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2009-11-05 08:00:00 CET 2009-11-05 08:00:08 CET REGULATED INFORMATION Marimekko - Interim report (Q1 and Q3)MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2009Marimekko Corporation INTERIM REPORT 5 November 2009 at 9 a.m. MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2009 In the January-September period of 2009, the Marimekko Group's net sales fell by 12% to EUR 51.8 million (EUR 59.0 million). Operating profit fell to EUR 3.9 million (EUR 8.1 million). Operating profit without non-recurring items amounted to EUR 4.5 million (EUR 8.1 million). Profit after taxes for the period was EUR 3.0 million (EUR 6.0 million); earnings per share were EUR 0.37 (EUR 0.75). Cash flow from operating activities before financial items and taxes stood at EUR 6.4 million (EUR 5.5 million). The full-year estimate for 2009 is unchanged: net sales are forecast to decrease by about 10% from the year 2008 and operating result is expected to decline distinctly. 1-9/ 1-9/ Change, 1-12/ 2009 2008 % 2008 Net sales, EUR 1,000 51,754 59,046 -12.3 81,107 Exports and income from international operations, % of net sales 30.1 29.9 27.0 Operating profit, EUR 1,000 3,938 8,111 -51.5 9,956 Operating profit without non-recurring items, EUR 1,000 4,450 8,111 -45.1 9,956 Profit before taxes, EUR 1,000 3,985 8,124 -51.0 9,964 Profit for the period, EUR 1,000 2,962 6,012 -50.7 7,378 Earnings per share, EUR 0.37 0.75 -50.7 0.92 Earnings per share without non-recurring items, EUR 0.44 0.75 -41.3 0.92 Equity per share, EUR 3.74 3.75 -0.3 3.92 Return on equity (ROE), % 12.8 26.9 24.2 Return on investment (ROI), % 17.3 33.8 32.3 Equity ratio, % 77.8 71.8 78.7 Mika Ihamuotila, President and CEO: “The current year 2009 has been characterised by challenging market conditions. The sharp decline in consumer demand has reduced Marimekko's sales both in Finland and abroad. The situation varies in different markets, but there are no clear signs of improvement on the horizon so far. In these difficult market conditions, positive news comes from Japan where trends have been good; during the period under review, five new Marimekko concept stores were opened in Japan. A new concept store was also opened in Copenhagen in July. After the review period, Marimekko has opened its refurbished shop in Stockholm and a new one in Tampere, Finland. During the current year, we have taken action to improve the cost structure and efficiency of operations in order to adjust our operations to reduced demand and slow down the fall in profitability. We have managed to improve the company's cash flow by cutting fixed costs and enhancing the efficiency of working capital management; in the January-September period of 2009, the change in working capital was EUR 1.4 million (EUR -3.6 million) and cash flow from operating activities before financial items and taxes amounted to EUR 6.4 million (EUR 5.5 million). We believe that the reorganisation of operations, enhanced efficiency, and the actions aimed at cutting fixed costs will increase our potential for growth in the coming years. Despite the difficult operating environment, we are confident that Marimekko is heading in the right direction, and we will continue our long-term investment in product development and internationalisation.” 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 Piia Pakarinen Tel. +358 9 758 7293 Fax +358 9 755 3051 Email: piia.pakarinen@marimekko.fi DISTRIBUTION: NASDAQ OMX Helsinki Ltd Principal media Marimekko's website www.marimekko.com Marimekko, established in 1951, is a leading Finnish textile and clothing design company renowned for its original prints and colours. The company designs and manufactures high-quality clothing, interior decoration textiles, bags and other accessories. Marimekko products are sold in over 40 countries. Products with Marimekko designs are also manufactured under licence in various countries. In 2008, the company's net sales amounted to EUR 81.1 million. Exports and international operations accounted for 27.0% of the Group's net sales. The Group employs about 400 people. The company's share is quoted on the NASDAQ OMX Helsinki Ltd. MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2009 NET SALES July-September In the July-September period of 2009, the Marimekko Group's net sales fell by 11.0% to EUR 19,492 thousand (EUR 21,913 thousand). In Finland, net sales fell by 10.1% to EUR 14,183 thousand (EUR 15,776 thousand). The difference in relation to the comparison period is partly due to revenues from a one-off promotion in the corresponding period of the previous year. Exports and income from international operations fell by 13.5%, totalling EUR 5,309 thousand (EUR 6,137 thousand). January-September In the January-September period of 2009, the Marimekko Group's net sales fell by 12.3% to EUR 51,754 thousand (EUR 59,046 thousand). Net sales in Finland decreased by 12.7% to EUR 36,173 thousand (EUR 41,413 thousand). Exports and income from international operations fell by 11.6%, totalling EUR 15,581 thousand (EUR 17,633 thousand). Exports and income from international operations accounted for 30.1% (29.9%) of the Group's net sales. The fall in net sales was largely due to a slowdown in demand caused by weak market conditions. Wholesale sales both in Finland and abroad were especially affected by the slowdown. The difference in relation to the comparison period was also increased by revenues from individual promotions and one-off income from sales of licensed products in the corresponding period of the previous year. The breakdown of the Group's net sales by product line was as follows: clothing, 41.1%; interior decoration, 40.6%; and bags, 18.3%. Net sales by market area were: Finland, 69.9%; the other Nordic countries, 10.3%; the rest of Europe, 7.4%; North America, 4.5%; and other countries (Japan and other regions outside Europe and North America), 7.9%. During the January-September period of 2009, the sales from Marimekko's own retail shops in Finland fell by 1.8% compared with the corresponding period in 2008. Sales to retailers in Finland decreased by 23.6%. The sharp fall in sales from the comparison period was partly due to significant one-off orders for promotions in the first and third quarters of 2008. MARKET SITUATION The recovery of the world economy seems to have begun, but the economic outlook for the near future is still bleak. Retail sales in Finland are forecast to continue to fall during the rest of the year, and employment is expected to decline sharply. (Confederation of Finnish Industries EK: Economic Review, 9 October 2009). Consumers' confidence in the Finnish economy has improved, but people feel insecure about their own employment prospects. (Statistics Finland: Consumer Barometer, October 2009). In the January-September period of 2009, the value of retail sales in Finland fell by 3.3% (Statistics Finland: Retail trade quick estimate, September 2009). Retail sales of clothing (excluding sportswear) fell by 2.9% (Textile and Fashion Industries TMA). Sales of womenswear fell by 2.2%, sales of menswear by 5.2%, and sales of childrenswear by 2.5%. Sales of bags declined by 9.2% and sales of home textiles by 8.7%. In the January-August period of 2009, exports of clothing (SITC 84) fell by 16% and imports by 7%; exports of textiles (SITC 65) decreased by 24% and imports by 26% (National Board of Customs, monthly review, August 2009). REVIEWS BY BUSINESS UNIT Clothing In the January-September period of 2009, net sales of clothing fell by 9.0% to EUR 21,253 thousand (EUR 23,367 thousand). In Japan, extremely vigorous growth continued. Sales also increased slightly in the market area referred to as “the rest of Europe”. Sales in Finland fell somewhat. In North America and the market area referred to as “the other Nordic countries”, sales declined significantly. Exports and income from international operations accounted for 25.8% of net sales of clothing. Interior decoration Net sales of interior decoration products fell by 15.2% to EUR 21,029 thousand (EUR 24,812 thousand). Good growth continued in Japan. Sales fell sharply in Finland and the other Nordic countries. In North America and the market area referred to as “the rest of Europe”, sales declined slightly. Exports and income from international operations accounted for 33.3% of net sales of interior decoration products. Bags Net sales of bags fell by 12.8% to EUR 9,472 thousand (EUR 10,867 thousand). In Japan and in the market area referred to as “the rest of Europe”, good growth continued. Sales in other export markets and in Finland decreased substantially. Exports and income from international operations accounted for 32.8% of net sales of bags. Business-to-business sales Business-to-business sales fell by 9.2%. The fall was mainly due to substantial deliveries for one-off promotions in the corresponding period in 2008, higher than one-off orders for promotions during this year. The continuing downtrend in the economy during the current year has also significantly reduced purchases by corporate clients. Exports and international operations During the review period, uncertainty about economic conditions continued, consumer demand declined further, and customers were cautious about making purchases. In the January-September period of 2009, Marimekko's exports and income from international operations fell by 11.6% and totalled EUR 15,581 thousand (EUR 17,633 thousand). Sales trends varied greatly by country. Japan showed vigorous growth, while sales increased slightly in the market area referred to as “the rest of Europe”. In other export markets, sales fell. The major countries for exports were Japan, Sweden, the United States, Denmark and Norway. In the market area referred to as “the other Nordic countries”, sales in all product lines decreased considerably. Net sales fell to EUR 5,317 thousand, which was 31.9% less than the previous year (EUR 7,809 thousand). In addition to a decrease in sales volumes, the weakening of the Swedish krona (by about 20%) as well as one-off income generated from sales of licensed products in the second quarter of 2008 contributed to the fall in net sales. In the market area referred to as “the rest of Europe”, net sales rose by 2.0% to EUR 3,843 thousand (EUR 3,767 thousand). Sales of bags showed good growth; clothing sales grew slightly. Sales of interior decoration products fell somewhat. In North America, net sales fell by 19.7% to EUR 2,309 thousand (EUR 2,877 thousand). Bag and clothing sales declined very sharply; sales of interior decoration products fell slightly. In the market area referred to as "other countries", net sales rose from the comparison period by 29.3%, totalling EUR 4,112 thousand (EUR 3,180 thousand). The growth was wholly generated by Japan, where sales of clothing, in particular, increased extremely vigorously. The five new Marimekko concept stores that were opened during the review period were the main source of growth. At the end of the period, there were a total of twenty Marimekko concept stores and shop-in-shops in Japan. Licensing Royalty earnings from sales of licensed products fell significantly compared with the corresponding period of the previous year. The fall was entirely due to one-off income from licensing cooperation with H & M Hennes & Mauritz AB, recognised in the second quarter of 2008. During the review period, royalty earnings grew considerably in the United States and somewhat in Finland. Production and sourcing During the January-September period of 2009, the production volume of the Herttoniemi textile printing factory fell by 26%. This was mostly due to the reduction of inventories and collections. After the old printing machine was taken out of use in June, production capacity has diminished and is in full use. Production volumes at the Kitee and Sulkava factories remained at the same level as in the corresponding period of the previous year. Subcontract manufacture of some products was reduced and their production transferred to the company's own factories during the period. EARNINGS July-September In the July-September period of 2009, the Group's operating profit fell by 22.6% on the comparison period, amounting to EUR 2,901 thousand (EUR 3,747 thousand). Operating profit includes a non-recurring cost provision of EUR 512 thousand related to personnel reductions resulting from savings and efficiency actions. The cost provision actually made was lower than announced earlier (EUR 800 thousand), because a larger number than anticipated of the employees dismissed decided to work during the notice period or found other employment within the Group. Operating profit without non-recurring items stood at EUR 3,413 thousand (EUR 3,747 thousand). In addition to reduced sales, profitability was affected by revenues from one-off promotions in the corresponding quarter of 2008, larger than in the review period. Increased lease expenses from shops also had a negative impact on profitability. On the other hand, as a result of efficiency enhancements and cost saving actions, fixed costs declined from the corresponding period of 2008. Earnings per share were EUR 0.27 (EUR 0.35). January-September In the January-September period of 2009, the Group's operating profit fell by 51.5% to EUR 3,938 thousand (EUR 8,111 thousand). Operating profit as a percentage of net sales amounted to 7.6% (13.7%). Operating profit includes a non-recurring cost provision of EUR 512 thousand related to personnel reductions resulting from savings and efficiency actions. The cost provision actually made was lower than announced earlier (EUR 800 thousand), because a larger number than anticipated of the employees dismissed decided to work during the notice period or found other employment within the Group. Operating profit without non-recurring items stood at EUR 4,450 thousand (EUR 8,111 thousand). Operating profit was affected by a sharp fall in sales. The difference in relation to the comparison period was also increased by revenues from individual promotions in the corresponding period of 2008, larger than in the review period, as well as significant one-off income from sales of licensed products. Furthermore, increased lease expenses from shops had a negative impact on profitability. On the other hand, savings of about EUR 300 thousand in fixed costs compared with the corresponding period of 2008 were achieved through efficiency enhancements and cost saving actions. Marketing expenses for the period totalled EUR 2,217 thousand (EUR 2,561 thousand), representing 4.3% (4.3%) of net sales. The marketing costs in the period were lower than usual. Full-year marketing expenses are at the same level as in 2008. The Group's depreciation amounted to EUR 1,031 thousand (EUR 983 thousand), representing 2.0% (1.7%) of net sales. Net financial income totalled EUR 47 thousand (EUR 13 thousand), or 0.1% (0.0%) of net sales. Profit for the period after taxes fell by 50.7% to EUR 2,962 thousand (EUR 6,012 thousand), representing 5.7% (10.2%) of net sales. Earnings per share were EUR 0.37 (EUR 0.75). INVESTMENTS The Group's gross investments amounted to EUR 782 thousand (EUR 803 thousand), representing 1.5% (1.4%) of net sales. The majority of investments were directed at the refurbishment of shops and the renovation of the Herttoniemi facilities. EQUITY RATIO AND FINANCING The Group's equity ratio was 77.8% at the end of the period (71.8% on 30 September 2008, 78.7% on 31 December 2008). The ratio of interest-bearing liabilities minus financial assets to shareholders' equity (gearing) was -20.3%, while it was -6.2% at the end of the corresponding period in the previous year (-18.8% on 31 December 2008). At the end of the period, the Group's financial liabilities stood at EUR 0 (EUR 3,820 thousand). The Group's financial assets at the end of the period amounted to EUR 6,091 thousand (EUR 5,704 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 6,723 (5,967) shareholders at the end of the period. Of the shares, 13.6% were registered in a nominee's name and 18.0% 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 1,090,093, representing 13.6% of the total share capital and of the votes conferred by the company's shares. The largest shareholders according to the book-entry register on 30 September 2009 Number of Percentage of shares and votes holding and votes 1. Muotitila Ltd 1,045,200 13.00 2. Semerca Investment Ltd 850,377 10.58 3. ODIN Finland 414,553 5.16 4. Varma Mutual Employment Pension Insurance Company 385,920 4.80 5. Ilmarinen Mutual Pension Insurance Company 265,419 3.30 6. Veritas Pension Insurance Company 220,000 2.74 7. Nordea Nordenfonden 173,506 2.16 8. Sairanen Seppo 71,379 0.89 9. Nacawi Ab 60,300 0.75 10. Foundation for Economic Education 50,000 0.62 11. Mutual Fund Tapiola Finland 50,000 0.62 12. Scanmagnetics Oy 40,000 0.49 13. Nordea Nordic Small Cap Fund 38,904 0.48 14. Haapanala Auvo 33,000 0.41 15. Fromond Elsa 32,200 0.40 Total 3,730,758 46.40 Nominee-registered 1,095,852 13.63 Others 3,213,390 39.97 Total 8,040,000 100.00 Flaggings As a result of a transaction made on 8 April 2009, Barclays Capital Securities Limited's share of Marimekko Corporation's share capital and voting rights rose to 6.09%, or 490,00 shares; and then fell to 0.00%, or 0 shares, as a result of a transaction made on 14 April 2009. Fautor S.P.R.L.'s share of Marimekko Corporation's share capital and voting rights fell to 0.00%, or 0 shares, as a result of a transaction concluded on 18 June 2009. Semerca Investments S.A.'s share of Marimekko Corporation's share capital and voting rights rose to 10.58%, or 850,377 shares, as a result of a transaction concluded on 18 June 2009. According to Marimekko Corporation's knowledge, Semerca Investments S.A. is the parent company of Fautor S.P.R.L. 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 1,430,520 Marimekko shares were traded, representing 17.8% of the shares outstanding. The total value of Marimekko's share turnover was EUR 13,194,771. The lowest price of the Marimekko share was EUR 7.50, the highest was EUR 11.44, and the average price was EUR 9.57. At the end of the review period, the final price of the share was EUR 10.37. The company's market capitalisation on 30 September 2009 was EUR 83,374,800 (EUR 95,676,000 on 30 September 2008, EUR 67,134,000 on 31 December 2008). PERSONNEL During the January-September period of 2009, the number of employees averaged 408 (410). At the end of the period, the Group employed 403 (409) people, of whom 16 (16) worked abroad. 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 2008 Annual Report and Financial Statements as well as in the interim report for the first quarter of 2009. No changes have taken place in these risk factors during the period under review. In the near future, the main risks for Marimekko's business are associated with general economic development and the consequent increased uncertainty in the operating environment. In order to manage the risks, business activity monitoring and especially cost management have been enhanced. RESEARCH AND DEVELOPMENT Marimekko's product planning and development costs arise from the design of collections. Design costs are recorded in expenses. ENVIRONMENT, HEALTH, AND SAFETY Responsibility for the environment and nature is an integral aspect of Marimekko's business. In environmental matters, the company's business supervision is largely based on legislation and other regulations. The framework for Marimekko's social responsibility reporting is provided by the G3 guidelines of the Global Reporting Initiative (GRI). Detailed information on environmental issues and their reporting can be found in the 2008 Annual Report. MARIMEKKO-OWNED RETAIL SHOP AND SUBSIDIARY IN THE UNITED KINGDOM The Marimekko store in London was acquired from Skandium Ltd on 1 April 2009. The store's operations are administered by Marimekko UK Ltd, a subsidiary established at the end of March 2009. DECISIONS OF THE ANNUAL GENERAL MEETING Marimekko Corporation's Annual General Meeting, held on 8 April 2009, adopted the company's financial statements for 2008 and discharged the President and members of the Board from liability. The Annual General Meeting approved the Board of Directors' proposal for a dividend payment of EUR 0.55 per share for the 2008 financial year, totalling EUR 4,422,000.00. The dividend payout record date was 15 April 2009, and the dividend payout date 22 April 2009. The Annual General Meeting confirmed that the company's Board of Directors shall have five (5) members. Ami Hasan, Mika Ihamuotila, Joakim Karske, Pekka Lundmark and Tarja Pääkkönen were re-elected to the Board of Directors. The term of office for the Board runs until the end of the next Annual General Meeting. 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 Annual General Meeting re-elected PricewaterhouseCoopers Oy, Authorised Public Accountants, as the company's regular auditor, with Kim Karhu, Authorised Public Accountant, as chief auditor. It was decided that the auditors' fee would be paid as per invoice. Amendment of the Articles of Association The Annual General Meeting approved the Board of Directors' proposal to amend the Articles 3, 4, 5, 6, 8, 9, 11, 12 and 13 of Marimekko Corporation's Articles of Association. The amendments have been detailed in the Notice of the Annual General Meeting published on 16 March 2009. The Articles of Association approved at the Annual General Meeting are appended to the stock exchange release dated 8 April 2009. CHANGES IN COMPANY MANAGEMENT Ms Malin Groop, Marimekko's Marketing Manager, was appointed as the Group's Marketing Director and member of the Management Group as of 1 August 2009. Ms Marja Korkeela, Head of Group Communications and Investor Relations and member of the Management Group, left the company on 31 August 2009. EFFICIENCY ENHANCEMENT AND STATUTORY EMPLOYER-EMPLOYEE NEGOTIATIONS REGARDING OPERATIONS IN FINLAND On 13 August 2009, Marimekko announced the start of Group-wide statutory employer-employee negotiations regarding possible temporary lay-offs and a permanent reduction in the number of employees in Finland. The maximum number of permanent reductions was not expected to exceed 35 employees. The aim of the negotiations was to adapt the company's cost structure to the rapidly deteriorating market situation and improve the company's ability to develop its operations as well as safeguard the conditions for the stable development of the company. Annual cost savings of about EUR 1.5 million were being sought by various measures. MAJOR EVENTS AFTER THE CLOSE OF THE REVIEW PERIOD Completion of statutory employer-employee negotiations On 7 October 2009, Marimekko announced that its Group-wide statutory employer-employee negotiations concerning the entire Group, begun in August 2009, had been completed. The company stated that reorganisation of functions and rationalisation of operations would result in the elimination of 35 positions. In addition, the company announced that it needed to fill eight new positions; where possible, these positions would be filled by internal transfers. Temporary layoffs have been rejected for the rest of 2009, but certain functions will be prepared for possible lay-offs until 31 May 2010. The personnel cutbacks and other measures to be taken are expected to bring annual cost savings of approximately EUR 1.5 million in total. The annual costs of the new positions are estimated at about EUR 0.4 million. The company announced that, in connection with the personnel reductions, it would make a non-recurring cost provision of EUR 0.8 million for the third quarter of 2009. The cost provision actually made amounted to EUR 0.5 million, because a larger number than anticipated of the employees dismissed decided to work during the notice period or found other employment within the Group. Changes in company management Ms Mervi Metsänen-Kalliovaara, Marimekko's Sales Director and a member of its Management Group left the company on 7 October 2009. As of 7 October 2009, the Marimekko Group's Management Group is composed of Mika Ihamuotila as Chairman, with members Thomas Ekström (finance, control and investor relations), Malin Groop (marketing) Päivi Lonka (international sales), Niina Nenonen (clothing, bags and accessories), Piia Rossi (company-owned retail stores), and Helinä Uotila (production, purchases, and interior decoration). OUTLOOK FOR THE REMAINDER OF 2009 Marimekko Corporation operates in a field where economic trends affect its business activities. The majority of the Group's net sales come from Finland. In recent years, however, exports have increasingly been driving Marimekko's net sales growth. A significant part of the growth has been attributable to the acquisition of new customers and the opening of concept stores. In 2008, the Group's earnings and growth in net sales were largely attributable to significant individual promotional deliveries in Finland and one-off income from sales of licensed products. In the first nine months of 2009, Marimekko's net sales decreased and profit fell considerably due to a sharp decline in demand caused by the economic recession. The difficult market situation continues with no signs of recovery yet. The downtrend in trade is expected to continue during the rest of the year, and it is still difficult to estimate the trend in consumer demand. Sales trends in Marimekko's own retail shops will have a substantial impact on the Group's net sales and earnings in the final quarter of the year. Deliveries during the last quarter of 2009 will include some one-off items that increase net sales and improve earnings, but the value of these items will be smaller than in 2008. However, the decline in sales is expected to slow towards the end of the year, compared with the corresponding period the year before, as sales already fell considerably both in Finland and abroad in the last quarter of 2008 as a result of the rapid deterioration in market conditions. The full-year estimate for 2009 is unchanged: net sales are forecast to decrease by about 10% from the year 2008 and operating result is expected to decline distinctly. Helsinki, 5 November 2009 MARIMEKKO CORPORATION Board of Directors Information presented in the interim report has not been audited. APPENDICES Accounting principles Consolidated income statement and comprehensive 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 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 2008 financial statements. In addition, on 1 January 2009 the Group adopted the following new or amended standards published by the IASB in 2008: IAS 1 standard (amended) In accordance with the amended IAS 1 standard, Marimekko Corporation presents both the consolidated and comprehensive consolidated income statements. IFRS 8 The operational segment reported by the Marimekko Group is the Marimekko business. FORMULAS FOR THE KEY FIGURES 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 June 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 CONSOLIDATED INCOME STATEMENT (EUR 1,000) 7-9/ 7-9/ 1-9/ 1-9/ 1-12/ 2009 2008 2009 2008 2008 NET SALES 19,492 21,913 51,754 59,046 81,107 Other operating income 4 17 35 41 244 Increase or decrease in inventories of completed and unfinished products 1,163 -528 1,396 2,036 185 Raw materials and consumables 6,695 8,749 19,212 25,500 33,597 Employee benefit expenses 4,349 3,946 13,542 13,154 18,287 Depreciation 334 328 1,031 983 1,324 Other operating expenses 4,054 4,632 12,670 13,375 18,372 OPERATING PROFIT 2,901 3,747 3,938 8,111 9,956 Financial income 7 52 60 153 205 Financial expenses -7 -53 -13 -140 -197 0 -1 47 13 8 PROFIT BEFORE TAXES 2,901 3,746 3,985 8,124 9,964 Income taxes 741 971 1,023 2,112 2,586 NET INCOME FOR THE PERIOD 2,160 2,775 2,962 6,012 7,378 Distribution of net income to equity holders of the parent company 2,160 2,775 2,962 6,012 7,378 Basic and diluted earnings per share calculated on the profit attributable to equity holders of the parent company, EUR 0.27 0.35 0.37 0.75 0.92 COMPREHENSIVE CONSOLIDATED INCOME STATEMENT (EUR 1,000) 7-9/ 7-9/ 1-9/ 1-9/ 1-12/ 2009 2008 2009 2008 2008 Net income for the period 2,160 2,775 2,962 6,012 7,378 Other comprehensive income Change in translation difference -10 11 -9 14 -5 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 2,150 2,786 2,953 6,026 7,373 Distribution of net income to equity holders of the parent company 2,150 2,786 2,953 6,026 7,373 CONSOLIDATED BALANCE SHEET (EUR 1,000) 30.9.2009 30.9.2008 31.12.2008 ASSETS NON-CURRENT ASSETS Tangible assets 9,739 9,807 9,948 Intangible assets 417 380 458 Available-for-sale financial assets 20 20 20 10,176 10,207 10,426 CURRENT ASSETS Inventories 15,548 18,958 17,286 Trade and other receivables 6,605 7,309 6,109 Current tax assets 268 220 268 Cash and cash equivalents 6,092 5,704 6,112 28,513 32,191 29,775 ASSETS, TOTAL 38,689 42,398 40,201 SHAREHOLDERS' EQUITY AND LIABILITIES EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY Share capital 8,040 8,040 8,040 Translation differences -11 17 -2 Retained earnings 22,044 22,138 23,504 Shareholders' equity, total 30,073 30,195 31,542 NON-CURRENT LIABILITIES Deferred tax liabilities 688 712 705 Financial liabilities - 185 - 688 897 705 CURRENT LIABILITIES Trade and other payables 7,928 7,659 7,751 Current tax liabilities - 12 18 Financial liabilities - 3,635 185 7,928 11,306 7,954 Liabilities, total 8,616 12,203 8,659 SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 38,689 42,398 40,201 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/ 1-9/ 1-12/ 2009 2008 2008 CASH FLOW FROM OPERATING ACTIVITIES Net profit for the period 2,962 6,012 7,378 Adjustments Depreciation according to plan 1,031 983 1,324 Financial income and expenses -47 -13 -8 Taxes 1,024 2,113 2,586 Cash flow before change in working capital 4,970 9,095 11,280 Change in working capital 1,403 -3,596 -629 Increase (-) / decrease (+) in current non-interest-bearing trade receivables -486 -1,793 -574 Increase (-) / decrease (+) in inventories 1,737 -677 995 Increase (-) / decrease (+) in current non-interest-bearing liabilities 152 -1,126 -1,050 Cash flow from operating activities before financial items and taxes 6,373 5,499 10,651 Paid interest and payments on other financial expenses -14 -132 -200 Interest received 94 168 201 Taxes paid -1,085 -2,101 -2,616 CASH FLOW FROM OPERATING ACTIVITIES 5,368 3,434 8,036 CASH FLOW FROM INVESTING ACTIVITIES Investments in tangible and intangible assets -782 -803 -1,362 CASH FLOW FROM INVESTING ACTIVITIES -782 -803 -1,362 CASH FLOW FROM FINANCING ACTIVITIES Short-term loans drawn - 4,600 4,600 Short-term loans repaid -185 -2,100 -5,550 Long-term loans repaid - -470 -655 Dividends paid -4,422 -5,226 -5,226 CASH FLOW FROM FINANCING ACTIVITIES -4,607 -3,196 -6,831 Change in cash and cash equivalents -21 -565 -157 Cash and cash equivalents at the beginning of the period 6,112 6,269 6,269 Cash and cash equivalents at the end of the period 6,091 5,704 6,112 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (EUR 1,000) Equity attributable to equity holders of the parent company Shareholders' Share Translation Retained equity, capital differences earnings total Shareholders' equity 1 Jan. 2008 8,040 3 21,352 29,395 Comprehensive income for the period 14 6,012 6,026 Dividends paid -5,226 -5,226 Shareholders' equity 30 Sept. 2008 8,040 17 22,138 30,195 Shareholders' equity 1 Jan. 2009 8,040 -2 23,504 31,542 Comprehensive income for the period -9 2,962 2,953 Dividends paid -4,422 -4,422 Shareholders' equity 30 Sept. 2009 8,040 -11 22,044 30,073 KEY INDICATORS 1-9/ 1-9/ Change, 1-12/ 2009 2008 % 2008 Earnings per share, EUR 0.37 0.75 -50.7 0.92 Equity per share, EUR 3.74 3.75 -0.3 3.92 Share of exports and international operations, % of net sales 30.1 29.9 27.0 Return on equity (ROE), % 12.8 26.9 24.2 Return on investment (ROI), % 17.3 33.8 32.3 Equity ratio, % 77.8 71.8 78.7 Gearing, % -20.3 -6.2 -18.8 Gross investments, EUR 1,000 782 803 -2.7 1,362 Gross investments, % of net sales 1.5 1.4 1.7 Contingent liabilities, EUR 1,000 16,828 16,843 -0.1 17,861 Average personnel 408 410 -0.5 411 Personnel at the end of the period 403 409 -1.5 414 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 NET SALES BY MARKET AREA (EUR 1,000) 7-9/ 7-9/ Change, 1-9/ 1-9/ Change, 1-12/ 2009 2008 % 2009 2008 % 2008 Finland 14,183 15,776 -10.1 36,173 41,413 -12.7 59,175 Other Nordic countries 2,029 2,561 -20.8 5,317 7,809 -31.9 9,423 Rest of Europe 1,374 1,316 4.4 3,843 3,767 2.0 4,700 North America 746 964 -22.6 2,309 2,877 -19.7 3,994 Other countries 1,160 1,296 -10.5 4,112 3,180 29.3 3,815 TOTAL 19,492 21,913 -11.0 51,754 59,046 -12.3 81,107 NET SALES BY PRODUCT LINE (EUR 1,000) 7-9/ 7-9/ Change, 1-9/ 1-9/ Change, 1-12/ 2009 2008 % 2009 2008 % 2008 Clothing 7,693 8,016 -4.0 21,253 23,367 -9.0 29,898 Interior decoration 8,091 9,847 -17.8 21,029 24,812 -15.2 37,747 Bags 3,708 4,050 -8.4 9,472 10,867 -12.8 13,462 TOTAL 19,492 21,913 -11.0 51,754 59,046 -12.3 81,107 SEGMENT INFORMATION (EUR 1,000) 1-9/2009 1-9/2008 Change, % 1-12/2008 Marimekko business Net sales 51,754 59,046 -12.3 81,107 Operating profit 3,938 8,111 -51.5 9,956 Assets 38,689 42,398 -8.7 40,201 QUARTERLY TREND IN NET SALES AND EARNINGS (EUR 1,000) 7-9/ 4-6/ 1-3/ 10-12/ 2009 2009 2009 2008 Net sales 19,492 15,999 16,263 22,061 Operating result 2,901 1,058 -21 1,845 Earnings per share, EUR 0.27 0.10 0.00 0.17 (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 result 3,747 2,540 1,824 3,382 Earnings per share, EUR 0.35 0.23 0.17 0.31 |
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