2010-02-12 07:00:00 CET
2010-02-12 07:00:06 CET
REGULATED INFORMATION
Stockmann - Financial Statement Release
STOCKMANN'S FINANCIAL STATEMENT BULLETIN 2009
STOCKMANN plc
Annual Financial Statement
12.2.2010 at 8.00
STOCKMANN'S FINANCIAL STATEMENT BULLETIN 2009
EARNINGS IMPROVED IN THE FOURTH QUARTER
Stockmann's fourth-quarter sales showed a year-on-year drop of 3.0 per
cent, reaching a total of EUR 633.2 million (EUR 652.8 million in 2008).
Fourth-quarter operating profit improved, amounting to EUR 61.0 million
(EUR 58.4 million), and profit before taxes was EUR 55.8 million (EUR 45.7
million). The fourth-quarter 2008 profit was improved by the cancellation
of a EUR 4.7 million provision for the closing of the Smolenskaya
department store. Full-year sales decreased by 9.6 per cent, totalling
EUR 2 048.2 million (EUR 2 265.8 million). The drop in sales was a result
of the general state of the economy and the considerable weakening of
several currencies. The 2008 sales also included sales from the
Smolenskaya department store until it ceased operating in May, and Hobby
Hall's operations in the Baltic countries up to the end of August, when
the last stage of the discontinuation was completed. Consolidated
operating profit declined during the financial year to EUR 85.3 million
(EUR 121.9 million). The previous year's result included non-recurring
capital gains of EUR 4.2 million and expenses of EUR 6.0 million arising
from the closure of the Smolenskaya department store. Net financial
expenses fell as expected, to a total of EUR 24.0 million (EUR 50.1
million). The deduction in the deferred tax liability booked for the
unrealized exchange rate loss on the currency loan improved the result for
the financial year. Net profit for the financial year totalled EUR 54.0
million (EUR 39.1 million). Stockmann's earnings per share were EUR 0.82
(EUR 0.65). The Board of Directors will propose the payment of a dividend
of EUR 0.72 per share.
Key figures Oct-Dec Oct-Dec Index
2009 2008
Sales EUR mill. 633.2 652.8 97
Revenue EUR mill. 526.3 541.3 97
Operating profit EUR mill. 61.0 58.4 104
Profit before taxes EUR mill. 55.8 45.7 122
Net profit EUR mill. 38.9 19.9 195
Earnings per share EUR 0.58 0.34 175
2009 2008 Index
Sales EUR mill. 2 048.2 2 265.8 90
Revenue EUR mill. 1 698.5 1 878.7 90
Operating profit EUR mill. 85.3 121.9 70
Profit before taxes EUR mill. 61.3 71.7 85
Net profit EUR mill. 54.0 39.1 138
Earnings per share EUR 0.82 0.65* 125
Equity per share EUR 11.96 11.24 106
Cash flow from operating EUR mill. 146.8 170.1 86
activities
Key ratios
Net gearing per cent 72.1 107.4
Equity ratio per cent 44.1 39.0
Number of shares, weighted thousands 65 995 59 710*
average,
diluted
Return on capital employed, per cent 5.8 8.3
rolling 12 months
*Restated due to right issue in
year 2009
SALES AND EARNINGS
The Stockmann Group's sales in the financial year were down by 9.6 per
cent, to EUR 2 048.2 million (EUR 2 265.8 million). The drop in sales was
a result of the general state of the economy and the considerable
weakening of several currencies. The 2008 sales also included sales from
the Smolenskaya department store until it ceased operating in May, and
Hobby Hall's operations in the Baltic countries up to the end of August,
when the last stage of the discontinuation was completed.
Full-year sales in Finland were down by 7.6 per cent, to EUR 1 132.2
million. The Group's sales abroad totalled EUR 916.0 million, a decline of
12.0 per cent. Without the changes in currency exchange rates the Group's
sales abroad would have decreased by 7 per cent. Sales abroad accounted
for 45 per cent (46 per cent) of the Group's sales.
Gains on the sale of shares generated EUR 0.3 million (EUR 4.2 million) in
other operating income during the financial year.
With the onset of the economic downturn in autumn 2008, one of the key
objectives set for the Group was maintaining the level of the relative
gross margin by adapting procurements to the expected lower level of
demand, which was successfully achieved. The Group's operating gross
margin decreased by EUR 89.3 million, to EUR 817.7 million. The relative
gross margin was 48.1 per cent (48.3 per cent). Seppälä's relative gross
margin improved slightly and Lindex's relative gross margin remained at
the previous year's level, whereas the relative gross margin of the
Department Store Division and Hobby Hall decreased. The Group's stock
level decreased by EUR 24.2 million, to EUR 196.1 million. Operating costs
decreased by EUR 53.7 million and depreciation by EUR 3.0 million. The
company exceeded the initial cost-savings target of EUR 28 million set for
2009, partly due to changes in foreign exchange rates. Efficiency measures
aimed at achieving cost-savings will be continued.
Consolidated operating profit for the financial year was down by EUR 36.6
million, to EUR 85.3 million.
Net financial expenses decreased by EUR 26.1 million, to EUR 24.0 million
(EUR 50.1 million). Net financial expenses were increased by the reversal
of EUR 2.8 million in interest expenses capitalised during the
construction of the Mannerheimintie car park, which was sold in September.
Profit before taxes was EUR 61.3 million for the financial year, down EUR
10.4 million on the previous year's figure. Taxes for the period, a total
of EUR 7.3 million, included a decrease in deferred tax liability of EUR
10.9 million booked for the unrealized exchange rate loss on the currency
loan and a tax accrual of EUR 18.2 million. The taxes burdening the result
for the previous year earlier totalled EUR 32.7 million. Net profit for
the financial year totalled EUR 54.0 million (EUR 39.1 million).
Fourth-quarter net profit increased, amounting to EUR 38.9 million (EUR
19.1 million).
In August and September, the company arranged share issues, as a
consequence of which the number of shares increased by 9 390 617, or 15.2
per cent, and the equity by EUR 137 999 253.64, or 20.6 per cent. Earnings
per share for the financial year were EUR 0.82 (EUR 0.65), and, diluted
for options, EUR 0.82 (EUR 0.65). Equity per share was EUR 11.96 (EUR
11.24).
SALES AND EARNINGS TREND BY BUSINESS SEGMENT
Department Store Division
The Department Store Division's sales in the financial year were down by
12.3 per cent to EUR 1 068.9 million. Sales in Finland fell by 8.7 per
cent. International sales decreased by 21.2 per cent, and they accounted
for 26 per cent (29 per cent) of the division's sales. In addition to the
general state of the economy, the decline in the Department Store
Division's sales was a result of the considerable weakening of the Russian
rouble and the comparison figures for 2008, which included sales from the
Smolenskaya department store that ceased operating in May 2008, and the
vigorous sales growth in the department stores in the Baltic countries
during 2008. The rouble-denominated same-store sales by the department
stores in Russia were on a par with the previous year's figures. In
February, a new department store was opened in Moscow; its operations have
started well. Its earnings were better than expected, but were still
negative. The relative gross margin for the financial year declined
slightly. The stock level of the Department Store Division decreased as
planned, and was significantly lower than the previous year's level. The
Department Store Division's operating profit was down by EUR 29.5 million,
to EUR 24.5 million (EUR 54.0 million).
Fourth-quarter sales were down by 5.4 per cent to EUR 351.7 million.
Operating profit amounted to EUR 31.7 million (EUR 34.9 million). Non-
recurring expenses of EUR 1.5 million were booked for the closure of the
Nike franchising stores. The fourth-quarter 2008 result was improved by
the cancellation of a EUR 4.7 million provision for the closing of the
Smolenskaya department store.
Lindex
Lindex posted its all-time best result, despite the very difficult market
environment. Sales in local currencies grew by 5 per cent during the
financial year but, due to the weakening of the Swedish krona and the
Norwegian krone, the euro-denominated sales declined by 2.6 per cent to
EUR 655.1 million (EUR 672.5 million). Sales in Finland grew by 4.1 per
cent, but in other countries sales declined by 3.4 per cent. The relative
gross margin remained at the previous year's level. Lindex's operating
profit for the financial year amounted to EUR 62.4 million (EUR 58.7
million). The weakening of the Swedish krona against the euro reduced
operating profit for the financial year by an imputed EUR 6.8 million.
Lindex has been able to increase its market share in most of its main
markets.
Fourth-quarter sales in local currencies grew by 10 per cent and euro-
denominated sales grew by 10.1 per cent to EUR 193.3 million. Operating
profit increased, amounting to EUR 24.4 million, compared with EUR 20.3
million in the same period a year earlier. The weakening of the Swedish
krona against the euro reduced operating profit in the fourth quarter by
an imputed EUR 2.6 million.
Seppälä
Seppälä's sales in the financial year decreased by 7.9 per cent from the
previous year, totalling EUR 168.1 million. Sales in Finland fell by 5.1
per cent. Sales abroad were down by 13.4 per cent and accounted for 32 per
cent (34 per cent) of Seppälä's total sales. Rouble-denominated sales in
Russia grew by 15 per cent. Despite price reduction campaigns, Seppälä's
sales in the Baltic countries decreased considerably. Seppälä's relative
gross margin increased, fixed costs decreased, and depreciation increased
due to the company's expansion. Seppälä's stock level decreased as planned
and was lower than the previous year. Seppälä's operating profit decreased
by EUR 6.6 million, to EUR 8.0 million (EUR 14.6 million).
In the fourth quarter, Seppälä's sales decreased to EUR 46.5 million (EUR
51.5 million). Operating profit improved and amounted to EUR 4.9 million.
Operating profit in the same period a year earlier was EUR 4.2 million.
Hobby Hall
Hobby Hall's sales in the financial year decreased by 18.4 per cent to EUR
155.9 million (EUR 191.0 million). Sales in Finland fell by 8.4 per cent,
and sales abroad declined by 65.3 per cent. Hobby Hall discontinued its
unprofitable operations in the Baltic countries in stages up to the end of
August. Hobby Hall likewise saw its relative gross margin decline. Hobby
Hall's stock level decreased as planned and was significantly lower than
the previous year's level. Hobby Hall's operating result fell by EUR 2.5
million, amounting to EUR -1.7 (EUR 0.8 million), which was mainly due to
the discontinued operations in the Baltic countries. Hobby Hall's
discontinued operations in the Baltic countries were substantially loss-
making.
In the fourth quarter, Hobby Hall's sales in Finland were down by 7.1 per
cent to EUR 41.8 million. Operating profit amounted to EUR 1.8 million.
During the same period a year earlier, operating profit was EUR 1.6
million. Both figures included losses from the discontinued operations in
the Baltic countries.
FINANCING AND CAPITAL EMPLOYED
Liquid assets totalled EUR 176.4 million at the close of the year, as
against EUR 35.2 million a year earlier.
The programme to release capital announced earlier has been implemented by
means of sale and leaseback arrangements and divestment of non-strategic
assets, which has altogether released EUR 84.4 million in capital from non-
current assets. This includes the sale of the shares of the
Mannerheimintie car park, which was opened during the financial year, in
September using a sale and leaseback arrangement.
During the financial year, Stockmann arranged a directed share issue and a
rights offering, with which it raised a total of EUR 140.9 million in
capital. A total of EUR 4.0 million was paid in arrangement and
underwriting fees for the issues.
Funds raised through the issues were used for the advance repayment of
long-term debt. Interest-bearing liabilities at the end of the year were
EUR 789.2 million (EUR 775.7 million), of which EUR 786.9 million
consisted of long-term debt (EUR 755.7 million). Capital expenditure in
the financial year amounted to EUR 154.3 million. Net working capital
amounted to EUR 110.6 million at the close of the year, as against EUR
150.9 million a year earlier.
The equity ratio increased due to the issues and, at the end of the year,
was 44.1 per cent (39.0 per cent). Net gearing was 72.1 per cent (107.4
per cent) at the end of the year.
The return on capital employed was 5.8 per cent (8.3 per cent). The
Group's capital employed increased by EUR 174.0 million and stood at EUR
1 640.9 million (EUR 1 466.8 million) at the end of the financial year.
DIVIDENDS
In accordance with the resolution of the Annual General Meeting, a
dividend of EUR 0.62 per share was paid on the 2008 financial year, or a
total of EUR 38.0 million. Stockmann's Annual General Meeting on 17 March
2009 authorized the company's Board of Directors to decide, by 31 December
2009, on payment of a dividend of a maximum of EUR 0.38 per share in
addition to the dividend decided at the Annual General Meeting. On 14
December 2009, the Board of Directors of Stockmann decided against
exercising this authorization.
The Board of Directors will propose to the Annual General Meeting that a
dividend of EUR 0.72 per share be paid on the 2009 financial year. The
proposed dividend is 87.8 per cent of the earnings per share.
CHANGES IN THE GROUP'S STRUCTURE
Hobby Hall's business was integrated into the Department Store Division as
from the start of 2010. Hobby Hall remained an independent division until
the end of 2009, and its objective was to improve its profitability and
prepare for the integration process during the year. As part of the
measures aimed at improving profitability, Hobby Hall discontinued its
operations in Russia as from the start of 2009 and in the Baltic countries
in stages during the year. Stockmann plc's subsidiary Oy Hobby Hall Ab is
planned to be merged with the parent company on 30 June 2010. Following
the integration, there will be three reporting segments in 2010.
In September, Stockmann sold all the shares of its subsidiary Kiinteistö
Oy Mannerheimintien Pysäköintilaitos, which oversaw the Mannerheimintie
car park. Stockmann will continue the operation of the car park, which
serves the Helsinki department store, in cooperation with an outside
operator under a leaseback arrangement.
The corporate structure of the operations in Russia has been streamlined
by merging the St Petersburg-based ZAO Kalinka-Stockmann STP with its
parent company, ZAO Kalinka-Stockmann, which is based in Moscow, in
October 2009. In 2010, Stockmann will initiate the process for the merger
of ZAO Kalinka-Stockmann with its sister company ZAO Stockmann.
CAPITAL EXPENDITURE
Capital expenditure during the financial year under review totalled EUR
152.8 million (EUR 182.3 million). Following the programme to release
capital, which is currently under way, net capital expenditure totalled
EUR 68.4 million.
Department Store Division
On 13 February 2009, Stockmann opened a new department store in leased
premises in the Metropolis shopping centre near Moscow city centre. The
department store has a total area of about 8 000 square metres.
Stockmann's capital expenditure on the new location is EUR 14.2 million,
of which EUR 2.8 million was employed during 2009. The department store's
operations have started well.
A major enlargement and transformation project is under way at the
department store in the centre of Helsinki. The project involves expanding
the department store's commercial premises by about 10 000 square metres
by converting existing premises to commercial use and by building new
retail space. In addition to this, the project has involved construction
of new goods handling and servicing facilities and a car park. The new car
park was opened in May and was then sold in September by means of a sale
and leaseback arrangement as part of the programme to release capital.
After the enlargement, the Helsinki department store will have a total of
about 50 000 square metres of retail space. With the sale of the car park,
the estimated cost of the enlargement of the department store is about EUR
200 million, in addition to which significant repair and renovation work
has been and will be carried out in the old property during the course of
the project. The new and remodelled premises are being opened in stages.
The project is expected to be completed in phases up to the end of 2010.
During the financial year, the project required an investment of EUR 42.2
million.
In 2006, Stockmann purchased a commercial plot of approximately 10 000
square metres on Nevsky Prospect, St Petersburg's high street. The plot is
located next to the Vosstaniya Square metro station and in the immediate
vicinity of the Moscow railway station. Stockmann's Nevsky Centre shopping
centre is being built on this plot and will have about 100 000 square
metres of gross floor space, of which about 50 000 square metres will be
for stores and offices. A Stockmann department store of about 20 000
square metres will be housed in the shopping centre, along with other
retail stores, office premises and an underground car park. The total
investment is estimated at about EUR 185 million. The construction work
for the project is under way and proceeding according to timetable. The
building is expected to be completed during summer 2010, with commercial
operations set to start in November 2010. The leasing of premises to
external operators is proceeding as planned. During the financial year,
the project required an investment of EUR 35.3 million.
Stockmann's fifth department store in Moscow will be opened in March 2010
in the Golden Babylon shopping centre in the Rostokino district, north
Moscow. Stockmann's capital expenditure on the department store, which
will have a total retail space of about 10 000 square metres, will amount
to approximately EUR 16 million. During the financial year, the project
required an investment of EUR 7.7 million.
One new Stockmann Beauty store was opened in Finland during the financial
year, and one was closed. In Russia, three Bestseller stores were opened
and two were closed.
The Nike franchising business, which was started in 2007, did not meet the
sales and profit targets set for it, and in late 2009 Stockmann closed its
seven Nike stores in Russia.
One Outlet store was opened in Tallinn in September, and the Outlet store
in Riga was closed.
The Department Store Division's capital expenditure totalled EUR 123.2
million.
Lindex
Lindex opened 27 stores during the financial year: nine in Sweden, five in
Russia, three each in Finland and Lithuania, two in the Czech Republic,
one each in Norway, Estonia and Latvia and two in Slovakia, which is the
newest market area for Lindex and the entire Stockmann Group. One store in
Norway and one in Latvia were closed during the same period.
The company's franchising partner opened six new Lindex stores in Saudi
Arabia, and closed one.
Following the success of the Lindex Shop Online store in Sweden, Lindex
opened an online shop for customers in Denmark in late 2009.
Lindex's capital expenditure totalled EUR 22.2 million.
Seppälä
Seppälä opened 14 stores during the financial year: four each in Finland
and Russia, two each in Latvia and Lithuania and one each in Estonia and
Ukraine. Two stores in Finland, one in Russia and one in Lithuania were
closed during the same period.
Seppälä's capital expenditure totalled EUR 4.5 million.
Hobby Hall
Hobby Hall's redesigned online store was opened in July.
Hobby Hall's capital expenditure totalled EUR 2.5 million.
As a part of its efforts to revitalize its financial situation, Hobby Hall
discontinued its unprofitable operations in the Baltic countries in stages
up to the end of August. Hobby Hall's store on Hämeentie in Helsinki was
also closed in December.
Other capital expenditure
The Group's other capital expenditure came to EUR 0.4 million.
NEW PROJECTS
Department Store Division
The preliminary agreement concerning the Ekaterinburg department store was
modified. At the initial stage chain stores of the Stockmann Group were
opened in the leased premises. The objective is to open a department store
there in 2011. The preliminary agreement for opening a department store in
Vilnius, the Lithuanian capital, was cancelled.
After being integrated into the Department Store Division at the start of
2010, Hobby Hall will continue its operations as a separate brand under
the Department Store Division. Hobby Hall's expertise in distance
retailing and the investments made in it will be utilized by creating a
new distance retailing store under the Stockmann brand. The
www.stockmann.com online store will be opened in autumn 2010, and it will
have a distinctly different profile from that of Hobby Hall. The
Department Store Division's organization will therefore include three
distance retailing brands: Hobby Hall, Stockmann and the Academic
Bookstore.
Lindex
Lindex will continue its expansion, expecting to open about 40 new stores,
including franchising stores, in 2010 mainly in Central Europe and Russia.
Lindex's franchising partner intends to expand its successful chain of
franchising stores to Egypt and Dubai in 2010. Lindex has also signed a
new franchising agreement with a partner who will expand the Lindex chain
into Bosnia and Herzegovina and the neighbouring countries.
Seppälä
Seppälä is continuing to expand its store network. In 2010, a total of 5-8
new stores will be opened, mainly in Finland and Russia.
SHARES AND SHARE CAPITAL
The company's market capitalization at the end of 2009 was EUR 1 396.7
million. At the end of 2008 the corresponding figure was EUR 611.6
million.
Stockmann's shares prices during 2009 outperformed both the OMX Helsinki
Cap index and the OMX Helsinki index. At the close of 2009, the price of
the Series A shares was EUR 20.50, compared with EUR 10.10 at the end of
2008, and the Series B shares were selling at EUR 19.00, as against EUR
9.77 at the end of 2008.
In 2007, the Annual General Meeting authorized the Board of Directors to
decide on the transfer, in one or more lots, of the Series B shares held
by the company; the authorization was valid for a period of five years. On
3 June 2009, Stockmann sold the 336 528 Series B shares in its possession
in public trading arranged by NASDAQ OMX Helsinki Ltd to investors
procured by a securities broker as part of the aforementioned programme to
release capital. Following this transaction, the company no longer holds
any Stockmann shares. Stockmann's Board of Directors has no valid
authorization to purchase Stockmann shares.
The 2008 Annual General Meeting authorized the Board of Directors to
decide on the issuance of shares and on granting special rights giving
entitlement to shares under chapter 10, section 1 of the Limited Liability
Companies Act, in one or more lots. The Board of Directors was authorized
to decide on the amount of Series A and Series B shares to be issued.
However, the total number issued on the basis of the authorization may not
exceed 15 000 000 shares. The issuance of shares and granting of special
rights giving entitlement to shares may be carried out in accordance with
or deviating from shareholders' pre-emptive rights (directed issue). The
Board of Directors is authorized to decide on all the terms and conditions
regarding the issuance of shares and concerning the granting of special
rights referred to in chapter 10, section 1 of the Limited Liability
Companies Act. The authorization is valid for up to three years.
Based on the authorization granted by the 2008 Annual General Meeting,
Stockmann's Board of Directors, on 14 August 2009, offered a directed
issue to HTT Holding, a company owned by the Hartwall family, whereby a
total of 2 433 537 new Series A shares and a total of 3 215 293 new Series
B shares were issued. With this issue, the company raised EUR 96.0 million
in new capital. The new shares were registered in the Trade Register on 18
August 2009 and became subject to public trading on NASDAQ OMX Helsinki
Ltd as from 19 August 2009.
Based on the authorization granted by the 2008 Annual General Meeting, the
company's Board of Directors also decided on 14 August 2009 to carry out a
rights offering between 31 August and 18 September 2009, in which 1 611
977 new Series A shares and 2 129 810 new Series B shares, or a total of
3 741 787 shares, were subscribed using the subscription rights. With this
issue, the company raised EUR 42.0 million in new capital after deduction
of expenses. The new shares were registered in the Trade Register on 28
September 2009 and became subject to public trading alongside the old
shares on NASDAQ OMX Helsinki Ltd as from 29 September 2009.
Following the aforementioned registrations, Stockmann's share capital
increased to EUR 142 187 906. On 31 December 2009, the number of Stockmann
Series A shares totalled 30 627 563 and Series B shares 40 466 390. With
the aforementioned share issues, all of the Board of Directors'
authorizations for the issuance of shares have been exercised.
BOARD OF DIRECTORS' PROPOSAL TO THE ANNUAL GENERAL MEETING
The Board of Directors proposes to the Annual General Meeting that a total
of 1 500 000 share options be issued without payment, in deviation from
the shareholders' pre-emptive rights, to the key personnel of Stockmann
plc and its subsidiaries. It is proposed to deviate from the shareholders'
pre-emptive rights because the share options are a part of the incentive
and commitment scheme for the Group's key personnel and constitute an
important element in preserving the company's competitive advantage on the
international recruitment market. Of the share options 500 000 shall be
marked with the identifier 2010A, 500 000 with the identifier 2010B, and
500 000 with the identifier 2010C. The share subscription period for the
share options 2010A shall be 1 March 2013 - 31 March 2015, for share
options 2010B 1 March 2014 - 31 March 2016 and for share options 2010C 1
March 2015 - 31 March 2017. Each share option entitles its owner to
subscribe for one Stockmann plc Series B share so that the share options
in total entitle to subscribe for a maximum of 1 500 000 shares. The share
subscription price relating to the share options 2010A shall be the trade
volume weighted average price of the company's Series B shares on the
Helsinki stock exchange during the period 1 February - 28 February 2010
increased by a minimum of 10 per cent, the share options 2010B the trade
volume weighted average price of the company's Series B shares on the
Helsinki stock exchange during the period 1 February - 28 February 2011
increased by a minimum of 10 per cent, and the share options 2010C the
trade volume weighted average price of the company's Series B shares on
the Helsinki stock exchange during the period 1 February - 29 February
2012 increased by a minimum of 10 per cent. The subscription price of each
share subscribed for based on the share options shall be decreased on the
record date for each dividend payout by the amount of dividends decided
after the commencement of the determination period for the subscription
price and prior to the share subscription. As a result of the
subscriptions, the share capital of the company may increase by a maximum
of EUR 3 000 000.
NUMBER OF EMPLOYEES
The Group's personnel totalled an average of 14 656 in 2009, which was 1
013 less than the previous year (15 669 employees in 2008 and 11 161 in
2007). The number of personnel employed in the company's established
operations decreased throughout the year in comparison with the
corresponding figures for the previous year. The number of working hours
was adjusted in line with demand and customer flows. The personnel
strength has grown only in Lithuania, the Czech Republic and Ukraine,
thanks to the opening of new Lindex and Seppälä stores. The Group also
gained new employees with the opening of Lindex's first stores in
Slovakia.
Converted to full-time equivalents, Stockmann's average number of
employees decreased by 831, to 11 133 employees (11 964 in 2008 and 8 979
in 2007). The Group's total payroll amounted to EUR 261.2 million, down by
EUR 18.6 million on the corresponding figure for 2008 (EUR 279.8 million;
EUR 181.9 million in 2007).
At the end of 2009, Stockmann had 7 683 employees working abroad. The
corresponding total for the end of the previous year was 8 072 employees.
The proportion of employees working abroad was 52 per cent (51 per cent)
of the total personnel.
RISK FACTORS
The Group has business operations in Finland, Sweden, Norway, Russia and
the Baltic countries, as well as in the Czech Republic, Slovakia and
Ukraine, where operations are in their start-up phase. The risk level in
the business environment varies among the countries in which the Stockmann
Group operates. The level of business risk in the Baltic countries has
diminished significantly since these countries became members of the
European Union and, apart from uncertainty in currency exchange rates and
the risk of a continuing downturn in the economy, the risks do not differ
in any material respect from business risks in Finland. A prolonged and
difficult economic situation could also have an impact on the operating
conditions for retailing in the Baltic countries.
Business risks in Russia are higher than in the Nordic countries or the
Baltic countries, and the operating environment is less stable owing to
the undeveloped state of business culture and the country's
infrastructure. The role of the grey economy is still considerable,
particularly in the import of consumer goods, and it plays a part in
distorting competition. Following a sustained period of growth, Russia's
economy began to slow in the second half of 2008 before experiencing a
downturn in 2009, as income from energy sector exports dwindled and the
value of the Russian rouble fell. The trend in energy prices will have a
material impact on the development of the Russian economy in the next few
years.
The economic situation remains difficult and this affects consumers'
purchasing behaviour and purchasing power in all of the Group's market
areas. Stockmann is addressing the situation by launching campaigns,
striving to optimize its procurements to meet demand and boosting the
efficiency of operations. The investment programme based on Stockmann's
long-term strategy was re-evaluated as a result of the global financial
crisis. Some of the investments included in the programme have been
postponed and some have been cancelled completely, as growth prospects
have weakened considerably compared with earlier estimates. The opening
of new stores will continue, but at a slower rate than originally planned.
The ongoing enlargement and renovation project at the Helsinki department
store and the Nevsky Centre department store and shopping centre project
in St Petersburg will be completed according to plan.
Fashion accounts for about half of the Group's sales. An inherent aspect
of the fashion trade is the short life cycle of products and their
dependence on trends, the seasonality of sales and their susceptibility to
abnormal 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 material
effect on the Group's sales 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
control these operational risks by developing appropriate back-up systems
and alternative ways of operating, and by making every effort to minimize
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 and earnings 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.
AB Lindex (publ) has claimed through legal proceedings to be eligible to
deduct in Swedish taxation the losses of approximately EUR 70 million
incurred by Lindex Group's German subsidiary. The Administrative Court of
Appeal in Gothenburg overturned the favourable decisions that AB Lindex
had received in the County Administrative Court, and as a consequence
Lindex was obliged to refund to the tax authorities approximately EUR 23.8
million in taxes and interest. The taxes that were refunded had no effect
on the Stockmann Group's earnings, because Stockmann recorded the refunded
amount of tax and interest as a reduction in Lindex's equity in the
acquisition cost calculation. AB Lindex appealed against the decision of
the Administrative Court of Appeal to the Supreme Administrative Court of
Sweden, which in the summer of 2009 decided not to review the case.
Further action by the company in this case will depend on the result of
the legal process described below concerning the elimination of double
taxation between AB Lindex and Lindex GmbH.
AB Lindex (publ) and its German subsidiary, Lindex GmbH, have requested
the German and Swedish competent authorities to eliminate the double
taxation arising from intra-Group transactions in the fiscal years
1997-2004 on the basis of the Tax Treaty between Germany and Sweden and
the EC Arbitration Convention. The double taxation resulted from the
presumptive income tax payable by Lindex GmbH, which meant that a total of
EUR 94 million was added to the taxable income of Lindex GmbH. Depending
on the decision of the authorities, AB Lindex could receive a partial or
full refund of the approximately EUR 26 million in taxes paid on the
aforementioned income. The tax effect of the claim has not been recorded
in the income statement.
The International Commercial Arbitration Court of Moscow (ICAC) ruled in
favour of Stockmann in the dispute over the lease of Stockmann's
Smolenskaya department store in the centre of Moscow. The court case
concerned the exercising of a 10-year extension on the lease in accordance
with the lease agreement. Despite the ruling, the lessors cut off the
supply of electricity to the Stockmann department store, forcing its
closure. Due to the costs arising from the closure and the undepreciated
net expenditure, Stockmann recorded a provision of EUR 14 million in the
earnings for the second quarter of 2008. In 2008, Stockmann initiated
legal proceedings against the lessors of the Smolenskaya department store
in the International Commercial Arbitration Court (ICAC) in Moscow,
claiming damages of about USD 75 million due to the closure of the
department store, which the management of Stockmann considers to be in
breach of the lease agreement. In its decision on 14 April 2009, the court
of arbitration ruled in favour of Stockmann, though reducing the amount of
damages awarded to about USD 7 million, and ordered the lessors to
reimburse Stockmann for the legal expenses incurred. The Stockmann Group
has not recorded this damages sum in the income statement. In order for
the ruling to be enforced, it has to be confirmed by a Russian court of
general jurisdiction. In July 2009, the lessors filed a claim with the
court of first instance in Moscow, demanding that the court overturn the
decision of the International Commercial Arbitration Court. The
Arbitration Court of the City of Moscow and the Cassation Court, which
serves as the court of first appeal, have overturned the rulings of the
International Commercial Arbitration Court. Stockmann has appealed against
this decision to the Highest Arbitration Court of Russia, where the case
is still pending.
The Stockmann Group has no other major legal proceedings pending.
OUTLOOK FOR 2010
The challenging economic environment is expected to continue during 2010.
Predicting consumer demand remains difficult, but there are signs that
demand is slowly recovering in the Nordic countries and Russia. In Russia,
the trend in the economy is to a large extent dependent on the price of
crude oil. In the Baltic countries, consumer demand is not expected to
grow in the near future.
Sales are expected to start growinggradually and opening new stores to
boost sales towards the end of the year. Adaptation measures started
during the economic downturn will be continued in 2010. The objective is
to achieve a better operating profit than in 2009.
The operating result in the first quarter of 2010 will be negative due to
normal seasonal variation, but will be up on the same quarter a year
earlier.
ACCOUNTING POLICIES
This financial statements bulletin has been prepared in compliance with
IAS 34. The accounting policies and calculation methods applied are the
same as those in the 2008 financial statements. As from 1 January 2009,
the Stockmann Group has applied the amended IAS 1 Presentation of
Financial Statements standard and the IFRS 8 Operating Segments standard.
This financial statements bulletin presents a Statement of Comprehensive
Income according to IAS 1. The operating segments presented in this
financial statements bulletin accord with IFRS 8 and are the same as the
business segments presented earlier and described in the Group's Annual
Report for 2008. The figures are unaudited.
Statement of financial position, EUR mill. 31.12.2009 31.12.2008
ASSETS
NON-CURRENT ASSETS
Intangible assets 108.3 112.1
Goodwill 685.4 646.5
Property, plant, equipment 619.5 587.5
Non-current receivables 0.6 1.6
Available for sale investments 5.0 6.6
Deferred tax asset 5.1 4.5
NON-CURRENT ASSETS 1 423.9 1 358.8
CURRENT ASSETS
Inventories 196.1 220.3
Interest bearing receivables 44.5 52.2
Non-interest bearing receivables 86.5 98.4
Cash and cash equivalents 176.4 35.2
CURRENT ASSETS 503.4 406.2
ASSETS 1 927.4 1 765.0
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Equity attributable to equity holders of the parent 850.2 689.1
Non-controlling interest -0.0 -0.0
SHAREHOLDERS' EQUITY 850.2 689.1
LONG-TERM LIABILITIES
Deferred tax liability 70.1 78.1
Long-term liabilities, interest-bearing 786.9 755.7
Provisions 1.5 2.0
NON-CURRENT LIABILITIES 858.5 835.7
CURRENT LIABILITIES
Short-term interest-bearing liabilities 2.3 20.0
Short term interest-free liabilities 216.4 220.1
CURRENT LIABILITIES 218.7 240.1
TOTAL EQUITY AND LIABILITIES 1 927.4 1 765.0
Key figures 31.12.2009 31.12.2008
Equity ratio, per cent 44.1 39.0
Net gearing, per cent 72.1 107.4
Cash flow from operations per share, EUR 2.23 2.85*
Interest-bearing net debt, EUR mill. 568.3 688.2
Number of shares in the end of the period, 71 094 61 703
thousands
Weighted average number of shares, thousands 65 676 59 710*
Weighted average number of shares, diluted, 65 995 59 710*
thousands
Market capitalization, EUR mill. 1 396.7 611.6
*) Restated due to righ issue in year 2009.
STATEMENT OF CASH FLOWS, EUR millions 12/2009 12/2008
Cash flows from operating activities
Profit/loss for the period 54.0 39.1
Adjustments for:
Depreciation, amortisation & impairment loss 58.4 61.4
Gains (-) and Losses (+) of disposals of fixed -0.3 -3.5
assets and other non-current assets
Interest and other financial expenses 28.4 51.7
Interest income -4.4 -1.6
Tax on income from operations 7.3 32.7
Other adjustments -0.4 -1.4
Working capital changes:
Increase (-) / decrease (+) in inventories 27.7 24.0
Increase (-) /decrease(+) in trade and other -1.8 75.6
receivables
Increase (+) / decrease (-) in short-term interest- 7.2 -12.7
free liabilities
Interest and other financial expenses paid -32.9 -47.7
Interest received 2.1 0.8
Income taxes paid 1.4 -48.3
Net cash from operating activities 146.8 170.1
Cash flows from investing activities
Purchase of tangible and intagible assets -152.9 -181.1
Proceeds from sale of tangible and intangible 71.1 6.1
assets
Acquisition of subsidiaries, net of cash acquired 0.0 -18.9
Disposal of subsidiaries, net of cash disposed of 5.6 0.0
Purchase of investments
Proceeds from sale of investments 1.8 0.0
Dividends received 0.2 0.1
Net cash used in investing activities -74.3 -193.7
Cash flows from financing activities
Proceeds from issue of share capital 137.0 135.2
Proceeds from sale of own shares 5.1
Proceeds from short-term borrowings 0.0 20.0
Repayment of short-term borrowings -19.3 -33.3
Proceeds from long-term borrowings 200.0 152.2
Repayment of long-term borrowings -216.2 -157.3
Payment of finance lease liabilities -0.7
Dividends paid -38.0 -75.2
Net cash used in financing activities 67.9 41.7
Net increase/decrease in cash and cash equivalents 140.4 18.1
Cash and cash equivalents at beginning of the 35.2 33.2
period
Cheque account with overdraft facility -0.7 -14.6
Cash and cash equivalents at beginning of the 34.5 18.6
period
Net increase/decrease in cash and cash equivalents 140.4 18.1
Effects of exchange rate fluctuations on cash held 1.0 -2.2
Cash and cash equivalents at the end of the period 176.4 35.2
Cheque account with overdraft facility -0.5 -0.7
Cash and cash equivalents at the end of the period 175.9 34.5
Income statement, Group, EUR millions 1-12/2009 1-12/2008 Change %
REVENUE 1 698.5 1 878.7 -10
Other operating income 0.3 4.2 -94
Materials and consumables -880.8 -971.7 -9
Wages, salaries and employee benefits -327.4 -350.5 -7
expenses
Depreciation and amortisation -58.4 -61.4 -5
Other operating expenses -346.8 -377.4 -8
OPERATING PROFIT 85.3 121.9 -30
Finance income and expenses -24.0 -50.1 52
PROFIT/LOSS BEFORE TAX 61.3 71.7 -15
Tax on income from operations -7.3 -32.7 -78
PROFIT/LOSS FOR THE PERIOD 54.0 39.1 38
note
Consolidated statement of comprehensive 1-12/2009 1-12/2008 Change
income, EUR mill. %
PROFIT/LOSS FOR THE PERIOD 54.0 39.1
Other comprehensive income
Exchange differences on translating 1.9 -6.8
foreign operations
Cash flow hedges -1.4 0.9
Other comprehensive income for the year 0.5 -5.9
net of tax
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 54.5 33.2
Total comprehensive income attributable
to:
Equity holders of the parent 54.5 33.2
Non-controlling interest 0.0 -0.0
Key figures 31.12.2009 31.12.2008 Change %
EPS undiluted (EUR), adjusted for share 0.82 0.65* 26
issue
EPS diluted (EUR), adjusted for share 0.82 0.65* 25
issue
Operating profit, per cent of turnover 5.0 6.5 -23
Equity per share, EUR 11.96 11.24 6
Return on equity, per cent, moving 12 7.0 6.1 15
months
Return on capital employed, per cent, 5.8 8.3 -31
moving 12 months
Average number of employees, converted 11 133 11 964 -7
to full-time staff
Investments, EUR millions 152.8 182.3 -16
*) Restated due to righ issue in year
2009.
Segment information, Group EUR millions
Operating segments
Sales 1.1.-31.12.2009 1.1.-31.12.2008
Department Store Division 1 068.9 1 218.9
Lindex 655.1 672.5
Hobby Hall 155.9 191.0
Seppälä 168.1 182.6
Segments, total 2 048.1 2 265.0
Unallocated 0.1 0.8
Group, total 2 048.2 2 265.8
Revenue 1.1.-31.12.2009 1.1.-31.12.2008
Department Store Division 900.1 1 025.9
Lindex 527.0 540.2
Hobby Hall 129.9 159.6
Seppälä 139.5 151.9
Segments, total 1 696.5 1 877.6
Unallocated 1.9 1.1
Group, total 1 698.5 1 878.7
Operating profit 1.1.-31.12.2009 1.1.-31.12.2008
Department Store Division 24.5 54.0
Lindex 62.4 58.7
Hobby Hall -1.7 0.8
Seppälä 8.0 14.6
Segments, total 93.2 128.0
Unallocated -7.9 -6.1
Eliminations 0.0 0.0
Operating profit, Group, total 85.3 121.9
Financial income 4.4 1.6
Financial expenses -28.4 -51.7
Profit before taxes, Group, total 61.3 71.7
Depreciation 1.1.-31.12.2009 1.1.-31.12.2008
Department Store Division 29.5 32.7
Lindex 20.3 20.2
Seppälä 5.5 4.7
Hobby Hall 1.8 2.4
Segments, total 57.2 60.1
Unallocated 1.2 1.3
Eliminations 0.0 0.0
Group, total 58.4 61.4
Investments, gross 1.1.-31.12.2009 1.1.-31.12.2008
Department Store Division 123.2 146.0
Lindex 22.2 25.2
Hobby Hall 2.5 3.1
Seppälä 4.5 7.2
Segments, total 152.4 181.5
Unallocated 0.4 0.8
Group, total 152.8 182.3
Assets 1.1.-31.12.2009 1.1.-31.12.2008
Department Store Division 702.0 704.0
Lindex 870.4 806.0
Hobby Hall 62.9 90.4
Seppälä 119.8 116.5
Segments, total 1 755.0 1 716.8
Unallocated 172.3 48.1
Group, total 1 927.4 1 765.0
Information from market areas
Sales 1.1.-31.12.2009 1.1.-31.12.2008
Finland 1) 1 132.2 1 224.8
Sweden and Norway 2) 548.3 575.2
Baltic states, Czech Republic and 154.9 211.7
Slovakia 1)
Russia and Ukraine 1) 212.7 254.1
Group, total 2 048.2 2 265.8
Finland, % 55.28 54.06
International operations, % 44.72 45.94
Revenue 1.1.-31.12.2009 1.1.-31.12.2008
Finland 1) 948.0 1 021.8
Sweden and Norway 2) 439.2 460.2
Baltic states, Czech Republic and 129.6 179.8
Slovakia 1)
Russia and Ukraine 1) 181.8 217.0
Group, total 1 698.5 1 878.7
Finland, % 55.81 54.39
International operations, % 44.19 45.61
Operating profit 1.1.-31.12.2009 1.1.-31.12.2008
Finland 1) 54.3 71.1
Sweden and Norway 2) 61.5 57.3
Baltic states, Czech Republic and -4.4 10.7
Slovakia 1)
Russia and Ukraine 1) -26.0 -17.3
Group, total 85.3 121.9
Finland, % 63.65 58.38
International operations, % 36.35 41.62
Non-current assets 1.1.-31.12.2009 1.1.-31.12.2008
Finland 1) 452.6 460.9
Sweden and Norway 2) 734.0 683.6
Baltic states, Czech Republic and 31.8 55.4
Slovakia 1)
Russia and Ukraine 1) 200.4 158.9
Group, total 1 418.8 1 358.8
Finland, % 31.90 33.92
International operations, % 68.10 66.08
1) Department Store Division, Lindex,
Hobby Hall, Seppälä
2) Lindex
Statement of changes in equity, Group Share Share Hedging
EUR millions 1 - 12 / 2008 capital* premium reserve**
fund
BALANCE AT BEGINNING OF THE PERIOD 112.2 186.0 0.5
Changes in equity for
Dividend distribution
New share issue 11.2
Options exercised
Share premium 0.0
Transaction costs for equity **
Total comprehensive income for the year 0.9
SHAREHOLDERS' EQUITY TOTAL 12 / 2008 123.4 186.1 1.4
Statement of changes in equity, Group Share Share Hedging
EUR millions 1 - 12 / 2009 capital* premium reserve**
fund
BALANCE AT BEGINNING OF THE PERIOD 123.4 186.1 1.4
Changes in equity for
Dividend distribution
New share issue 18.8
Options exercised
Share premium
Sale of own shares
Transaction costs for equity **
Total comprehensive income for the year -1.4
SHAREHOLDERS' EQUITY TOTAL 12 / 2009 142.2 186.1 0.0
*Including share issue.
** Adjusted with deferred tax
liability.
Statement of changes in equity, Group Reserve Other Trans
EUR millions 1 - 12 / 2008 for reserves lation
invested reserve **
unrestric
ted equity
BALANCE AT BEGINNING OF THE PERIOD 0.0 44.1 0.0
Changes in equity for
Dividend distribution
New share issue
Options exercised
Share premium 126.2
Transaction costs for equity ** -2.1
Total comprehensive income for the year 0.0 0.0 -6.8
SHAREHOLDERS' EQUITY TOTAL 12 / 2008 124.1 44.1 -6.7
Statement of changes in equity, Group Reserve Other Trans
EUR millions 1 - 12 / 2009 for reserves lation
invested reserve **
unrestric
ted equity
BALANCE AT BEGINNING OF THE PERIOD 124.1 44.1 -6.7
Changes in equity for
Dividend distribution
New share issue
Options exercised
Share premium 122.2
Sale of own shares
Transaction costs for equity ** -2.9
Total comprehensive income for the year 1.9
SHAREHOLDERS' EQUITY TOTAL 12 / 2009 243.3 44.1 -4.9
*Including share issue.
** Adjusted with deferred tax
liability.
Statement of changes in equity, Retained Total Minority Total
Group EUR millions 1 - 12 / 2008 earnings interest
BALANCE AT BEGINNING OF THE PERIOD 250.9 593.7 0.0 593.7
Changes in equity for
Dividend distribution -75.2 -75.2 -75.2
New share issue 11.2 11.2
Options exercised 2.0 2.0 2.0
Share premium 126.2 126.2
Transaction costs for equity ** -2.1 -2.1
Total comprehensive income for the 39.1 33.2 0.0 33.2
year
SHAREHOLDERS' EQUITY TOTAL 12 / 216.8 689.1 0.0 689.1
2008
Statement of changes in equity, Retained Total Minority Total
Group EUR millions 1 - 12 / 2009 earnings interest
BALANCE AT BEGINNING OF THE PERIOD 216.8 689.1 0.0 689.1
Changes in equity for
Dividend distribution -38.0 -38.0 -38.0
New share issue 18.8 18.8
Options exercised 1.4 1.4 1.4
Share premium 122.2 122.2
Sale of own shares 5.1 5.1 5.1
Transaction costs for equity ** -2.9 -2.9
Total comprehensive income for the 54.0 54.5 0.0 54.5
year
SHAREHOLDERS' EQUITY TOTAL 12 / 239.4 850.2 850.2
2009
*Including share issue.
** Adjusted with deferred tax
liability.
Contingent liabilites, Group EUR millions 31.12.2009 31.12.2008
Mortages on land and buildings 201.7 1.7
Pledges 0.9 1.4
Liabilities of adjustments of VAT 33.8 29.2
deductions made on investments to
immovable property
Total 236.4 32.2
Lease agreements on business premises, EUR
millions
Minimum rents payable on the basis of
binding lease agreements on business
premises
Within one year 155.6 143.2
After one year 625.8 478.9
Total 781.4 622.1
Lease payments, EUR millions
Within one year 7.5 1.1
After one year 19.1 0.9
Total 26.6 2.0
Derivate contracts, EUR millions
Nominal value
Currency derivatives 296.4 204.4
Electricity derivates 3.2 2.5
Total 299.6 206.9
Exchange rates
Country
Russia RUB 43.1540 41.2830
Estonia EEK 15.6466 15.6466
Latvia LVL 0.7093 0.7083
Lithuania LTL 3.4528 3.4528
Norway NOK 8.3000 9.7500
Sweden SEK 10.2520 10.8700
Income statement,
Group, EUR millions Q4 Q3 Q2 Q1
quarterly, EUR millions 2009 2009 2009 2009
Revenue 526.3 389.3 429.7 353.2
Other operating income 0.0 0.0 0.3
Materials and consumables -262.5 -201.0 -220.1 -197.2
Wages, salaries and employee -90.8 -74.3 -82.6 -79.7
benefits expenses
Depreciation and amortisation -15.1 -14.0 -14.7 -14.6
Other operating expenses -96.8 -82.3 -84.0 -83.7
Operating profit (loss) 61.0 17.7 28.6 -22.0
Finance income and expenses -5.2 -8.8 -5.1 -4.8
Profit (loss) before tax 55.8 8.9 23.5 -26.9
Income taxes -17.0 8.0 -1.4 3.1
Profit for the period 38.9 16.9 22.0 -23.8
Earnings per share, EUR
Basic 0.58 0.27 0.36 -0.39
Diluted 0.58 0.27 0.36 -0.39
Q4 Q3 Q2 Q1
Sales, EUR millions 2009 2009 2009 2009
Department Store Division 351.7 225.7 267.0 224.5
Lindex 193.3 169.7 169.6 122.6
Hobby Hall 41.8 30.9 40.2 43.1
Seppälä 46.5 44.1 42.9 34.7
Unallocated 0.0 0.0 0.0 0.0
Group 633.2 470.5 519.7 424.8
Revenue, EUR millions
Department Store Division 297.3 189.8 224.0 189.0
Lindex 155.3 136.5 136.5 98.6
Hobby Hall 34.7 25.8 33.5 35.9
Seppälä 38.4 36.7 35.6 28.8
Unallocated 0.5 0.6 0.1 0.8
Group 526.3 389.3 429.7 353.2
Operating profit (loss), EUR
millions
Department Store Division 31.7 -1.9 9.2 -14.5
Lindex 24.4 18.1 19.7 0.2
Hobby Hall 1.8 -0.9 -0.8 -1.7
Seppälä 4.9 2.9 3.0 -2.8
Unallocated -1.7 -1.2 -3.2 -1.8
Eliminations 0.7 0.6 -1.4
Group 61.0 17.7 28.6 -22.0
This Interim Report is
unaudited.
Income statement,
Group, EUR millions Q4 Q3 Q2 Q1
quarterly, EUR millions 2008 2008 2008 2008
Revenue 541.3 440.8 483.3 413.4
Other operating income 0.1 0.3 -0.1 3.8
Materials and consumables -273.5 -224.7 -242.6 -231.0
Wages, salaries and employee -92.9 -82.3 -90.2 -85.1
benefits expenses
Depreciation and amortisation -14.2 -13.2 -18.7 -15.2
Other operating expenses -102.4 -86.2 -100.3 -88.5
Operating profit (loss) 58.4 34.6 31.4 -2.5
Finance income and expenses -12.7 -12.8 -13.3 -11.3
Profit (loss) before tax 45.7 21.8 18.1 -13.8
Income taxes -25.8 -6.2 -2.9 2.2
Profit for the period 19.9 15.6 15.2 -11.6
Earnings per share, EUR
Basic 0.34 0.27 0.27 -0.21
Diluted 0.34 0.27 0.27 -0.21
Q4 Q3 Q2 Q1
Sales, EUR millions 2008 2008 2008 2008
Department Store Division 371.8 264.8 306.4 275.9
Lindex 175.6 174.9 183.8 138.3
Hobby Hall 53.7 41.6 48.3 47.4
Seppälä 51.5 50.1 45.2 35.7
Unallocated 0.2 0.2 0.2 0.2
Group 652.8 531.5 583.9 497.5
Revenue, EUR millions
Department Store Division 312.9 223.1 257.3 232.7
Lindex 141.0 140.6 147.6 111.0
Hobby Hall 44.9 34.7 40.4 39.7
Seppälä 42.8 41.7 37.6 29.7
Unallocated -0.3 0.6 0.4 0.4
Group 541.3 440.7 483.3 413.4
Operating profit (loss), EUR
millions
Department Store Division 34.9 13.5 4.1 1.5
Lindex 20.3 15.7 23.8 -1.2
Hobby Hall 1.6 0.7 0.7 -2.1
Seppälä 4.2 5.9 5.1 -0.6
Unallocated -3.3 -0.7 -2.2 0.2
Eliminations 0.8 -0.5 0.0 -0.3
Group 58.4 34.6 31.4 -2.5
This Interim Report is
unaudited.
1. ASSETS
EUR mill. 31/12/2009 31/12/2008
Acquisition cost Jan. 1 945.3 813.8
Translation difference +/- 12.2 -21.0
Increases Jan. 1-Sep. 30 160.9 181.6
Decreases Jan. 1-Sep. 30 -153.5 -29.0
Transfers between items 0.0 0.0
Acquisition cost Sep. 30 / Dec. 31 964.8 945.4
Accumulated depreciation Jan. 1 -245.7 212.5
Translation difference +/- -3.5 -2.6
Depreciation on reductions 70.6 -25.5
Depreciation for the financial year -58.4 61.4
Accumulated depreciation Sep. 30 / Dec. 31 -237.0 245.7
Book value Jan. 1 699.6 601.3
Book value Sep. 30 / Dec. 31 727.8 699.6
Goodwill
EUR mill. 31/12/2009 31/12/2008
Acquisition cost Jan. 1 646.5 720.0
Translation difference +/- 39.0 -94.6
Increases Jan. 1-Sep. 30 23.8
Translation difference +/- -2.8
Decreases Jan. 1-Sep. 30
Acquisition cost Sep. 30 / Dec. 31 685.4 646.5
Accumulated depreciation Jan. 1
Book value Jan. 1 646.5 720.0
Book value Sep. 30 / Dec. 31 685.4 646.5
Total 1 413.2 1 346.1
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)
STOCKMANN plc
Hannu Penttilä
CEO
DISTRIBUTION
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Principal media
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