profit from 2013 onwards. Stockmann's target is to achieve a
positive operating profit, excluding Bestseller operations, in Russia in 2012.
During 2012, Stockmann will concentrate on gaining the full benefit of its
recently completed capital expenditure projects as well as on the efficient use
of capital. Additionally, attention will be given to improving cost efficiency
in all units. The Group's capital expenditure is estimated to be clearly lower
than depreciation, and to amount to approximately EUR 50 million in 2012.
Stockmann expects the Group's revenue and operating profit to be above the
figures for 2011, provided that the market sentiment does not significantly
worsen.
Key Figures
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2012 2011 2012 2011 2011
Revenue, EUR mill. 485.1 461.3 1 472.6 1 2
379.2 005.3
Revenue growth, % 5.2 9.6 6.8 10.8 10.1
Gross margin, % 50.6 49.1 49.5 48.8 48.7
Operating profit, EUR mill. 17.1 15.2 30.5 10.8 70.1
Net financial costs, EUR mill. 7.5 8.8 23.8 26.3 34.4
Profit before tax, EUR mill. 9.6 6.4 6.8 -15.5 35.7
Profit for the period, EUR mill. 8.1 5.7 5.8 -14.4 30.8
Earnings per share, undiluted, EUR 0.11 0.08 0.08 -0.20 0.43
Equity per share, EUR 11.75 11.42 12.11
Cash flow from operating activities, EUR -32.4 -39.1 -17.5 -113.7 66.2
mill.
Capital expenditure, EUR mill. 17.6 11.4 40.9 50.4 66.0
Net gearing, % 111.0 119.2 95.3
Equity ratio, % 39.1 38.6 42.2
Number of shares, undiluted, weighted 71 911 71 380 71 496
average, 1 000 pc
Return on capital employed, 5.1 3.6 4.1
rolling 12 months
Personnel, average 15 437 15 879 15 964
This company announcement is a summary of Stockmann's Interim Report Q3 2012
and includes the most relevant information of the report. The complete report
is attached to this release as a pdf file and is also available on the
company's website at www.stockmanngroup.com.
Press and analyst briefing and conference call
A press and analyst briefing in Finnish will be held today, on 31 October 2012
at 9.15 a.m. at the F8 Tema restaurant on the 8th floor of Stockmann's Helsinki
city centre department store, Aleksanterinkatu 52.
A conference call in English will be held today, on 31 October 2012 at 11.15
a.m. EET. To participate the conference call, please dial +358 9 8864 8511 and,
when requested, key in the meeting room number *657899* including the
asterisks. The presentation material will be available for downloading on the
company's website from 9.15 a.m. EET onwards.
Stockmann has mandated Danske Bank, Pohjola Markets and Swedbank to arrange a
series of investor meetings starting 6 November 2012. A capital markets
transaction may follow, subject to market conditions.
Further information:
Hannu Penttilä, CEO, tel. +358 9 121 5801
Pekka Vähähyyppä, CFO, tel. +358 9 121 3351
www.stockmanngroup.com
STOCKMANN plc
Hannu Penttilä
CEO
Distribution:
NASDAQ OMX
Principal media
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