2015-02-10 07:30:00 CET
2015-02-10 07:30:04 CET
REGULATED INFORMATION
Marimekko - Financial Statement Release
FINANCIAL STATEMENTS BULLETIN OF MARIMEKKO CORPORATION, 1 JANUARY - 31 DECEMBER 2014: Strong results in difficult market conditions, net sales on par with the previous year
Marimekko Corporation, Financial Statements Bulletin, 10 February 2015, 8.30 AM
FINANCIAL STATEMENTS BULLETIN OF MARIMEKKO CORPORATION, 1 JANUARY - 31 DECEMBER
2014: Strong results in difficult market conditions, net sales on par with the
previous year
In 2014, the Marimekko Group's net sales were on a par with the previous year,
being EUR 94.2 million (94.0). Retail sales grew in all market areas, which was
partly due to additional sales by the stores opened during 2013 and 2014.
Comparable retail sales were up particularly in Scandinavia and other parts of
Europe. In Finland, comparable retail sales were boosted by growth in sales
generated by e-commerce. A downturn in wholesale sales in all of the company's
market areas exerted a drag on net sales. The downturn resulted partly from a
change in the rhythm of deliveries of the spring collection during the first
quarter. During the October-December period, net sales grew by 2 percent; net
sales were boosted by the new stores opened during the year as well as by
nonrecurring promotions in Finland.
The results for 2014 were improved in difficult market conditions: operating
profit was EUR 5.6 million (0.1) and operating profit excluding nonrecurring
items was EUR 6.3 million (1.4). The results were boosted by reorganisations
and cost savings implemented in Finland and the United States in 2013 and 2014,
nonrecurring promotions in Finland, and increased licensing income. Moreover,
operating profit for the comparison year was weakened by write-downs on the
tangible assets of the company-owned stores in Beverly Hills, Boston and Oslo
during the final quarter, totalling EUR 1.5 million. During the
October-December period, operating result was EUR 1.9 million (-0.6).
The business climate for retailing remained challenging throughout the year,
particularly in Finland. The streamlining measures carried out supported the
company's profit performance. The trend in retail sales levelled out,
particularly in Finland, from the beginning of the second half of the year due
to the low level of sales during the comparison period. However, the trend
weakened again as of the beginning of November 2014 along with a drop in
consumer confidence and the deterioration of the overall prospects for the
economy.
In 2014, Marimekko continued to invest in growth while focusing on enhancing
the operations of its stores, on improving the overall profitability of its
business, and on creating even more attractive design and products.
The Board of Directors will propose to the Annual General Meeting that a
dividend of EUR 0.35 per share be paid for 2014 (0.25).
Key indicators
10-12/ 10-12/ Change 1-12/ 1-12/ Change
2014 2013 , % 2014 2013 , %
--------------------------------------------------------------------------------
Net sales, EUR million 26.1 25.5 2 94.2 94.0 0
--------------------------------------------------------------------------------
International sales, EUR million 11.3 10.8 5 42.1 41.8 1
--------------------------------------------------------------------------------
% of net sales 43 42 45 45
--------------------------------------------------------------------------------
EBITDA, EUR million 3.0 2.6 16 9.9 6.9 44
--------------------------------------------------------------------------------
EBITDA excluding nonrecurring 3.0 2.6 16 10.5 7.9 34
items, EUR million
--------------------------------------------------------------------------------
Operating result, EUR million 1.9 -0.6 5.6 0.1
--------------------------------------------------------------------------------
Operating result excluding 1.9 -0.6 6.3 1.4
nonrecurring items, EUR million
--------------------------------------------------------------------------------
Operating result margin, % 7.5 -2.2 5.9 0.1
--------------------------------------------------------------------------------
Operating result margin excluding 7.5 -2.2 6.7 1.4
nonrecurring items, %
--------------------------------------------------------------------------------
Result for the period, EUR million 1.3 -0.5 4.1 -1.0
--------------------------------------------------------------------------------
Earnings per share, EUR 0.15 -0.07 0.51 -0.12
--------------------------------------------------------------------------------
Cash flow from operating 6.3 5.0 25 9.9 5.4 82
activities, EUR million
--------------------------------------------------------------------------------
Return on investment (ROI), % 15.6 -1.1
--------------------------------------------------------------------------------
Equity ratio, % 61.6 55.5
--------------------------------------------------------------------------------
Gross investments, EUR million 0.6 0.5 34 2.1 2.4 -12
--------------------------------------------------------------------------------
Personnel at the end of the period 479 502 -5
--------------------------------------------------------------------------------
outside Finland 129 124 4
--------------------------------------------------------------------------------
Brand sales*, EUR million 53.9 51.5 5 186.8 191.1 -2
--------------------------------------------------------------------------------
outside Finland, EUR million 33.7 28.4 18 114.6 115.1 0
--------------------------------------------------------------------------------
proportion of international sales, 63 55 61 60
%
--------------------------------------------------------------------------------
Number of stores** 144 133 8
--------------------------------------------------------------------------------
The change percentages in the table were calculated on exact figures before the
amounts were rounded to millions of euros.
* Estimated sales of Marimekko products at consumer prices. Brand sales are
calculated by adding together the company's own retail sales and the estimated
retail value of Marimekko products sold by other retailers. The estimate, based
on Marimekko's actual wholesale sales to these retailers, is unofficial and
does not include VAT. The key figure is not audited.
** Includes the company's own retail stores, retailer-owned Marimekko stores
and shop-in-shops with an area exceeding 30 sqm. The company's own retail
stores numbered 54 at the end of 2014 (51). Information on changes is available
in the section Internationalisation and changes in the store network.
Mika Ihamuotila, President and CEO:"Marimekko's trend in earnings in 2014 - also during the final quarter - was
good. Particularly when taking into account the exceptionally weak state of the
retail climate in our biggest market, Finland. We reached roughly the same
level in net sales as in the previous year, but we succeeded in improving our
bottom line considerably. Our profitability improved, thanks partly to the
streamlining measures we put into effect in 2013 and 2014. The overall weak
state of the market in Finland was compensated for by our international growth,
which once again focused on Asia. In 2014, we opened a total of 19 new stores,
half of which are located in Asia. Our online business also enjoyed a promising
trend; comparable retail sales in Finland were boosted specifically by growth
in sales generated by e-commerce trade. Earnings for the last quarter were also
boosted by royalty income from Banana Republic's summer collection. "Among the key themes for the current year is the development work in the field
of design and product development which was launched by our new Creative
Director in the autumn. We see especially many opportunities in making fashion,
bags and accessories even more attractive than before. We are also continuing
our investment in digital business, particularly online retailing and the
multi-channel service experience. "The main thrust in our international expansion continues to be on Asia. In
Japan, our sales expectations are more cautious than in previous years due to
the weak yen and an increase in sales tax which came into effect in spring
2014. We already have a very comprehensive store network there, and future
sales growth will be largely organic; new stores will be opened at a rate of a
few per year. However, I believe that our international growth will continue,
all in all. This spring we will also be opening stores in markets totally new
to us - Dubai, Singapore and Bangkok. By contrast, as regards Finland, I see no
signs of strengthening, at least in the early months of the year, and if
conditions continue to be difficult, it can easily cause weaker results than
last year's figure. Our investment in the future also exerts a burden on our
profitability."
Financial guidance for 2015
Based on the market outlook, estimated sales development in the company's
market areas, especially in Finland, the company's growth targets as well as
other estimated factors, the Marimekko Group's year 2015 net sales are forecast
to be at the same level as in 2014 or lower. Operating profit excluding
nonrecurring items in 2015 is estimated to be lower than in 2014.
Briefing for the media and analysts
A briefing for the media and analysts concerning this financial statements
bulletin will be held today at 9 a.m. in Marimekko's flagship store at
Pohjoisesplanadi 33, Helsinki. The presentation material is available on the
company's website at company.marimekko.com under Releases/Interim reports and
financial statements.
Corporate governance statement
The Corporate Governance Statement 2014 is available on the company's website
at company.marimekko.com under Investors/Management/Corporate governance.
Financial calendar 2015
The 2014 financial statements will be published in week 12 at the latest. The
Annual General Meeting will be held on 9 April 2015 at 2 p.m. The Annual
General Meeting was earlier planned to be held on 21 April 2015. The following
interim reports will be published in 2015: January to March, on Tuesday 12 May
2015 at 8.30 a.m.; January to June, on Wednesday 19 August 2015 at 8.30 a.m.;
and January to September, on Thursday 5 November 2015 at 8.30 a.m.
Further information:
Mika Ihamuotila, President and CEO, tel. +358 9 758 71
Thomas Ekström, CFO, tel. +358 9 758 7261
MARIMEKKO CORPORATION
Corporate Communications
Piia Kumpulainen
Tel. +358 9 758 7293
piia.kumpulainen@marimekko.com
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
FINANCIAL STATEMENTS BULLETIN OF MARIMEKKO CORPORATION, 1 JANUARY - 31 DECEMBER
2014
MARKET REVIEW
Widespread uncertainty over the global economy continued in 2014 as in the
previous year. A budding recovery in Europe ended in the autumn. Services and
retailing deteriorated along with industry. However, growth is expected to
start from export demand, which the depreciation of the euro will promote. The
action to stimulate recovery initiated by the European Central Bank at the
beginning of 2015 is also expected to improve the situation. However, growth
will be sluggish. In the United States, consumer expectations have gained
strength in spite of low corporate forecasts, and as a whole the economy is
growing moderately. The pace of the global economy is being maintained by
developing countries, mainly in Asia and South America.
In Finland, the economic trend faltered in the second half of the year and
consumer confidence declined rapidly. Economic prospects have deteriorated and
expectations of a fast turnaround have become muted. Domestic demand is on the
decline as unemployment rises and purchasing power falls in other respects as
well. In retailing, where confidence has fallen the most, the situation
remained difficult, and this tendency appears to be continuing. Sales
expectations are rather weak, and sales are forecast to decline during the
spring. In December, retail trade confidence in Finland was clearly the lowest
in the EU. The state of the domestic market is not forecast to pick up until
2016. (Confederation of Finnish Industries EK: Economic Review, 20 January
2015; Confidence Indicators, January 2015; Business Tendency Survey, November
2014.)
In 2014, the value of retail sales in Finland fell by 1 percent and the volume
of sales - which measures real growth in sales - declined by 1.2 percent
(Statistics Finland: Turnover of Trade, retail trade flash estimate, January
2015).
INTERNATIONALISATION AND CHANGES IN THE STORE NETWORK
Marimekko is undergoing a dynamic phase of internationalisation. In 2014, the
main thrust in expansion was on openings of retailer-owned Marimekko stores.
During the year, 19 new Marimekko stores were opened, which are distributed as
follows: four company-owned and seven retailer-owned stores plus eight
shop-in-shops. In addition, the company concentrated on enhancing the
operations and improving the profitability of company-owned stores opened in
recent years.
During the final quarter, two company-owned stores and one shop-in-shop were
opened in Finland along with four retailer-owned stores, of which two are in
Seoul, South Korea, one in Hong Kong and one in Chengdu in mainland China. In
addition, three shop-in-shops were opened, two in Mexico and one in Singapore.
In November, Marimekko closed its company-owned store in the Boxpark mall in
London. In Seoul, South Korea, a retailer-owned store was closed when the lease
for the retail premises expired; a new location is being scouted for the store.
During the past three years, new markets have opened up in China, Hong Kong and
Taiwan, and the number of Marimekko stores in Asia-Pacific has doubled to 46.
The opportunities in the growing consumer markets of Asia play an important
role in Marimekko's internationalisation, particularly as the state of the
retail trade in the company's largest market area, Finland, is forecast to
continue to be dire. Of the new Marimekko stores opened in 2014, half were in
the Asia-Pacific region: two in Hong Kong, one in Chengdu in mainland China,
two in Seoul in South Korea, and two in Japan. In Australia, Marimekko opened a
company-owned store in Melbourne. A further two shop-in-shops were opened, one
in New Zealand and one in Singapore. In 2015, Marimekko will continue its
expansion in Asia, and at least Singapore and Thailand (Bangkok) will be opened
as new markets.
This year, too, the main thrust in expansion will be on openings of
retailer-owned Marimekko stores and shop-in-shops. The aim is to open a total
of 10-20 new Marimekko stores and shop-in-shops. Of these, 1-3 would be
company-owned stores. Also, the company will continue the operational
enhancement and the improvement of profitability of company-owned stores opened
in recent years.
Number of stores and shop-in-shops* 31.12.2014 31.12.2013
-----------------------------------------------------------
Finland 62 56
-----------------------------------------------------------
Company-owned stores 34 31
-----------------------------------------------------------
Scandinavia 10 13
-----------------------------------------------------------
Company-owned stores 8 8
-----------------------------------------------------------
EMEA** 3 4
-----------------------------------------------------------
Company-owned stores 3 4
-----------------------------------------------------------
North America 23 23
-----------------------------------------------------------
Company-owned stores 6 6
-----------------------------------------------------------
Asia-Pacific 46 37
-----------------------------------------------------------
Company-owned stores 3 2
-----------------------------------------------------------
Total 144 133
-----------------------------------------------------------
Company-owned stores 54 51
-----------------------------------------------------------
* Includes the company's own retail stores, retailer-owned Marimekko stores and
shop-in-shops with an area exceeding 30 sqm.
**The market area of Central and Southern Europe previously referred to in
Marimekko's financial disclosures has changed to EMEA (Europe and Middle East
Area) as a result of the partnership initiated in the Middle East during the
second quarter of 2014.
NET SALES
In 2014, the Group's net sales were on a par with those of the previous year,
being EUR 94,150 thousand (94,007). Net sales in Finland were at the same level
as in 2013; international sales rose by 1 percent.
Retail sales grew in all market areas, which was partly due to additional sales
by the stores opened during 2013 and 2014. Comparable retail sales were up
particularly in Scandinavia and other parts of Europe. In Finland, comparable
retail sales were boosted by growth in sales generated by e-commerce.
Wholesale sales fell in all of the company's market areas. The downturn was
partly attributable to a change in the rhythm of deliveries of the spring
collection during the first quarter. On the other hand, wholesale sales were
boosted by nonrecurring promotions in Finland in the second half of the year.
A rise in earnings from licensing was due to royalty income from the Banana
Republic Marimekko collection for summer 2014.
During the October-December period, the Group's net sales grew by 2 percent and
were EUR 26,089 thousand (25,465). Net sales in Finland were up by 1 percent on
the same period of the previous year, and international sales rose by 5
percent.
In the final quarter, retail sales grew in all market areas with the exception
of EMEA. The increase was partly due to additional sales by the stores opened
during 2014. Wholesale sales declined in all other market areas except North
America. Wholesale sales were impacted negatively by earlier timing of
deliveries for winter collections in September. On the other hand, nonrecurring
promotions in Finland boosted wholesale sales for the final quarter.
A drastic depreciation of the euro against the US dollar boosted the
euro-denominated wholesale and retail sales in dollars during the final
quarter.
Net sales by market area
(EUR 1,000) 10-12/ 10-12/ Change, % 1-12/ 1-12/ Change, %
2014 2013 2014 2013
--------------------------------------------------------------------------------
Finland 14,837 14,705 1 52,034 52,159 0
--------------------------------------------------------------------------------
Retail sales 10,551 9,792 8 35,363 35,107 1
--------------------------------------------------------------------------------
Wholesale sales 4,137 4,670 -11 16,245 16,491 -1
--------------------------------------------------------------------------------
Royalties 149 243 -39 425 562 -24
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 2,204 2,294 -4 8,452 8,152 4
--------------------------------------------------------------------------------
Retail sales 1,384 1,323 5 5,151 4,355 18
--------------------------------------------------------------------------------
Wholesale sales 820 970 -15 3,301 3,796 -13
--------------------------------------------------------------------------------
Royalties - - - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA 1,735 1,770* -2 7,554 7,702* -2
--------------------------------------------------------------------------------
Retail sales 413 454 -9 1,509 1,408 7
--------------------------------------------------------------------------------
Wholesale sales 1,272 1,291* -1 5,882 6,194* -5
--------------------------------------------------------------------------------
Royalties 51 25 100 162 100 62
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North America 2,831 2,182 30 8,584 8,534 1
--------------------------------------------------------------------------------
Retail sales 1,762 1,621 9 5,983 5,587 7
--------------------------------------------------------------------------------
Wholesale sales 621 496 25 1,957 2,511 -22
--------------------------------------------------------------------------------
Royalties 449 65 644 436 48
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacific 4,481 4,514* -1 17,527 17,460* 0
--------------------------------------------------------------------------------
Retail sales 1,130 804 41 2,675 2,300 16
--------------------------------------------------------------------------------
Wholesale sales 3,351 3,710* -10 14,847 15,158* -2
--------------------------------------------------------------------------------
Royalties - - 5 2 183
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
International sales, 11,252 10,760 5 42,116 41,848 1
total
--------------------------------------------------------------------------------
Retail sales 4,688 4,202 12 15,318 13,651 12
--------------------------------------------------------------------------------
Wholesale sales 6,064 6,467 -6 25,987 27,659 -6
--------------------------------------------------------------------------------
Royalties 500 90 811 538 51
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 26,089 25,465 2 94,150 94,007 0
--------------------------------------------------------------------------------
Retail sales 15,240 13,995 9 50,682 48,757 4
--------------------------------------------------------------------------------
Wholesale sales 10,201 11,137 -8 42,232 44,150 -4
--------------------------------------------------------------------------------
Royalties 649 333 95 1,237 1,100 12
--------------------------------------------------------------------------------
All figures in the table have been individually rounded to thousands of euros,
so there may be rounding differences in the totals.
* Previously reported comparison figures for net sales by market area have been
adjusted because the market area of Central and Southern Europe referred to in
Marimekko's financial disclosures has changed to EMEA (Europe and Middle East
Area).
Finland
In 2014, sales in Finland were on a par with the previous year, at EUR 52,034
thousand (52,159). Retail sales rose by 1 percent; comparable retail sales were
on a par with 2013. Wholesale sales fell by 1 percent in spite of considerable
nonrecurring promotional deliveries during the second half of the year.
During the October-December period, retail sales grew by 8 percent; comparable
retail sales rose by 4 percent due to growth in online sales. Excluding online
trade, comparable retail sales fell by 2 percent. Wholesale sales fell by 11
percent in spite of considerable nonrecurring promotional deliveries. The
downturn in wholesale sales was partly due to earlier timing of deliveries for
winter collections in September.
Scandinavia
In Scandinavia, sales in 2014 grew by 4 percent relative to the previous year
and amounted to EUR 8,452 thousand (8,152). Retail sales rose by 18 percent.
Retail sales were boosted by two new Marimekko stores opened in 2013 as well as
the extension of Marimekko's e-commerce into Sweden and Denmark. Comparable
growth in retail sales was 7 percent denominated in euros and 13 percent in
terms of the sales currencies. Wholesale sales fell by 13 percent, partly due
to a change in the rhythm of deliveries for the spring collection.
During the final quarter, retail sales grew by 5 percent; comparable growth in
retail sales was 2 percent denominated in euros and 7 percent in terms of the
sales currencies. Wholesale sales fell by 15 percent.
EMEA
The market area of Central and Southern Europe previously referred to in
Marimekko's financial disclosures has been changed to EMEA (Europe and Middle
East Area) due to a partnership started in the Middle East during the second
quarter.
In this market area, net sales in 2014 fell by 2 percent to EUR 7,554 thousand
(7,702). Retail sales grew by 7 percent. Wholesale sales fell by 5 percent on
the previous year, partly due to a change in the rhythm of deliveries for the
spring collection.
During the final quarter, retail sales fell by 9 percent. Wholesale sales
declined by 1 percent.
North America
In North America, net sales in 2014 grew by 1 percent and were EUR 8,584
thousand (8,534). In terms of the sales currency (mostly the US dollar), sales
were on a par with the previous year. Retail sales rose in euro terms by 7
percent and in US dollar terms by 6 percent. The ending of the shop-in-shop
partnership between Marimekko and the home furnishings retailer Crate and
Barrel in summer 2014 made itself felt in the form of a marked downturn in the
quantity of products delivered during the financial year.
During the final quarter, retail sales grew in euro terms by 9 percent; in
terms of US dollars, retail sales were on a par with those of the same period
in the previous year. Wholesale sales grew in euro terms by 25 percent and in
terms of the sales currency by 17 percent.
Asia-Pacific
Net sales in the Asia-Pacific region in 2014 held steady at the previous year's
level and were EUR 17,527 thousand (17,460). Wholesale sales fell by 2 percent,
partly due to a change in the rhythm of deliveries for the spring collection
during the first quarter. Moreover, the appreciation of the euro against the
yen and an increase in sales tax which came into effect in Japan in spring 2014
exerted a drag on wholesale sales in Japan. Retail sales (Australian stores in
Sydney and Melbourne) grew by 16 percent in euro terms; in terms of the sales
currency (the Australian dollar), sales were up by 23 percent. Comparable
retail sales fell in euro terms by 1 percent and rose in terms of the sales
currency by 5 percent.
During the final quarter, euro-denominated retail sales grew by 41 percent; in
Australian dollar terms, sales rose by 40 percent. Comparable retail sales fell
in euro terms by 2 percent and in terms of the sales currency by 3 percent.
Wholesale sales declined by 10 percent.
FINANCIAL RESULT
In 2014, the Group's operating profit was EUR 5,592 thousand (82). Operating
profit includes a nonrecurring expense of EUR 669 thousand connected with
downsizing resulting from the consultative negotiations completed in March
2014. Operating profit for the comparison period included EUR 1,276 thousand in
nonrecurring expenses. Operating profit excluding nonrecurring items was EUR
6,261 thousand (1,358). Operating profit was boosted by reorganisations and
cost-cutting effected in Finland and the United States in 2013 and 2014,
nonrecurring promotional deliveries in Finland, and increased licensing income
due to the Banana Republic Marimekko collection for summer 2014. A drag was
exerted on operating profit by a downturn in wholesale sales in all market
areas. Moreover, operating profit for the comparison year was weakened by
write-downs on the tangible assets of the company-owned stores in Beverly
Hills, Boston and Oslo during the final quarter, totalling EUR 1,480 thousand.
During the October-December period, the Group's operating result was EUR 1,946
thousand (-564). Operating result for the last quarter was boosted by
operational reorganisations and cost-cutting carried out during the year in
Finland and the United States, nonrecurring promotional deliveries in Finland,
and increased royalty income. A drag on operating result was exerted by a
downturn in wholesale sales in all market areas with the exception of North
America. Wholesale sales in the last quarter were reduced by a shift in
wholesale deliveries of winter collections to September. Moreover, operating
profit for the comparison year was weakened by write-downs on the tangible
assets of the company-owned stores in Beverly Hills, Boston and Oslo during the
final quarter.
Marketing expenses for the year totalled EUR 4,674 thousand (4,179), or 5
percent of the Group's net sales (4).
The Group's depreciation and impairments totalled EUR 4,283 thousand (6,772),
or 5 percent of net sales (7). The figure for 2013 includes write-downs on the
tangible assets of company-owned stores in Beverly Hills, Boston and Oslo
totalling EUR 1,480 thousand. These write-downs reduced the Group's 2014
depreciation by roughly EUR 400 thousand. Depreciation was also reduced by
smaller investments than in previous years.
Operating profit margin for 2014 was 5.9 percent (0.1); in the October-December
period, operating result margin was 7.5 percent (-2.2).
Net financial expenses were EUR 108 thousand (886), or 0 percent of net sales
(1). Foreign exchange gains recorded in net financial expenses amounted to EUR
204 thousand (foreign exchange losses EUR 584 thousand).
Result for the financial year before taxes was EUR 5,485 thousand (-804).
Result after taxes was EUR 4,114 thousand (-955) and earnings per share were
EUR 0.51 (-0.12).
BALANCE SHEET
The consolidated balance sheet total as at 31 December 2014 was EUR 47,203
thousand (48,648). Equity attributable to the equity holders of the parent
company was EUR 29,045 thousand (26,989), or EUR 3.59 per share (3.34).
Non-current assets at the end of 2014 were EUR 18,279 thousand (20,237).
At the end of the year, net working capital was EUR 14,013 thousand (15,421).
Inventories were EUR 17,558 thousand (18,106).
CASH FLOW AND FINANCING
In 2014, cash flow from operating activities was EUR 9,851 thousand (5,424), or
EUR 1.22 per share (0.67). Cash flow before cash flow from financing activities
was EUR 7,788 thousand (3,070).
During the October-December period, cash flow from operating activities was EUR
6,306 thousand (5,031), or EUR 0.78 per share (0.62). Cash flow before cash
flow from financing activities was EUR 5,667 thousand (4,553).
The Group's financial liabilities at the end of the year stood at EUR 7,133
thousand (11,558).
At the end of the year, the Group's cash and cash equivalents amounted to EUR
4,079 thousand (3,001). In addition, the Group had unused committed long- and
short-term credit lines of EUR 22,304 thousand (17,767).
The Group's equity ratio at the end of the year was 61.6 percent (55.5).
Gearing was 10.5 percent (31.7).
INVESTMENTS
The Group's gross investments in 2014 were EUR 2,063 thousand (2,353), or 2
percent of net sales (3). Most of the investments were devoted to building
store premises, IT systems, and other building expenses.
PERSONNEL
In 2014, the number of employees averaged 473 (526) and at the end of the year
the total was 479 (502), of whom 129 (124) worked outside Finland. The number
of employees working outside Finland was broken down as follows: Scandinavia 40
(38), EMEA 13 (15), North America 50 (55) and Asia-Pacific 26 (16). The
personnel at company-owned stores totalled 233 (248) at the end of the year.
RESOLUTIONS OF THE ANNUAL GENERAL MEETING
The resolutions of Marimekko Corporation's Annual General Meeting have been
reported in the stock exchange release of 23 April 2014 and in the interim
report 8 May 2014.
REORGANISATIONS IN THE UNITED STATES
Marimekko reported in February 2014 on reorganisations of its operations in the
United States. In respect of these, negotiations on the termination of the
lease on the Beverly Hills store and the potential relocation of the store are
still in progress. The adjustments to the country organisation already put into
effect and the closure or relocation of the store are intended to combined
achieve savings of roughly EUR 1.0 million annually.
SHARES AND SHAREHOLDERS
Share capital and number of shares
At the end of 2014, the company's fully paid-up share capital, as recorded in
the Trade Register, amounted to EUR 8,040,000 and the number of shares totalled
8,089,610.
Shareholdings
According to the book-entry register, Marimekko had 7,112 shareholders at the
end of 2014 (7,424). Of the shares, 21.5 percent were owned by
nominee-registered or non-Finnish holders (21.0). The number of shares owned
either directly or indirectly by members of the Board of Directors and the
President and CEO of the company was 1,328,598 (1,343,930), representing 16.4
percent of the number and voting rights of the company's shares (16.6).
The largest shareholders according to the book-entry register on 31 December
2014
Number of shares Percentage of shares
and votes and votes
--------------------------------------------------------------------------------
1. Muotitila Ltd 1,297,700 16.04
--------------------------------------------------------------------------------
2. Semerca Investments SA 850,377 10.51
--------------------------------------------------------------------------------
3. Varma Mutual Employment Pension 385,920 4.77
Insurance Company
--------------------------------------------------------------------------------
4. ODIN Finland 344,251 4.26
--------------------------------------------------------------------------------
5. Veritas Pension Insurance Company 220,000 2.72
--------------------------------------------------------------------------------
6. Ilmarinen Mutual Pension 215,419 2.66
Insurance Company
--------------------------------------------------------------------------------
7. Keva 197,754 2.44
--------------------------------------------------------------------------------
8. OP-Finland Small Firm Fund 151,197 1.87
--------------------------------------------------------------------------------
9. Mutual Fund Tapiola Finland 136,395 1.69
--------------------------------------------------------------------------------
10. Drumbo Ltd 85,000 1.05
--------------------------------------------------------------------------------
Total 3,884,013 48.01
--------------------------------------------------------------------------------
Nominee-registered and 1,735,850 21.46
non-Finnish holders
--------------------------------------------------------------------------------
Others 2,469,747 30.53
--------------------------------------------------------------------------------
Total 8,089,610 100.00
--------------------------------------------------------------------------------
Share trading and the company's market capitalisation
In 2014, a total of 716,614 Marimekko shares were traded, representing 8.9
percent of the shares outstanding. The total value of Marimekko's share
turnover was EUR 6,980,725. The lowest price of the Marimekko share was EUR
8.54, the highest was EUR 10.50 and the average price was EUR 9.74. At the end
of the year, the closing price of the share was EUR 8.90. The company's market
capitalisation on 31 December 2014 was EUR 71,997,529 (79,682,659).
Authorisations
At the end of the year, 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.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
The key strategic risks for the near future are associated with the weakening
of consumer confidence, overall economic trends, and the consequent uncertainty
in the operating environment especially in Finland. Near-term strategic risks
also include risks related to the management of the company's expansion,
digitalisation of retail, and changes in Marimekko's design and product
assortment.
Marimekko products are sold in approximately 40 countries. The key markets are
Northern Europe, North America and the Asia-Pacific region. There are Marimekko
stores in 16 countries. In addition to Finland, Marimekko has company-owned
stores in other Nordic countries, Germany, the United Kingdom, the United
States and Australia. The global economic cycle and factors of uncertainty
affect consumers' purchasing behaviour and buying power in all of the company's
market areas. The long-term problems in the global economy continue to dampen
the prospects for retail as well as Marimekko's prospects for growth and
earnings.
Marimekko is undergoing a phase of extensive internationalisation and change.
The distribution of products is being expanded in all key market areas. Growth
is based on opening retailer-owned Marimekko stores and shop-in-shops as well
as on setting up company-owned stores and expanding e-commerce. In recent
years, expansion has called for larger or new country organisations, which
burdens the cost-effectiveness of the company. Expanding the network of
company-owned stores and building international e-commerce have increased the
company's investments, lease liabilities of store premises and inventories as
well as the company's fixed costs. Furthermore, partnership agreements, the
choice of partners as well as store lease agreements in the company's key
market areas involve risks.
The company's ability to design, develop and commercialise new products that
meet consumers' expectations while maintaining profitable in-house production,
sustainable sourcing and effective logistics has an impact on the company's
sales and profitability. Moreover, intellectual property rights play a vital
role in the company's success, and the company's ability to manage these rights
may have an impact on the company's value. Agreements with freelance designers
and fees paid to designers based on these agreements are an essential part of
the management of the intellectual property rights.
The company's operational risks prominently include those related to the
management and success of expansion projects, the operational reliability of
procurement and logistics processes and information systems, and changes in the
prices of raw materials and other procurement items. As a result of new
products, the share of in-house production has diminished, and the company uses
subcontractors for its manufacturing to an increasing extent. Therefore, the
company's dependence on the supply chain has increased. Any delays or
disturbances in supply, or fluctuations in the quality of products, may have a
momentary harmful impact on business. As the operations are being expanded and
diversified, risks related to the management of inventories also increase.
Among the company's economic risks, those related to the structure of sales,
increased investments, price trends for factors of production, changes in cost
structure, increased operational costs, customers' liquidity, changes in
exchange rates (particularly the US dollar, Swedish krona and Australian
dollar), and taxation may have an impact on the company's financial status.
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
Care for the environment is one of the cornerstones of Marimekko's business.
The main environmental aspects of Marimekko's in-house manufacturing are
related to the operations of the textile printing factory in Herttoniemi. The
waste generated in Marimekko's manufacturing is handled and sorted
appropriately. Operating methods are improved constantly for the monitoring of
environmental impacts of manufacturing and other business operations.
Subcontractors and other partners are contractually obligated to commit
themselves to shouldering their environmental responsibilities. Marimekko seeks
to mitigate climate change through energy efficiency and by using renewable
energy sources, by reducing water consumption, and by minimising, recycling and
repurposing waste. A considerable proportion of Marimekko's environmentally
related operational monitoring is based on legislation and other official
regulations. The goal is the constant reduction of environmental impacts.
Results are achieved through close collaboration between design, product
development and manufacturing.
Safety and well-being in the workplace are actively monitored and improved at
Marimekko, in collaboration with the workplace safety committee and
occupational healthcare. Occupational wellness is supported by promoting the
employees' health, job and functional capacity as well as their quality of life
in many ways. For instance, Marimekko applies an early-intervention model with
the aim of promoting working fitness. Securing a safe working environment means
the advance prevention of accidents as well as recognising and avoiding hazards
and near-misses. In order to prevent potential hazards, personnel are trained
in issues of occupational safety and safety risks are regularly monitored.
In 2014, Marimekko continued the long-term development of a corporate
responsibility management system and initiated the drafting of a responsibility
strategy for the period 2016-2020. The essential themes for Marimekko's
responsibility work in 2014 were as follows: sustainable design, responsible
sourcing, the environmental impacts of manufacturing, personnel wellness and
skills, and responsible business. Marimekko reports in greater detail on its
responsibility work and on issues of the environment, health and safety in a
separate sustainability review issued annually. The next review will be issued
in spring 2015 and can be read on the company's website company.marimekko.com
under the heading Corporate responsibility / Sustainability review. The basis
for reporting is the 'core' level of the GRI G4 guidelines.
MARKET OUTLOOK AND GROWTH TARGETS IN 2015
The general uncertainty in the global economy is forecast to continue, and this
may impact consumers' purchasing behaviour in all of Marimekko's market areas.
The situation has remained difficult in retailing in Finland, which is
particularly important for Marimekko as its domestic market, and this trend
appears to be continuing. In December and during the first weeks of the current
year, comparable retail sales in Finland have declined by approximately 5
percent. Lower consumer confidence, a downturn in purchasing power, and rising
unemployment cast a significant shadow over Marimekko's retail sales
expectations for 2015 and make themselves felt in cautious restocking by
retailers. No significant nonrecurring promotional deliveries are in sight
which would support wholesale sales. On the other hand, sales are boosted by
the stores opened in 2014.
The Asia-Pacific region, Marimekko's second biggest market, plays an important
part in the company's internationalisation, and the company still sees growing
demand for its products in this area. In recent years, new markets have opened
up in China, Hong Kong and Taiwan, and the number of Marimekko stores in the
region has doubled to 46. In 2015, at least Singapore and Thailand (Bangkok)
will be opened as new markets. In Australia, the outlook is bright and
Marimekko's retail sales have developed well, even exceeding expectations.
Although sales in these countries are expected to grow, their combined
proportion of Marimekko's net sales is still relatively small compared with
Japan, which is clearly the most important single country in this region to the
company. The appreciation of the euro against the yen and an increase in sales
tax which came into effect in Japan in spring 2014 exerted a drag on
Marimekko's wholesale sales in Japan in 2014. During the current year and in
the next few years, sales in Japan are forecast to take a more modest trend
than in recent years. Sales growth will be generated increasingly by organic
growth, and new stores will be opened at a rate of a few per year.
The US economy is growing as a whole, but the trend in Marimekko's
foreign-currency-denominated net sales in North America is expected to be
roughly on a par with the previous year. The appreciation of the US dollar is
expected to boost sales markedly in euro terms. Due to the loss-making nature
of operations in North America, the appreciation of the dollar will have a
negative impact on Marimekko's operating result in 2015, however. Efforts are
being made to close the store in Beverly Hills this year, which if accomplished
will mean considerable expenses.
Sales expectations in Scandinavia and EMEA are moderate. In the Middle East,
two new stores will open in Dubai in spring 2015.
The main thrust in expansion in 2015 will be on openings of retailer-owned
Marimekko stores. The aim is to open a total of 10-20 new Marimekko stores and
shop-in-shops, 1-3 of which would be company-owned. Also, the company will
continue the operational enhancement and the improvement of profitability of
company-owned stores opened in recent years. Changes in business locations of
company-owned stores may have a deleterious effect on sales during the current
year.
The expenses of marketing operations scheduled for 2015 are expected to be
markedly higher than in the previous year, that is approximately EUR 5.5
million (4.7).The total investments for 2015 of the Marimekko Group are
estimated as being in excess of EUR 3 million. Most of the investments will be
devoted to building new retail facilities and purchases of fittings as well as
improving data systems supporting business operations.
FINANCIAL GUIDANCE FOR 2015
Based on the market outlook, estimated sales development in the company's
market areas, especially in Finland, the company's growth targets as well as
other estimated factors, the Marimekko Group's year 2015 net sales are forecast
to be at the same level as in 2014 or lower. Operating profit excluding
nonrecurring items in 2015 is estimated to be lower than in 2014.
THE BOARD OF DIRECTORS' PROPOSAL FOR THE DIVIDEND FOR THE 2014 FINANCIAL YEAR
On 31 December 2014, the parent company's distributable funds amounted to EUR
16,164,059.59; profit for the financial year was EUR 5,096,205.19. The Board of
Directors will propose to the Annual General Meeting that a dividend of EUR
0.35 per share be paid for 2014. The Board will propose 13 April 2015 as the
dividend record date, and 20 April 2015 for the dividend payout. A dividend of
EUR 0.25 per share was paid for 2013 to a total of EUR 2,022,403.
Helsinki, 10 February 2015
MARIMEKKO CORPORATION
Board of Directors
FINANCIAL STATEMENTS BULLETIN 2014, TABLE SECTION
The information presented in the financial statements bulletin has not been
audited. There may be differences in totals due to rounding to the nearest
thousand euros.
APPENDICES
Accounting principles
Formulas for key figures
Consolidated income statement and comprehensive consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in shareholders' equity
Key figures
Segment information
Net sales by market area
Net sales by product line
Quarterly trend in net sales and earnings
ACCOUNTING PRINCIPLES
This financial statements bulletin was prepared in accordance with IAS 34. The
same accounting principles were applied as in the 2013 financial statements,
although at the start of the financial year the company adopted certain new and
amended IFRS standards as described in the financial statements for 2013. The
adoption of new and updated standards has had no effect on the figures stated
during the financial year.
FORMULAS FOR 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 December
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
Net working capital:
Inventories + trade and other receivables + current tax assets - trade and
other payables - current tax liabilities
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 10-12/ 10-12/ 1-12/20 1-12/20
2014 2013 14 13
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 26,089 25,465 94,150 94,007
--------------------------------------------------------------------------------
Other operating income 69 55 230 246
--------------------------------------------------------------------------------
Increase or decrease in inventories of -1,028 -681 -692 527
completed and unfinished products
--------------------------------------------------------------------------------
Raw materials and consumables -8,384 -7,537 -32,767 -33,547
--------------------------------------------------------------------------------
Employee benefit expenses -6,819 -6,708 -25,543 -27,059
--------------------------------------------------------------------------------
Depreciation and impairments -1,075 -3,164 -4,283 -6,772
--------------------------------------------------------------------------------
Other operating expenses -6,906 -7,993 -25,503 -27,320
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OPERATING RESULT 1,946 -564 5,592 82
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 25 27 252 67
--------------------------------------------------------------------------------
Financial expenses -245 -359 -360 -953
--------------------------------------------------------------------------------
-220 -332 -108 -886
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
RESULT BEFORE TAXES 1,726 -896 5,485 -804
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -475 350 -1,370 -151
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET RESULT FOR THE PERIOD 1,250 -546 4,114 -955
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity holders 1,250 -546 4,114 -955
of the parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic and diluted earnings per share 0.15 -0.07 0.51 -0.12
calculated on the result attributable to
equity holders of the parent company, EUR
--------------------------------------------------------------------------------
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 10-12/2 10-12/2 1-12/2 1-12/2
014 013 014 013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period 1,250 -546 4,114 -955
--------------------------------------------------------------------------------
Items that could be reclassified to profit or
loss at a future point in time
--------------------------------------------------------------------------------
Change in translation difference 149 -158 -36 -30
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPREHENSIVE RESULT FOR THE PERIOD 1,399 -705 4,078 -985
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity holders 1,399 -705 4,078 -985
of the parent company
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 31.12.2014 31.12.2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 1,561 1,976
--------------------------------------------------------------------------------
Tangible assets* 16,702 18,245
--------------------------------------------------------------------------------
Available-for-sale financial assets 16 16
--------------------------------------------------------------------------------
18,279 20,237
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 17,558 18,106
--------------------------------------------------------------------------------
Trade and other receivables 7,286 6,622
--------------------------------------------------------------------------------
Current tax assets - 682
--------------------------------------------------------------------------------
Cash and cash equivalents 4,079 3,001
--------------------------------------------------------------------------------
28,924 28,411
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS, TOTAL 47,203 48,648
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
COMPANY
--------------------------------------------------------------------------------
Share capital 8,040 8,040
--------------------------------------------------------------------------------
Invested non-restricted equity reserve 502 502
--------------------------------------------------------------------------------
Translation differences -74 -38
--------------------------------------------------------------------------------
Retained earnings 20,577 18,485
--------------------------------------------------------------------------------
Shareholders' equity, total 29,045 26,989
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liabilities 4 11
--------------------------------------------------------------------------------
Provisions 190 101
--------------------------------------------------------------------------------
Financial liabilities 3,696 8,234
--------------------------------------------------------------------------------
Finance lease liabilities 3,261 3,252
--------------------------------------------------------------------------------
7,150 11,598
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Trade and other payables 10,053 9,989
--------------------------------------------------------------------------------
Current tax liabilities 778 -
--------------------------------------------------------------------------------
Finance lease liabilities 176 72
--------------------------------------------------------------------------------
11,008 10,061
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities, total 18,158 21,659
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 47,203 48,648
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
* At the end of the review period, tangible assets included assets acquired
under finance lease agreements in the amount of EUR 3,312 thousand (31 December
2014: 3,297; 31 December 2013: 3,229).
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) 1-12/201 1-12/201
4 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period 4,114 -955
--------------------------------------------------------------------------------
Adjustments
--------------------------------------------------------------------------------
Depreciation and impairments 4,283 6,772
--------------------------------------------------------------------------------
Other non-cash transactions 89 101
--------------------------------------------------------------------------------
Financial income and expenses 108 886
--------------------------------------------------------------------------------
Taxes 1,370 151
--------------------------------------------------------------------------------
Cash flow before change in working capital 9,965 6,954
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in working capital 45 -1,664
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in current -460 133
non-interest-bearing trade
receivables
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in 547 396
inventories
--------------------------------------------------------------------------------
Increase (+) / decrease (-) in current -42 -2,193
non-interest-bearing liabilities
--------------------------------------------------------------------------------
Cash flow from operating activities before financial items 10,010 5,290
and taxes
--------------------------------------------------------------------------------
Paid interest and payments on other financial expenses -360 -355
--------------------------------------------------------------------------------
Interest received 45 67
--------------------------------------------------------------------------------
Taxes paid 156 422
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES 9,851 5,424
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in tangible and intangible assets -2,063 -2,353
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES -2,063 -2,353
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Long-term loans paid -4,538 -1,083
--------------------------------------------------------------------------------
Finance lease liabilities paid -150 -69
--------------------------------------------------------------------------------
Dividends paid -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES -6,710 -3,175
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents 1,078 -105
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the period 3,001 3,106
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 4,079 3,001
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(EUR 1,000) Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
Share Invested Translation Retained Shareholde
capita non-restricted differences earnings rs'
l equity reserve equity,
total
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -8 21,462 29,996
equity
1 January 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the -955 -955
period
--------------------------------------------------------------------------------
Translation -30 -30
differences
--------------------------------------------------------------------------------
Total -30 -955 -985
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -38 18,485 26,989
equity
31 December 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -38 18,485 26,989
equity
1 January 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the 4,114 4,114
period
--------------------------------------------------------------------------------
Translation -36 -36
differences
--------------------------------------------------------------------------------
Total -36 4,114 4,078
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -74 20,577 29,045
equity
31 December 2014
--------------------------------------------------------------------------------
KEY FIGURES
1-12/2014 1-12/2013 Change, %
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Earnings per share, EUR 0.51 -0.12
--------------------------------------------------------------------------
Equity per share, EUR 3.59 3.34 7
--------------------------------------------------------------------------
Return on equity (ROE), % 14.7 -3.4
--------------------------------------------------------------------------
Return on investment (ROI), % 15.6 -1.1
--------------------------------------------------------------------------
Equity ratio, % 61.6 55.5
--------------------------------------------------------------------------
Gearing, % 10.5 31.7
--------------------------------------------------------------------------
Gross investments, EUR 1,000 2,063 2,353 -12
--------------------------------------------------------------------------
Gross investments, % of net sales 2 3
--------------------------------------------------------------------------
Contingent liabilities, EUR 1,000 34,310 37,365 -8
--------------------------------------------------------------------------
Average personnel 473 526 -10
--------------------------------------------------------------------------
Personnel at the end of the period 479 502 -5
--------------------------------------------------------------------------
Number of shares at the end of the period 8,089,610 8,089,610
--------------------------------------------------------------------------
Number of shares outstanding, average 8,089,610 8,089,610
--------------------------------------------------------------------------
SEGMENT INFORMATION
(EUR 1,000) 1-12/2014 1-12/2013 Change, %
---------------------------------------------------
---------------------------------------------------
Marimekko business
---------------------------------------------------
Net sales 94,150 94,007 0
---------------------------------------------------
Operating result 5,592 82
---------------------------------------------------
Assets 47,203 48,648 -3
---------------------------------------------------
NET SALES BY MARKET AREA
(EUR 1,000) 10-12/ 10-12/ Change, % 1-12/ 1-12/ Change, %
2014 2013 2014 2013
--------------------------------------------------------------------------------
Finland 14,837 14,705 1 52,034 52,159 0
--------------------------------------------------------------------------------
Retail sales 10,551 9,792 8 35,363 35,107 1
--------------------------------------------------------------------------------
Wholesale sales 4,137 4,670 -11 16,245 16,491 -1
--------------------------------------------------------------------------------
Royalties 149 243 -39 425 562 -24
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 2,204 2,294 -4 8,452 8,152 4
--------------------------------------------------------------------------------
Retail sales 1,384 1,323 5 5,151 4,355 18
--------------------------------------------------------------------------------
Wholesale sales 820 970 -15 3,301 3,796 -13
--------------------------------------------------------------------------------
Royalties - - - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA 1,735 1,770* -2 7,554 7,702* -2
--------------------------------------------------------------------------------
Retail sales 413 454 -9 1,509 1,408 7
--------------------------------------------------------------------------------
Wholesale sales 1,272 1,291* -1 5,882 6,194* -5
--------------------------------------------------------------------------------
Royalties 51 25 100 162 100 62
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North America 2,831 2,182 30 8,584 8,534 1
--------------------------------------------------------------------------------
Retail sales 1,762 1,621 9 5,983 5,587 7
--------------------------------------------------------------------------------
Wholesale sales 621 496 25 1,957 2,511 -22
--------------------------------------------------------------------------------
Royalties 449 65 644 436 48
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacific 4,481 4,514* -1 17,527 17,460* 0
--------------------------------------------------------------------------------
Retail sales 1,130 804 41 2,675 2,300 16
--------------------------------------------------------------------------------
Wholesale sales 3,351 3,710* -10 14,847 15,158* -2
--------------------------------------------------------------------------------
Royalties - - 5 2 183
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
International sales, 11,252 10,760 5 42,116 41,848 1
total
--------------------------------------------------------------------------------
Retail sales 4,688 4,202 12 15,318 13,651 12
--------------------------------------------------------------------------------
Wholesale sales 6,064 6,467 -6 25,987 27,659 -6
--------------------------------------------------------------------------------
Royalties 500 90 811 538 51
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 26,089 25,465 2 94,150 94,007 0
--------------------------------------------------------------------------------
Retail sales 15,240 13,995 9 50,682 48,757 4
--------------------------------------------------------------------------------
Wholesale sales 10,201 11,137 -8 42,232 44,150 -4
--------------------------------------------------------------------------------
Royalties 649 333 95 1,237 1,100 12
--------------------------------------------------------------------------------
All figures in the table have been individually rounded to thousands of euros,
so there may be rounding differences in the totals.
* Previously reported comparison figures for net sales by market area have been
adjusted because the market area of Central and Southern Europe referred to in
Marimekko's financial disclosures has changed to EMEA (Europe and Middle East
Area).
NET SALES BY PRODUCT LINE
(EUR 1,000) 10-12/ 10-12/ Change, % 1-12/ 1-12/ Change, %
2014 2013 2014 2013
------------------------------------------------------------------------
------------------------------------------------------------------------
Fashion 9,590 8,491 13 36,256 33,979 7
------------------------------------------------------------------------
Home 11,174 11,538 -3 37,703 38,577 -2
------------------------------------------------------------------------
Bags & accessories 5,324 5,436 -2 20,191 21,452 -6
------------------------------------------------------------------------
TOTAL 26,089 25,465 2 94,150 94,007 0
------------------------------------------------------------------------
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 10-12/2014 7-9/2014 4-6/2014 1-3/2014
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 26,089 26,811 21,874 19,376
-----------------------------------------------------------------
Operating result 1,946 4,875 519 -1,748
-----------------------------------------------------------------
Earnings per share, EUR 0.15 0.49 0.05 -0.19
-----------------------------------------------------------------
-----------------------------------------------------------------
(EUR 1,000) 10-12/2013 7-9/2013 4-6/2013 1-3/2013
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 25,465 24,875 22,957 20,710
-----------------------------------------------------------------
Operating result -565 3,093 -1,158 -1,290
-----------------------------------------------------------------
Earnings per share, EUR -0.07 0.22 -0.13 -0.14
-----------------------------------------------------------------
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