2014-02-05 07:30:00 CET
2014-02-05 07:30:05 CET
REGULATED INFORMATION
Marimekko - Financial Statement Release
FINANCIAL STATEMENTS BULLETIN OF MARIMEKKO CORPORATION, 1 JANUARY - 31 DECEMBER 2013: International growth continued despite difficult market conditions
Marimekko Corporation, Financial Statements Bulletin, 5 February 2014 at 8.30 AM
In 2013, the Marimekko Group's net sales grew by 6 percent from the previous
year. International sales rose by 16 percent, mainly due to the stores opened
in North America and the Asia-Pacific region during 2012 and 2013. In the
October-December period of 2013, the Group's net sales fell by 1 percent.
Operating profit for 2013 amounted to EUR 0.1 million (2.0). Operating profit
includes EUR 1.3 million in nonrecurring expenses due to arrangements arising
from the statutory employer-employee negotiations, concluded during the second
quarter, on the company's manufacturing operations located in Sulkava and
Kitee. Operating profit excluding nonrecurring items in 2013 was EUR 1.4
million (2.0). The 2013 EBITDA excluding nonrecurring items increased markedly,
reaching EUR 7.9 million (5.6). In the October-December period, the Group's
operating result was EUR -0.6 million (0.0).
In 2014, Marimekko will continue to invest in growth while focusing on
enhancing the operations of its stores, on improving the overall profitability
of business and on creating even more attractive design and products.
Key indicators
10-12/ 10-12/ Change 1-12/ 1-12/ Change
2013 2012 , % 2013 2012 , %
--------------------------------------------------------------------------------
Net sales, EUR million 25.5 25.7 -1 94.0 88.5 6
--------------------------------------------------------------------------------
International sales, EUR million 10.8 10.2 6 41.8 36.1 16
--------------------------------------------------------------------------------
% of net sales 42 40 45 41
--------------------------------------------------------------------------------
EBITDA, EUR million 2.6 1.0 116 6.9* 5.6 23
--------------------------------------------------------------------------------
EBITDA excluding nonrecurring 2.6 1.0 116 7.9 5.6 41
items, EUR million
--------------------------------------------------------------------------------
Operating result, EUR million -0.6 0.0 0.1* 2.0 -96
--------------------------------------------------------------------------------
Operating result excluding -0.6 0.0 1.4 2.0 -22
nonrecurring items, EUR million
--------------------------------------------------------------------------------
Operating result margin, % -2.2 0.1 0.1* 2.3
--------------------------------------------------------------------------------
Operating result margin excluding -2.2 0.1 1.4 2.3
nonrecurring items, %
--------------------------------------------------------------------------------
Result for the period, EUR million -0.5 -0.3 -61 -1.0 1.1
--------------------------------------------------------------------------------
Earnings per share, EUR -0.07 -0.04 -75 -0.12 0.14
--------------------------------------------------------------------------------
Cash flow from operating 5.0 6.1 -17 5.4 8.6 -37
activities, EUR million
--------------------------------------------------------------------------------
Return on investment (ROI), % -1.1 4.1
--------------------------------------------------------------------------------
Equity ratio, % 55.5 54.6
--------------------------------------------------------------------------------
Gross investments, EUR million 0.5 2.0 -76 2.4 7.6 -69
--------------------------------------------------------------------------------
Personnel at the end of the period 502 535 -6 502 535 -6
--------------------------------------------------------------------------------
outside Finland 124 103 20 124 103 20
--------------------------------------------------------------------------------
Brand sales**, EUR million 51.5 54.4 -5 191.1 187.2 2
--------------------------------------------------------------------------------
outside Finland, EUR million 28.4 25.0 14 115.1 100.7 14
--------------------------------------------------------------------------------
proportion of international sales, 55 46 60 54
%
--------------------------------------------------------------------------------
Number of stores*** 133 108 23 133 108 23
--------------------------------------------------------------------------------
* Operating result includes EUR 1.3 million in nonrecurring expenses due to
arrangements arising from the statutory employer-employee negotiations
concluded during the second quarter of 2013. EUR 1.0 million of these
nonrecurring expenses is included in EBITDA.
** Estimated sales of Marimekko products at consumer prices. Brand sales are
calculated by adding together the company's own retail sales and the estimated
retail value of Marimekko products sold by other retailers. The estimate, based
on Marimekko's actual wholesale sales to these retailers, is unofficial and
does not include VAT. The key figure is not audited.
*** Includes the company's own retail stores, retailer-owned Marimekko stores
and shop-in-shops with an area exceeding 30 sqm. The company's own retail
stores numbered 51 at the end of 2013 (47). Information on changes is available
in the section Internationalisation and changes in the store network.
Mika Ihamuotila, President and CEO:
“In 2013, we succeeded in boosting our net sales by 6 percent over the previous
year although the market conditions were challenging in all our main market
areas and our sectors of business. The driving force of growth continued to be
our international markets: net sales outside Finland grew by 16 percent and in
the Asia-Pacific region growth was 37 percent compared to the previous year.
The challenging market conditions made themselves felt particularly in the form
of a downturn in our wholesale sales in Scandinavia, Central and Southern
Europe and North America, which negatively impacted the 2013 operating profit.
The losses posted by our stores in the United States which are still partly in
the launching phase were also detrimental to our profitability. Because of the
poor profitability of our company-owned stores in Beverly Hills, Boston and
Oslo, we booked write-downs on their tangible assets to a total of EUR 1.5
million, which contributed to the downturn in our operating profit. Sales in
the last months of the year were poor, particularly in Finland due to low
consumer confidence and a prolonged period of exceptionally warm weather during
the autumn. However, I am pleased that our EBITDA improved noticeably on the
previous year.
“We continued to implement our long-term internationalisation strategy: during
the year, a total of 34 new Marimekko stores were opened, 25 of which were
outside Finland. Our store network expanded, particularly in the Asia-Pacific
region, where we took important steps forward with the opening of the first
Marimekko stores in mainland China and Taiwan. The prospects for the economy
and retail trade are good in Asia, and we believe that there is growing demand
in the region for our products. We will also continue from now on to devote
effort to growth in all our main market areas. The main thrust in our expansion
this year will be on openings of retailer-owned stores and shop-in-shops inside
classy department stores. Our intention is to open a total of 15-25 Marimekko
stores and shop-in-shops in 2014, 1-3 of which would be company-owned.
“We reported earlier today that we intend to carry out a reorganisation of our
operations in Finland and the United States. These arrangements are aimed at
achieving lower costs and a more efficient corporate operating model. Another
aim is to create even more attractive products and design for our increasingly
international customer base. If implemented in full, the reorganisations will
yield annual savings in costs amounting to roughly EUR 2.5 million. These
actions, combined with the streamlining we carried out in 2013, will improve
this year's operating result. This year, we are paying particularly close
attention to our operational efficiency while continuing our work aimed at
international growth in line with our strategy.
”In spite of the difficult market conditions, I am confident that Marimekko is
on the right track. The planned reorganisations, together with international
growth, are expected to form a basis for building a more profitable and
attractive company.”
Market outlook and growth targets in 2014
The general uncertainty in the global economy is forecast to continue, and this
may impact consumers' purchasing behaviour in all of Marimekko's market areas.
The prospects for the European economic trend are still poor, although hopes
for an improvement have risen slightly recently. In the United States and Asia,
economic forecasts are better than in Europe. The United States has seen
stronger growth than Europe and the economy is gradually normalising. In Asia,
economic growth is forecast to continue to outstrip other regions, although a
slowdown in growth in China has stirred concern in the stock market.
(Confederation of Finnish Industries EK: Economic Review, December 2013 and
January 2014). The Asia-Pacific region was the driving force in Marimekko's
sales growth in 2013 and the company sees growing demand for its products in
this market area. Japan has 26 retailer-owned Marimekko stores and the
company's wholesale sales to Japan have grown for several successive years. The
appreciation of the euro relative to the yen and a forthcoming increase in
sales tax in Japan in April 2014 could have a negative impact on Marimekko's
wholesale sales.
In Finland, the retail market environment is extremely weak at the moment, and
no turnaround for the better is in sight. Retail trade confidence indicators
levelled out in December 2013 but went back into decline in January 2014.
According to economic polls conducted by trade and industry, Finland's economic
winter will continue. (Confederation of Finnish Industries EK: Economic Review
and Confidence Indicators, January 2014). The extremely weak retail market
situation and the negative trend in comparable sales by Marimekko-owned stores
in Finland at the end of 2013 cast a shadow over this year's prospects in
Finland.
The main thrust in expansion in 2014 will be on openings of retailer-owned
Marimekko stores and shop-in-shops. The aim is to open a total of 15-25 new
Marimekko stores and shop-in-shops, 1-3 of which would be company-owned. Also,
the company will concentrate on enhancing the operations of company-owned
stores opened in recent years and on improving the overall profitability of
business.
The planned total investments for 2014 of the Marimekko Group are estimated as
being approximately EUR 3 million. Most of the investments are devoted to
building new retail facilities and purchases of fittings.
Financial guidance for 2014
On the basis of general market prospects, the company's growth targets and the
planned reorganisation, the Marimekko Group's net sales for 2014 are forecast
to grow by 3-8 percent relative to 2013. Operating profit excluding
nonrecurring items is estimated at EUR 4-8 million.
Briefing for the media and analysts
A briefing for the media and analysts will be held concerning this financial
statements bulletin today at 9 a.m. in Marimekko's flagship store at
Pohjoisesplanadi 33, Helsinki. The presentation material is available on the
company's website at company.marimekko.com under Releases/Interim reports and
financial statements.
Corporate governance statement
The Corporate Governance Statement 2013 is available on the company's website
at company.marimekko.com under Investors/Management/Corporate governance.
Financial calendar 2014
The 2013 financial statements will be published in week 14 at the latest. The
Annual General Meeting is planned to be held on 23 April 2014 at 2 p.m. The
following interim reports will be published in 2014: January to March, on
Thursday 8 May 2014 at 8.30 a.m.; January to June, on Thursday 14 August 2014
at 8.30 a.m.; and January to September, on Thursday 6 November 2014 at 8.30
a.m.
Further information:
Mika Ihamuotila, President and CEO, tel. +358 9 758 71
Thomas Ekström, CFO, tel. +358 9 758 7261
MARIMEKKO CORPORATION
Corporate Communications
Piia Kumpulainen
Tel. +358 9 758 7293
piia.kumpulainen@marimekko.fi
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
Marimekko is a Finnish textile and clothing design company renowned for its
original prints and colours. The company designs and manufactures high-quality
interior decoration items ranging from furnishing fabrics to tableware as well
as clothing, bags and other accessories. When Marimekko was founded in 1951,
its unparalleled printed fabrics gave it a strong and unique identity.
Marimekko products are sold in approximately 40 countries. In 2013, brand sales
of Marimekko products worldwide amounted to approximately EUR 191 million and
the company's net sales were EUR 94 million. The number of Marimekko stores
totalled 133 at the year end. The key markets are North America, Northern
Europe and the Asia-Pacific region. The Group employs around 500 people. The
company's share is quoted on NASDAQ OMX Helsinki Ltd. www.marimekko.com
FINANCIAL STATEMENTS OF MARIMEKKO CORPORATION, 1 JANUARY - 31 DECEMBER 2013
MARKET REVIEW
The widespread uncertainty over the global economy continued during 2013 and
consumers' purchasing behaviour remained cautious. In Europe, the serious debt
crisis of the EU states retreated somewhat, but the region's economic growth
continued to be weak. In the United States and Asia, the situation was better,
although growth was fairly slow. In Finland, market conditions continued to be
worse than the average and the economic prospects deteriorated. The short-term
economic outlook for trade and industry continued to be sluggish and has
further weakened. Consumer confidence was low during 2013, but rose slightly at
the end of the year. (Confederation of Finnish Industries EK: Business Tendency
Survey, November 2013 and Statistics Finland: Consumer survey, January 2014).
In 2013, retail net sales in Finland rose by 0.3 percent, but the quantity of
sales - which measures real growth in sales - declined by 0.8 percent.
(Statistics Finland: Turnover of trade, retail trade flash estimate, January
2014). In 2013, retail sales of clothing (excluding sportswear) fell by 4.8
percent. Sales of women's clothing declined by 5.5 percent, menswear by 2.7
percent and children's clothing by 6.0 percent. Sales of bags fell by 0.2
percent (Textile and Fashion Industries TMA). In the January-November period of
2013, clothing (SITC 84) exports grew by 5 percent and imports were level with
the previous year; imports and exports of textiles (SITC 65) declined by 4
percent each (National Board of Customs, monthly review, January 2014).
INTERNATIONALISATION AND CHANGES IN THE STORE NETWORK
In 2012, Marimekko invested more than before in expanding its network of
company-owned stores in Northern Europe and the United States in order to raise
its profile and to enhance prospects for the opening of retailer-owned
Marimekko stores and shop-in-shops. This changed the ratio of wholesale to
retail and tied up a larger proportion of the company's capital and resources
than before.
In 2013, the main thrust in Marimekko's expansion was on openings of
retailer-owned Marimekko stores and shop-in-shops. The company also invested in
enhancing the operations of the stores it opened in 2012. During 2013, a total
of 34 new Marimekko stores and shop-in-shops were opened, 25 of them outside
Finland. These stores are divided as follows: 6 company-owned, 9 retailer-owned
stores, and 19 shop-in-shops. New stores were opened in all of the company's
main market areas. During 2013, a total of 8 Marimekko stores were closed down:
company-owned stores in Finland and Sweden, retailer-owned stores in Denmark
and Austria, and four Crate and Barrel shop-in-shops in the United States.
Also, a retailer-owned store in Copenhagen included other brand products into
its range, so it is no longer counted as a Marimekko store.
In the final quarter of 2013, 6 Marimekko stores were opened: company-owned
stores in Helsinki and Vantaa; retailer-owned stores in Hong Kong, Taipei and
Osaka; and a shop-in-shop in Kuopio, Finland. A retailer-owned store in
Copenhagen has included other brand products into its range, so it is no longer
counted as a Marimekko store.
Number of stores and shop-in-shops* 31.12.2013 31.12.2012
-----------------------------------------------------------
Finland 56 48
-----------------------------------------------------------
Company-owned stores 31 28
-----------------------------------------------------------
Scandinavia 13 12
-----------------------------------------------------------
Company-owned stores 8 7
-----------------------------------------------------------
Central and Southern Europe 4 5
-----------------------------------------------------------
Company-owned stores 4 4
-----------------------------------------------------------
North America 23 16
-----------------------------------------------------------
Company-owned stores 6 6
-----------------------------------------------------------
Asia-Pacific 37 27
-----------------------------------------------------------
Company-owned stores 2 2
-----------------------------------------------------------
Total 133 108
-----------------------------------------------------------
Company-owned stores 51 47
-----------------------------------------------------------
* Includes the company's own retail stores, retailer-owned Marimekko stores and
shop-in-shops with an area exceeding 30 sqm.
NET SALES
In 2013, the Group's net sales, boosted by international sales, rose by 6
percent to EUR 94,007 thousand (88,471). In Finland, net sales were on a par
with the previous year. International sales rose by 16 percent.
In the October-December period, the Group's net sales fell by 1 percent,
reaching EUR 25,465 thousand (25,748). In Finland, net sales fell by 5 percent
relative to the same period the year before. International sales rose by 6
percent.
Net sales by market area
(EUR 1,000) 10-12/ 10-12/ Change, % 1-12/ 1-12/ Change, %
2013 2012 2013 2012 --------------------------------------------------------------------------------
Finland 14,705 15,555 -5 52,159 52,344 0
--------------------------------------------------------------------------------
Retail sales 9,792 10,096 -3 35,107 34,000 3
--------------------------------------------------------------------------------
Wholesale sales 4,670 5,090 -8 16,491 17,546 -6
--------------------------------------------------------------------------------
Royalties 243 369 -34 562 798 -30
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 2,294 2,063 11 8,152 7,856 4
--------------------------------------------------------------------------------
Retail sales 1,323 944 40 4,355 3,299 32
--------------------------------------------------------------------------------
Wholesale sales 970 1,119 -13 3,796 4,554 -17
--------------------------------------------------------------------------------
Royalties - - - 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Central and Southern 1,763 1,875 -6 7,678 7,783 -1
Europe
--------------------------------------------------------------------------------
Retail sales 454 426 7 1,408 1,492 -6
--------------------------------------------------------------------------------
Wholesale sales 1,284 1,422 -10 6,170 6,185 0
--------------------------------------------------------------------------------
Royalties 25 27 -6 100 106 -5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North America 2,182 2,809 -22 8,534 7,743 10
--------------------------------------------------------------------------------
Retail sales 1,621 1,742 -7 5,587 4,020 39
--------------------------------------------------------------------------------
Wholesale sales 496 955 -48 2,511 3,193 -21
--------------------------------------------------------------------------------
Royalties 65 112 -42 436 530 -18
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacific 4,521 3,446 31 17,484 12,745 37
--------------------------------------------------------------------------------
Retail sales 804 655 23 2,300 655 251
--------------------------------------------------------------------------------
Wholesale sales 3,717 2,791 33 15,182 12,087 26
--------------------------------------------------------------------------------
Royalties - - 2 3 -41
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
International sales, total 10,760 10,193 6 41,848 36,127 16
--------------------------------------------------------------------------------
Retail sales 4,202 3,767 12 13,651 9,466 44
--------------------------------------------------------------------------------
Wholesale sales 6,467 6,287 3 27,659 26,019 6
--------------------------------------------------------------------------------
Royalties 90 139 -35 538 642 -16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 25,465 25,748 -1 94,007 88,471 6
--------------------------------------------------------------------------------
Retail sales 13,995 13,863 1 48,757 43,466 12
--------------------------------------------------------------------------------
Wholesale sales 11,137 11,377 -2 44,150 43,565 1
--------------------------------------------------------------------------------
Royalties 333 508 -34 1,100 1,440 -24
--------------------------------------------------------------------------------
Finland
In 2013, sales in Finland were on a par with the previous year, with EUR 52,159
thousand. Retail sales rose by 3 percent. Sales were boosted by three
company-owned stores opened in 2012 as well as four company-owned stores opened
in 2013. Comparable sales by company-owned stores fell by 6 percent. Wholesale
sales fell by 6 percent.
In the last quarter of the year, consumers' purchasing behaviour continued to
be cautious and net sales declined by 5 percent relative to the same period the
year before. Retail sales fell by 3 percent; comparable sales by company-owned
stores declined by 9 percent. Wholesale sales fell by 8 percent.
Scandinavia
In Scandinavia, sales in 2013 grew by 4 percent relative to the previous year
and amounted to EUR 8,152 thousand. Retail sales rose by 32 percent. Retail
sales were boosted by two company-owned stores opened in Sweden in 2012, the
extension of Marimekko's e-commerce into Sweden and Denmark, as well as the
opening of two company-owned stores in 2013, one in Sweden and the other in
Denmark. Comparable sales growth for company-owned stores was 6 percent. In
2013, wholesale sales fell by 17 percent. Consumers' purchasing behaviour
continued to be cautious, especially in Sweden and Denmark, which affected
wholesale sales in particular.
During the last quarter of the year, retail sales rose by 40 percent.
Comparable sales by company-owned stores grew by 5 percent. Wholesale sales
fell by 13 percent. The downturn in wholesale sales was partly due to a shift
favouring the third quarter in the timing of autumn deliveries.
Central and Southern Europe
In Central and Southern Europe, net sales in 2013 fell by 1 percent, amounting
to EUR 7,678 thousand. Retail sales fell by 6 percent, whereas wholesale sales
were on a par with the previous year.
During the last quarter of the year, retail sales rose by 7 percent. Wholesale
sales fell by 10 percent. The downturn in wholesale sales was partly due to a
shift favouring the third quarter in the timing of autumn deliveries.
North America
In North America, net sales in 2013 grew by 10 percent and were EUR 8,534
thousand. In terms of the sales currency (mostly the US dollar), growth
amounted to roughly 11 percent. The growth in net sales came from the four
company-owned stores opened in the United States in the second half of 2012.
Retail sales in 2013 grew by 39 percent. Comparable sales by company-owned
stores fell by 3 percent. Wholesale sales fell by 21 percent.
During the last quarter of the year, retail sales fell by 7 percent. Comparable
sales by company-owned stores rose by 3 percent. Wholesale sales fell by 48
percent. The downturn in wholesale sales was partly due to a shift favouring
the third quarter in the timing of autumn deliveries.
Asia-Pacific
Net sales in the Asia-Pacific region grew in 2013 by 37 percent and were EUR
17,484 thousand. Wholesale sales rose by 26 percent. Wholesale sales were
improved by the stores opened in 2012, as well as investments in Australia,
combined with store openings in China, South Korea, Japan and Taiwan during
2013. Net sales were also boosted by two company-owned stores opened in
Australia at the end of 2012.
In the last quarter of the year, retail sales rose by 23 percent and wholesale
sales by 33 percent.
FINANCIAL RESULT
In 2013, the Group's operating profit was EUR 82 thousand (2,019). Operating
profit includes EUR 1,276 thousand in nonrecurring expenses due to arrangements
arising from the statutory employer-employee negotiations, concluded during the
second quarter, on the company's manufacturing operations located in Sulkava
and Kitee. Operating profit excluding nonrecurring items was EUR 1,358 thousand
(2,019). A drag was exerted on operating profit by write-downs on the tangible
assets of the company-owned stores in Beverly Hills, Boston and Oslo, totalling
EUR 1,480 thousand. A further drag on operating profit was exerted by the loss
posted by the stores in the United States and by a downturn in wholesale sales
in Scandinavia, Central and Southern Europe and North America. Operating profit
was boosted by growth in wholesale sales in the Asia-Pacific region, by
markedly reduced marketing costs, by an increase in the utilisation rate and
streamlining of the company's textile printing factory, and by the closure of
the production plants in Sulkava and Kitee.
In the October-December period of 2013, the Group's operating result was EUR
-564 thousand (13). The final quarter's operating result was weakened by
write-downs on the tangible assets of the company-owned stores in Beverly
Hills, Boston and Oslo, totalling EUR 1,480 thousand, as well as a downturn in
wholesale sales in Finland, Scandinavia, Central and Southern Europe, and North
America. Operating result was improved by growth in wholesale sales in the
Asia-Pacific region, the closure of the production plants in Sulkava and Kitee,
by an increase in the utilisation rate and streamlining of the company's
textile printing factory, and by reduced marketing costs.
Marketing expenses for the year totalled EUR 4,179 thousand (5,132), or 4
percent of the Group's net sales (6).
Operating profit margin for 2013 was 0.1 percent (2.3). In the October-December
period, operating result margin was -2.2 percent (0.1).
Net financial expenses in 2013 were EUR 886 thousand (606), or 1 percent of net
sales (1).
Result for the financial year before taxes was EUR -804 thousand (1,413).
Result after taxes was EUR -955 thousand (1,100) and earnings per share were
EUR -0.12 (0.14).
Depreciation and impairments
The Group's depreciation and impairments totalled EUR 6,772 thousand (3,550),
or 7 percent of net sales (4). The Group's depreciation grew due to
considerable investments during the past few years.
In 2013, the Group booked write-downs totalling EUR 1,480 thousand on the
tangible assets of the company-owned stores in Beverly Hills, Boston and Oslo.
The write-downs were due to these stores' poor profitability and they will
reduce annual depreciation by some EUR 400 thousand from 2014 onwards.
In the same connection, Marimekko booked write-downs in the separate financial
statements of the Group's parent company totalling EUR 5,424 thousand on the
book value of subsidiary shares, loan receivables and trade receivables. The
write-downs concern the company's subsidiaries in the United States and Sweden.
These write-downs booked in the parent company's separate financial statements
will have no effect on Marimekko's consolidated financial statements. At the
end of 2013, the shareholders' equity of the parent company was EUR 21,130
thousand and its distributable funds were EUR 13,090 thousand.
BALANCE SHEET
The consolidated balance sheet total as at 31 December 2013 was EUR 48,648
thousand (54,961). Equity attributable to the equity holders of the parent
company was EUR 26,989 thousand (29,996), or EUR 3.34 per share (3.71).
Non-current assets at the end of 2013 were EUR 20,237 thousand (24,977). As of
March 2012, tangible assets include a finance lease asset related to the
30-year land lease on the property of the Helsinki head office and printing
factory. The book value of the finance lease asset at the end of the year was
EUR 3,229 thousand (3,324).
At the end of the year, net working capital was EUR 15,421 thousand (15,103).
Inventories were EUR 18,106 thousand (18,502).
CASH FLOW AND FINANCING
In 2013, the Group's cash flow from operating activities was EUR 5,424 thousand
(8,605), or EUR 0.67 per share (1.06). Cash flow from operating activities
before change in working capital grew markedly, to EUR 6,954 thousand (5,712).
Cash flow before cash flow from financing activities was EUR 3,070 thousand
(1,033).
In the October-December period, cash flow from operating activities was EUR
5,031 thousand (6,066), or EUR 0.62 per share (0.75). Cash flow from operating
activities before change in working capital was EUR 2,601 thousand (1,177).
Cash flow before cash flow from financing activities was EUR 4,553 thousand
(4,103).
The Group's financial liabilities at the end of the year stood at EUR 11,558
thousand (12,710). As of March 2012, non-current and current liabilities also
include a finance lease liability related to the 30-year land lease on the
property of the Helsinki head office and printing factory. The present value of
the finance lease liability at the end of the review period totalled EUR 3,324
thousand (3,393).
At the end of the year, the Group's cash and cash equivalents amounted to EUR
3,001 thousand (3,106). In addition, the Group had unused committed long- and
short-term credit lines of EUR 17,767 thousand (10,683).
The Group's equity ratio at the end of the year was 55.5 percent (54.6).
Gearing was 31.7 percent (32.0).
INVESTMENTS
The Group's gross investments in 2013 were EUR 2,353 thousand (7,582), or 3
percent of net sales (9). Most of the investments were devoted to building
store premises and to refurbishing the property in Herttoniemi.
PERSONNEL
In 2013, the number of employees averaged 526 (497). At the end of the year,
the Group had 502 employees (535), of whom 124 worked outside Finland (103).
The number of employees working outside Finland was broken down as follows:
Scandinavia 38 (24), Central and Southern Europe 15 (14), North America 55 (53)
and the Asia-Pacific region 16 (12). The personnel at company-owned stores
totalled 248 at the end of the year (235).
RESOLUTIONS OF THE ANNUAL GENERAL MEETING
The resolutions of Marimekko Corporation's Annual General Meeting have been
reported in the stock exchange release of 23 April 2013 and in the interim
report of 7 May 2013.
SHARES AND SHAREHOLDERS
Share capital and number of shares
At the end of 2013, 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
8,089,610.
Shareholdings
According to the book-entry register, Marimekko had 7,424 shareholders at the
end of 2013 (7,417). Of the shares, 21.0 percent were owned by
nominee-registered or non-Finnish holders (20.9). The number of shares owned
either directly or indirectly by members of the Board of Directors and the
President and CEO of the company was 1,343,930 (1,338,930), representing 16.6
percent of the number and voting rights of the company's shares (16.6).
The largest shareholders according to the book-entry register on 30 December
2013
Number of shares Percentage of shares
and votes and votes
--------------------------------------------------------------------------------
1. Muotitila Ltd 1,297,700 16.04
--------------------------------------------------------------------------------
2. Semerca Investments SA 850,377 10.51
--------------------------------------------------------------------------------
3. Varma Mutual Employment Pension 385,920 4.77
Insurance Company
--------------------------------------------------------------------------------
4. ODIN Finland 344,251 4.26
--------------------------------------------------------------------------------
5. Veritas Pension Insurance Company 219,000 2.71
--------------------------------------------------------------------------------
6. Ilmarinen Mutual Pension 215,419 2.66
Insurance Company
--------------------------------------------------------------------------------
7. Keva 197,754 2.44
--------------------------------------------------------------------------------
8. OP-Finland Small Firm Fund 151,197 1.87
--------------------------------------------------------------------------------
9. Mutual Fund Tapiola Finland 136,395 1.69
--------------------------------------------------------------------------------
10. Nordea Nordic Small Cap Fund 101,500 1.25
--------------------------------------------------------------------------------
Total 3,899,513 48.20
--------------------------------------------------------------------------------
Nominee-registered and 1,701,899 21.04
non-Finnish holders
--------------------------------------------------------------------------------
Others 2,488,198 30.76
--------------------------------------------------------------------------------
Total 8,089,610 100.00
--------------------------------------------------------------------------------
Share trading and the company's market capitalisation
In 2013, a total of 760,976 Marimekko shares were traded, representing 9.4
percent of the shares outstanding. The total value of Marimekko's share
turnover was EUR 8,502,075. The lowest price of the Marimekko share was EUR
9.82, the highest was EUR 14.54 and the average price was EUR 11.17. At the end
of the year, the closing price of the share was EUR 9.85. The company's market
capitalisation on 31 December 2013 was EUR 79,682,659 (115,681,423).
Authorisations
At the end of the year, Marimekko's Board of Directors had an authorisation,
granted by the Annual General Meeting of 17 April 2012, to decide on a directed
offering of shares to the personnel, in deviation from the shareholders'
pre-emptive right, in one or more offerings. The total number of new shares to
be offered for subscription pursuant to the authorisation may not exceed
150,000 shares. The authorisation is in effect for two years from the date of
the Annual General Meeting's resolution. Marimekko arranged a personnel share
offering in 2012, in which a total of 49,610 new shares were subscribed for.
EVENTS AFTER THE CLOSE OF THE FINANCIAL YEAR
Consultative negotiations and reorganisation
Marimekko has decided to initiate consultative negotiations on all operations
in Finland with the exception of the personnel at the textile printing factory
in Helsinki. Reorganisations will also be carried out in the United States. The
planned actions are expected to result in an estimated reduction of a maximumof 65 personnel in Finland and the United States. The other offices outside
Finland are not within the scope of the reorganisations. If implemented to its
full extent, the reorganisation will yield annual savings in costs estimated at
roughly EUR 2.5 million and an improvement in operating result.
In Finland, the need to downsize personnel is estimated at a maximum of 55
employees. In addition, part of the jobs in company-owned stores may be
converted to part-time positions or the agreed number of working hours may be
reduced as a result of the planned reorganisations. During the consultative
negotiations, it will be determined whether part of any personnel reductions
could take the form of pension arrangements or similar.
The expansion of business in North America and the opening of company-owned
stores in the United States made it necessary to establish a new country
organisation in 2011. In the initial stage of the expansion, the country
organisation was led by the brand management specialist C2Group, whose contract
expired at the end of 2013. At the same time, a new country manager started
with the company. In the next few years, the main thrust will be on expanding
wholesale, and the country organisation will be adapted to this goal.
Marimekko has six company-owned stores in the United States which are still
partly in the launching phase. The purpose of the stores is also to reinforce
the brand and to attract the interest in the company's products of high-quality
department stores and other retailers. Effort was put into developing the
stores' business last year, but in some of the stores improving profitability
has proven more challenging than forecast and sales have been weaker than
expected. Marimekko is negotiating for the termination of the lease on the
store in Beverly Hills and examining the possibility of moving the store to a
new location with better accessibility for the target public.
In the United States, the planned arrangements are estimated to result in
eliminating a maximum of 10 jobs in the Beverly Hills store and the country
organisation.
Changes in management
As part of a broader review of its operations, Marimekko has decided to
initiate an international recruitment process for a new Creative Director for
the company. The aim is to reinforce the international competitiveness of
Marimekko's design management. The current Creative Director Minna
Kemell-Kutvonen resigns her membership of the company's Management Group as of
5 February 2014 and continues with the company in other design-related
executive duties which will be specified later. For the duration of the
recruitment process, Chief Marketing Officer Tiina Alahuhta-Kasko will handle
the duties of the Creative Director with the assistance of Kemell-Kutvonen.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
The key strategic risks for the near future are associated with overall
economic trends and the consequent uncertainty in the operating environment as
well as the management of the company's expansion. The global economic cycle
and factors of uncertainty affect consumers' purchasing behaviour and buying
power in all of the company's market areas. The downturn in economic
conditions, which started from the severe problems of the international
financial markets, continues to dampen the prospects for retail as well as
Marimekko's prospects for growth and earnings.
Marimekko is undergoing a phase of dynamic internationalisation and change. The
distribution of products is being expanded in all key market areas. Unlike
before, the focus of growth in recent years has increasingly been on opening
company-owned stores outside Finland. This has called for larger or brand-new
country organisations in these market areas, which exerts a drag on the
cost-effectiveness of the company, especially in the early stages of expansion.
Moreover, expanding the network of company-owned stores has increased the
company's investments, lease liabilities of store premises, inventories, and
the company's fixed costs. It also follows from this that a larger portion of
Group net sales comes from sales by the company's own retail stores, which has
increased the seasonality of the business as well as dependence on the success
of new company-owned stores and has shifted the bulk of net sales and profit
accumulation to the last quarter, thus having a negative impact on
profitability in the first half of the year. Furthermore, partnerships and the
choice of partners in the company's key market areas also involve risks.
The company's ability to design, develop and commercialise new products that
meet consumers' expectations while maintaining profitable and effective
in-house production has an impact on the company's sales and profitability.
The company's operational risks prominently include those related to the
management and success of expansion projects, the operational reliability of
procurement and logistics processes, and changes in costs of raw materials and
other procurement items. As a result of new products, the share of in-house
production has diminished, and the company uses subcontractors for its
manufacturing to an increasing extent. Therefore, the company's dependence on
the supply chain has increased. Any delays or disturbances in supply or
fluctuations in the quality of products may have a temporary harmful impact on
business. As the operations are being expanded and diversified, risks related
to the management of inventories also increase.
Among the company's economic risks, those related to the structure of sales,
increased investments, price trends for factors of production, changes in cost
structure, increased operational costs, customers' liquidity, and changes in
exchange rates may have an impact on the company's financial status.
RESEARCH AND DEVELOPMENT
Marimekko's product planning and development costs arise from the design of
collections. Design costs are recorded in expenses.
THE ENVIRONMENT, HEALTH AND SAFETY
Responsibility for the environment and nature is an integral aspect of
Marimekko's business. The company's environmental monitoring is largely based
on legislation and other regulations. The waste materials formed in Marimekko's
manufacturing are handled and sorted appropriately. In the interest of
monitoring the environmental impact of production and other business
operations, the company develops its operating models and conducts regular
tests on the materials used in products. Cooperation agreements require
Marimekko's subcontractors and other partners to commit themselves to
shouldering their environmental responsibilities. The company seeks to save
energy by developing its production methods, investing in energy-efficient
machinery and equipment, and monitoring energy consumption. Safety and
well-being in the workplace are actively monitored and improved at Marimekko,
in collaboration with the workplace safety committee and occupational
healthcare.
In 2013, Marimekko continued the long-term development of a corporate social
responsibility management system. The company has chosen sourcing and design as
the key areas for the next few years. Marimekko's Yearbook contains a more
extensive report on environmental, health and safety issues. The framework for
reporting is provided by the G3 guidelines of the Global Reporting Initiative
(GRI).
MARKET OUTLOOK AND GROWTH TARGETS IN 2014
The general uncertainty in the global economy is forecast to continue, and this
may impact consumers' purchasing behaviour in all of Marimekko's market areas.
The prospects for the European economic trend are still poor, although hopes
for an improvement have risen slightly recently. In the United States and Asia,
economic forecasts are better than in Europe. The United States has seen
stronger growth than Europe and the economy is gradually normalising. In Asia,
economic growth is forecast to continue to outstrip other regions, although a
slowdown in growth in China has stirred concern in the stock market.
(Confederation of Finnish Industries EK: Economic Review, December 2013 and
January 2014). The Asia-Pacific region was the driving force in Marimekko's
sales growth in 2013 and the company sees growing demand for its products in
this market area. Japan has 26 retailer-owned Marimekko stores and the
company's wholesale sales to Japan have grown for several successive years. The
appreciation of the euro relative to the yen and a forthcoming increase in
sales tax in Japan in April 2014 could have a negative impact on Marimekko's
wholesale sales.
In Finland, the retail market environment is extremely weak at the moment, and
no turnaround for the better is in sight. Retail trade confidence indicators
levelled out in December 2013 but went back into decline in January 2014.
According to economic polls conducted by trade and industry, Finland's economic
winter will continue. (Confederation of Finnish Industries EK: Economic Review
and Confidence Indicators, January 2014). The extremely weak retail market
situation and the negative trend in comparable sales by Marimekko-owned stores
in Finland at the end of 2013 cast a shadow over this year's prospects in
Finland.
The main thrust in expansion in 2014 will be on openings of retailer-owned
Marimekko stores and shop-in-shops. The aim is to open a total of 15-25 new
Marimekko stores and shop-in-shops, 1-3 of which would be company-owned. Also,
the company will concentrate on enhancing the operations of company-owned
stores opened in recent years and on improving the overall profitability of
business.
The planned total investments for 2014 of the Marimekko Group are estimated as
being approximately EUR 3 million. Most of the investments are devoted to
building new retail facilities and purchases of fittings.
FINANCIAL GUIDANCE FOR 2014
On the basis of general market prospects, the company's growth targets and the
planned reorganisation, the Marimekko Group's net sales for 2014 are forecast
to grow by 3-8 percent relative to 2013. Operating profit excluding
nonrecurring items is estimated at EUR 4-8 million.
THE BOARD OF DIRECTORS' PROPOSAL FOR THE DIVIDEND FOR THE 2013 FINANCIAL YEAR
A dividend of EUR 0.25 per share was paid for 2012 to a total of EUR 2,022,403.
The Board of Directors will propose to the Annual General Meeting that a
dividend of EUR 0.25 per share be paid for 2013. On 31 December 2013, the
parent company's distributable funds amounted to EUR 13,090,256.90; result for
the financial year was EUR -4,939,160.04. The Board will propose 28 April 2014
as the dividend record date, and 7 May 2014 as the dividend payout date.
Helsinki, 5 February 2014
MARIMEKKO CORPORATION
Board of Directors
FINANCIAL STATEMENTS BULLETIN 2013, TABLE SECTION
The information presented in the financial statements bulletin has not been
audited. There may be differences in totals due to rounding to the nearest
thousand euros.
APPENDICES
Accounting principles
Formulas for key figures
Consolidated income statement and comprehensive consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in shareholders' equity
Key figures
Segment information
Net sales by market area
Net sales by product line
Quarterly trend in net sales and earnings
ACCOUNTING PRINCIPLES
This financial statements bulletin was prepared in accordance with IAS 34. The
same accounting principles were applied as in the 2012 financial statements,
although at the start of the financial year the company adopted certain new and
amended IFRS standards as described in the financial statements for 2012. The
adoption of new and updated standards has had no effect on the figures stated
during the financial year.
FORMULAS FOR KEY FIGURES
Earnings per share (EPS), EUR:
(Profit before taxes - income taxes) / Number of shares (average for the
financial period)
Equity per share, EUR:
Shareholders' equity / Number of shares, 31 December
Return on equity (ROE), %:
(Profit before taxes - income taxes) X 100 / Shareholders' equity (average for
the financial period)
Return on investment (ROI), %:
(Profit before taxes + 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 working capital:
Inventories + trade and other receivables + current tax assets - trade and
other payables - current tax liabilities
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 10-12/ 10-12/ 1-12/20 1-12/20
2013 2012 13 12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 25,465 25,748 94,007 88,471
--------------------------------------------------------------------------------
Other operating income 55 55 246 97
--------------------------------------------------------------------------------
Increase or decrease in inventories of -681 -740 527 -2,192
completed and unfinished products
--------------------------------------------------------------------------------
Raw materials and consumables -7,537 -8,751 -33,547 -29,515
--------------------------------------------------------------------------------
Employee benefit expenses -6,708 -7,320 -27,059 -24,384
--------------------------------------------------------------------------------
Depreciation and impairments -3,164 -1,021 -6,772 -3,550
--------------------------------------------------------------------------------
Other operating expenses -7,993 -7,958 -27,320 -26,908
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OPERATING RESULT -564 13 82 2,019
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 27 17 67 48
--------------------------------------------------------------------------------
Financial expenses -359 -325 -953 -654
--------------------------------------------------------------------------------
-332 -308 -886 -606
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
RESULT BEFORE TAXES -896 -295 -804 1,413
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes 350 -44 -151 -313
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET RESULT FOR THE PERIOD -546 -339 -955 1,100
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity holders -546 -339 -955 1,100
of the parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic and diluted earnings per share -0.07 -0.04 -0.12 0.14
calculated on the result attributable to
equity holders of the parent company, EUR
--------------------------------------------------------------------------------
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 10-12/2 10-12/2 1-12/2 1-12/2
013 012 013 012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period -546 -339 -955 1,100
--------------------------------------------------------------------------------
Items that could be reclassified to profit or
loss at a future point in time
--------------------------------------------------------------------------------
Translation differences -158 1 -30 10
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPREHENSIVE RESULT FOR THE PERIOD -705 -338 -985 1,110
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity holders -705 -338 -985 1,110
of the parent company
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 31.12.2013 31.12.2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 1,976 2,663
--------------------------------------------------------------------------------
Tangible assets 18,245 21,976
--------------------------------------------------------------------------------
Available-for-sale financial assets 16 16
--------------------------------------------------------------------------------
Deferred tax assets - 322
--------------------------------------------------------------------------------
20,237 24,977
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 18,106 18,502
--------------------------------------------------------------------------------
Trade and other receivables 6,622 7,016
--------------------------------------------------------------------------------
Current tax assets 682 1,360
--------------------------------------------------------------------------------
Cash and cash equivalents 3,001 3,106
--------------------------------------------------------------------------------
28,411 29,984
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS, TOTAL 48,648 54,961
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
COMPANY
--------------------------------------------------------------------------------
Share capital 8,040 8,040
--------------------------------------------------------------------------------
Invested non-restricted equity reserve 502 502
--------------------------------------------------------------------------------
Translation differences -38 -8
--------------------------------------------------------------------------------
Retained earnings 18,485 21,462
--------------------------------------------------------------------------------
Shareholders' equity, total 26,989 29,996
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liabilities 11 480
--------------------------------------------------------------------------------
Provisions 101 -
--------------------------------------------------------------------------------
Financial liabilities 8,234 9,317
--------------------------------------------------------------------------------
Finance lease liabilities 3,252 3,324
-------------------------------------------------------------------------------- 11,598 13,121
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Trade and other payables 9,989 11,775
--------------------------------------------------------------------------------
Finance lease liabilities 72 69
--------------------------------------------------------------------------------
10,061 11,844
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities, total 21,659 24,965
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 48,648 54,961
--------------------------------------------------------------------------------
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) 1-12/201 1-12/201
3 2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period -955 1,100
--------------------------------------------------------------------------------
Adjustments
--------------------------------------------------------------------------------
Depreciation and impairments 6,772 3,550
--------------------------------------------------------------------------------
Other non-cash transactions 101 143
--------------------------------------------------------------------------------
Financial income and expenses 886 606
--------------------------------------------------------------------------------
Taxes 151 313
--------------------------------------------------------------------------------
Cash flow before change in working capital 6,954 5,712
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in working capital -1,059 4,674
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in current 666 930
non-interest-bearing trade
receivables
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in 396 2,401
inventories
--------------------------------------------------------------------------------
Increase (+) / decrease (-) in current -2,121 1,343
non-interest-bearing liabilities
--------------------------------------------------------------------------------
Cash flow from operating activities before financial items 5,895 10,386
and taxes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Paid interest and payments on other financial expenses -961 -650
--------------------------------------------------------------------------------
Interest received 67 47
--------------------------------------------------------------------------------
Taxes paid 422 -1,178
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES 5,424 8,605
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in tangible and intangible assets -2,353 -7,572
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES -2,353 -7,572
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Proceeds from share issue - 502
--------------------------------------------------------------------------------
Long-term loans drawn - 4,373
--------------------------------------------------------------------------------
Payments of long-term loans -1,083 -
--------------------------------------------------------------------------------
Payments of finance lease liabilities -69 -
--------------------------------------------------------------------------------
Dividends paid -2,022 -4,422
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES -3,175 453
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents -105 1,486
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the period 3,106 1,620
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 3,001 3,106
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(EUR 1,000) Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
Share Invested Translation Retained Shareholde
capita non-restricted differences earnings rs'
l equity reserve equity,
total
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 -18 24,641 32,663
equity
1 January 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the 1,100 1,100
period
--------------------------------------------------------------------------------
Translation 10 10
differences
--------------------------------------------------------------------------------
Total 10 1,100 1,110
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Share issue 502 502
--------------------------------------------------------------------------------
Share-based 143 143
transactions,
personnel share
issue
--------------------------------------------------------------------------------
Dividends paid -4,422 -4,422
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -8 21,462 29,996
equity
31 December 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -8 21,462 29,996
equity
1 January 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the -955 -955
period
--------------------------------------------------------------------------------
Translation -30 -30
differences
--------------------------------------------------------------------------------
Total -30 -955 -985
comprehensive
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,022 -2,022
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 8,040 502 -38 18,485 26,989
equity
31 December 2013
--------------------------------------------------------------------------------
KEY FIGURES
1-12/2013 1-12/2012 Change, %
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Earnings per share, EUR -0.12 0.14
--------------------------------------------------------------------------
Equity per share, EUR 3.34 3.71 -10
--------------------------------------------------------------------------
Return on equity (ROE), % -3.4 3.5
--------------------------------------------------------------------------
Return on investment (ROI), % -1.1 4.1
--------------------------------------------------------------------------
Equity ratio, % 55.5 54.6
--------------------------------------------------------------------------
Gearing, % 31.7 32.0
--------------------------------------------------------------------------
Gross investments, EUR 1,000 2,353 7,582 -69
--------------------------------------------------------------------------
Gross investments, % of net sales 3 9
--------------------------------------------------------------------------
Contingent liabilities, EUR 1,000 37,365 39,986 -7
--------------------------------------------------------------------------
Average personnel 526 497 6
--------------------------------------------------------------------------
Personnel at the end of the period 502 535 -6
--------------------------------------------------------------------------
Number of shares at the end of the period 8,089,610 8,089,610
--------------------------------------------------------------------------
Number of shares outstanding, average 8,089,610 8,046,252
--------------------------------------------------------------------------
SEGMENT INFORMATION
(EUR 1,000) 1-12/2013 1-12/2012 Change, %
---------------------------------------------------
---------------------------------------------------
Marimekko business
---------------------------------------------------
Net sales 94,007 88,471 6
---------------------------------------------------
Operating result 82 2,019 -96
---------------------------------------------------
Assets 48,648 54,961 -11
---------------------------------------------------
NET SALES BY MARKET AREA
(EUR 1,000) 10-12/ 10-12/ Change, % 1-12/ 1-12/ Change, %
2013 2012 2013 2012
--------------------------------------------------------------------------------
Finland 14,705 15,555 -5 52,159 52,344 0
--------------------------------------------------------------------------------
Retail sales 9,792 10,096 -3 35,107 34,000 3
--------------------------------------------------------------------------------
Wholesale sales 4,670 5,090 -8 16,491 17,546 -6
--------------------------------------------------------------------------------
Royalties 243 369 -34 562 798 -30
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 2,294 2,063 11 8,152 7,856 4
--------------------------------------------------------------------------------
Retail sales 1,323 944 40 4,355 3,299 32
--------------------------------------------------------------------------------
Wholesale sales 970 1,119 -13 3,796 4,554 -17
--------------------------------------------------------------------------------
Royalties - - - 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Central and Southern 1,763 1,875 -6 7,678 7,783 -1
Europe
--------------------------------------------------------------------------------
Retail sales 454 426 7 1,408 1,492 -6
--------------------------------------------------------------------------------
Wholesale sales 1,284 1,422 -10 6,170 6,185 0
--------------------------------------------------------------------------------
Royalties 25 27 -6 100 106 -5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North America 2,182 2,809 -22 8,534 7,743 10
--------------------------------------------------------------------------------
Retail sales 1,621 1,742 -7 5,587 4,020 39
--------------------------------------------------------------------------------
Wholesale sales 496 955 -48 2,511 3,193 -21
--------------------------------------------------------------------------------
Royalties 65 112 -42 436 530 -18
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacific 4,521 3,446 31 17,484 12,745 37
--------------------------------------------------------------------------------
Retail sales 804 655 23 2,300 655 251
--------------------------------------------------------------------------------
Wholesale sales 3,717 2,791 33 15,182 12,087 26
--------------------------------------------------------------------------------
Royalties - - 2 3 -41
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
International sales, total 10,760 10,193 6 41,848 36,127 16
--------------------------------------------------------------------------------
Retail sales 4,202 3,767 12 13,651 9,466 44
--------------------------------------------------------------------------------
Wholesale sales 6,467 6,287 3 27,659 26,019 6
--------------------------------------------------------------------------------
Royalties 90 139 -34 538 642 -16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 25,465 25,748 -1 94,007 88,471 6
--------------------------------------------------------------------------------
Retail sales 13,995 13,863 1 48,757 43,466 12
--------------------------------------------------------------------------------
Wholesale sales 11,137 11,377 -2 44,150 43,565 1
--------------------------------------------------------------------------------
Royalties 333 508 -34 1,100 1,440 -24
--------------------------------------------------------------------------------
NET SALES BY PRODUCT LINE
(EUR 1,000) 10-12/ 10-12/ Change, % 1-12/ 1-12/ Change, %
2013 2012 2013 2012
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Clothing 8,491 7,811 9 33,979 30,936 10
-------------------------------------------------------------------------
Interior decoration 11,538 12,700 -9 38,577 38,122 1
-------------------------------------------------------------------------
Bags 5,436 5,237 4 21,452 19,413 11
-------------------------------------------------------------------------
TOTAL 25,465 25,748 -1 94,007 88,471 6
-------------------------------------------------------------------------
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 10-12/2013 7-9/2013 4-6/2013 1-3/2013
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 25,465 24,875 22,957 20,710
-----------------------------------------------------------------
Operating result -565 3,093 -1,158 -1,290
-----------------------------------------------------------------
Earnings per share, EUR -0.07 0.22 -0.13 -0.14
-----------------------------------------------------------------
-----------------------------------------------------------------
(EUR 1,000) 10-12/2012 7-9/2012 4-6/2012 1-3/2012
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 25,748 24,214 19,701 18,808
-----------------------------------------------------------------
Operating result 13 3,486 -545 -935
-----------------------------------------------------------------
Earnings per share, EUR -0.04 0.31 -0.03 -0.10
-----------------------------------------------------------------
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