2009-08-05 07:00:00 CEST
2009-08-05 07:00:06 CEST
REGULATED INFORMATION
Stockmann - Interim report (Q1 and Q3)
STOCKMANN plc INTERIM REPORT 1 JANUARY - 30 JUNE 2009
STOCKMANN plc
Interim report
5.8.2009 at 8.00
STOCKMANN plc INTERIM REPORT 1 JANUARY - 30 JUNE 2009
STOCKMANN'S SALES AND EARNINGS IN THE FIRST SIX MONTHS MEET EXPECTATIONS
The Stockmann Group's second-quarter sales were down by 11 per cent,
falling to EUR 519.7 million (EUR 583.9 million). Second-quarter operating
profit was EUR 28.6 million (EUR 31.4 million). Sales for January-June
declined by 12.7 per cent to EUR 944.5 million (EUR 1 081.5 million). The
drop in sales was a result of the general state of the economy, the
considerable weakening of certain currencies and the high figures for the
first half of 2008 used for comparison, which also included sales from the
Smolenskaya department store that ceased operating in May 2008. The
Group's operating profit for January-June declined to EUR 6.6 million (EUR
28.8 million). The previous year's operating profit included a non-
recurring capital gain of EUR 3.7 million and a provision of EUR 14
million for the closure of the Smolenskaya department store. Net financial
expenses fell as expected, to a total of EUR 10.0 million (EUR 24.6
million). The Group's result for the period January-June was EUR -1.8
million (EUR 3.6 million). Earnings per share were EUR -0.03 (EUR 0.06).
Key figures
4-6/2009 4-6/2008 Index
Sales EUR mill. 519.7 583.9 89
Revenue EUR mill. 429.7 483.3 89
Operating profit EUR mill. 28.6 31.4 91
Profit before taxes EUR mill. 23.5 18.1 130
Earnings per share EUR 0.36 0.27 133
1-6/2009 1-6/2008 Index 2008
Sales EUR mill. 944.5 1 081.5 87 2 265.8
Revenue EUR mill. 782.9 896.7 87 1 878.7
Operating profit EUR mill. 6.6 28.8 23 121.9
Profit before taxes EUR mill. -3.4 4.3 71.7
Earnings per share EUR -0.03 0.06 0.67
Equity per share EUR 10.54 10.73 11.24
Cash flow from operating EUR mill. 22.7 26.9 170.1
activities
Key ratios
Net gearing per cent 124.2 131.1 107.4
Equity ratio per cent 35.3 36.3 39.0
Number of shares, thousands 61 408 55 850 58 609
weighted average,
diluted
Return on capital per cent 6.7 12.2 8.3
employed, rolling 12
months
SALES AND RESULT
The Stockmann Group's January-June sales were down by 12.7 per cent, to
EUR 944.5 million (EUR 1 081.5 million). The significant drop in sales was
a result of the transformed state of the economy, the considerable
weakening of the Swedish krona, the Norwegian krone and the Russian
rouble, and the high figures for the first half of 2008 used for
comparison, which also included sales from the Smolenskaya department
store that ceased operating in May 2008.
January-June sales in Finland were down by 9.5 per cent to EUR 523.4
million. The Group's sales abroad totalled EUR 421.1 million, a decline of
16.3 per cent. Without the change in currency exchange rates the Group's
sales abroad would have decreased by 5 per cent. Sales abroad accounted
for 44.6 per cent (46.5 per cent) of the Group's sales.
Gains on the sale of shares generated EUR 0.3 million in other operating
income during January-June(EUR 3.7 million). The second-quarter result for
2008 was burdened by a provision of EUR 14 million due to the closure of
the Smolenskaya department store.
The Group's gross operating margin decreased by EUR 57.6 million, to EUR
365.6 million. The relative gross margin was 46.7 per cent (47.2 per
cent). Lindex's relative gross margin improved, whereas that of the
Department Store Division, Hobby Hall and Seppälä decreased. The Group's
stock level fell by EUR 15 million to EUR 216.6 million. Operating costs
decreased by EUR 34.1 million and depreciation by EUR 4.7 million. The
company succeeded in meeting its original cost-savings target for the
whole year, amounting to EUR 28 million, during the first six months.
Efficiency measures aimed at achieving cost-savings will be continued.
Consolidated operating profit for the report period amounted to EUR 6.6
million, a year-on-year decline of EUR 22.3 million.
Net financial expenses decreased by EUR 14.6 million, to EUR 10.0 million
(EUR 24.6 million).
Profit before taxes for the period was EUR -3.4 million, or EUR 7.7
million less than a year earlier. Taxes for January-June totalled EUR 1.6
million, which includes an estimated tax accrual ofEUR 0.7 million
recorded in the period. The tax effect on earnings was EUR 2.3 million
less than a year earlier.
Second-quarter profit was up, amounting to EUR 22.0 million (EUR 15.2
million).
Earnings per share for January-June were EUR -0.03 (EUR 0.06) and, diluted
for options, EUR -0.03 (EUR 0.06). Equity per share was EUR 10.54
(EUR 10.73).
SALES AND EARNINGS TREND BY BUSINESS SEGMENT
Department Store Division
The Department Store Division's sales were down by 15.6 per cent to EUR
491.5 million. Sales in Finland fell by 11.7 per cent. International sales
decreased by 24.8 per cent, and their share of the division's sales was
26.4 per cent (29.6 per cent). In addition to the transformed state of the
economy, the decline in the Department Store Division's sales was a result
of the considerable weakening of the Russian rouble and the very high
figures for the first half of 2008 used for comparison, which included
sales from the Smolenskaya department store that ceased operating in May
2008 and the vigorous sales growth in the Baltic department stores during
the first half of 2008. The rouble-denominated same-store sales by the
department stores in Russia were on a par with the previous year's
figures. The relative gross margin for January-June 2009 declined. The
Department Store Division's operating profit was down by EUR 10.9 million,
to EUR -5.3 million (EUR 5.6 million).
Second-quarter sales were down by 12.9 per cent to EUR 267.0 million.
Operating profit amounted to EUR 9.2 million, compared with EUR 4.1
million in the same period a year earlier. The figure for 2008 included
EUR 14 million in expenses for the closure of the Smolenskaya department
store.
Lindex
Lindex's sales in January-June were EUR 292.2 million, down by 9.3 per
cent on the same period the previous year (EUR 322.1 million). Sales in
Finland grew by 0.9 per cent, but in other countries sales declined by
10.6 per cent. The decrease in sales can be attributed to the considerable
weakening of the Swedish krona and the Norwegian krone. Calculated in
local currencies, Lindex's sales grew by 2 per cent. The relative gross
margin improved. Lindex's operating profit for January-June was EUR 19.9
million (EUR 22.6 million). Lindex was able to increase its market share
in all the main markets.
Second-quarter sales were down by 7.7 per cent to EUR 169.6 million.Calculated in local currencies, Lindex's sales grew by 3 per cent.
Operating profit decreased, amounting to EUR 19.7 million, compared with
EUR 23.8 million in the same period a year earlier. The weakening of the
Swedish krona against the euro reduced second-quarter operating profit by
an estimated EUR 3.3 million.
Hobby Hall
Hobby Hall's sales in January-June decreased by 13.1 per cent to EUR 83.2
million (EUR 95.8 million). Sales declined by 7.5 per cent in Finland and
37.6 per cent abroad, and Hobby Hall's relative gross margin also fell.
Sales decreased significantly especially in Estonia and Latvia. Hobby
Hall's operating result decreased to EUR -2.6 (EUR -1.4 million). Hobby
Hall has decided to withdraw from the unprofitable Baltic market by the
end of August.
In the second quarter, Hobby Hall's sales were down by 16.9 per cent to
EUR 40.2 million. The operating result amounted to EUR -0.8 million,
compared with EUR 0.7 million in the same period a year earlier.
Seppälä
Seppälä's sales in January-June were down by 4.2 per cent on the same
period the previous year, totalling EUR 77.5 million (EUR 80.9 million).
Sales in Finland fell by 2.1 per cent. Sales abroad were down by 8.4 per
cent and accounted for 31.8 per cent (33.3 per cent) of Seppälä's total
sales. Measured in roubles, sales in Russia grew by 20 per cent, while
sales in the Baltic countries decreased substantially due to the economic
downturn. The large discounts given on products in the Baltic countries
decreased Seppälä's relative gross margin. Fixed costs and depreciation
increased due to the company's rapid expansion. Seppälä's operating profit
decreased by EUR 4.2 million, to EUR 0.2 million (EUR 4.5 million).
In the second quarter, Seppälä's sales were down by 5.2 per cent to EUR
42.9 million. Operating profit amounted to EUR 3.0 million, compared with
EUR 5.1 million in the same period a year earlier.
FINANCING AND CAPITAL EMPLOYED
Liquid assets totalled EUR 88.3 million at the end of June, as against EUR
23.8 million a year earlier and EUR 35.2 million at the close of 2008. The
programme to release capital announced earlier has been implemented by
means of sale and leaseback arrangements and divestment of non-strategic
assets, which have altogether released EUR 29.9 million in capital.
At the end of June, interest-bearing liabilities stood at EUR 895.5
million (EUR 886.7 million), of which EUR 882.3 million (EUR 759.8
million) was long-term debt. At the close of 2008, interest-bearing
liabilities amounted to EUR 775.7 million, of which EUR 755.7 million was
long-term debt. Capital expenditure in January-June amounted to EUR 74.4
million. Net working capital amounted to EUR 149.4 million at the end of
June, as against EUR 184.8 million a year earlier and EUR 150.9 million at
the close of 2008. Dividend payouts totalled EUR 38.0 million.
The equity ratio at the end of June was 35.3 per cent (36.3 per cent). At
the close of 2008, the equity ratio was 39.0 per cent. Net gearing at the
end of June was 124.2 per cent (131.1 per cent). At the end of 2008, net
gearing was 107.4 per cent.
The return on capital employed over the past 12 months was 6.7 per cent
(8.3 per cent at the close of 2008). Consolidated capital employed
decreased by EUR 0.1 million since June of the previous year, amounting to
EUR 1 547.2 million at the end of June 2009 (EUR 1 466.8 million at the
close of 2008).
CAPITAL EXPENDITURE
Capital expenditure during January-June totalled EUR 74.4 million (EUR
76.5 million).
Department Store Division
On 13 February 2009, Stockmann opened a new department store in leased
premises in the Metropolis shopping centre near Moscow city centre.
Stockmann's capital expenditure on the new department store, which has a
total area of about 8 000 square metres, is EUR 14.2 million, of which
EUR 2.8 million was employed during the report period. The department
store's operations have started well.
A major enlargement and transformation project is under way at the
department store in the centre of Helsinki. The project involves expanding
the department store's commercial premises by about 10 000 square metres
by converting existing premises to commercial use and by building new
retail space. In addition to this, the project has involved construction
of new goods handling, servicing and customer parking areas. After the
enlargement, the Helsinki department store will have a total of about 50
000 square metres of retail space. The estimated costs of the enlargement
part of the project are about EUR 250 million, in addition to which
significant repair and renovation work has been and will be carried out in
the old property in the course of the project. The new premises are being
opened in stages. In March 2009, new restaurant areas were opened on the
8th floor of the department store, as well as the Beauty World on the 7th
floor and new underground goods handling areas. The new car park was
opened in May and additional retail space will be opened later in 2009.
The project is expected to be completed in phases up to the end of 2010.
During the first six months of 2009, the project required an investment of
about EUR 26.2 million.
In 2006, Stockmann purchased a commercial plot of approximately 10 000
square metres on Nevsky Prospect, St Petersburg's high street. The plot is
located next to the Vosstaniya Square metro station and in the immediate
vicinity of the Moscow railway station. Stockmann's Nevsky Centre shopping
centre is being built on this plot and will have about 100 000 square
metres of gross floor space, of which about 50 000 square metres will be
for stores and offices. A Stockmann department store with about 20 000
square metres of retail space has been planned for the shopping centre,
along with other retail stores, office premises and an underground car
park. The total investment is estimated at about EUR 185 million. The
construction work for the project is under way, with the building expected
to be completed during the summer of 2010 and commercial operations to
start by the end of 2010. The leasing of premises to external operators is
proceeding as planned. During the first six months of 2009, the project
required an investment of about EUR 23.4 million.
A new Stockmann Beauty store was opened in Finland during January-June. In
Russia, two Bestseller stores were closed.
The Department Store Division's capital expenditure totalled EUR 60.2
million.
Lindex
During January-June, Lindex opened three stores each in Finland, Sweden
and Russia, two stores in Lithuania and one each in Latvia and the Czech
Republic. One store in Finland was closed.
The company's franchising partner opened two new Lindex stores in Saudi
Arabia.
Lindex's capital expenditure totalled EUR 10.4 million.
Hobby Hall
Hobby Hall's redesigned online store was opened in July.
Hobby Hall's capital expenditure totalled EUR 1.0 million.
Seppälä
During January-June, Seppälä opened two stores each in Finland, Russia and
Latvia and one each in Lithuania and Ukraine. Two stores in Finland and
one in Russia were closed. Three stores in Finland were moved to new
premises.
Seppälä's capital expenditure totalled EUR 2.7 million.
Other capital expenditure
The Group's other capital expenditure came to EUR 0.1 million.
NEW PROJECTS
Department Store Division
The Department Store Division has preliminary agreements for the opening
of department stores in leased premises that are being or will be built in
the Russian city of Ekaterinburg and in north Moscow. The preliminary
agreement concerning the Ekaterinburg department store has been modified
so that, initially, chain stores of the Stockmann Group will be opened in
the leased premises, with the objective of opening a full-scale department
store there, as stated in the original plans, in 2011. Owing to the
economic downturn, the implementation and timetable of the project for a
department store in north Moscow are being reassessed. The preliminary
agreement for opening a department store in Vilnius, the Lithuanian
capital, has been cancelled.
Lindex
Lindex is pressing on with its expansion, expecting to open about 15 new
stores during the latter part of the year. Slovakia will become the newest
market area for Lindex and the entire Stockmann Group, with Lindex
launching two stores there in the autumn. The number of franchising stores
in the Middle East is set to increase by around six.
Modernization of the Finnish stores was started in 2009.
Hobby Hall
Hobby Hall will cease its operations in the Baltic countries in stages by
the end of August. The discontinuation of the unprofitable Baltic
operations comes as a part of the ongoing measures to revitalise Hobby
Hall's financial situation. Hobby Hall has decided to close its Hämeentie
store in Helsinki by the end of the year. Integration with the Department
Store Division is proceeding according to plan, the objective being that
Hobby Hall will be an integral part of the Department Store Division as
from the start of 2010.
Seppälä
Seppälä plans to open around 5 new stores by the end of 2009.
SHARES AND SHARE CAPITAL
The company's market capitalization at the end of June was EUR 935.6
million (EUR 1 511.4 million). At the end of 2008 the corresponding figure
was EUR 611.6 million.
During January-June, the Stockmann shares outperformed both the OMX
Helsinki index and the OMX Helsinki Cap index. At the end of June, the
stock exchange price of the Series A shares was EUR 15.22, compared with
EUR 10.10 at the end of 2008, and the Series B shares were selling at EUR
15.12, as against EUR 9.77 at the end of 2008.
In 2007, the Annual General Meeting authorized the Board of Directors to
decide on the transfer, in one or more lots, of the Series B shares held
by the company; the authorization was valid for a period of five years. On
3 June 2009, Stockmann sold the 336 528 Series B shares in its possession
in public trading arranged by NASDAQ OMX Helsinki Ltd to investors
procured by a securities broker, as part of the aforementioned programme
to release capital. Following this transaction, the company no longer
holds any Stockmann shares. Stockmann's Board of Directors has no valid
authorization to purchase Stockmann shares.
On 30 June 2009, the number of Stockmann Series A shares totalled 26 582
049 and Series B shares 35 121 287.
PERSONNEL
The personnel planning carried out at the start of the year was continued
throughout the period January-June, with the available working hours being
optimized to correspond to customer flows. The Group's average number of
personnel fell by 967, to a total of 14 670. Stockmann's average number of
employees, calculated as full-time equivalents, decreased by 755, to 11
056.
The Group's personnel expenses amounted to EUR 162.2 million, compared
with EUR 175.3 million a year earlier. Personnel expenses accounted for
higher proportion of revenue, at 20.7 per cent (19.5 per cent).
At the end of June 2009, Stockmann had 7 899 employees working abroad. The
corresponding figure a year earlier was 8 313 employees. The proportion of
employees working abroad was 55 per cent (53 per cent) of the total
personnel.
RISK FACTORS
No change has occurred in the risk factors since the publication on 13
February 2009 of the review presented in the Board Report on Operations.
Particular risks in the short term concern the impact of the economic
downturn on consumer shopping habits in Stockmann's market areas, and the
legal proceedings that are still in progress.
AB Lindex (publ) has claimed through legal proceedings to be eligible to
deduct in Swedish taxation the losses of approximately EUR 70 million
incurred by Lindex Group's German subsidiary. Gothenburg's Administrative
Court of Appeal overturned the favourable decisions that AB Lindex had
received in the County Administrative Court, and as a consequence AB
Lindex was obliged to refund to the tax authorities approximately EUR 23.8
million in taxes and interest. The taxes that were refunded had no effect
on the profit of the Stockmann Group, because Stockmann recorded the
refunded amount of tax and interest as a reduction in Lindex's equity in
the acquisition cost calculation. AB Lindex appealed against the decision
of the Administrative Court of Appeal to the Supreme Administrative Court
of Sweden, which, in summer 2009, decided not to review the case. Further
measures of the company in this case depend on the result of the legal
process described below concerning the elimination of double taxation
between AB Lindex and Lindex GmbH.
AB Lindex (publ) and its German subsidiary, Lindex GmbH, have requested
the German and Swedish competent authorities to eliminate the double
taxation arising from intra-Group transactions in the fiscal years 1997-
2004 on the basis of the Tax Treaty between Germany and Sweden and the EC
Arbitration Convention. The double taxation results from the presumptive
income tax payable by Lindex GmbH, which meant that a total of EUR 94
million was added to the taxable income of Lindex GmbH. Depending on the
decision of the authorities, AB Lindex may receive a partial or full
refund of the taxes paid on the said amount of income, i.e. approximately
EUR 26 million. The tax effect of the claim has not been recorded in the
income statement.
In 2008, Stockmann initiated legal proceedings against the lessors of the
Smolenskaya department store in the International Commercial Arbitration
Court (ICAC) in Moscow, claiming damages of about USD 75 million due to
the unlawful closure of the department store. In its decision on 14 April
2009, the court of arbitration ruled in favour of Stockmann, though
reducing the amount of damages awarded to about USD 7 million, and ordered
the lessors to reimburse Stockmann for the legal expenses incurred. The
Stockmann Group has not recorded this damages compensation sum in the
income statement. In order for the ruling to be enforced, it has to be
confirmed by a Russian court of general jurisdiction. In July 2009, the
lessors filed a claim with the court of first instance in Moscow,
demanding that the court overturn the decision of the International
Commercial Arbitration Court.
OUTLOOK FOR THE REMAINDER OF 2009
The economic downturn has swept rapidly and powerfully through the global
economy. Consumer demand has weakened in all of Stockmann's market areas,
and it remains difficult to forecast the future trend in consumer demand.
However, there have been some positive signs in consumer confidence in the
Nordic market.
It is clear that the economies in all of Stockmann's market areas will
post negative growth in 2009, especially those of the Baltic countries. In
Russia, the trend in the economy is to a large extent dependent on the
price of energy.
In the third quarter of 2009, sales figures will be below those of a year
earlier, because of the continuing weak economy and consumer uncertainty.
The decline in sales is expected to slow down in year-on-year terms,
because of the already weakened comparison figures for the last six months
of 2008. Third-quarter operating profit is expected to be lower than a
year earlier. According to current estimates it is possible that in the
fourth quarter the Group will come close to reaching the previous year's
sales figures and operating profit. Sales and operating profit for the
whole year will be lower than in 2008.
Stockmann will continue the measures initiated earlier for adapting to the
lower level of demand. Financial expenses will be distinctly lower than in
2008. The objective is a positive cash flow after net capital expenditure.
ACCOUNTING POLICIES
This Interim Report has been prepared in compliance with IAS 34. The
accounting policies and calculation methods applied are the same as those
in the 2008 financial statements. As from 1 January 2009, the Stockmann
Group has applied the amended IAS 1 Presentation of Financial Statements
and the IFRS 8 Operating Segments. In this Interim Report, a Statement of
Comprehensive Income according to IAS 1 is presented. The operating
segments presented in the Interim Report, which accord with IFRS 8, are
the same as the business segments presented earlier and described in the
Group's Annual Report for 2008. The figures are unaudited.
Statement of financial position, EUR 30.6.2009 30.6.2008 31.12.2008
mill.
ASSETS
NON-CURRENT ASSETS
Intangible assets 105.4 125.2 112.1
Goodwill 649.9 740.3 646.5
Property, plant, equipment 618.2 516.1 587.5
Non-current revceivables 1.7 1.7 1.6
Available for sale investments 5.0 6.6 6.6
Deferred tax asset 4.8 5.3 4.5
NON-CURRENT ASSETS 1 385.1 1 395.3 1 358.8
CURRENT ASSETS
Inventories 216.6 231.6 220.3
Interest bearing receivables 72.7 63.4 52.2
Non-interest bearing receivables 80.6 100.6 98.4
Cash and cash equivalents 88.3 23.8 35.2
CURRENT ASSETS 458.1 419.4 406.2
ASSETS 1 843.2 1 814.6 1 765.0
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Equity attributable to equity holders of 650.1 658.1 689.1
the parent
Minority interest -0.0 -0.0 -0.0
SHAREHOLDERS' EQUITY 650.1 658.1 689.1
LONG-TERM LIABILITIES
Deferred tax liability 75.6 56.6 78.1
Long-term liabilities, interest-bearing 882.3 759.8 755.7
Provisions 1.5 2.5 2.0
NON-CURRENT LIABILITIES 959.4 818.9 835.7
CURRENT LIABILITIES
Short-term interest-bearing liabilities 13.3 126.9 20.0
Short term interest-free liabilities 220.4 210.8 220.1
CURRENT LIABILITIES 233.7 337.7 240.1
TOTAL EQUITY AND LIABILITIES 1 843.2 1 814.6 1 765.0
Key figures 30.6.2009 30.6.2008 31.12.2008
Equity ratio, per cent 35.3 36.3 39.0
Net gearing, per cent 124.2 131.1 107.4
Cash flow from operations per share, EUR 0.37 0.48 2.90
Interest-bearing net debt, EUR mill. 734.6 799.5 688.2
Number of shares at the end of the 61 703 61 703 61 703
period, thousands
Weighted average number of shares, 61 408 55 850 58 609
thousands
Weighted average number of shares, 61 738 55 850 58 609
diluted, thousands
Market capitalization, EUR mill. 935.6 1 511.4 611.6
CASHFLOW, IFRS 06/2009 06/2008 12/2008
EUR millions
Cash flows from operating activities
Profit/loss for the period -1.8 3.6 39.1
Adjustments for:
Depreciation and amortisation 29.3 34.0 61.4
Gains (-) and Losses (+) of disposals -0.3 -3.7 -3.5
of fixed assets and other non-current
assets
Interest and other financial expenses 13.2 25.1 51.7
Interest income -3.2 -0.5 -1.6
Tax on income from operations -1.6 0.7 32.7
Transactions without cash flow
Other adjustments -0.7 3.6 -1.4
Working capital changes:
Increase (-) / decrease (+) in 4.2 6.1 24.0
inventories
Increase (-) /decrease(+) in trade and -4.3 64.2 75.6
other receivables
Increase (+) / decrease (-) in trade 0.4 -46.2 -12.7
payables
Interest and other financial expenses -18.4 -27.3 -47.7
paid
Interest received 1.5 0.2 0.8
Income taxes paid 4.6 -32.9 -48.3
Net cash from operating activities 22.7 26.9 170.1
Cash flows from investing activities
Purchase of tangible and intagible -77.9 -80.7 -181.1
assets
Proceeds from sale of tangible and 23.0 5.5 6.1
intangible assets
Acquisition of subsidiaries, net of -8.3 -18.9
cash acquired
Purchase of investments -0.2
Proceeds from sale of investments 1.8 0.0 0.0
Dividends received 0.2 0.1 0.1
Net cash used in investing activities -53.0 -83.6 -193.7
Cash flows from financing activities
Proceeds from issue of share capital 135.5 135.2
Proceeds from sale of own shares 5.1
Proceeds from short-term borrowings 11.9 107.7 20.0
Repayment of short-term borrowings -19.3 -37.1 -33.3
Proceeds from long-term borrowings 200.3 41.1 152.2
Repayment of long-term borrowings -77.5 -134.1 -157.3
Dividends paid -38.0 -75.2 -75.2
Net cash used in financing activities 82.6 37.8 41.7
Net increase/decrease in cash and cash 52.4 -18.8 18.1
equivalents
Cash and cash equivalents at beginning 35.2 33.2 33.2
of the period
Cheque account with overdraft facility -0.7 -14.6 -14.6
Cash and cash equivalents at beginning 34.5 18.6 18.6
of the period
Net increase/decrease in cash and cash 52.4 -18.8 18.1
equivalents
Effects of exchange rate fluctuations 0.1 0.1 -2.2
on cash held
Cash and cash equivalents at the end of 88.3 23.8 35.2
the period
Cheque account with overdraft facility -1.3 -23.7 -0.7
Cash and cash equivalents at the end of 87.0 0.1 34.5
the period
Income statement, Group, 1-6/2009 1-6/2008 Change % 1-12/2008
EUR millions
REVENUE 782.9 896.7 -13 1,878.7
Other operating income 0.3 3.7 -93 4.2
Material consumables used -417.3 -473.6 -12 -971.7
Wages, salaries and -162.2 -175.3 -7 -350.5
employee benefits expense
Depreciation and -29.3 -34.0 -14 -61.4
amortisation
Other operating expenses -167.7 -188.8 -11 -377.4
OPERATING PROFIT 6.6 28.8 -77 121.9
Finance income and expenses -10.0 -24.6 59 -50.1
PROFIT/LOSS BEFORE TAX AND -3.4 4.3 71.7
MINORITY INTEREST
Tax on income from 1.6 -0.7 -32.7
operations
PROFIT/LOSS FOR THE PERIOD -1.8 3.6 39.1
note
Other comprehensive income, 1-06/2009 1-06/2008 Change % 1-12/2008EUR mill.
PROFIT/LOSS FOR THE PERIOD -1.8 3.6 39.1
Other comprehensive income
Exchange differences on -1.5 -0.1 -4.2
translating foreign
operations
Cash flow hedges -3.5 -0.3 1.1
Other comprehensive income -5.1 -0.5 -3.1
for the year net of tax
TOTAL COMPREHENSIVE INCOME -6.8 3.1 36.0
FOR THE YEAR
Total comprehensive income
attributable to:
Equity holders of the -6.8 3.1 36.0
parent
Minority interest 0.0 -0.0 -0.0
Key figures 30.6.2009 30.6.2008 Change % 31.12.2008
EPS, adjusted for share -0.03 0.06 0.67
issues, undiluted (EUR)
EPS, adjusted for share -0.03 0.06 0.67
issues, diluted (EUR)
Operating profit, per cent 0.8 3.2 6.5
of turnover
Equity per share, EUR 10.54 10.73 -2 11.24
Return on equity, per cent, 5.2 12.9 6.1
moving 12 months
Return on capital employed, 6.7 12.2 8.3
per cent, moving 12 months
Average number of 11,056 11,811 -6 11,964
employees, converted to
full-time staff
Investments, EUR millions 74.4 76.5 -3 182.3
Segment
information, Group
EUR millions
Operating segments
Sales 1.1-30.6.2009 1.1-30.6.2008 Change 1.1-31.12.2008
%
Department Store 491.5 582.3 -16 1 218.9
Division
Lindex 292.2 322.1 -9 672.5
Hobby Hall 83.2 95.8 -13 191.0
Seppälä 77.5 80.9 -4 182.6
Unallocated 0.1 0.4 -82 0.8
Group 944.5 1 081.5 -13 2 265.8
Revenue 1.1-30.6.2009 1.1-30.6.2008 Change 1.1-31.12.2008
%
Department Store 413.0 490.0 -16 1 025.9
Division
Lindex 235.2 258.6 -9 540.2
Hobby Hall 69.4 80.0 -13 159.6
Seppälä 64.4 67.3 -4 151.9
Unallocated 0.9 0.8 16 1.1
Group 782.9 896.7 -13 1 878.7
Operating profit 1.1-30.6.2009 1.1-30.6.2008 Change 1.1-31.12.2008
%
Department Store -5.3 5.6 54.0
Division
Lindex 19.9 22.6 -12 58.7
Hobby Hall -2.6 -1.4 -86 0.8
Seppälä 0.2 4.5 -95 14.6
Unallocated -5.0 -2.0 -6.1
Eliminations -0.7 -0.4 0.0
Group 6.6 28.8 -77 121.9
Investments, gross 1.1-30.6.2009 1.1-30.6.2008 Change 1.1-31.12.2008
%
Department Store 60.2 57.2 5 146.0
Division
Lindex 10.4 14.9 -30 25.2
Hobby Hall 1.0 1.0 -6 3.1
Seppälä 2.7 2.8 -5 7.2
Unallocated 0.1 0.5 -73 0.8
Group 74.4 76.5 -3 182.3
Assets 1.1-30.6.2009 1.1-30.6.2008 Change 1.1.-31.12.2008
%
Department Store 743.0 623.9 19 704.0
Division
Lindex 831.8 1 012.6 -18 806.0
Hobby Hall 74.2 94.3 -21 90.4
Seppälä 115.1 44.0 116.5
Unallocated 79.1 39.8 99 48.1
Group 1,843.2 1,814.6 2 1,765.0
Information from
market areas
Sales 1.1-30.6.2009 1.1-30.6.2008 Change 1.1-31.12.2008
%
Finland 1) 523.4 578.5 -10 1 224.8
Sweden and Norway 244.1 277.3 -12 575.2
2)
Baltic states and 80.9 102.1 -21 211.7
Czech Republic 1)
Russia 1) 96.1 123.6 -22 254.1
Group 944.5 1,081.5 -13 2 265.8
Finland, % 55.4 53.5 4 54.1
International 44.6 46.5 -4 45.9
operations, %
Revenue 1.1-30.6.2009 1.1-30.6.2008 Change 1.1-31.12.2008
%
Finland 1) 437.2 482.6 -9 1 021.8
Sweden and Norway 195.6 221.8 -12 460.2
2)
Baltic states and 68.0 86.8 -22 179.8
Czech Republic 1)
Russia 1) 82.1 105.6 -22 217.0
Group 782.9 896.7 -13 1 878.7
Finland, % 55.8 53.8 4 54.4
International 44.2 46.2 -4 45.6
operations, %
Operating profit 1.1-30.6.2009 1.1-30.6.2008 Change 1.1-31.12.2008
%
Finland 1) 7.8 24.6 -68 71.1
Sweden and Norway 20.3 22.9 -11 57.3
2)
Baltic states and -4.1 3.9 10.7
Czech Republic 1)
Russia 1) -17.5 -22.6 23 -17.3
Group 6.6 28.8 -77 121.9
Finland, % 85.3 58.4
International 14.7 41.6
operations, %
1) Department Store Division, Lindex, Hobby Hall, Seppälä
2) Lindex
Statement of changes in equity, Group Equity* Share Hedging
EUR millions 1 - 06 / 2008 premium reserve**
fund
BALANCE AT BEGINNING OF THE PERIOD 112.2 186.0 0.5
Changes in equity for
Dividend distribution
New share issue 11.2
Options exercised
Share premium
Total comprehensive income for the year 0.0 0.0 -0.3
Other changes
SHAREHOLDERS' EQUITY TOTAL 06 / 2008 123.4 186.0 0.2
Statement of changes in equity, Group Equity* Share Hedging
EUR millions 1 - 06 / 2009 premium reserve**
fund
BALANCE AT BEGINNING OF THE PERIOD 123.4 186.1 1.4
Changes in equity for
Dividend distribution
Options exercised
Sale of own shares
Total comprehensive income for the year 0.0 0.0 -3.6
Other changes
SHAREHOLDERS' EQUITY TOTAL 06 / 2009 123.4 186.1 -2.1
*Including share issue.
** Adjusted with deferred tax
liability.
Statement of changes in equity, Group Reserve Other Trans
EUR millions 1 - 06 / 2008 for reserves lationdiffe
invested rences
un-
restricted
equity
BALANCE AT BEGINNING OF THE PERIOD 0.0 44.1 0.0
Changes in equity for
Dividend distribution
New share issue
Options exercised
Share premium 124.3
Total comprehensive income for the 0.0 0.0 -0.1
year
Other changes -0.2
SHAREHOLDERS' EQUITY TOTAL 06 / 2008 124.3 43.9 -0.1
Statement of changes in equity, Group Reserve Other Trans
EUR millions 1 - 06 / 2009 for reserves lationdiffe
invested rences
un-
restricted
equity
BALANCE AT BEGINNING OF THE PERIOD 124.1 44.1 -6.7
Changes in equity for
Dividend distribution
Options exercised
Sale of own shares
Total comprehensive income for the 0.0 0.0 -1.5
year
Other changes
Deferred taxes' share of period 0.0 0.0
movements
Other changes
SHAREHOLDERS' EQUITY TOTAL 06 / 2009 124.1 44.1 -8.2
Statement of changes in Retained Total Minority Total
equity, Group EUR millions earnings interest
1 - 06 / 2008
BALANCE AT BEGINNING OF 250.9 593.8 0.0 593.8
THE PERIOD
Changes in equity for
Dividend distribution -75.2 -75.2 -75.2
New share issue 11.2 11.2
Options exercised 0.9 0.9 0.9
Share premium 124.3 124.3
Total comprehensive income 3.6 3.1 0.0 3.1
for the year
Other changes 0.2 0.0 0.0 0.0
SHAREHOLDERS' EQUITY TOTAL 180.3 658.1 0.0 658.1
06 / 2008
Statement of changes in Retained Total Minority Total
equity, Group EUR millions earnings interest
1 - 06 / 2009
BALANCE AT BEGINNING OF 216.8 689.1 0.0 689.1
THE PERIOD
Changes in equity for
Dividend distribution -38.0 -38.0 -38.0
Options exercised 0.5 0.5 0.5
Sales of own shares 5.1 5.1 5.1
Total comprehensive income -1.8 -6.8 0.0 -6.8
for the year
Other changes 0.1 0.1 0.0 0.1
SHAREHOLDERS' EQUITY TOTAL 182.8 650.1 0.0 650.1
06 / 2009
Contingent liabilites, Group 30.6.2009 30.6.2008 31.12.2008
EUR millions
Mortages on land and buildings 201.7 1.7 1.7
Pledges 0.9 1.0
Liabilities of adjustments of 28.6 29.2
VAT deductions made on
investments to immovable
property
Total 231.2 1.7 31.9
Lease agreements on business
premises, EUR millions
Minimum rents payable on the
basis of binding lease
agreements on business premises
Within one year 139.4 96.7 143.2
After one year 509.0 466.8 478.9
Total 648.4 563.5 622.1
Lease payments, EUR millions
Within one year 7.0 1.3 1.1
After one year 20.8 1.1 0.9
Total 27.8 2.4 2.0
Derivate contracts, EUR
millions
Nominal value
Currency derivatives 201.1 325.5 204.4
Electricity derivates 3.5 3.2 2.5
Total 204.6 328.7 206.9
Exchange rates
Country
Russia RUB 43.8810 36.9477 41.2830
Estonia EEK 15.6466 15.6466 15.6466
Latvia LVL 0.7036 0.7047 0.7083
Lithuania LTL 3.4528 3.4528 3.4528
Sweden SEK 10.8125 9.4703 10.8700
Income statement,
Group, EUR millions Q2 Q1 Q4 Q3
quarterly, EUR millions 2009 2009 2008 2008
Revenue 429.7 353.2 541.3 440.8
Other operating income 0.3 0.0 0.1 0.3
Materials and consumables -220.1 -197.2 -273.5 -224.7
used
Wages, salaries and -82.6 -79.7 -92.9 -82.3
employee benefits
expenses
Depreciation and -14.7 -14.6 -14.2 -13.2
amortisation
Other operating expenses -84.0 -83.7 -102.4 -86.2
Operating profit (loss) 28.6 -22.0 58.4 34.6
Finance income and -5.1 -4.8 -12.7 -12.8
expenses
Profit (loss) before tax 23.5 -26.9 45.7 21.8
Income taxes -1.4 3.1 -25.8 -6.2
Profit for the period 22.0 -23.8 19.9 15.6
Earnings per share, EUR
Basic 0.36 -0.39 0.34 0.27
Diluted 0.36 -0.39 0.34 0.27
Q2 Q1 Q4 Q3
Sales, EUR millions 2009 2009 2008 2008
Department Store Division 267.0 224.5 371.8 264.8
Lindex 169.6 122.6 175.6 174.9
Hobby Hall 40.2 43.1 53.7 41.6
Seppälä 42.9 34.7 51.5 50.1
Unallocated 0.0 0.0 0.2 0.2
Group 519.7 424.8 652.8 531.5
Revenue, EUR millions
Department Store Division 224.0 189.0 312.9 223.1
Lindex 136.5 98.6 141.0 140.6
Hobby Hall 33.5 35.9 44.9 34.7
Seppälä 35.6 28.8 42.8 41.7
Unallocated 0.1 0.8 -0.3 0.6
Group 429.7 353.2 541.3 440.7
Operating profit (loss),
EUR millions
Department Store Division 9.2 -14.5 34.9 13.5
Lindex 19.7 0.2 20.3 15.7
Hobby Hall -0.8 -1.7 1.6 0.7
Seppälä 3.0 -2.8 4.2 5.9
Unallocated -3.2 -1.8 -3.3 -0.7
Eliminations 0.6 -1.4 0.8 -0.5
Group 28.6 -22.0 58.4 34.6
The Interim Report is
unadited.
Income statement,
Group, EUR millions Q2 Q1 Q4 Q3
quarterly, EUR millions 2008 2008 2007 2007
Continuing operations
Revenue 483.3 413.4 483.9 308.6
Other operating income -0.1 3.8 0.0 9.7
Materials and consumables -242.6 -231.0 -255.8 -179.8
Wages, salaries and -90.2 -85.1 -73.2 -47.6
employee benefits
expenses
Depreciation and -18.7 -15.2 -10.5 -8.9
amortisation
Other operating expenses -100.3 -88.5 -73.7 -50.0
Operating profit (loss) 31.4 -2.5 70.8 32.1
Finance income and -13.3 -11.3 -4.3 -0.5
expenses
Profit (loss) before tax 18.1 -13.8 66.5 31.6
Income taxes -2.9 2.2 -17.9 -8.1
Profit for the period 15.2 -11.6 48.6 23.5
Earnings per share, EUR
Basic 0.27 -0.21 0.87 0.43
Diluted 0.27 -0.21 0.87 0.42
Q2 Q1 Q4 Q3
Sales, EUR millions 2008 2008 2007 2007
Department Store Division 306.4 275.9 400.4 275.5
Lindex 183.8 138.3 68.1 0.0
Hobby Hall 48.3 47.4 58.9 45.9
Seppälä 45.2 35.7 51.2 45.4
Shared 0.2 0.2 0.2 0.2
Group 583.9 497.5 578.8 367.0
Revenue, EUR millions
Department Store Division 257.3 232.7 336.9 232.2
Lindex 147.6 111.0 54.7 0.0
Hobby Hall 40.4 39.7 49.2 38.2
Seppälä 37.6 29.7 42.5 37.8
Shared 0.4 0.4 0.7 0.5
Group 483.3 413.4 483.9 308.6
Operating profit (loss),
EUR millions
Department Store Division 4.1 1.5 46.9 25.7
Lindex 23.8 -1.2 15.0 0.0
Hobby Hall 0.7 -2.1 2.7 2.5
Seppälä 5.1 -0.6 8.6 5.5
Shared -2.2 0.2 -2.4 -1.1
Eliminations 0.0 -0.3 0.0 -0.5Group 31.4 -2.5 70.8 32.1
The Interim Report is
unadited.
1. ASSETS
EUR mill. 30.6.2009 30.6.2008 31.12.2008
Acquisition cost at the beginning of 945.3 813.8 813.8
the period
Translation difference +/- 3.8 -0.8 -21.0
Increases during the period 74.4 76.2 181.6
Decreases during the period -55.6 -2.3 -29.0
Transfers between items 0.0
Acquisition cost at the end of the 968.0 886.9 945.4
period
Accumulated depreciation at the -245.7 -212.5 -212.5
beginning of the period
Translation difference +/- -2.0 0.2 2.6
Depreciation on reductions 32.6 0.6 25.5
Depreciation during the period -29.3 -34.0 -61.4
Accumulated depreciation at the end -244.4 -245.6 -245.7
of the period
Carrying amount at the beginning of 699.6 601.3 601.3
the period
Carrying amount at the end of the 723.6 641.3 699.6
period
Goodwill
EUR mill. 30.6.2009 30.6.2008 31.12.2008
Acquisition cost at the beginning of 646.5 720.0 720.0
the period
Translation difference +/- 3.4 -2.2 -94.6
Increases during the period 22.5 23.8
Translation difference +/- -2.8
Acquisition cost at the end of the 649.9 740.3 646.5period
Carrying amount at the beginning of 646.5 720.0 720.0
the period
Carrying amount at the end of the 649.9 740.3 646.5
period
Total 1 373.5 1 381.6 1 346.1
Equity ratio, per cent = 100 x (Equity + minority interest) / Total assets
less advance payments received
Net gearing, per cent = 100 x Interest-bearing net financial liabilities /
Equity total
Interest-bearing net debt = Interest-bearing liabilities less cash and
cash equivalents less interest-bearing receivables
Market capitalization = Number of shares multiplied by the quotation for
the respective share series on the balance sheet date
Earnings per share, adjusted for share issues = (Profit before taxes -
minority interest - income taxes) / Average number of shares, adjusted for
share issues
Return on equity, per cent, moving 12 months = 100 x Profit for the period
(12 months) / (Equity + minority interest) (average over 12 months)
Return on capital employed, per cent, moving 12 months = 100 x (Profit
before taxes + interest and other financial expenses) (12 months) /
Capital employed (average over 12 months)
STOCKMANN plc
Hannu Penttilä
CEO
DISTRIBUTION
NASDAQ OMX
Principal media
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