2011-04-28 07:00:00 CEST
2011-04-28 07:00:12 CEST
REGULATED INFORMATION
Stockmann - Interim report (Q1 and Q3)
STOCKMANN GROUP'S INTERIM REPORT, 1 January - 31 March 2011
Revenue up but operating result lower than last year
Helsinki, Finland, 2011-04-28 07:00 CEST (GLOBE NEWSWIRE) -- STOCKMANN plc,
Interim report 28.4.2011 at 8:00 EET
First quarter 2011:
Consolidated revenue grew by 9.4 per cent to EUR 407.7 million (EUR 372.6
million).
Operating result was EUR -29.9 million (EUR -9.2 million).
Result for the period was EUR -34.8 million (EUR 2.2 million).
Earnings per share came to EUR -0.49 (EUR 0.03).
CEO Hannu Penttilä:
“The Stockmann Group's revenue increased early in the year thanks to, in
particular, capital expenditure projects completed in 2010. Especially the new
department store in St Petersburg, the enlarged Helsinki city centre department
store, and the fashion chains' expansion increased our revenue. The situation
in the Baltic markets is improving after the economic downturn, with increased
sales in the department stores.
On the other hand, the market for affordable fashion was weaker than expected
and competition has become tougher. This shows in the number of visitors and
the sales of our fashion chains, Seppälä and Lindex.
Stockmann's first quarter operating result is typically negative due to
seasonal variation. However, we are not satisfied with the earnings performance
seen in this quarter.
The Crazy Days campaign in April, after the close of the reporting period, was
successful in all markets and gave a good start for the second quarter.
Stockmann sees opportunities for profit growth particularly in the two last
quarters of the year. We are keeping our full-year earnings estimate
unchanged.”
Key figures 1-3/2011 1-3/2010 Index
Revenue EUR mill. 407.7 372.6 109
Operating result EUR mill. -29.9 -9.2
Result before taxes EUR mill. -38.3 -9.8
Earnings per share, undiluted EUR -0.49 0.03
Equity per share EUR 11.13 11.29 98
Cash flow from operating activities EUR mill. -145.4 -73.8
Key ratios 3/2011 3/2010
Net gearing per cent 119.7 93.0
Equity ratio per cent 36.8 41.9
Number of shares, weighted average, thousands 71 936 71 750
diluted
Return on capital employed, rolling 12 per cent 4.3 6.7
months
REVENUE AND EARNINGS
The global economy as a whole developed favourably in the quarter and in retail
business sales grew in certain product categories. The demand for affordable
fashion was not as expected which has had an effect on the total market,
including Lindex and Seppälä who have seen the number of visitors decline. This
resulted in significantly lower sales volumes than expected in the first
quarter. Despite the general market development, revenue of the Department
Store Division continued to grow.
The Stockmann Group's first-quarter revenue grew by 9.4 per cent to EUR 407.7
million (EUR 372.6 million). Revenue in Finland was up by 3.8 per cent to EUR
212.2 million. Revenue abroad amounted to EUR 195.5 million, an increase of
16.2 per cent. Growth was strong in Russia in particular, thanks to the
recently opened Nevsky Centre shopping centre and the St Petersburg department
store. Revenue abroad accounted for 48.0 per cent (45.1 per cent) of the
Group's total revenue.
There was no other operating income in the first three months of the year.
The Group's January-March operating gross margin grew by EUR 11.7 million, to a
total of EUR 193.4 million. The relative gross margin was 47.4 per cent (48.8
per cent). Operating costs increased by EUR 27.6 million and depreciation by
EUR 4.9 million.
The consolidated operating result for January-March was down by EUR 20.8
million, to EUR -29.9 million (EUR -9.2 million).
Net financial expenses during the first three months grew by EUR 7.7 million,
reaching EUR 8.3 million (EUR 0.6 million). The increased interest bearing
liabilities and the rise in the market interest rates increased the interest
expenses. In addition, net financial expenses for the period were burdened by a
non-recurring foreign exchange loss of EUR 0.7 million. A year earlier, net
financial expenses were reduced by non-recurring foreign exchange gains of EUR
3.7 million.
The result before taxes for the period was EUR -38.3 million, or EUR 28.5
million less than a year earlier. A tax credit of EUR 3.5 million was booked on
the loss posted for the period. In the previous year, the positive effect of
taxes on earnings was EUR 12.0 million. The result for the period was EUR -34.8
million (EUR 2.2 million).
Earnings per share for January-March amounted to EUR -0.49 (EUR 0.03) and,
diluted for options, EUR -0.48 (EUR 0.03). Equity per share was EUR 11.13 (EUR
11.29).
REVENUE AND EARNINGS PERFORMANCE BY OPERATING SEGMENT
Department Store Division
The Department Store Division's revenue was up by 13.4 per cent to EUR 256.4
million (EUR 226.0 million). Revenue in Finland was up by 5.6 per cent to EUR
180.8 million (EUR 171.1 million). Revenue grew particularly at the enlarged
department store in Helsinki city centre. Also the leading distance retailer
Hobby Hall increased its revenue.
Euro-denominated revenue from international operations grew by 37.7 per cent.
Revenue abroad accounted for 29.4 per cent (24.3 per cent) of the Division's
total revenue. Revenue in Russia was up significantly due to the new department
store in St Petersburg and the strong development of the newest department
stores in Moscow. In the Baltic countries, the revenue of department stores
developed also favourably.
The relative gross margin during the period was at the previous year's level,
at 39.7 per cent (39.6 per cent). The Department Store Division's operating
result amounted to EUR -14.8 million (EUR -8.2 million). Costs and depreciation
were clearly higher than the same period a year earlier due to the expansion
and the relocation of the logistics centre in Moscow.
Lindex
Lindex's January-March revenue totalled EUR 123.3 million, which was 6.6 per
cent more than a year earlier (EUR 115.7 million). Revenue in Finland was on
par with the previous year and in other countries up by 7.5 per cent. Revenue
growth remained strong in the new markets in Central Europe and Russia. The
strengthening of the Swedish krona against the euro increased revenue. Measured
in like-for-like local currencies, revenue was almost at the level of the
previous year.
The relative gross margin for the review period decreased but remained high, at
62.1 per cent (64.3 per cent). Due to the expansion of the store network, fixed
costs and depreciation grew faster than the increase in the gross margin.
Lindex's first-quarter operating result was EUR -7.9 million (EUR 2.1 million).
Seppälä
Seppälä's revenue decreased by 9.5 per cent compared with the first quarter of
2010, to EUR 27.9 million (EUR 30.8 million). Revenue was down by 9.9 per cent
in Finland and 8.8 per cent abroad. The number of visitors in the stores
decreased in all market areas. Furthermore, deliveries to the Russian market
were delayed in the start of the season due to capacity issues in the Far East
procurement market. Revenue abroad accounted for 36.2 per cent (35.9 per cent)
of Seppälä's total revenue.
Increased sourcing prices and actions to boost sales decreased the relative
gross margin which was 53.8 per cent (56.7 per cent). Seppälä's operating
result was EUR -4.9 million (EUR -0.9 million).
FINANCING AND CAPITAL EMPLOYED
Cash and cash equivalents totalled EUR 31.6 million at the end of March 2011,
as against EUR 22.2 million a year earlier and EUR 36.7 million at the close of
2010. Cash flow from operating activities came to EUR -145.4 million (EUR -73.8
million).
Interest-bearing liabilities at the end of March were EUR 979.5 million (EUR
769.3 million), of which EUR 520.1 million (EUR 616.7 million) was long-term
debt. In addition, the Group has EUR 341.8 million in undrawn, long-term
committed credit facilities. At the close of 2010, interest-bearing liabilities
amounted to EUR 813.3 million, of which EUR 521.3 million was long-term debt.
Net working capital amounted to EUR 151.6 million at the end of March, as
against EUR 119.6 million a year earlier and EUR 79.5 million at the end of
2010. The 2010 dividend of EUR 58.3 million, decided by the Annual General
Meeting on 22 March 2011, was paid in April. At the end of March, the equity
ratio was 36.8 per cent (41.9 per cent). At the close of 2010 the equity ratio
was 43.1 per cent. Net gearing at the end of March was 119.7 per cent (93.0 per
cent). At the end of 2010, net gearing was 87.7 per cent.
The return on capital employed over the past 12 months was 4.3 per cent (5.8
per cent in 2010). The Group's capital employed increased by EUR 199.3 million
from March 2010, standing at EUR 1 771.6 million on 31 March 2011 (EUR 1
572.3million).
CAPITAL EXPENDITURE
Capital expenditure during the first three months of the year totalled EUR 23.8
million (EUR 38.5 million). Depreciation was EUR 19.1 million (EUR 14.2
million).
Stockmann opened a new department store in Ekaterinburg in Russia on 30 March
2011. The department store operates in leased premises in the Greenwich
shopping centre and its retail space amounts to approximately
7 800 square metres. Stockmann has invested about EUR 14 million in the
project, of which EUR 7.8 million was recognised in the first quarter.
At the end of 2010, the Department Store Division's Russian logistics centre
moved to new, modern leased premises in the north-west part of Moscow. The
capital expenditure on the new warehouse totalled EUR 3.1 million of which EUR
2.7 million was recognised in this quarter.
In December 2010, a decision was taken by the Department Store Division to
acquire a new enterprise resource planning (ERP) system. This extensive project
was launched in March 2011 and will last several years. A total of EUR 2.8
million was spent on the project during the first quarter.
The Department Store Division's capital expenditure during the first three
months totalled EUR 15.5 million (EUR 33.0 million).
Lindex opened six stores during the first quarter: three in Russia, one in
Lithuania, one franchising store in Saudi Arabia and one store in its new
market area, Poland. In January, Lindex opened its online store in the entire
area of the EU. Lindex's fashion can now be purchased over the Internet in 27
European countries. Two stores were closed in the quarter; one in Sweden and
one in Norway. Lindex's capital expenditure totalled EUR 6.6 million (EUR 5.0
million).
Seppälä did not open any new stores during the period under review. One store
in Finland was closed. Seppälä's capital expenditure totalled EUR 1.1 million
(EUR 0.5 million).
The Group's other capital expenditure came to a total of EUR 0.5 million (EUR
0.1 million). The Group's financial management systems will be replaced
gradually in connection with the renewal of the Department Store Division's ERP
system.
NEW PROJECTS
The capital expenditure plan for the 2011 financial year has been adjusted to
match the uncertainty in the market. The capital expenditure is estimated to
amount to about EUR 70 million in 2011 which is EUR 15 million less than in the
earlier plan.
Stockmann signed in 2010 a contract for the enlargement of its Tampere
department store, which operates in leased premises. The enlargement of 4 000
square metres will increase the department store's retail space to 15 000
square metres. Stockmann's investment will be approximately EUR 6 million. The
target for completing the enlargement is year 2013.
Lindex will continue with its expansion, but the number of new stores in 2011
is adjusted to about 30 stores, including franchising stores. Most of the new
stores will be opened in Central Europe and in Russia. After the reporting
period two stores have been opened; one in Finland and one franchising store in
Saudi Arabia.
Seppälä is expanding its store network slightly slower than planned earlier.
After the reporting period three new stores have been opened and four stores
are still to be opened in 2011 in Russia and Finland.
DECISIONS OF THE ANNUAL GENERAL MEETING
The Annual General Meeting of Stockmann plc, held in Helsinki on 22 March 2011,
adopted the financial statements for the financial year 1 January - 31 December
2010, granted release from liability to the responsible officers and resolved
to pay a dividend of EUR 0.82 per share for 2010, in total EUR 58.3 million.
The dividend is 74.5 per cent of the earnings per share.
The Annual General Meeting resolved, in accordance with the proposal of the
Board's Appointments and Compensation Committee, that eight members be elected
to the Board of Directors. In accordance with the Committee's proposal,
Managing Director Kaj-Gustaf Bergh, Managing Director Erkki Etola, Rector Eva
Liljeblom, Managing Director Kari Niemistö, Managing Director Charlotta
Tallqvist-Cederberg, Christoffer Taxell, LL.M., and Carola Teir-Lehtinen,
M.Sc., were re-elected and Managing Director Dag Wallgren was elected as a new
member of the Board of Directors. The Board members' term of office will
continue until the end of the next Annual General Meeting. It was resolved to
keep the Board members' remuneration unchanged, and the remuneration will
continue to be paid mainly in shares.
In its organisational meeting, which convened after the Annual General Meeting
on 22 March 2011, the Board of Directors re-elected Christoffer Taxell as its
Chairman and Erkki Etola as its Vice Chairman. The Board of Directors elected
Christoffer Taxell as Chairman of the Appointments and Compensation Committee
and Erkki Etola, Charlotta Tallqvist-Cederberg and Dag Wallgren as the other
members of the Committee.
Jari Härmälä, Authorised Public Accountant, and Henrik Holmbom, Authorised
Public Accountant, were re-elected as the regular auditors. KPMG Oy Ab, a firm
of authorised public accountants, will continue as the deputy auditor.
SHARES AND SHARE CAPITAL
The company's market capitalization at the end of March 2011 was EUR
1 636.6 million. At the end of 2010 the market capitalization stood at EUR 2
047.1 million.
At the end of March 2011, the price of Stockmann's Series A shares was EUR
25.39, compared with EUR 29.40 at the end of 2010, and the Series B shares were
selling at EUR 21.20, as against EUR 28.30 at the end of 2010. A total of 0.1
million (0.6 million) Series A shares and 4.9 million (5.9 million) Series B
shares were traded during the quarter. This corresponds to 0.3 per cent of the
average number of Series A shares and 12.0 per cent of the average number of
Series B shares.
On 31 March 2011, Stockmann had 30 627 563 Series A shares and 40 518 437
Series B shares, or a total of 71 146 000 shares. Series A shares each confer
10 votes, while Series B shares each confer one vote. The shares carry an equal
right to dividends.
The company does not hold any of its own shares, and the Board of Directors has
no valid authorisations to purchase shares of the company or to issue new
shares.
At the end of March 2011, Stockmann had 45 760 shareholders, compared with 43
734 a year earlier.
PERSONNEL
The Stockmann Group's average number of personnel in the first quarter was
higher than in the same period a year earlier. The growth was mainly due to the
opening of new department stores in Russia, the enlargement of the Helsinki
department store and the expansion of the Lindex store chain.
The Group's average number of personnel in the first quarter was 15 552, an
increase of 1 442 employees on the same period in 2010. The average number of
employees, in terms of full-time equivalents, increased by 949, to 11 843.
The Group's wages and salaries amounted to EUR 76.8 million, compared with EUR
67.9 million a year earlier. The employee benefits expenses totalled EUR 98.0
million (EUR 85.8 million) which accounted for 24 per cent (23 per cent) of
revenue.
At the end of March 2011, the Group had 16 224 employees (14 447). The figure
includes approximately 600 fixed term season employees in Finland due to the
timing of the Crazy Days sales campaign. The number of personnel working abroad
was 9 039. A year earlier the number of employees working abroad was 8 077. The
proportion of employees working abroad was 56 per cent (56 per cent) of the
total.
EVENTS AFTER THE CLOSE OF THE REPORTING PERIOD
On 26 April 2011, Stockmann filed an application to the International Court of
Arbitration in Stockholm to initiate arbitration between Stockmann and the
construction company OOO CSCEC (“Kitai Stroi”). The purpose of the arbitration
is to settle a disagreement concerning the final value of the construction
contract for the Nevsky Centre shopping centre in St Petersburg.
The arbitration procedure is expected to begin in 2011 and to last an estimated
two years. The final claims of both parties will be further clarified during
the arbitration. Stockmann estimates that the outcome of the arbitration
process will not have a significant relevance to the financial position of the
company.
RISK FACTORS
Besides Finland, Sweden, Norway, Russia and the Baltic countries, the Stockmann
Group also has business operations in the Czech Republic, Slovakia, Poland and
Ukraine, in each of which operations are at their start-up phase. The
recovering economy is influencing consumers' purchasing behaviour and
purchasing power in all of the Group's market areas. Rapid and unexpected
movements in markets and the recent world events may influence the behaviour of
both financial markets and consumers. In addition, increasing prices of
necessity goods such as food and energy will increase inflation and can
decrease the consumers' purchasing power. Consumer demand has still not
recovered to its pre-downturn level.
Business risks in Russia are greater than in the Nordic countries or the Baltic
countries, and the operating environment is less stable owing to factors such
as the undeveloped state of business culture and the country's infrastructure.
The role of the grey economy, particularly in the importation of consumer
goods, is still considerable and plays a part in distorting competition.
Russia's possible membership in the World Trade Organisation (WTO) would
probably bring greater clarity to the competition environment, for instance via
reductions in excise duties. The Russian economy began to grow strongly in the
early part of 2010 as energy prices rose and, as a result, the country's
currency strengthened. The trend in energy prices will have a significant
impact on the development of the Russian economy in the next few years as well.
China's growing role in the global economy and its rapidly developing domestic
market have heated up the Far East procurement markets. For retailing, a key
challenge is the shortage of production capacity and the rising raw material
prices, which are leading to upward pressure on prices.
Fashion accounts for over half of the Group's revenue. An inherent aspect of
the fashion trade is the short life cycle of products and their dependence on
trends, the seasonality of sales and the susceptibility to abnormal changes in
weather conditions. The Group addresses these factors as part of its day-to-day
management of operations. With the exclusion of major exceptional situations,
these factors are not expected to have a significant effect on the Group's
revenue or earnings.
The Group's operations are based on flexible logistics and efficient flows of
goods. Delays and disturbances in the flow of goods and information can have a
temporary adverse effect on operations. Every effort is made to manage these
operational risks by developing appropriate back-up systems and alternative
ways of operating, and by seeking to minimise disturbances to information
systems. Operational risks are also met by taking out insurance cover.
Operational risks are not considered to have any significant effect on
Stockmann's business activities.
The Group's revenue, earnings and balance sheet are affected by changes in
exchange rates between the Group's reporting currency, the euro, and the
Swedish krona, the Norwegian krone, the Russian rouble, the US dollar and
certain other currencies. Financial risks, including risks arising from
interest rate fluctuations, are managed in accordance with the risk policy
confirmed by the Board of Directors, and these risks are not considered to have
a significant effect on the Group's business operations.
OUTLOOK FOR THE REST OF 2011
The recovery of the world economy has continued, and consumer confidence is
expected to remain at a good level in Stockmann's main market areas. Growth in
the Russian market is expected to be higher than in the Nordic countries. In
the Baltic countries, the positive upswing is strengthening the consumer
market. The increasing inflation has an impact on the consumers' purchasing
power in all markets.
Stockmann's Department Store Division's investments completed in autumn 2010
will have a positive impact on the revenue over the entire year in 2011. A new
department store was opened in Ekaterinburg, Russia, at the end of March 2011.
Several of the department stores in Russia, however, are still in their
start-up phase.
The market for affordable fashion started slowly compared to the very strong
first quarter in 2010. The development is expected to improve towards the end
of the year compared to last year. Increased sourcing prices are still putting
upward pressure on consumer prices.
In 2010, Stockmann reached a significant profit increase during the first
quarter. In 2011, Stockmann sees, as a whole, opportunities for profit growth
particularly in the two last quarters of the year.
The Stockmann Group estimates to achieve continued revenue growth in 2011. The
operating profit for the financial year is expected to be above the previous
year's figure.
The Group's total capital expenditure in 2011 has been adjusted from an
estimated EUR 85 million to an estimated EUR 70 million.
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 2010
financial statements. The figures are unaudited.
Consolidated income
statement
EUR millions 1.1.-31.3.2011 1.1.-31.3.2010 1.1.-31.12.2010
REVENUE 407.7 372.6 1,821.9
Other operating income 0.0 0.0 0.0
Materials and consumables -214.3 -190.9 -913.0
Wages, salaries and employee -98.0 -85.8 -361.9
benefits expenses
Depreciation and -19.1 -14.2 -61.8
amortisation
Other operating expenses -106.2 -90.8 -396.4
OPERATING PROFIT -29.9 -9.2 88.8
Finance income and expenses -8.3 -0.6 -14.6
PROFIT/LOSS BEFORE TAX -38.3 -9.8 74.2
Tax on income from 3.5 12.0 4.2
operations
PROFIT/LOSS FOR THE PERIOD -34.8 2.2 78.3
Other comprehensive income, 1.1.-31.3.2011 1.1.-31.3.2010 * 1.1.-31.12.2010
EUR mill.
PROFIT/LOSS FOR THE PERIOD -34.8 2.2 78.3
Other comprehensive income
Exchange differences on 0.2 2.8 8.5
translating foreign
operations
Cash flow hedges -1.1 0.3 -0.9
Other comprehensive income -0.9 3.1 7.6
for the year net of tax
TOTAL COMPREHENSIVE INCOME -35.7 5.2 85.9
FOR THE YEAR
Total comprehensive income
attributable to:
Equity holders of the parent -35.7 5.2 85.9
Non-controlling interest 0.0 0.0 0.0
Key figures 31.3.2011 31.3.2010 * 31.12.2010
EPS undiluted (EUR), -0.49 0.03 1.10
adjusted for share issue
EPS diluted (EUR), adjusted -0.48 0.03 1.09
for share issue
Operating profit, per cent -7.3 -2.5 4.9
of turnover
Equity per share, EUR 11.13 11.29 12.45
Return on equity, per cent, 5.2 11.2 9.0
moving 12 months
Return on capital employed, 4.3 6.7 5.8
per cent, moving 12 months
Average number of employees, 11 843 10 894 11 503
converted to full-time
staff
Investments, EUR millions 23.8 38.5 165.4
*Period's reference data has
been adjusted by correction
of mistake in financial
periods 2008-2009. For more
information: Stockmann
financial statement 2010,
note 30.
Consolidated statement of financial
position
EUR millions 31.3.2011 31.3.2010 * 31.12.2010
ASSETS
NON-CURRENT ASSETS
Intangible assets 122.1 110.7 122.3
Goodwill 786.6 723.4 783.8
Property, plant, equipment 731.4 648.7 726.0
Non-current receivables 0.7 0.4 0.8
Available for sale investments 5.0 5.0 5.0
Deferred tax asset 9.0 5.4 8.7
NON-CURRENT ASSETS 1 654.9 1 493.7 1 646.7
CURRENT ASSETS
Inventories 305.4 244.6 240.3
Interest bearing receivables 70.8 64.9 41.4
Non-interest bearing receivables 91.5 92.8 88.7
Cash and cash equivalents 31.6 22.2 36.7
CURRENT ASSETS 499.3 424.5 407.1
ASSETS 2 154.2 1 918.1 2 053.8
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Equity attributable to equity holders of 792.0 803.0 885.7
the parent
Non-controlling interest -0.0 -0.0 -0.0
SHAREHOLDERS' EQUITY 792.0 803.0 885.7
LONG-TERM LIABILITIES
Deferred tax liability 66.2 61.7 63.8
Long-term liabilities, interest-bearing 520.1 616.7 521.3
Provisions 0.4 1.4 0.2
NON-CURRENT LIABILITIES 586.6 679.8 585.2
CURRENT LIABILITIES
Short-term interest-bearing liabilities 459.5 152.6 292.0
Short term interest-free liabilities 316.1 282.7 290.9
CURRENT LIABILITIES 775.6 435.3 582.9
TOTAL EQUITY AND LIABILITIES 2 154.2 1 918.1 2 053.8
Key figures 31.3.2011 31.3.2010 * 31.12.2010
Equity ratio, per cent 36.8 41.9 43.1
Net gearing, per cent 119.7 93.0 87.7
Cash flow from operations per share, EUR -2.02 -1.04 1.29
Interest-bearing net debt, EUR mill. 877.2 682.2 735.1
Number of shares in the end of the period, 71 146 71 094 71 146
thousands
Weighted average number of shares, 71 146 71 094 71 120
thousands
Weighted average number of shares, diluted, 71 936 71 750 71 897
thousands
Market capitalization, EUR mill. 1 636.6 1 971.6 2 047.1
*Period's reference data has been adjusted
by correction of mistake in financial
periods 2008-2009. For more information:
Stockmann financial statement 2010, note
30.
Consolidated cash flow
statement
EUR millions 1.1.-31.3.2011 1.1.-31.3.2010 1.1.-31.12.2010
Cash flows from operating
activities
Profit/loss for the period -34.8 2.2 78.3
Adjustments for:
Depreciation, amortisation & 19.1 14.2 61.8
impairment loss
Gains (-) and Losses (+) of 0.0 0.0 0.1
disposals of fixed assets and
other non-current assets
Interest and other financial 7.7 4.3 22.8
expenses
Interest income 0.7 -3.7 -8.2
Tax on income from operations -3.5 -12.0 -4.2
Other adjustments 0.4 0.1 -1.1
Working capital changes:
Increase (-) / decrease (+) in -64.8 -44.3 -34.3
inventories
Increase (-) /decrease(+) in -28.5 -27.7 -1.1
trade and other receivables
Increase (+) / decrease (-) in -38.9 -0.4 15.7
short-term interest-free
liabilities
Interest and other financial -5.3 -4.3 -22.5
expenses paid
Interest received 0.1 0.2 0.8
Other financing items -0.1 1.1 0.0
Income taxes paid 2.5 -3.5 -16.4
Net cash from operating -145.4 -73.8 91.8
activities
Cash flows from investing
activities
Purchase of tangible and -21.3 -41.9 -166.7
intagible assets
Proceeds from sale of tangible 0.1 0.1 0.7
and intangible assets
Purchase of investments 0.0 0.0 0.1
Proceeds from sale of -0.1 0.0 0.0
investments
Dividends received 0.0 0.1 0.3
Net cash used in investing -21.3 -41.7 -165.7
activities
Cash flows from financing
activities
Proceeds from issue of share 0.0 0.0 1.5
capital
Proceeds from short-term 160.5 150.0 236.8
borrowings
Repayment of short-term 0.0 0.0 -50.3
borrowings
Proceeds from long-term 0.0 0.0 518.8
borrowings
Repayment of long-term -0.1 -189.4 -721.8
borrowings
Payment of finance lease -0.5 -0.4 -1.5
liabilities
Dividends paid 0.0 0.0 -51.2
Net cash used in financing 160.0 -39.7 -67.7
activities
Net increase/decrease in cash -6.8 -155.3 -141.6
and cash equivalents
Cash and cash equivalents at 36.7 176.3 176.3
beginning of the period
Cheque account with overdraft -0.3 -0.5 -0.5
facility
Cash and cash equivalents at 36.4 175.8 175.8
beginning of the period
Net increase/decrease in cash -6.8 -155.3 -141.6
and cash equivalents
Effects of exchange rate 0.1 0.9 2.2
fluctuations on cash held
Cash and cash equivalents at 31.6 22.2 36.7
the end of the period
Cheque account with overdraft -1.9 -0.9 -0.3
facility
Cash and cash equivalents at 29.7 21.3 36.4
the end of the period
Statement of changes in equity, Group Share Share premium Hedging
EUR millions capital fund reserve*
EQUITY 1.1.2010 142.2 186.1 0.0
Changes in equity for
Dividend distribution
New share issue 0.0
Options exercised 0.0 0.0
Share premium 0.0
Net gain/loss of own shares 0.0
Transaction costs for equity 0.0
Total comprehensive income for the 0.0 0.0 0.3
year
Other changes
Deferred taxes' share of period 0.0
movements
Other changes 0.0 0.0 0.0
SHAREHOLDERS' EQUITY TOTAL 31.3.2010 142.2 186.1 0.3
Statement of changes in equity, Group Share Share premium Hedging
EUR millions capital fund reserve*
EQUITY 1.1.2011 142.3 186.1 -0.6
Changes in equity for
Dividend distribution
New share issue 0.0
Options exercised 0.0 0.0
Share premium 0.0
Sale of own shares 0.0
Transaction costs for equity 0.0
Total comprehensive income for the 0.0 0.0 -1.1
year
Other changes
Deferred taxes' share of period 0.0
movements
Other changes 0.0 0.0 0.0
SHAREHOLDERS' EQUITY TOTAL 31.3.2011 142.3 186.1 -1.7
*) Adjusted with deferred tax
liability.
Statement of changes in equity, Group EUR Reserve for Other Trans-
millions invested un- reserv lation-
restricted es diffe-
equity rences**
EQUITY 1.1.2010 243.3 44.1 -5.0
Changes in equity for
Dividend distribution
New share issue
Options exercised 0.0
Share premium 0.0
Net gain/loss of own shares
Transaction costs for equity 0.0
Total comprehensive income for the year 0.0 0.0 2.8
Other changes
Deferred taxes' share of period movements 0.0 0.0
Other changes 0.0 0.0 0.0
SHAREHOLDERS' EQUITY TOTAL 31.3.2010 243.3 44.1 -2.2
Statement of changes in equity, Group EUR Reserve for Other Trans-
millions invested un- reserv lation-
restricted es diffe-
equity rences**
EQUITY 1.1.2011 244.6 43.8 3.5
Changes in equity for
Dividend distribution
New share issue
Options exercised 0.0
Share premium 0.0
Sale of own shares
Transaction costs for equity 0.0
Total comprehensive income for the year 0.0 0.0 0.2
Other changes
Deferred taxes' share of period movements 0.0 0.0
Other changes 0.0 0.1 0.0
SHAREHOLDERS' EQUITY TOTAL 31.3.2011 244.6 43.9 3.7
**) Period's reference data has been adjusted
by correction of mistake in financial periods
2008-2009. For more information: Stockmann
financial statement 2010, note 30.
Statement of changes in equity, Group EUR Retain Total Non-cont Total
millions ed rolling
earnin interest
gs
**
EQUITY 1.1.2010 238.1 848.8 0.0 848.8
Changes in equity for
Dividend distribution -51.1 -51.1 0.0 -51.1
New share issue 0.0 0.0 0.0
Options exercised 0.2 0.2 0.0 0.2
Share premium 0.0 0.0 0.0
Net gain/loss of own shares 0.0 0.0 0.0 0.0
Transaction costs for equity 0.0 0.0 0.0
Total comprehensive income for the year 2.0 5.1 0.0 5.1
Other changes
Deferred taxes' share of period movements 0.0 0.0 0.0 0.0
Other changes 0.0 0.0 0.0 0.0
SHAREHOLDERS' EQUITY TOTAL 31.3.2010 189.2 803.0 0.0 803.0
Statement of changes in equity, Group EUR Retain Total Non-cont Total
millions ed rolling
earnin interest
gs
**
EQUITY 1.1.2011 266.0 885.7 0.0 885.7
Changes in equity for
Dividend distribution -58.3 -58.3 0.0 -58.3
New share issue 0.0 0.0 0.0
Options exercised 0.3 0.3 0.0 0.3
Share premium 0.0 0.0 0.0
Sale of own shares 0.0 0.0 0.0 0.0
Transaction costs for equity 0.0 0.0 0.0
Total comprehensive income for the year -34.8 -35.7 0.0 -35.7
Other changes
Deferred taxes' share of period movements 0.0 0.0 0.0 0.0
Other changes 0.0 0.1 0.0 0.1
SHAREHOLDERS' EQUITY TOTAL 31.3.2011 173.1 792.0 0.0 792.0
**) Period's reference data has been adjusted by
correction of mistake in financial periods
2008-2009. For more information: Stockmann
financial statement 2010, note 30.
Contingent liabilites, Group, 31.3.2011 31.3.2010 31.12.2010
EUR millions
Mortages on land and buildings 201.7 201.7 201.7
Pledges 0.5 1.1 0.5
Liabilities of adjustments of VAT 34.5 35.8 41.4
deductions made on investments to
immovable property
Total 236.6 238.5 243.5
Lease agreements on business premises,
EUR millions
Minimum rents payable on the basis of
binding lease agreements on business
premises
Within one year 156.0 146.7 174.2
After one year 670.0 641.9 651.9
Total 826.1 788.6 826.0
Lease payments, EUR millions
Within one year 7.3 7.2 7.3
After one year 11.2 17.4 12.8
Total 18.5 24.6 20.2
Derivate contracts, EUR millions
Nominal value
Currency derivatives 625.3 509.8 517.8
Electricity derivates 3.0 3.2 3.2
Total 628.3 513.0 521.0
Exchange rates
Country
Russia RUB 40.2850 39.6950 40.8200
Latvia LVL 0.7095 0.7085 0.7094
Lithuania LTL 3.4528 3.4528 3.4528
Norway NOK 7.8330 8.0135 7.8000
Sweden SEK 8.9329 9.7135 8.9655
Segment information,
Group,
EUR millions
Operating segments
Revenue 1.1.-31.3.2011 1.1.-31.3.2010 Change 1.1.-31.12.2010
%
Department Store 256.4 226.0 13 1,099.9
Division
Lindex 123.3 115.7 7 578.7
Seppälä 27.9 30.8 -9 143.2
Unallocated 0.1 0.1 0.0
Group 407.7 372.6 9 1,821.9
Operating profit 1.1.-31.3.2011 1.1.-31.3.2010 Change 1.1.-31.12.2010
%
Department Store -14.8 -8.2 32.9
Division
Lindex -7.9 2.1 54.8
Seppälä -4.9 -0.9 9.0
Unallocated -2.3 -2.1 -7.9
Group -29.9 -9.2 88.8
Investments, gross 1.1.-31.3.2011 1.1.-31.3.2010 Change 1.1.-31.12.2010
%
Department Store 15.5 33.0 -53 131.1
Division
Lindex 6.6 5.0 32 28.2
Seppälä 1.1 0.5 130 4.7
Unallocated 0.5 0.1 686 1.4
Group 23.8 38.5 -38 165.4
Assets 1.1.-31.3.2011 1.1.-31.3.2010 Change 1.1.-31.12.2010
* %
Department Store 979.6 856.5 14 904.4
Division
Lindex 1,035.9 928.2 12 1,005.9
Seppälä 107.7 109.1 -1 108.3
Unallocated 31.0 26.1 19 35.2
Group 2,154.2 1,919.9 12 2,053.8
Information from market
areas
Revenue 1.1.-31.3.2011 1.1.-31.3.2010 Change 1.1.-31.12.2010
%
Finland 212.2 204.4 4 987.8
Sweden and Norway ** 102.5 96.9 6 480.6
Baltic states and 28.5 25.8 10 123.7
Central Europe ***
Russia and Ukraine 64.5 45.5 42 229.8
Group 407.7 372.6 9 1,821.9
Finland, % 52.0 54.9 54.2
International 48.0 45.1 45.8
operations, %
Operating profit 1.1.-31.3.2011 1.1.-31.3.2010 Change 1.1.-31.12.2010
%
Finland -10.7 -3.3 44.9
Sweden and Norway ** -3.1 5.1 57.1
Baltic states and -2.5 -2.4 1.0
Central Europe ***
Russia and Ukraine -13.6 -8.5 -14.2
Group -29.9 -9.2 88.8
Finland, % 35.7 36.0 50.6
International 64.3 64.0 49.4
operations, %
*) Period's reference
data has been adjusted
by correction of
mistake in financial
periods 2008-2009. For
more information:
Stockmann financial
statement 2010, note
30.
**) Only Lindex
*** ) Estonia, Latvia,
Lithuania, Czech
Republic. Slovakia,
Poland
Income statement,
Group, quarterly Q1 Q4 Q3 Q2
EUR millions 2011 2010 2010 2010
Revenue 407.7 576.9 420.7 451.7
Other operating income 0.0 0.0 0.0 0.0
Materials and consumables -214.3 -291.7 -210.2 -220.2
Wages, salaries and employee benefits expenses -98.0 -102.9 -82.7 -90.4
Depreciation and amortisation -19.1 -17.1 -15.3 -15.2
Other operating expenses -106.2 -116.6 -94.0 -95.0
Operating profit (loss) -29.9 48.5 18.4 30.9
Finance income and expenses -8.3 -4.2 -6.6 -3.2
Profit (loss) before tax -38.3 44.3 11.9 27.8
Income taxes 3.5 -7.3 1.5 -2.1
Profit for the period -34.8 37.1 13.4 25.7
Earnings per share, EUR
Basic -0.49 0.52 0.19 0.36
Diluted -0.48 0.52 0.18 0.36
Revenue, EUR millions
Department Store Division 256.4 373.4 235.0 265.5
Lindex 123.3 165.6 149.4 148.1
Seppälä 27.9 37.9 36.8 37.7
Unallocated 0.1 0.0 -0.5 0.5
Group 407.7 576.9 420.7 451.7
Operating profit (loss), EUR millions
Department Store Division -14.8 30.9 1.4 8.8
Lindex -7.9 17.1 16.2 19.5
Seppälä -4.9 2.8 2.2 4.8
Unallocated -2.3 -2.3 -1.4 -2.2
Group -29.9 48.5 18.4 30.9
*) Period's reference data has been adjusted by
correction of mistake in financial periods
2008-2009. For more information: Stockmann
financial statement 2010, note 30.
Income statement,
Group, quarterly Q1 Q4 Q3 Q2
EUR millions 2010 2009 * 2009 2009
Revenue 372.6 526.3 389.3 429.7
Other operating income 0.0 0.0 0.0 0.3
Materials and consumables -190.9 -262.7 -201.0 -220.1
Wages, salaries and employee benefits expenses -85.8 -90.8 -74.3 -82.6
Depreciation and amortisation -14.2 -15.1 -14.0 -14.7
Other operating expenses -90.8 -96.8 -82.3 -84.0
Operating profit (loss) -9.2 60.8 17.7 28.6
Finance income and expenses -0.6 -5.2 -8.8 -5.1
Profit (loss) before tax -9.8 55.6 8.9 23.5
Income taxes 12.0 -17.0 8.0 -1.4
Profit for the period 2.2 38.6 16.9 22.0
Earnings per share, EUR
Basic 0.03 0.58 0.27 0.36
Diluted 0.03 0.58 0.27 0.36
Revenue, EUR millions
Department Store Division 226.0 332.0 215.6 257.5
Lindex 115.7 155.3 136.5 136.5
Seppälä 30.8 38.4 36.7 35.6
Unallocated 0.1 0.5 0.6 0.1
Group 372.6 526.3 389.3 429.7
Operating profit (loss), EUR millions
Department Store Division -8.2 33.5 -2.8 8.4
Lindex 2.1 24.2 18.1 19.7
Seppälä -0.9 4.9 2.9 3.0
Unallocated -2.1 -1.7 -0.5 -2.5
Group -9.2 60.8 17.7 28.6
*) Period's reference data has been adjusted by
correction of mistake in financial periods
2008-2009. For more information: Stockmann
financial statement 2010, note 30.
STOCKMANN
Assets
EUR mill. 31/03/201 31.3.2010 31/12/201
1 0
Acquisition cost at the beginning of the period 1 125.5 964.8 964.8
Translation difference +/- 0.3 8.5 19.3
Increases during the period 23.8 38.5 165.4
Decreases during the period -0.5 -0.2 -23.9
Transfers between items 0.0 -0.2 0.0
Acquisition cost at the end of the period 1 149.1 1 011.4 1 125.5
Accumulated depreciation at the beginning of -277.2 -237.0 -237.0
the period
Translation difference +/- 0.2 -1.2 -1.5
Depreciation on reductions 0.4 0.3 23.1
Depreciation during the period -19.1 -14.2 -61.8
Accumulated depreciation at the end of the -295.6 -252.0 -277.2
period
Carrying amount at the beginning of the period 848.3 727.8 727.8
Carrying amount at the end of the period 853.5 759.4 848.3
Goodwill
EUR mill. 31/03/201 31/03/201 31/12/201
1 0 0
Acquisition cost at the beginning of the period 783.8 685.4 685.4
Translation difference +/- 2.9 38.0 98.4
Acquisition cost at the end of the period 786.6 723.4 783.8
Carrying amount at the beginning of the period 783.8 685.4 685.4
Carrying amount at the end of the period 786.6 723.4 783.8
Total 1 640.1 1 482.8 1 632.1
Definitions to key figures:
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)
Further information:
Hannu Penttilä, CEO, tel. +358 9 121 5801
Pekka Vähähyyppä, CFO, tel. +358 9 121 3351
www.stockmanngroup.fi
A press and analyst conference in Finnish will be held today 28 April 2011 at
9.15 a.m. at the Fazer restaurant F8 Easy on the 8th floor of Stockmann's
Helsinki city centre department store, Aleksanterinkatu 52.
A conference call in English will be held today, on 28 April 2011 at 11.15 a.m.
EET. To participate the conference call, please dial +358 9 8864 8511 and, when
requested, key in the meeting room number *657899* including the asterisks. The
presentantion material will be available for downloading on the company's
website on 28 April 2011 at 9.15 a.m. EET.
STOCKMANN plc
Hannu Penttilä
CEO
DISTRIBUTION
NASDAQ OMX
Principal media
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