2010-04-28 07:00:00 CEST
2010-04-28 07:00:05 CEST
REGULATED INFORMATION
Stockmann - Interim report (Q1 and Q3)
STOCKMANN plc INTERIM REPORT 1 JANUARY - 31 MARCH 2010
STOCKMANN plc
Interim report
28.4.2010 at 8.00
STOCKMANN plc INTERIM REPORT 1 JANUARY - 31 MARCH 2010
IMPROVEMENT IN STOCKMANN'S REVENUE AND EARNINGS
The Stockmann Group's revenue began to grow again in the first quarter,
and all divisions improved their earnings. Consolidated revenue (excl.
VAT) was up by 5.5 per cent to EUR 372.6 million (EUR 353.2 million). The
Group's operating result increased by EUR 12.9 million, to EUR -9.2
million (EUR -22.0 million). The profit for the period amounted to EUR 2.2
million (EUR -23.8 million). Earnings per share were EUR 0.03 (EUR -0.38).
Key figures 1-3/2010 1-3/2009 2009
Revenue EUR mill. 372.6 353.2 1 698.5
Operating profit EUR mill. -9.2 -22.0 85.3
Profit before taxes EUR mill. -9.8 -26.9 61.3
Profit for the period EUR mill. 2.2 -23.8 54.0
Earnings per share EUR 0.03 -0.38* 0.82
Equity per share EUR 11.32 10.20 11.96
Cash flow from operating EUR mill. -73.8 -94.6 146.8
activities
Key ratios
Net gearing per cent 92.9 140.1 72.1
Equity ratio per cent 41.9 34.0 44.1
Number of shares, weighted thousands 72 555 62 496* 65 995
average, diluted
Return on capital employed, per cent 6.7 6.9 5.8
rolling 12 months
*Adjusted for 2009 share issue
REVENUE AND EARNINGS
Since the start of 2010, Stockmann has been reporting its revenue
exclusive of value added tax (VAT), instead of including VAT in the sales
figures, in order that its reported figures are like-for-like and indicate
the actual trend regardless of changes in VAT. The recovery in consumer
demand, the strengthening of consumer confidence and the measures taken by
all divisions to strengthen their competitive position were evident in the
Stockmann Group's first-quarter revenue (excl. VAT), which was up by 5.5
per cent to EUR 372.6 million (EUR 353.2 million). First-quarter revenue
in Finland was up by 2.1 per cent to EUR 204.4 million. The Group's
revenue abroad amounted to EUR 168.2 million, an increase of 9.9 per cent.
The Swedish krona, the Norwegian krone and the Russian rouble all
strengthened against the euro during the first quarter. If like-for-like
exchange rates are used, the Group's revenue abroad shows an increase of
2.1 per cent. Revenue abroad accounted for 45 per cent (44 per cent) of
the Group's total revenue.
There was no other operating income in the first quarter.
The consolidated operating gross margin increased by EUR 25.7 million, to
EUR 181.6 million. The relative gross margin was 48.8 per cent (44.2 per
cent). The relative gross margin for the Department Store Division and
Seppälä increased significantly, while Lindex's relative gross margin was
at the previous year's level. Operating costs increased by EUR 13.2
million and depreciation fell by EUR 0.4 million.
The consolidated operating result was up by EUR 12.9 million, to EUR -9.2
million.
Net financial expenses fell by EUR 4.2 million, to EUR 0.6 million (EUR
4.8 million). This was due to low interest rates and non-recurring foreign
exchange gains.
Profit before taxes was EUR -9.8 million, up by EUR 17.1 million on the
first quarter 2009 figure. Taxes for the first quarter, amounting to EUR
12.0 million, included a decrease in deferred tax liability of EUR 10.6
million booked for the unrealized exchange rate loss on the currency loan,
and a tax accrual of EUR 2.4 million booked for the first-quarter loss.
The positive tax impact on earnings was EUR 8.9 million greater than a
year earlier. Earnings per share were EUR 0.03 (EUR -0.38), and, diluted
for options, EUR 0.03 (EUR -0.38). Equity per share was EUR 11.32 (EUR
10.20).
REVENUE AND EARNINGS PERFORMANCE BY OPERATING SEGMENT
Department Store Division
Hobby Hall's business was transferred to the Department Store Division as
of the start of 2010, and the plan is to merge Oy Hobby Hall Ab with the
parent company on 30 June 2010. The Department Store Division's first-
quarter figures include Hobby Hall, and so the previous year's figures
used for comparison have been adjusted accordingly. The Department Store
Division's revenue was up by 0.5 per cent to EUR 226.0 million (EUR 224.9
million). Revenue in Finland was up by 2.3 per cent. One of the factors
accelerating the revenue growth has been the progress made in the
enlargement and transformation project at the Helsinki department store,
especially the March opening of part of the new Delicatessen premises. If
Hobby Hall's international operations, which were discontinued in 2009,
are excluded from the Department Store Division's comparison figures, the
Division's revenue growth is 2.6 per cent and the euro-denominated revenue
growth of international operations is 3.5 per cent. Revenue from
international operations accounted for 24 per cent (26 per cent) of the
Division's revenue. The growth in international operations' revenue was in
part attributable to the opening of the new Stockmann department store in
Moscow's Golden Babylon shopping centre on 4 March 2010. As a result of
the good level of sales and the stock situation there was a clear increase
in the relative gross margin in the first quarter. The Department Store
Division's operating result was up by EUR 8.0 million, to EUR -8.2 million
(EUR -16.2 million).
Lindex
Lindex's first-quarter revenue totalled EUR 115.7 million, which was 17.3
per cent more than a year earlier (EUR 98.6 million). Revenue in Finland
was up by 8.6 per cent and in other countries by 18.5 per cent. Lindex
further increased its market share in Sweden, its main market. The
relative gross margin for the first quarter remained at the previous
year's high level. Lindex's operating profit improved to EUR 2.1 million
(EUR 0.2 million).
Seppälä
Seppälä's first-quarter revenue increased by 7.0 per cent year on year, to
EUR 30.8 million (EUR 28.8 million). Revenue in Finland was up by 4.2 per
cent and revenue abroad by 12.2 per cent. Revenue abroad accounted for 36
per cent (34 per cent) of Seppälä's total revenue. Revenue in Russia was
up by 26 per cent, but in the Baltic countries revenue decreased. As a
result of the good level of sales and the stock situation, there was a
clear increase in the relative gross margin in the first quarter.
Seppälä's operating result increased by EUR 1.9 million, to EUR -0.9
million (EUR -2.8 million).
FINANCING AND CAPITAL EMPLOYED
Liquid assets totalled EUR 22.2 million at the end of March, as against
EUR 23.3 million a year earlier and EUR 176.4 million at the end of 2009.
Interest-bearing liabilities at the end of March were EUR 769.3 million
(EUR 900.2 million), of which EUR 616.7 million (EUR 834.6 million) was
long term. At the close of 2009, interest-bearing liabilities amounted to
EUR 789.2 million, of which EUR 786.9 million was long-term debt. First-
quarter capital expenditure amounted to EUR 38.5 million.
Net working capital amounted to EUR 121.1 million at the end of March, as
against EUR 201.8 million a year earlier and EUR 110.6 million at the end
of 2009. The 2009 dividend of EUR 51.2 million, decided by the Annual
General Meeting on 16 March 2010, was paid on 7 April.
In this interim report, the dividend has been treated as profit
distribution and as a liability to shareholders. At the end of March, the
equity ratio was 41.9 per cent (34.0 per cent). At the close of 2009, the
equity ratio was 44.1 per cent. The net gearing at the end of March was
92.9 per cent (140.1 per cent). At the end of 2009, the net gearing was
72.1 per cent.
The return on capital employed over the past 12 months was 6.7 per cent
(5.8 per cent in 2009). The Group's capital employed increased by EUR 47.1
million from March 2009, standing at EUR 1 575.2 million on 31 March 2010
(EUR 1 640.9 million at the end of 2009).
CAPITAL EXPENDITURE
Capital expenditure during the first quarter totalled EUR 38.5 million
(EUR 39.6 million).
Department Store Division
Moscow's fifth and the Group's fourteenth Stockmann department store was
opened on 4 March 2010 in the Golden Babylon shopping centre in the
Rostokino district in north Moscow. Stockmann's capital expenditure on the
department store, which has a total retail space of about 10 000 square
metres, amounts to EUR 16.0 million. During the first quarter, the project
required an investment of EUR 8.4 million.
A major enlargement and transformation project is under way at the
Stockmann 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. Other elements of the project include
construction of new goods handling and servicing facilities and a car
park. After the enlargement, the Helsinki department store will have a
total of about 50 000 square metres of retail space. The estimated cost of
the enlargement part of the project 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 first
quarter, the project required an investment of EUR 6.8 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. The Nevsky Centre shopping centre
is being built for Stockmann on this plot and will comprise 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
topping out ceremony for the building was held on 19 March 2010.
Construction 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, and the company
believes that all the premises will be leased by the time the shopping
centre is opened. During the first quarter, the project required an
investment of EUR 12.7 million.
In Russia, one Bestseller store was opened and one closed during the first
quarter.
The Department Store Division's capital expenditure totalled EUR 33.0
million.
Lindex
In the first quarter of the year, Lindex opened one store in each of the
following countries: Finland, Norway, Estonia, Lithuania, Slovakia and
Russia.
The company's franchising partner opened two new Lindex stores in Saudi
Arabia.
Lindex's capital expenditure totalled EUR 5.0 million.
In April, after the close of the first quarter, Lindex opened three stores
in the Czech Republic and one in Russia, and the company's franchising
partner opened a store in Dubai, a new market for Lindex.
Seppälä
In the first quarter, Seppälä opened one store in Finland, one in Estonia
and one in Russia.
Seppälä's capital expenditure totalled EUR 0.5 million.
In April, after the close of the first quarter, Seppälä opened one store
in Finland and one in Estonia.
Other capital expenditure
The Group's other capital expenditure came to a total of EUR 0.1 million.
NEW PROJECTS
Department Store Division
Hobby Hall was integrated into the Department Store Division at the start
of 2010 and its operations now constitute a separate brand under the
Department Store Division. Hobby Hall's expertise in distance retailing
and the investment made in this will be utilized in the creation of a new
distance retailing store under the Stockmann brand. The online store, at
stockmann.com, will be opened in autumn 2010, and it will have a
distinctly different profile from that of Hobby Hall. The Department Store
Division's organisation will therefore include three distance retailing
brands: Hobby Hall, Stockmann and the Academic Bookstore.
The opening of a new Stockmann department store in Ekaterinburg, Russia is
planned for May 2011. Prior to this, part of the premises reserved for the
department store is being used by chain stores of the Stockmann Group.
Stockmann has signed a contract for the enlargement of its Tampere
department store, which operates in leased premises. The enlargement will
increase the department store's retail space to 15 000 square metres, up
by about 4 000 square metres from the present 11 000 square metres. Access
will also be constructed from the department store to an underground
parking facility to be built under Hämeenkatu street. Stockmann's share of
the total investment is approximately EUR 6 million. The aim is to open
the new premises by the end of 2012.
Lindex
Lindex is continuing its expansion, expecting to open about 40 new stores,
including franchising stores, in 2010 mainly in Central Europe and Russia.
The expansion of the online store is also continuing, with the opening of
an online store in Finland in May. Lindex's franchising partner plans to
expand its successful franchising store chain into Egypt during 2010.
Lindex has also signed another franchising agreement, under which the
franchising partner will expand the Lindex chain into Bosnia and
Herzegovina and the neighbouring countries. The first store in Bosnia and
Herzegovina will be opened in May, in Sarajevo.
Seppälä
Seppälä is also further expanding its store network. In 2010, a total of 5-
8 new stores will be opened, most of them in Finland and Russia.
RESOLUTIONS OF THE ANNUAL GENERAL MEETING
Stockmann's Annual General Meeting was held in Helsinki on 16 March 2010.
Dividends
The Annual General Meeting resolved that a dividend of EUR 0.72 per share
be paid for the 2009 financial year, amounting to a total of EUR 51.2
million. The dividend is 87.8 per cent of the earnings per share.
Election of the members of the Board of Directors
The Annual General Meeting resolved, in accordance with the proposal of
the Board's Appointments and Compensation Committee, that eight members be
elected to the Board. In accordance with the Committee's proposal, the
Annual General Meeting re-elected Christoffer Taxell, LL.M., Managing
Director Erkki Etola, Managing Director Kaj-Gustaf Bergh, Professor Eva
Liljeblom, Managing Director Kari Niemistö, Vice President, Sustainability
Carola Teir-Lehtinen and Henry Wiklund, M.Sc. (Econ.) for a term of office
valid until the end of the next Annual General Meeting. In addition,
Managing Director Charlotta Tallqvist-Cederberg was elected as a new Board
member for the same term.
At its organisational meeting on 16 March 2010, the Board of Directors re-
elected Christoffer Taxell as its Chairman and Erkki Etola as its Vice
Chairman. The Board of Directors elected Christoffer Taxell as Chairman of
the Appointments and Compensation Committee and elected Erkki Etola,
Charlotta Tallqvist-Cederberg and Henry Wiklund as the other members of
the committee.
Auditors
Jari Härmälä, Authorised Public Accountant, and Henrik Holmbom, Authorised
Public Accountant, were re-elected as the regular auditors. KPMG Oy Ab, a
firm of authorised public accountants, will continue as the deputy
auditor.
Share option scheme for key personnel
In accordance with the proposal of the Board, the Annual General Meeting
resolved that, in deviation from shareholders' pre-emptive subscription
rights, a total of 1 500 000 share options be granted to the key personnel
of Stockmann and its subsidiaries. The deviation from the shareholders'
pre-emptive subscription rights was proposed because the share options are
part of the incentive and commitment scheme for the Group's key personnel
and constitute an important element in maintaining the company's
competitive advantage in the international recruitment market. Of these
share options, 500 000 will be classified as 2010A share options, 500 000
as 2010B share options and 500 000 as 2010C share options. The
subscription period for the 2010A share options will be 1 March 2013 - 31
March 2015, for the 2010B share options 1 March 2014 - 31 March 2016 and
for the 2010C share options 1 March 2015 - 31 March 2017. Each share
option entitles its owner to subscribe one Stockmann plc Series B share,
which means the share options entitle their owners to subscribe a maximum
total of 1 500 000 shares. The subscription price for the 2010A share
options will 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, for the
2010B share options 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
for the 2010C share options 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
prices of shares subscribed with the options will be decreased on each
record date for dividend distribution by the amount of dividends decided
after the beginning of the subscription price determination period and
before the share subscription. As a result of the share subscriptions, the
company's share capital may increase by a maximum of EUR 3 000 000.
At its meeting of 27 April 2010, the company's Board of Directors decided
to distribute a total of 484 000 2010A share options at a subscription
price equal to the aforementioned weighted average price for February 2010
increased by 20 per cent, or EUR 26,41 per share. After deduction of the
dividends paid in April, the subscription price is EUR 25,69 per share.
The undistributed 2010A share options will remain in the possession of the
company. Some of the 2010A share options distributed carry an obligation
concerning ownership of shares in the company. As a result of the
subscriptions made using the 2010A share options, the company's share
capital may rise by up to EUR 1 000 000.
SHARES AND SHARE CAPITAL
The company's market capitalization at the end of March was EUR 1 971.6
million (EUR 683.5 million). The total number of shareholders exceeded 43
000. At the end of 2009 the market capitalization stood at EUR 1 396.7
million.
During the first quarter, Stockmann shares outperformed both the OMX
Helsinki index and the OMX Helsinki Cap index. At the end of March, the
price of Series A shares was EUR 28.78, compared with EUR 20.50 at the end
of 2009, and the price of Series B shares was EUR 26.94, as against EUR
19.00 at the end of 2009.
On 31 March 2010, Stockmann had a total of 30 627 563 Series A shares and
40 466 390 Series B shares.
The company does not hold any of its own shares and the Board of Directors
has no valid authorisations to purchase shares of the company.
PERSONNEL
The Group's average number of personnel in the first quarter of 2010 was
less than a year earlier, because of the adjustments made in personnel
numbers and hours of work throughout 2009 to bring them into line with
demand and customer flows. Only in Russia did the number of personnel
increase, as a result of the opening of a new department store and the
growth in Lindex's store network.
The Group's average number of personnel in the first quarter was 14 110,
which was 625 fewer than for the same quarter in 2009. Stockmann's average
number of employees, in terms of full-time equivalents, decreased by 214,
to 10 894.
The Group's personnel expenses amounted to EUR 85.8 million, compared with
EUR 79.7 million a year earlier. Personnel expenses accounted for 23 per
cent (23 per cent) of revenue.
At the end of March 2010, Stockmann had 8 077 employees working abroad.
The corresponding total for the end of March 2009 was 7 893 employees. The
proportion of employees working abroad was 56 per cent (52 per cent) of
the total personnel.
RISK FACTORS
No change has occurred in the general risk factors since the publication
on 11 February 2010 of the review presented in the Board Report on
Operations. Particular risks in the short term concern changes in the
shopping behaviour of consumers in Stockmann's market areas.
AB Lindex (publ) has through legal proceedings requested to be eligible to
deduct in Swedish taxation the losses of approximately EUR 70 million
incurred by the 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 tax 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. 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 was in
breach of the lease agreement. In its decision on 14 April 2009, the court
of arbitration ruled in favour of Stockmann, and ordered the adverse
parties to compensate Stockmann for damages of about USD 7 million and to
reimburse Stockmann for the legal expenses incurred. In order for the
rulings to be enforced, they have to be confirmed by a Russian court of
general jurisdiction. 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 appealed against the last-mentioned ruling to the Highest
Arbitration Court of Russia, which on 7 April 2010 decided not to consider
Stockmann's appeal. Thus the rulings of the arbitration court in favour of
Stockmann cannot be executed in Russia. The decisions have no earnings or
balance sheet implications for Stockmann.
OUTLOOK FOR THE REMAINDER OF 2010
The economic environment has improved somewhat during the first quarter.
Uncertainty has decreased on the global financial markets and the
availability of longer term financing has improved. There are signs that
consumer demand is starting to grow in the Nordic countries and in Russia.
Although no growth is expected in consumer demand in the Baltic countries
in the near future, the downward slide in the economies of these
countries, too, has come to a halt.
During 2009, which was a challenging year, a number of measures aimed at
improving the profitability of the business were undertaken in each
division of the Stockmann Group. As a consequence, all the divisions are
well placed to improve their earnings as sales begin to rise. This was
already evident in the first quarter of the year. Sales growth is expected
to continue, and it is anticipated that the completion of the major
investment projects and new store openings will boost sales in the latter
half of the year. The Department Store Division's key sales campaign in
April, Crazy Days, was very successful, with sales up on the previous
year's figures in all market areas. The second-quarter operating profit
will be higher than the previous year's figure. The full-year operating
profit of all divisions is expected to improve. The aim is to achieve a
significantly higher consolidated operating profit for the full year than
in 2009.
ACCOUNTING POLICIES
This Interim Report has been prepared in compliance with IAS 34. The
accounting policies and calculation methods applied are the same as those
in the 2009 financial statements. Since the start of 2010, Stockmann has
been reporting its revenue exclusive of value added tax (VAT), instead of
including VAT in the sales figures. The Department Store Division's first-
quarter figures include Hobby Hall, and so the previous year's figures
used for comparison have been adjusted accordingly. The figures are
unaudited.
Statement of financial position, EUR 31.3.2010 31.3.2009 31.12.2009
mill.
ASSETS
NON-CURRENT ASSETS
Intangible assets 110.7 110.1 108.3
Goodwill 723.4 642.3 685.4
Property, plant, equipment 648.7 614.7 619.5
Non-current receivables 0.4 1.7 0.6
Available for sale investments 5.0 6.6 5.0
Deferred tax asset 5.4 4.7 5.1
NON-CURRENT ASSETS 1 493.7 1 380.0 1 423.9
CURRENT ASSETS
Inventories 244.0 271.8 196.1
Interest bearing receivables 64.9 74.0 44.5
Non-interest bearing receivables 95.2 89.3 86.5
Cash and cash equivalents 22.2 23.3 176.4
CURRENT ASSETS 426.3 458.4 503.4
ASSETS 1 919.9 1 838.4 1 927.4
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Equity attributable to equity holders of 804.4 625.7 850.2
the parent
Minority interest -0.0 -0.0 -0.0
SHAREHOLDERS' EQUITY 804.4 625.7 850.2
LONG-TERM LIABILITIES
Deferred tax liability 61.7 77.1 70.1
Long-term liabilities, interest-bearing 616.7 834.6 786.9
Provisions 1.4 2.2 1.5
NON-CURRENT LIABILITIES 679.8 913.8 858.5
CURRENT LIABILITIES
Short-term interest-bearing liabilities 152.6 65.6 2.3
Short term interest-free liabilities 283.0 233.3 216.4
CURRENT LIABILITIES 435.6 298.9 218.7
TOTAL EQUITY AND LIABILITIES 1 919.9 1 838.4 1 927.4
Key figures 31.3.2010 31.3.2009 31.12.2009
Equity ratio, per cent 41.9 34.0 44.1
Net gearing, per cent 92.9 140.1 72.1
Cash flow from operations per share, EUR -1.04 -1.51 2.23
Interest-bearing net debt, EUR mill. 682.2 802.9 568.3
Number of shares in the end of the 71 094 61 703 71 094
period, thousands
Weighted average number of shares, 71 094 62 496 65 676
thousands *
Weighted average number of shares, 72 555 62 496 65 995
diluted, thousands *
Market capitalization, EUR mill. 1 971.6 683.5 1 396.7
*) The dilution effect of options has
been taken into account in the 2009
figures.
STATEMENT OF CASH FLOWS, IFRS 03/2010 03/2009 12/2009
EUR millions
Cash flows from operating activities
Profit/loss for the period 2.2 -23.8 54.0
Adjustments for:
Depreciation, amortisation & impairment 14.2 14.6 58.4
loss
Gains (-) and Losses (+) of disposals of 0.0 0.0 -0.3
fixed assets and other non-current assets
Interest and other financial expenses 4.3 6.6 28.4
Interest income -3.7 -1.7 -4.4
Tax on income from operations -12.0 -3.1 7.3
Other adjustments 0.1 -0.2 -0.4
Working capital changes:
Increase (-) / decrease (+) in -44.3 -51.9 27.7
inventories
Increase (-) /decrease(+) in trade and -27.7 -22.3 -1.8
other receivables
Increase (+) / decrease (-) in short-term -0.4 -9.8 7.2
interest-free liabilities
Interest and other financial expenses -4.3 -10.9 -32.9
paid
Interest received 0.2 0.8 2.1
Other financing items 1.1 0.0 0.0
Income taxes paid -3.5 7.1 1.4
Net cash from operating activities -73.8 -94.6 146.8
Cash flows from investing activities
Purchase of tangible and intagible assets -41.9 -45.6 -152.9
Proceeds from sale of tangible and 0.1 0.2 71.1
intangible assets
Disposal of subsidiaries, net of cash 0.0 0.0 5.6
disposed of
Purchase of investments 0.0 0.0
Proceeds from sale of investments 0.0 0.0 1.8
Dividends received 0.1 0.1 0.2
Net cash used in investing activities -41.7 -45.3 -74.3
Cash flows from financing activities
Proceeds from issue of share capital 0.0 0.0 137.0
Proceeds from sale of own shares 0.0 5.1
Proceeds from short-term borrowings 150.0 38.5 0.0
Repayment of short-term borrowings 0.0 -20.4 -19.3
Proceeds from long-term borrowings 0.0 179.3 200.0
Repayment of long-term borrowings -189.4 -96.8 -216.2
Payment of finance lease liabilities -0.4 0.0 -0.7
Dividends paid 0.0 0.0 -38.0
Net cash used in financing activities -39.7 100.7 67.9
Net increase/decrease in cash and cash -155.3 -39.2 140.4
equivalents
Cash and cash equivalents at beginning of 176.4 35.2 35.2
the period
Cheque account with overdraft facility -0.5 -0.7 -0.7
Cash and cash equivalents at beginning of 175.9 34.5 34.5
the period
Net increase/decrease in cash and cash -155.3 -39.2 140.4
equivalents
Effects of exchange rate fluctuations on 0.8 -0.1 1.0
cash held
Cash and cash equivalents at the end of 22.2 23.3 176.4
the period
Cheque account with overdraft facility -0.9 -28.1 -0.5
Cash and cash equivalents at the end of 21.3 -4.9 175.9
the period
Income statement, Group, EUR 1-3/2010 1-3/2009 Change 1-12/2009
millions %
REVENUE 372.6 353.2 6 1 698.5
Other operating income 0.0 -0.0 0.3
Materials and consumables -190.9 -197.2 -3 -880.8
Wages, salaries and employee -85.8 -79.7 8 -327.4
benefits expenses
Depreciation and amortisation -14.2 -14.6 -3 -58.4
Other operating expenses -90.8 -83.7 8 -346.8
OPERATING PROFIT -9.2 -22.0 58 85.3
Finance income and expenses -0.6 -4.8 87 -24.0
PROFIT/LOSS BEFORE TAX -9.8 -26.9 64 61.3
Tax on income from operations 12.0 3.1 290 -7.3
PROFIT/LOSS FOR THE PERIOD 2.2 -23.8 109 54.0
note
Other comprehensive income, 1-03/2010 1-03/2009 Change 1-12/2009
EUR mill. %
PROFIT/LOSS FOR THE PERIOD 2.2 -23.8 54.0
Other comprehensive income
Exchange differences on 2.7 0.7 1.9
translating foreign operations
Cash flow hedges 0.3 -2.4 -1.4
Other comprehensive income for 3.0 -1.6 0.5
the year net of tax
TOTAL COMPREHENSIVE INCOME FOR 5.2 -25.4 54.5
THE YEAR
Total comprehensive income
attributable to:
Equity holders of the parent 5.2 -25.4 54.5
Minority interest 0.0 0.0 0.0
Key figures 31.3.2010 31.3.2009 Change 31.12.2009
%
EPS undiluted (EUR), adjusted 0.03 -0.38 108 0.82
for share issue *
EPS diluted (EUR), adjusted 0.03 -0.38 108 0.82
for share issue *
Operating profit, per cent of -2.5 -6.2 61 5.0
revenue
Equity per share, EUR 11.32 10.20 11 11.96
Return on equity, per cent, 11.2 4.8 135 7.0
moving 12 months
Return on capital employed, 6.7 6.9 -3 5.8
per cent, moving 12 months
Average number of employees, 10 894 11 108 -2 11 133
converted to full-time staff
Investments, EUR millions 38.5 39.6 -3 152.8
*) The dilution effect of
options has been taken into
account in the 2009 figures.Segment
information, Group
EUR millions
Operating segments
Revenue 1.1.-31.3.2010 1.1.-31.3.2009 Change 1.1.-31.12.2009
%
Department Store 226.0 224.9 0 1 030.0
Division 1)
Lindex 115.7 98.6 17 527.0
Seppälä 30.8 28.8 7 139.5
Unallocated 0.1 0.8 -92 1.9
Group 372.6 353.2 6 1 698.5
Operating profit 1.1.-31.3.2010 1.1.-31.3.2009 Change 1.1.-31.12.2009
%
Department Store -8.2 -16.2 49 22.8
Division 1)
Lindex 2.1 0.2 1142 62.4
Seppälä -0.9 -2.8 69 8.0
Unallocated -2.1 -1.8 -19 -7.9
Eliminations 0.0 -1.4 100 0.0
Group -9.2 -22.0 58 85.3
Investments, gross 1.1.-31.3.2010 1.1.-31.3.2009 Change 1.1.-31.12.2009
%
Department Store 33.0 31.7 4 125.7
Division 1)
Lindex 5.0 5.9 -15 22.2
Seppälä 0.5 1.9 -74 4.5
Unallocated 0.1 0.1 -36 0.4
Group 38.5 39.6 -3 152.8
Assets 1.1.-31.3.2010 1.1.-31.3.2009 Change 1.1.-31.12.2009
%
Department Store 856.5 856.6 0 764.8
Division 1)
Lindex 928.2 820.7 13 870.4
Seppälä 109.1 116.0 -6 119.8
Unallocated 26.1 45.1 -42 172.3
Group 1 919.9 1 838.4 4 1 927.4
Information from
market areas
Revenue 1.1.-31.3.2010 1.1.-31.3.2009 Change 1.1.-31.12.2009
%
Finland 2) 204.4 200.1 2 948.0
Sweden and Norway 96.9 81.9 18 439.2
3)
Baltic states, 25.8 33.2 -22 129.6
Czech Republic
and Slovakia 2)
Russia and Ukraine 45.5 38.0 20 181.8
2)
Group 372.6 353.2 6 1 698.5
Finland, % 54.9 56.7 -3 55.8
International 45.1 43.3 4 44.2
operations, %
Operating profit 1.1.-31.3.2010 1.1.-31.3.2009 Change 1.1.-31.12.2009
%
Finland 2) -3.3 -6.8 51 54.3
Sweden and Norway 5.1 0.5 924 61.5
3)
Baltic states, -2.4 -4.0 40 -4.4
Czech Republic and
Slovakia 2)
Russia and Ukraine -8.5 -11.7 27 -26.0
2)
Group -9.2 -22.0 58 85.3
Finland, % 36.0 30.9 17 63.6
International 64.0 69.1 7 36.4
operations, %
1) Hobby Hall has
been integrated to
Department store
division in the
beginning of year
2010. Reference
data for year 2009
is adjusted
according to
changes in
segments
structure.
Reference data for
year 2010 is
adjusted according
to changes in
segments
structure.
2) Department
store division,
Lindex, Seppälä
3) Lindex
Statement of changes in equity, Group EUR Share Share Hedging
millions 1 - 03 / 2009 capital* premium reserve**
fund
BALANCE AT BEGINNING OF THE PERIOD 123.4 186.1 1.4
Changes in equity for
Dividend distribution
Options exercised
Net gain/loss of own shares
Total comprehensive income for the year 0.0 0.0 -2.4
Other changes
Deferred taxes' share of period movements 0.0
SHAREHOLDERS' EQUITY TOTAL 03 / 2009 123.4 186.1 -1.0
Statement of changes in equity, Group EUR Share Share Hedging
millions 1 - 03 / 2010 capital* premium reserve**
fund
BALANCE AT BEGINNING OF THE PERIOD 142.2 186.1 0.0
Changes in equity for
Dividend distribution
Options exercised
Total comprehensive income for the year 0.0 0.0 0.3
Other changes
Deferred taxes' share of period movements 0.0
SHAREHOLDERS' EQUITY TOTAL 03 / 2010 142.2 186.1 0.3
*Including share issue.
** Adjusted with deferred tax liability.
Statement of changes in equity, Reserve Other Trans- lation-
Group EUR millions 1 - 03 / for reserves differences
2009 invested
un-
restricted
equity
BALANCE AT BEGINNING OF THE 124.1 44.1 -6.7
PERIOD
Changes in equity for
Dividend distribution
Options exercised
Net gain/loss of own shares
Total comprehensive income for 0.0 0.0 0.7
the year
Other changes
Deferred taxes' share of period 0.0 0.0
movements
SHAREHOLDERS' EQUITY TOTAL 03 / 124.1 44.1 -6.0
2009
Statement of changes in equity, Reserve Other Trans lation-
Group EUR millions 1 - 03 / 2010 for reserves differences
invested
un-
restricted
equity
BALANCE AT BEGINNING OF THE 243.3 44.1 -4.9
PERIOD
Changes in equity for
Dividend distribution
Options exercised
Total comprehensive income for 0.0 0.0 2.7
the year
Other changes
Deferred taxes' share of period 0.0 0.0
movements
SHAREHOLDERS' EQUITY TOTAL 03 / 243.3 44.1 -2.2
2010
Statement of changes in Retained Total Minority Total
equity, Group EUR millions earnings interest
1 - 03 / 2009
BALANCE AT BEGINNING OF THE 216.8 689.1 0.0 689.1
PERIOD
Changes in equity for
Dividend distribution -38.0 -38.0 -38.0
Options exercised -0.2 -0.2 -0.2
Net gain/loss of own shares 0.2 0.2 0.2
Total comprehensive income for -23.8 -25.4 0.0 -25.4
the year
Other changes
Deferred taxes' share of 0.0 0.0 0.0 0.0
period movements
SHAREHOLDERS' EQUITY TOTAL 155.1 625.7 0.0 625.7
03 / 2009
Statement of changes in Retained Total Minority Total
equity, Group EUR millions earnings interest
1 - 03 / 2010
BALANCE AT BEGINNING OF THE 239.4 850.2 0.0 850.2
PERIOD
Changes in equity for
Dividend distribution -51.1 -51.1 -51.1
Options exercised 0.2 0.2 0.2
Total comprehensive income for 2.1 5.1 0.0 5.1
the year
Other changes
Deferred taxes' share of 0.0 0.0 0.0 0.0
period movements
SHAREHOLDERS' EQUITY TOTAL 190.7 804.4 0.0 804.4
03 / 2010
Contingent liabilites, Group 31.3.2010 31.3.2009 31.12.2009
EUR millions
Mortages on land and buildings 201.7 201.7 201.7
Pledges 1.1 1.4 0.9
Liabilities of adjustments of 35.8 32.5 33.8
VAT deductions made on
investments to immovable
property
Total 238.5 235.6 236.4
Lease agreements on business
premises, EUR millions
Minimum rents payable on the
basis of binding lease
agreements on business
premises
Within one year 146.7 144.0 155.6
After one year 641.9 490.0 625.8
Total 788.6 634.0 781.4
Lease payments, EUR millions
Within one year 7.2 1.1 7.5
After one year 17.4 1.1 19.1
Total 24.6 2.2 26.6
Derivate contracts, EUR
millions
Nominal value
Currency derivatives 509.8 189.7 296.4
Electricity derivates 3.2 3.5 3.2
Total 513.0 193.2 299.6
Exchange rates
Country
Russia RUB 39.6950 45.0320 43.1540
Estonia EEK 15.6466 15.6466 15.6466
Latvia LVL 0.7085 0.7096 0.7093
Lithuania LTL 3.4528 3.4528 3.4528
Norway NOK 8.0135 8.8900 8.3000
Sweden SEK 9.7135 10.9400 10.2520
Income statement,
Group, EUR millions Q1 Q4 Q3 Q2
quarterly, EUR millions 2010 2009 2009 2009
Revenue 372.6 526.3 389.3 429.7
Other operating income 0.0 0.0 0.0 0.3
Materials and consumables -190.9 -262.5 -201.0 -220.1
Wages, salaries and employee -85.8 -90.8 -74.3 -82.6
benefits expenses
Depreciation and amortisation -14.2 -15.1 -14.0 -14.7
Other operating expenses -90.8 -96.8 -82.3 -84.0
Operating profit (loss) -9.2 61.0 17.7 28.6
Finance income and expenses -0.6 -5.2 -8.8 -5.1
Profit (loss) before tax -9.8 55.8 8.9 23.5
Income taxes 12.0 -17.0 8.0 -1.4
Profit for the period 2.2 38.9 16.9 22.0
Earnings per share, EUR
Basic ** 0.03 0.58 0.27 0.35
Diluted ** 0.03 0.58 0.27 0.35
Revenue, EUR millions
Department Store Division * 226.0 332.0 215.6 257.5
Lindex 115.7 155.3 136.5 136.5
Seppälä 30.8 38.4 36.7 35.6
Unallocated 0.1 0.5 0.6 0.1
Group 372.6 526.3 389.3 429.7
Operating profit (loss), EUR
millions
Department Store Division * -8.2 33.5 -2.8 8.4
Lindex 2.1 24.4 18.1 19.7
Seppälä -0.9 4.9 2.9 3.0
Unallocated -2.1 -1.7 -1.2 -3.2
Eliminations 0.0 0.0 0.7 0.6
Group -9.2 61.0 17.7 28.6
*) Hobby Hall has been
integrated to Department store
division in the beginning of
year 2010. Reference data for
year 2009 is adjusted
according to changes in
segments structure.
**) The dilution effect of
options has been taken into
account in the 2009 figures.
Income statement,
Group, EUR millions Q1 Q4 Q3 Q2
quarterly, EUR millions 2009 2008 2008 2008
Revenue 353.2 541.3 440.8 483.3
Other operating income 0.0 0.1 0.3 -0.1
Materials and consumables -197.2 -273.5 -224.7 -242.6
Wages, salaries and employee -79.7 -92.9 -82.3 -90.2
benefits expenses
Depreciation and amortisation -14.6 -14.2 -13.2 -18.7
Other operating expenses -83.7 -102.4 -86.2 -100.3
Operating profit (loss) -22.0 58.4 34.6 31.4
Finance income and expenses -4.8 -12.7 -12.8 -13.3
Profit (loss) before tax -26.9 45.7 21.8 18.1
Income taxes 3.1 -25.8 -6.2 -2.9
Profit for the period -23.8 19.9 15.6 15.2
Earnings per share, EUR
Basic ** -0.38 0.32 0.27 0.27
Diluted ** -0.38 0.32 0.27 0.27
Revenue, EUR millions
Department Store Division * 224.9 357.8 257.8 297.6
Lindex 98.6 141.0 140.6 147.6
Seppälä 28.8 42.8 41.7 37.6
Unallocated 0.8 -0.3 0.6 0.4
Group 353.2 541.3 440.7 483.3
Operating profit (loss), EUR
millions
Department Store Division * -16.2 36.5 14.1 4.7
Lindex 0.2 20.3 15.7 23.8
Seppälä -2.8 4.2 5.9 5.1
Unallocated -1.8 -3.3 -0.7 -2.2
Eliminations -1.4 0.8 -0.5 0.0
Group -22.0 58.4 34.6 31.4
*) Hobby Hall has been
integrated to Department store
division in the beginning of
year 2010. Reference data for
year 2009 is adjusted
according to changes in
segments structure.
**) The dilution effect of
options has been taken into
account in the 2009 figures.
STOCKMANN
Assets
EUR mill. 31/03/2010 31.3.2009 31/12/2009
Acquisition cost 1.1. 964.8 945.3 945.3
Translation difference +/- 8.5 3.0 12.2
Increases 1.1. -31.3. 38.5 39.6 160.9
Decreases 1.1.-31.3. -0.2 -0.5 -153.5
Transfers between items -0.2 0.0 0.0
Acquisition cost 31.3. 1 011.4 987.5 964.8
Accumulated depreciation 1.1. -237.0 -245.7 -245.7
Translation difference +/- -1.2 -2.6 -3.5
Depreciation on reductions 0.3 0.2 70.6
Depreciation for the financial year -14.2 -14.6 -58.4
Accumulated depreciation 31.3. -252.0 -262.7 -237.0
Book value 1.1. 727.8 699.6 699.6
Book value 31.3. 759.4 724.8 727.8
Goodwill
EUR mill. 31/03/2010 31/03/2009 31/12/2009
Acquisition cost 1.1. 685.4 646.5 685.4
Translation difference +/- 38.0 -4.1 0.0
Acquisition cost 31.3. 723.4 642.3 685.4
Book value 1.1. 685.4 646.5 685.4
Book value 31.3. 723.4 642.3 685.4
Total 1 482.8 1 367.1 1 413.2
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
NASDAQ OMX
Principal media
A press and analyst conference will be held today, 28 April 2010, at 9.00
at Rake-Sali, Erottajankatu 4C, Helsinki.
© 2024 Nasdaq, Inc. All Rights Reserved |