|
|||
![]() |
|||
2008-11-05 07:30:00 CET 2008-11-05 07:30:02 CET REGULATED INFORMATION Marimekko - Interim report (Q1 and Q3)MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2008Marimekko Corporation INTERIM REPORT 5 November 2008 at 8.30 a.m. MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2008 NET SALES AND EARNINGS RISE AS PREDICTED In the January-September period of 2008, the Marimekko Group's net sales rose by 8% to EUR 59.0 million (EUR 54.6 million). Operating profit improved by 14% to EUR 8.1 million (EUR 7.1 million). Profit after taxes for the period grew by 15% to EUR 6.0 million (EUR 5.2 million). Earnings per share rose to EUR 0.75 (EUR 0.65). Deliveries for individual promotions in Finland and one-off income from sales of licensed products had a favourable impact on net sales growth and earnings. The full-year estimate is unchanged: in 2008, net sales growth and the Group's relative profitability are expected to remain at the same level as in 2007. 1-9/ 1-9/ Change, 1-12/ 2008 2007 % 2007 Net sales, EUR 1,000 59,046 54,608 8.1 77,264 Exports and income from international operations, % of net sales 29.9 28.0 26.5 Operating profit, EUR 1,000 8,111 7,105 14.2 10,487 Profit before taxes, EUR 1,000 8,124 7,067 15.0 10,442 Profit for the period, EUR 1,000 6,012 5,231 14.9 7,717 Earnings per share, EUR 0.75 0.65 14.9 0.96 Equity per share, EUR 3.75 3.35 12.2 3.66 Return on equity (ROE), % 26.9 25.9 27.4 Return on investment (ROI), % 33.8 31.5 35.0 Equity ratio, % 71.8 68.1 72.7 All of Marimekko's stock exchange releases are available on the company's website www.marimekko.com under Investors/Releases. For additional information, contact: Mika Ihamuotila, President and CEO, tel. +358 9 758 71 Thomas Ekström, CFO, tel. +358 9 758 7261 MARIMEKKO CORPORATION Group Communications Marja Korkeela Tel. +358 9 758 7238 Fax +358 9 759 1676 Email: marja.korkeela@marimekko.fi DISTRIBUTION: NASDAQ OMX Helsinki Ltd Principal media Marimekko's website www.marimekko.com Marimekko is a leading Finnish textile and clothing design company that was established in 1951. The company designs, manufactures and markets high-quality clothing, interior decoration textiles, bags and other accessories under the Marimekko brand, both in Finland and abroad. Marimekko products are also manufactured under license in various countries. In 2007, the company's net sales amounted to EUR 77.3 million. Exports and income from international operations accounted for 26.5% of the Group's net sales. The Group employs about 400 people. The company's share is quoted on the NASDAQ OMX Helsinki Ltd. For further information, visit www.marimekko.com. MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2008 ACCOUNTING PRINCIPLES This interim report has been prepared in accordance with IAS 34: Interim Financial Reporting and applying the same accounting policy as for the 2007 financial statements. The information presented in this interim report is unaudited. NET SALES July - September In the July-September period of 2008, the Marimekko Group's net sales rose by 5.9%, amounting to EUR 21,913 thousand (EUR 20,699 thousand). Net sales in Finland rose by 6.1% to EUR 15,776 thousand (EUR 14,876 thousand). A significant part of the growth was generated by an individual promotional delivery. Exports and income from international operations rose by 5.4% and totalled EUR 6,137 thousand (EUR 5,823 thousand). Growth was notably slower than in the corresponding period of the previous year. January - September In the January-September period of 2008, the Marimekko Group's net sales rose by 8.1%, amounting to EUR 59,046 thousand (EUR 54,608 thousand). Net sales in Finland grew by 5.3% to EUR 41,413 thousand (EUR 39,319 thousand). The growth was mainly generated by individual promotional deliveries. Exports and income from international operations rose by 15.3% and totalled EUR 17,633 thousand (EUR 15,289 thousand). Exports and income from international operations accounted for 29.9% (28.0%) of the Group's net sales. The breakdown of the Group's net sales by product line was as follows: clothing, 39.6%; interior decoration, 42.0%; and bags, 18.4%. Net sales by market area were: Finland, 70.1%; the other Nordic countries, 13.2%; the rest of Europe, 6.4%; North America, 4.9%; and other countries (Japan and other regions outside Europe and North America), 5.4%. During the review period, sales in Marimekko's own retail stores in Finland rose by 2.5% (0.1%). Sales to retailers in Finland did not change year-on-year. MARKET SITUATION The international economic outlook weakened at an accelerating rate during the third quarter, and economic growth slowed down globally. Finland also experienced a distinct slowdown of growth compared with the early part of the year, which has caused a notable drop in both industry and consumer confidence indicators. In the January-September period of 2008, the value of retail sales in Finland grew by 7.1% (Statistics Finland: Retail trade quick estimate, September 2008). Retail sales of clothing grew by 1.4%. Sales of womenswear were up 1.2% and childrenswear 3.3%. Sales of menswear were at the same level as a year ago. Sales of bags grew by 8.9%, while sales of home textiles were down 0.5% (Textile and Fashion Industries TMA). In the January-August period of 2008, exports of clothing (SITC 84) decreased by 3%; imports rose by 3%. Exports of textiles (SITC 65) grew by 0.5%, while imports fell by 5% (National Board of Customs, monthly review, August/2008). REVIEWS BY BUSINESS UNIT Clothing In the January-September period of 2008, net sales of clothing rose by 2.0%, amounting to EUR 23,367 thousand (EUR 22,900 thousand). A fall was seen in sales in Finland. International sales development varied greatly by country. Vigorous growth was registered in the market area referred to as “other Nordic countries”. This growth was boosted in the second quarter by substantial one-off royalty income from licensing co-operation between Marimekko and H & M Hennes & Mauritz AB. Rapid growth was also seen in the market area referred to as “other countries”. The opening of new Marimekko concept stores in Japan contributed to the favourable development. Year-on-year sales in the United States did not change, but sales clearly fell in the market area referred to as “the rest of Europe”. Exports and income from international operations accounted for 29.2% of net sales of clothing. Interior decoration Net sales of interior decoration products rose by 7.0% to EUR 24,812 thousand (EUR 23,194 thousand). The majority of the growth seen in Finland was generated by deliveries for individual promotions. International growth was clearly more sluggish than a year ago except in Japan, where growth was vigorous. To some extent, the year-on-year growth of the interior decoration product line was slowed down by lower income from sales of licensed products, both in Finland and abroad. Exports and income from international operations accounted for 30.8% of net sales of interior decoration products. Bags Net sales of bags rose by 27.6% to EUR 10,867 thousand (EUR 8,514 thousand). Growth picked up both in Finland and the export market. In Finland, sales were boosted by a substantial delivery for a one-off promotional campaign. Vigorous growth was seen in all export markets except North America, which experienced a fall in sales. The greatest relative growth in sales of bags was seen in the market areas referred to as “other countries” and “the rest of Europe”. Exports and income from international operations accounted for 29.1% of net sales of bags. Business-to-business sales Business-to-business sales (former “business gifts and contract sales”) rose by 53.9%. The growth was generated by an individual delivery for a promotional campaign. Exports and international operations Exports and income from international operations rose by 15.3% and totalled EUR 17,633 thousand (EUR 15,289 thousand). Growth continued in all the main markets, but towards the end of the period, a distinct slowdown was seen in many countries. The major countries for exports were Sweden, Japan, the United States, Denmark, Norway and Germany. In the market area referred to as “the other Nordic countries”, net sales rose by 21.6% to EUR 7,809 thousand (EUR 6,423 thousand). Sales of clothing and bags grew substantially, while sales of interior decoration products slowed down clearly, remaining at the same level as in the comparison period. One-off income generated in the second quarter by licensing co-operation with H & M Hennes & Mauritz AB had a significant impact on the growth seen in sales of clothing. In the market area referred to as “the rest of Europe”, net sales rose by 1.6% to EUR 3,767 thousand (EUR 3,708 thousand). Sales of bags continued to grow briskly. Sales of interior decoration products increased slightly, but sales of clothing fell. A distinct slowdown of sales growth was seen in North America. Net sales rose by 2.1% to EUR 2,877 thousand (EUR 2,817 thousand). Sales of interior decoration products and clothing increased slightly, but bag sales experienced a notable fall. In the market area referred to as “other countries”, net sales rose by 35.8% to EUR 3,180 thousand (EUR 2,341 thousand). Vigorous sales growth was seen in all product lines. Growth was boosted by the opening of new concept stores in Sapporo, Sendai and Osaka in Japan. At the end of the period, there were a total of thirteen Marimekko concept stores and shop-in-shops in Japan. Licensing Royalty earnings from sales of licensed products rose substantially during the period. This growth was wholly generated during the second quarter through royalty income from co-operation with the Swedish company H & M Hennes & Mauritz AB. In other countries, royalty earnings clearly fell. Production During the review period, the production volume of the Herttoniemi textile printing factory decreased by 5%. This was due to a reduction in the amount of clothing and bag materials printed in the company's own factory. At the Sulkava and Kitee factories, production was at the same level as last year. EARNINGS July - September In the July-September period, the Group's operating profit fell by 5.5% on the comparison period, amounting to EUR 3,747 thousand (EUR 3,965 thousand). Earnings per share were down to EUR 0.35 (EUR 0.36). Earnings for the period were hampered by the slowdown of sales growth and increased operating expenditure. January - September In the January-September period of 2008, the Group's operating profit improved by 14.2% to EUR 8,111 thousand (EUR 7,105 thousand). Operating profit as a percentage of net sales was 13.7% (13.0%). Marketing expenses for the period totalled EUR 2,561 thousand (EUR 2,945 thousand), representing 4.3% (5.4%) of net sales. The Group's depreciation amounted to EUR 983 thousand (EUR 982 thousand), representing 1.7% (1.8%) of net sales. Net financial income totalled EUR 13 thousand (net financial expenses: EUR 38 thousand), representing 0.0% (0.1%) of net sales. Profit for the period after taxes rose by 14.9% to EUR 6,012 thousand (EUR 5,231 thousand), representing 10.2% (9.6%) of net sales. Earnings per share improved to EUR 0.75 (EUR 0.65). In addition to growth in exports, earnings for the period were improved by sales growth generated by individual promotions in Finland, substantial one-off income from sales of licensed products, and reduced marketing expenses. Earnings trends were weakened by increased operating expenses. INVESTMENTS The Group's gross investments amounted to EUR 803 thousand (EUR 1,164 thousand), representing 1.4% (2.1%) of net sales. The major investments included renovations of the Herttoniemi property, the construction of the store opened in Turku at the end of August 2008, and acquisition of information management systems and equipment. EQUITY RATIO AND FINANCING Equity ratio was 71.8% at the end of the period (68.1% at 30 September 2007, 72.7% at 31 December 2007). The ratio of interest-bearing liabilities minus financial assets to shareholders' equity (gearing) was -6.2%, while it was 5.8% at the end of the corresponding period in 2007 (-15.2% at 31 December 2007). At the end of the period, the Group's financial liabilities stood at EUR 3,820 thousand (EUR 4,711 thousand). The Group's financing from operations was EUR 6,995 thousand (EUR 6,213 thousand). The Group's financial assets at the end of the period amounted to EUR 5,704 thousand (EUR 3,147 thousand). SHARES AND SHARE PRICE TREND Share capital At the end of the period, the company's fully paid-up share capital, as recorded in the Trade Register, amounted to EUR 8,040,000, and the number of shares totalled 8,040,000. Shareholdings According to the book-entry register, Marimekko had 5,967 (5,277) shareholders at the end of the period. Of the shares, 16.3% were registered in a nominee's name and 14.8% were in foreign ownership. At the end of the period, the number of shares owned either directly or indirectly by members of the Board of Directors and the President of the company was 1,071,089, representing 13.3% of the total share capital and - taking into account the voting authorisation granted by Workidea Oy to Muotitila Ltd on 31 October 2007 - 23.3% of the votes conferred by the company's shares. The largest shareholders according to the book-entry register on 30 September 2008 Percentage of holding and votes 1. Muotitila Ltd 13.00 *)23.00 2. Fautor S.P.R.L. 10,58 10,58 3. Workidea Oy 10.00 *)0.00 4. ODIN Finland 4.14 4.14 5. Evli Select Fund 1.87 1.87 6. Varma Mutual Employment Pension Insurance Company 1.34 1.34 7. Ilmarinen Mutual Pension Insurance Company 0.89 0.89 8. Foundation for Economic Education 0.62 0.62 9. Miettinen Kari 0.60 0.60 10. Scanmagnetics Oy 0.50 0.50 11. Mutual Fund Tapiola Finland 0.44 0.44 12. Fromond Elsa 0.40 0.40 13. Westerberg Olof 0.37 0.37 14. Karvonen Eero 0.35 0.35 15. Mäki Uolevi 0.34 0.34 Total 45.44 45.44 Nominee-registered 16.34 16.34 Others 38.22 38.22 Total 100.00 100.00 *)Taking into account the voting authorisation granted by Workidea Oy to Muotitila Ltd on 31 October 2007. Detailed information on the authorisation was given in the section “Share and Shareholders/Flagging notifications” in Marimekko's 2007 Annual Report. Flaggings Morgan Stanley & Co Incorporated's share of Marimekko Corporation's share capital and voting rights rose to 5.44%, or 438,083 shares, as a result of a transaction made on 7 April 2008; and then fell to 0.90%, or 73,083 shares, as a result of a transaction made on 9 April 2008. Authorisations At the end of the review period, the Board of Directors had no valid authorisations to carry out share issues or issue convertible bonds or bonds with warrants, or to acquire or surrender Marimekko shares. Share trading During the review period, a total of 1,026,776 Marimekko shares were traded, representing 12.8% of the shares outstanding. The total value of Marimekko's share turnover was EUR 14,635,869. The lowest price of the Marimekko share was EUR 11.45, the highest was EUR 18.20, and the average price was EUR 14.23. At the end of the review period, the final price of the share was EUR 11.90. The company's market capitalisation on 30 September 2008 was EUR 95,676,000 (EUR 113,042,400 on 30 September 2007, EUR 146,328,000 on 31 December 2007). PERSONNEL The number of Marimekko's personnel increased by 2.0% in the January-September period of 2008. During the period, the number of employees averaged 410 (402). At the end of the period, the Group employed 409 (406) people, of whom 16 (16) worked abroad. CHANGES IN THE COMPANY'S MANAGEMENT On 1 February 2008, Mika Ihamuotila, Ph.D. (Econ.), became the company's new president and the following were appointed to the company's Management Group: Mika Ihamuotila as Chairman with members Thomas Ekström (Chief Financial Officer), Marja Korkeela (Group communications and investor relations), Päivi Lonka (exports and licensing sales), Sirpa Loukamo (clothing and accessories), Mervi Metsänen-Kalliovaara (domestic wholesale, business-to-business sales, sales development), Piia Rossi (company-owned retail stores), Kirsi Räikkönen (brand and marketing communications) and Helinä Uotila (production, purchases, and interior decoration). On 1 August 2008, Niina Nenonen joined the Management Group and assumed responsibility for the company's clothing portfolio and its profitability. She continues the work of Sirpa Loukamo, who retired on 1 September 2008. RISK MANAGEMENT AND MAJOR RISKS Marimekko's risk management policy and the major risks to the company's business operations have been detailed in the 2007 Annual Report. During the review period, uncertainties affecting Marimekko's operating environment increased because of the rapid weakening of the international economic outlook. Otherwise, no notable changes in the risks have occurred. RESEARCH AND DEVELOPMENT The company's product planning and development costs arise from the design of collections. Design costs are recorded in expenses. ENVIRONMENT Responsibility for the environment and nature is an integral aspect of Marimekko's business. The co-operation agreements require Marimekko's subcontractors and other partners to commit themselves to shouldering their environmental responsibilities. In environmental matters, the company's business supervision is largely based on legislation and other regulations. Marimekko's production processes do not generate any waste that is classified as hazardous waste or detrimental to health. The environmental impacts of production and other business operations are monitored regularly by testing the materials used in the products and improving the production processes and methods. During the financial year 2008, Marimekko has continued the project launched at the end of 2007 to establish a corporate social responsibility management system. DECISIONS OF THE ANNUAL GENERAL MEETING Marimekko Corporation's Annual General Meeting, held on 3 April 2008, adopted the company's financial statements for 2007, discharged the President and members of the Board from liability and approved the Board of Directors' proposal for payment of a dividend for 2007 of EUR 0.65 per share, totalling EUR 5,226,000.00. The record date was 8 April 2008 and the dividend payout date 15 April 2008. The Annual General Meeting resolved that the company's Board of Directors shall have five (5) members. Tarja Pääkkönen was re-elected to the Board of Directors. Ami Hasan, Mika Ihamuotila, Joakim Karske and Pekka Lundmark were elected as new members. At its organisation meeting held after the Annual General Meeting, the Board of Directors elected Pekka Lundmark as Chairman and Mika Ihamuotila as Vice Chairman of the Board. The Board of Directors' term of office runs until the end of the next Annual General Meeting. The Annual General Meeting also resolved that the remuneration to the Chairman of the Board will be EUR 20,000 per year and the remuneration to each one of the other Board members will be EUR 15,000 per year. In addition, the Annual General Meeting resolved that the President of Marimekko Corporation will not receive remuneration for being a member of the Board. The Annual General Meeting elected PricewaterhouseCoopers Ltd, Authorised Public Accountants, as the company's auditor, with Kim Karhu, Authorised Public Accountant, as chief auditor. It was decided that the auditor's fee will be paid according to invoice. DISAGREEMENTS CONCERNING UNIKKO TRADEMARK In a stock exchange release dated 2 July 2008, Marimekko announced that Dolce & Gabbana S.r.l. and Dolce & Gabbana Industria S.p.A. had submitted an application to the Office for Harmonisation in the Internal Market (OHIM) for a declaration of invalidity concerning Marimekko's red figure mark Unikko in classes 24 (Textiles and textile goods) and 25 (Clothing and headgear). During the spring and summer of 2008, as part of the regular supervision and protection of its intellectual property rights, Marimekko reacted to Dolce & Gabbana's use of a floral pattern in certain Dolce & Gabbana products. Marimekko had not authorised the said use and took action in Germany to terminate such use. On the basis of Marimekko's application, the District Court of Hamburg imposed a sales and marketing injunction on certain Dolce & Gabbana products in Germany. MAJOR EVENTS AFTER THE CLOSE OF THE REVIEW PERIOD Flagging ODIN Forvaltning AS's share of Marimekko Corporation's share capital and voting rights rose to 5.14%, or 413,253 shares, as a result of a transaction concluded on 9 October 2008. Settlement agreement concerning Unikko trademark In a stock exchange release dated 14 October 2008, Marimekko announced that Marimekko Corporation, Dolce & Gabbana S.r.l. and Dolce & Gabbana Industria S.p.A. had signed a settlement agreement concerning the Unikko trademark dispute, referred to in Marimekko's stock exchange release dated 2 July 2008. The parties agreed on the handling of already manufactured products and the fee to be paid to Marimekko. The parties further agreed that they will withdraw all the legal proceedings concerning the matter, including the invalidity proceedings at the Office for Harmonisation in the Internal Market (OHIM) against Marimekko's Unikko trademark. OUTLOOK FOR THE REMAINDER OF 2008 Marimekko racks up its strongest earnings and net sales growth in the last two quarters of the financial year. In recent years, exports have increasingly been driving Marimekko's net sales growth. In Marimekko's field of industry, changes in the business climate are reflected in consumption demand. Because of the rapid weakening of the international economic outlook, Marimekko's business growth outlook is accompanied with a higher level of uncertainty than before, both in Finland and the export market. This was already evidenced in the third quarter by slower growth in the number of incoming orders. Nevertheless, based on current business estimates, the forecast for 2008 remains unchanged: the Group's net sales growth and relative profitability for 2008 are expected to remain at 2007 levels. Growth and earnings trends for the remainder of 2008 will be supported by a substantial promotional delivery in Finland and the opening of two new Marimekko concept stores in Japan. Sales trends in Marimekko's own retail stores will have a substantial impact on the Group's net sales and earnings in the final quarter of the year. Because of the uncertainties in the business environment resulting from the weaker economic outlook, sales trends for the last quarter are difficult to predict. Helsinki, 5 November 2008 MARIMEKKO CORPORATION Board of Directors GENERAL CLAUSE This interim report contains forward-looking statements that are based on the factors and assumptions currently available to Marimekko's management as well as on the company's current decisions and plans. Forward-looking statements contain assumptions that are subject to uncertainties. Actual results may therefore deviate substantially from these assumptions. Uncertainty factors include changes in general economic trends, the market situation, competition, currency exchange rates and the company's own business operations. APPENDICES TO THE INTERIM REPORT Consolidated income statement Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in shareholders' equity Key indicators Consolidated net sales by market area and product line Segment information Quarterly trend in net sales and earnings CONSOLIDATED INCOME STATEMENT (EUR 1,000) 7-9/ 7-9/ 1-9/ 1-9/ 1-12/ 2008 2007 2008 2007 2007 NET SALES 21,913 20,699 59,046 54,608 77,264 Other operating income 17 21 41 56 74 Increase or decrease in inventories of completed and unfinished products -528 204 2,036 1,128 642 Raw materials and consumables 8,749 8,625 25,500 22,670 31,626 Employee benefit expenses 3,946 3,745 13,154 11,985 16,799 Depreciation 328 327 983 982 1,338 Other operating expenses 4,632 4,262 13,375 13,050 17,730 OPERATING PROFIT 3,747 3,965 8,111 7,105 10,487 Financial income 52 34 153 116 153 Financial expenses -53 -68 -140 -154 -198 -1 -34 13 -38 -45 PROFIT BEFORE TAXES 3,746 3,931 8,124 7,067 10,442 Income taxes 971 1,019 2,112 1,836 2,725 NET PROFIT FOR THE PERIOD 2,775 2,912 6,012 5,231 7,717 Distribution To equity holders of the parent company 2,775 2,912 6,012 5,231 7,717 Basic and diluted earnings per share calculated on the profit attributable to equity holders of the parent company, EUR 0.35 0.36 0.75 0.65 0.96 CONSOLIDATED BALANCE SHEET (EUR 1,000) 30.9.2008 30.9.2007 31.12.2007 ASSETS NON-CURRENT ASSETS Tangible assets 9,807 10,242 9,956 Intangible assets 380 279 411 Available-for-sale investments 20 20 20 10,207 10,541 10,387 CURRENT ASSETS Inventories 18,958 17,785 18,281 Trade and other receivables 7,309 7,771 5,533 Current tax assets 220 325 220 Cash and cash equivalents 5,704 3,147 6,269 32,191 29,028 30,303 ASSETS, TOTAL 42,398 39,569 40,690 SHAREHOLDERS' EQUITY AND LIABILITIES EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY Share capital 8,040 8,040 8,040 Translation differences 17 3 3 Retained earnings 22,138 18,866 21,352 Shareholders' equity, total 30,195 26,909 29,395 NON-CURRENT LIABILITIES Deferred tax liabilities 712 644 676 Financial liabilities 185 370 185 897 1,014 861 CURRENT LIABILITIES Trade and other payables 7,659 7,305 8,810 Current tax liabilities 12 - 18 Financial liabilities 3,635 4,341 1,606 11,306 11,646 10,434 Liabilities, total 12,203 12,660 11,295 SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 42,398 39,569 40,690 The Group has no liabilities resulting from derivative contracts, and there are no outstanding guarantees or any other contingent liabilities which have been granted on behalf of the management of the company or its shareholders. CONSOLIDATED CASH FLOW STATEMENT (EUR 1,000) 1-9/2008 1-9/2007 1-12/2007 CASH FLOW FROM OPERATING ACTIVITIES Net profit for the period 6,012 5,231 7,717 Adjustments Depreciation according to plan 983 982 1,338 Financial income and expenses -13 38 45 Taxes 2,113 1,836 2,725 Cash flow before change in working capital 9,095 8,087 11,825 Change in working capital -3,596 -4,098 -598 Cash flow from operating activities before financial items and taxes 5,499 3,989 11,227 Paid interest and payments on other financial expenses -132 -141 -207 Interest received 168 141 150 Taxes paid -2,101 -2,309 -3,094 CASH FLOW FROM OPERATING ACTIVITIES 3,434 1,679 8,076 CASH FLOW FROM INVESTING ACTIVITIES Investments in tangible and intangible assets -803 -1,164 -1,519 CASH FLOW FROM INVESTING ACTIVITIES -803 -1,164 -1,519 CASH FLOW FROM FINANCING ACTIVITIES Short-term loans drawn 4,600 4,000 4,150 Short-term loans repaid -2,100 -1,400 -4,000 Long-term loans repaid -470 -471 -941 Finance leasing debts paid - -60 -60 Dividends paid -5,226 -5,226 -5,226 CASH FLOW FROM FINANCING ACTIVITIES -3,196 -3,157 -6,077 Change in cash and cash equivalents -565 -2,642 480 Cash and cash equivalents at the beginning of the period 6,269 5,789 5,789 Cash and cash equivalents at the end of the period 5,704 3,147 6,269 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Equity attributable to equity holders of the parent company (EUR 1,000) Shareholders' Share Translation Retained equity, capital differences earnings total Shareholders' equity 1 Jan. 2007 8,040 18,861 26,901 Translation differences 3 3 Net profit for the period 5,231 5,231 Dividends paid -5,226 -5,226 Shareholders' equity 30 Sept. 2007 8,040 3 18,866 26,909 Shareholders' equity 1 Jan. 2008 8,040 3 21,352 29,395 Translation differences 14 14 Net profit for the period 6,012 6,012 Dividends paid -5,226 -5,226 Shareholders' equity 30 Sept. 2008 8,040 17 22,138 30,195 KEY INDICATORS 1-9/ 1-9/ Change, % 1-12/ 2008 2007 2007 Earnings per share, EUR 0.75 0.65 14.9 0.96 Equity per share, EUR 3.75 3.35 12.2 3.66 Share of exports and international operations, % of net sales 29.9 28.0 26.5 Return on equity (ROE), % 26.9 25.9 27.4 Return on investment (ROI), % 33.8 31.5 35.0 Equity ratio, % 71.8 68.1 72.7 Gross investments, EUR 1,000 803 1,164 -30.9 1,365 Gross investments, % of net sales 1.4 2.1 1.8 Contingent liabilities, EUR 1,000 16,843 13,957 20.7 18,710 Average personnel 410 402 2.0 405 Personnel at the end of the period 409 406 0.7 411 Number of shares at the end of the period (1,000) 8,040 8,040 8,040 Number of shares outstanding, average (1,000) 8,040 8,040 8,040 Earnings per share (EPS), EUR: (Profit before extraordinary items - taxes (excl. of taxes on extraordinary items)) / Number of shares (average for the financial period) Equity per share, EUR: Shareholders' equity / Number of shares, 30 Sept. Return on equity (ROE), %: (Profit before extraordinary items - taxes (excl. of taxes on extraordinary items)) X 100 / Shareholders' equity (average for the financial period) Return on investment (ROI), %: (Profit before extraordinary items + interest and other financial expenses) X 100 / (Balance sheet total - non-interest-bearing liabilities (average for the financial period)) Equity ratio, %: Shareholders' equity X 100 / (Balance sheet total - advances received) Gearing, %: Interest-bearing net debt X 100 / Shareholders' equity NET SALES BY MARKET AREA AND PRODUCT LINE BY MARKET AREA, JULY-SEPTEMBER (EUR 1,000) 7-9/2008 7-9/2007 Change, % 1-12/2007 Finland 15,776 14,876 6.1 56,826 Other Nordic countries 2,561 2,558 0.1 8,581 Rest of Europe 1,316 1,284 2.5 4,725 North America 964 1,104 -12.7 4,067 Other countries 1,296 877 47.8 3,065 TOTAL 21,913 20,699 5.9 77,264 BY PRODUCT LINE, JULY-SEPTEMBER (EUR 1,000) 7-9/2008 7-9/2007 Change, % 1-12/2007 Clothing 8,016 7,797 2.8 30,036 Interior decoration 9,847 9,367 5.1 35,813 Bags 4,050 3,534 14.6 11,415 TOTAL 21,913 20,699 5.9 77,264 BY MARKET AREA, JANUARY-SEPTEMBER (EUR 1,000) 1-9/2008 1-9/2007 Change, % 1-12/2007 Finland 41,413 39,319 5.3 56,826 Other Nordic countries 7,809 6,423 21.6 8,581 Rest of Europe 3,767 3,708 1.6 4,725 North America 2,877 2,817 2.1 4,067 Other countries 3,180 2,341 35.8 3,065 TOTAL 59,046 54,608 8.1 77,264 BY PRODUCT LINE, JANUARY-SEPTEMBER (EUR 1,000) 1-9/2008 1-9/2007 Change, % 1-12/2007 Clothing 23,367 22,900 2.0 30,036 Interior decoration 24,812 23,194 7.0 35,813 Bags 10,867 8,514 27.6 11,415 TOTAL 59,046 54,608 8.1 77,264 SEGMENT INFORMATION (EUR 1,000) 1-9/2008 1-9/2007 Change, % 1-12/2007 Net sales Finland 41,413 39,319 5.3 56,826 Other countries 17,633 15,289 15.3 20,438 Total 59,046 54,608 8.1 77,264 Assets Finland 42,108 37,709 39,094 Other countries 2,056 1,860 2,469 Eliminations -1,766 -1,804 -873 Total 42,398 39,569 40,690 Investments Finland 803 1,102 1,303 Other countries - 62 62 Total 803 1,164 1,365 QUARTERLY TREND IN NET SALES AND EARNINGS (EUR 1,000) 7-9/ 4-6/ 1-3/ 10-12/ 2008 2008 2008 2007 Net sales 21,913 18,539 18,594 22,656 Operating profit 3,747 2,540 1,824 3,382 Earnings per share, EUR 0.35 0.23 0.17 0.31 (EUR 1,000) 7-9/ 4-6/ 1-3/ 10-12/ 2007 2007 2007 2006 Net sales 20,699 16,997 16,912 20,142 Operating profit 3,965 1,643 1,497 3,776 Earnings per share, EUR 0.36 0.15 0.14 0.35 |
|||
|