2017-02-09 07:30:01 CET
2017-02-09 07:30:01 CET
REGULATED INFORMATION
Marimekko - Financial Statement Release
FINANCIAL STATEMENTS BULLETIN OF MARIMEKKO CORPORATION, 1 January - 31 December 2016: Streamlining measures boosted profitability; net sales grew by four percent
Marimekko Corporation, Financial Statements Bulletin, 9 February 2017, 8.30 a.m.
FINANCIAL STATEMENTS BULLETIN OF MARIMEKKO CORPORATION, 1 January - 31 December
2016: Streamlining measures boosted profitability; net sales grew by four
percent
2016 in brief
Net sales grew by 4 percent to EUR 99.6 million (2015: 95.7). Net sales at
comparable exchange rates rose by 4 percent.
-- Net sales were improved by growth in wholesale sales in Finland, EMEA and
the Asia-Pacific region. Growth in wholesale sales in Finland was due to
nonrecurring promotional deliveries taking place in the second half of the
year. Net sales were also boosted by growth in retail sales in Finland and
Australia.
-- Operating profit grew in comparison with the previous year and was EUR 5.2
million (1.5), including a restructuring expense of EUR 0.8 million.
Comparable operating profit was EUR 6.1 million (1.5).
-- Operating profit was improved by a reduced cost level including lower
marketing expenses than in the comparison year. Also, operating profit was
boosted by growth in retail and wholesale sales in Finland as well as
growth in wholesale sales in EMEA and the Asia-Pacific region. A drag was
exerted on operating profit by discount-driven retail sales and a downturn
in relative sales margin.
-- The Board of Directors will propose to the Annual General Meeting that a
dividend of EUR 0.40 per share be paid for 2016.
The fourth quarter in brief
-- Net sales grew by 3 percent on the same period in the previous year and
were EUR 28.2 million (Q4/2015: 27.5).
-- Net sales were improved by nonrecurring promotional deliveries in Finland
as well as an upbeat trend in wholesale sales in Japan. Net sales were
reduced by a decline in retail sales in Finland.
-- Comparable operating profit grew relative to the same period in the
previous year and was EUR 1.8 million (1.3).
-- Operating profit was improved by nonrecurring promotional wholesale
deliveries in Finland, growth in wholesale sales in the Asia-Pacific
region, and a reduced cost level.
Financial guidance for 2017
The Marimekko Group's net sales and comparable operating profit for 2017 are
forecast to be at the same level as in the previous year.
Tiina Alahuhta-Kasko, President & CEO:
"I feel that we can be pleased that we attained our targeted improvement in
profitability and efficiency in 2016. Our trend in profits in the final quarter
and all in all for the second half of the year was very good in comparison with
the previous year. The trend was supported by the reorganisation carried out in
the first half of the year. Our net sales for the whole year grew by 4 percent;
our operating profit improved to EUR 5.2 million, and our comparable operating
profit was EUR 6.1 million (1.5). There are signs of recovery in the overall
state of the retail market, but the uncertainty over the global economy that
has overshadowed our sector for years does not look like easing up this year
either. Due to the long-standing uncertainty, price sensitivity has increased
in consumer purchasing behaviour in recent years, particularly in Finland, and
this has resulted in growth in discount-driven sales.
"In 2016, we continued our moderate international expansion with the main
thrust on openings of retailer-owned Marimekko stores. Of the 14 new stores
opened during the year, 11 are located in the important Asia-Pacific region. In
Australia, we opened our fifth company-owned store in November. This year, our
goal is to open around 10-20 new Marimekko stores; the main thrust in openings
is on shop-in-shops. Thus we aim to expand our distribution and raise our
profile in other wholesale channels as well.
"We have continued our investment in developing our digital business. In 2016,
we opened our own online store in Australia and now, at the end of January, we
announced that we have improved the availability of our products in Europe by
extending our e-commerce to 16 new countries. At the moment, our online store
reaches customers in 29 countries.
"For Marimekko, 2016 was not only a year of boosting profitability but also a
year of building. The revamp of our collections and our brand progressed, and
this long-term development work still continues. The revamped collections have
now been on the market for their first whole year, and the feedback we receive
enables us to further enhance our collections' commercial prospects. In 2017,
we are continuing to optimise our product range and to improve our procurement
efficiency. We will also review our global pricing strategy, and one of the
moves we make will be to increase the proportion of slightly more affordable
products in our collections in response to price-sensitive market conditions.
"To sum up, we succeeded in restoring our profitability to a good level in 2016
after the weaker interim year of 2015. This puts us in a good place to continue
our long-term work towards profitable growth and reinforced competitiveness."
Key figures
The guidelines on Alternative Performance Measures to be used by listed
companies in their financial reporting, published by the European Securities
and Markets Authority (ESMA), entered into force on 3 July 2016. As of the
first quarter of 2016, Marimekko Corporation uses the term "comparable" instead
of the previously used term "excluding nonrecurring items". In addition, the
heading brand sales is given as an alternative non-IFRS key figure.
The items affecting comparability involve items not influencing ordinary
business operations or cash flow, which are items adjusted for comparability if
they arise from write-downs of assets, sales of assets, expenses of terminating
business operations, reorganisation expenses, changes in legislation, or legal
actions.
Brand sales are calculated by adding together the company's own retail net
sales and the estimated retail value of Marimekko products sold by other
retailers. The estimate, based on Marimekko’s realised wholesale sales and
royalty income, is unofficial and does not include VAT.
EUR million 10-12/ 10-12/ Change, 1-12/ 1-12/ Change,
2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Net sales 28.2 27.5 3 99.6 95.7 4
--------------------------------------------------------------------------------
International sales 11.7 11.5 1 43.8 43.0 2
--------------------------------------------------------------------------------
% of net sales 41 42 44 45
--------------------------------------------------------------------------------
EBITDA 2.7 2.5 6 9.4 6.1 55
--------------------------------------------------------------------------------
Comparable EBITDA 2.7 2.5 6 10.2 6.1 69
--------------------------------------------------------------------------------
Operating profit 1.8 1.3 31 5.2 1.5
--------------------------------------------------------------------------------
Comparable operating profit 1.8 1.3 31 6.1 1.5
--------------------------------------------------------------------------------
Operating profit margin, % 6.3 4.9 5.3 1.6
--------------------------------------------------------------------------------
Comparable operating profit 6.3 4.9 6.1 1.6
margin, %
--------------------------------------------------------------------------------
Result for the period 1.5 1.2 27 4.0 0.8
--------------------------------------------------------------------------------
Earnings per share, EUR 0.19 0.15 27 0.50 0.10
--------------------------------------------------------------------------------
Cash flow from operating 7.7 5.6 39 6.1 6.3 -3
activities
--------------------------------------------------------------------------------
Return on investment (ROI), % 15.8 4.5
--------------------------------------------------------------------------------
Equity ratio, % 58.5 59.0
--------------------------------------------------------------------------------
Gross investments 0.4 1.9 -79 2.7 3.6 -24
--------------------------------------------------------------------------------
Personnel at the end of the 431 476 -9
period
--------------------------------------------------------------------------------
outside Finland 111 126 -12
--------------------------------------------------------------------------------
Brand sales* 48.8 46.9 4 194.4 176.7 10
--------------------------------------------------------------------------------
outside Finland 28.7 25.5 12 123.4 105.4 17
--------------------------------------------------------------------------------
proportion of international 59 54 63 60
sales, %
--------------------------------------------------------------------------------
Number of stores** 159 153 4
--------------------------------------------------------------------------------
The change percentages in the table were calculated on exact figures before the
amounts were rounded to millions of euros.
* Estimated sales of Marimekko products at consumer prices. The key figure is
not audited. The calculation method for 2015 figures has been restated to
correspond to licensing agreement terms.
** 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 55 at the end of 2016 (55). Information on changes is available
in the section Changes in the Store Network.
Reconciliation of key figures to IFRS
EUR million 10-12/ 10-12/ 1-12/ 1-12/
2016 2015 2016 2015
-------------------------------------------------------------------------------
Items affecting comparability
-------------------------------------------------------------------------------
Restructuring (employee benefit expenses) - - -0.8 -
-------------------------------------------------------------------------------
Restructuring (other operating expenses) - - 0.0 -
-------------------------------------------------------------------------------
Items affecting comparability in operating result - - -0.8 -
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
EBITDA 2.7 2.5 9.4 6.1
-------------------------------------------------------------------------------
Items affecting comparability - - -0.8 -
-------------------------------------------------------------------------------
Comparable EBITDA 2.7 2.5 10.2 6.1
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Operating result 1.8 1.3 5.2 1.5
-------------------------------------------------------------------------------
Items affecting comparability in operating result - - -0.8 -
-------------------------------------------------------------------------------
Comparable operating result 1.8 1.3 6.1 1.5
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Net sales 28.2 27.5 99.6 95.7
-------------------------------------------------------------------------------
Operating result margin, % 6.3 4.9 5.3 1.6
-------------------------------------------------------------------------------
Comparable operating result margin, % 6.3 4.9 6.1 1.6
-------------------------------------------------------------------------------
Briefing for the media and analysts
A briefing for the media and analysts concerning this financial statements
bulletin will be held today, 9 February 2017 starting at 9.00 a.m. in
Marimekko's flagship store at Mikonkatu 1, Helsinki. The presentation material
is available on the company's website at company.marimekko.com under Releases &
publications / Interim reports and financial statements.
Financial calendar for 2017
The 2016 financial statements will be published in week 11 at the latest. The
Annual General Meeting will be held on Thursday 6 April 2017 at 2 p.m. The
following interim reports will be published in 2017: January to March, on
Wednesday 10 May 2017 at 8.30 a.m.; January to June, on Thursday 10 August 2017
at 8.30 a.m.; and January to September, on Thursday 2 November 2017 at 8.30
a.m.
Further information:
Tiina Alahuhta-Kasko, President & CEO, tel. +358 9 758 71
Elina Aalto, Chief Financial Officer, tel. +358 9 758 7261
MARIMEKKO CORPORATION
Corporate Communications
Piia Kumpulainen
Tel. +358 9 758 7293
piia.kumpulainen@marimekko.com
DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
FINANCIAL STATEMENTS BULLETIN OF MARIMEKKO CORPORATION, 1 January - 31 December
2016
OPERATING ENVIRONMENT
All in all, there is considerable uncertainty over the global economy, due
partly to the unpredictability of the political situation. There are several
risk factors, and concern has been growing over the proliferation of barriers
to trade. Risks are increased, above all, by uncertainty about the direction of
US economic policy. However, world GDP is expected to grow at its average rate
of slightly over three percent. Average growth in the EU countries appears to
be continuing at a fairly modest rate. Consumers in all markets are
increasingly price-conscious.
In the Finnish economy, a more positive vibe than before is prevailing, but
exports have not recovered. Retailing has gone into a slight upswing after
several weaker years and growth is forecast to continue at a slow pace. In
January, retail trade confidence picked up somewhat and is now near the
long-term average. Consumer confidence in the Finnish economy gained strength
in January; the last time it was equally strong was more than six years ago.
(Confederation of Finnish Industries EK: Economic Review, 19 December 2016;
Confidence Indicators, January 2017; Business Tendency Survey, February 2017.
Statistics Finland: Consumer Survey, January 2017.)
In 2016, the value of retail sales in Finland grew by 0.7 percent on the
previous year and the volume of sales, which measures real growth, rose by 1.6
percent. (Statistics Finland: Turnover of Trade, retail trade flash estimate,
December 2016).
CHANGES IN THE STORE NETWORK
In 2016, the main thrust in expanding the Marimekko store network continued to
be on openings of retailer-owned Marimekko stores. The company attained its
goal of opening around 10-20 new Marimekko stores and shop-in-shops. In the
course of 2016, a total of 14 stores were opened, of which three were
company-owned, four retailer-owned, and seven shop-in-shops. Of the stores
opened, 11 were located in the company's growth market of the Asia-Pacific
region. In addition, Marimekko opened an online store in Australia; at the end
of the year, the company’s e-commerce reached customers in 13 countries.
During the year, a total of eight Marimekko stores and shop-in-shops were
closed. Of these, three were company-owned, and they were located in Helsinki
(children's wear), Berlin, and Täby, Sweden.
In the October-December period of 2016, Marimekko opened a company-owned store
in Melbourne, Australia, in addition to which a shop-in-shop was opened in
Taichung, Taiwan. In the final quarter, two retailer-owned stores were closed,
one in Hong Kong and the other in Taiwan.
Number of stores & shop-in-shops* 31.12.2016 31.12.2015
---------------------------------------------------------
Finland 63 62
---------------------------------------------------------
Company-owned stores 25 25
---------------------------------------------------------
Company-owned outlet stores 12 11
---------------------------------------------------------
Retailer-owned stores 16 16
---------------------------------------------------------
Retailer-owned shop-in-shops 10 10
---------------------------------------------------------
Scandinavia 10 11
---------------------------------------------------------
Company-owned stores 7 8
---------------------------------------------------------
Company-owned outlet stores - -
---------------------------------------------------------
Retailer-owned stores - -
---------------------------------------------------------
Retailer-owned shop-in-shops 3 3
---------------------------------------------------------
EMEA 3 4
---------------------------------------------------------
Company-owned stores 1 2
---------------------------------------------------------
Company-owned outlet stores - -
---------------------------------------------------------
Retailer-owned stores 2 2
---------------------------------------------------------
Retailer-owned shop-in-shops - -
---------------------------------------------------------
North America 23 24
---------------------------------------------------------
Company-owned stores 4 4
---------------------------------------------------------
Company-owned outlet stores 1 1
---------------------------------------------------------
Retailer-owned stores 1 2
---------------------------------------------------------
Retailer-owned shop-in-shops 17 17
---------------------------------------------------------
Asia-Pacific 60 52
---------------------------------------------------------
Company-owned stores 5 4
---------------------------------------------------------
Company-owned outlet stores - -
---------------------------------------------------------
Retailer-owned stores 45 44
---------------------------------------------------------
Retailer-owned shop-in-shops 10 4
---------------------------------------------------------
Total 159 153
---------------------------------------------------------
Company-owned stores 42 43
---------------------------------------------------------
Company-owned outlet stores 13 12
---------------------------------------------------------
Retailer-owned stores 64 64
---------------------------------------------------------
Retailer-owned shop-in-shops 40 34
---------------------------------------------------------
* Includes shop-in-shops with an area exceeding 30 sqm.
NET SALES
Net sales in 2016
In 2016, the Group's net sales grew by 4 percent and were EUR 99,614 thousand
(95,652). Net sales in Finland rose by 6 percent and international sales by 2
percent in comparison with the previous year.
Retail sales rose by 2 percent. Retail sales were supported by growth in sales
in Finland and Australia. Growth was due primarily to the additional sales by
stores opened in 2015 and 2016 and an increase in discount-driven sales by
Finnish outlet stores and the online store. Comparable sales were on a par with
the previous year in Finland, but fell in all other market areas. A weak trend
in retail sales in North America reduced net sales.
Wholesale sales grew by 9 percent. This growth was due to nonrecurring
promotional deliveries taking place in the second half of the year in Finland
as well as a positive trend in sales in EMEA and the Asia-Pacific region.
Royalty income from North America was significantly lower than in the previous
year.
Net sales in the fourth quarter
In the October-December period, the Group's net sales grew by 3 percent on the
same period in the previous year and were EUR 28,174 thousand (27,481). Net
sales at comparable exchange rates rose by 4 percent. Net sales were improved
by nonrecurring promotional deliveries in Finland as well as an upbeat trend in
wholesale sales in Japan. Net sales were reduced by a decline in retail sales
in Finland.
Net sales by market area
(EUR 1,000) 10-12/ 10-12/ Change Change, 1-12/ 1-12/ Change Change,
2016 2015 , % % in 2016 2015 , % % in
currency currency
terms terms
--------------------------------------------------------------------------------
Finland 16,518 15,940 4 4 55,770 52,690 6 6
--------------------------------------------------------------------------------
Retail 10,719 11,299 -5 -5 38,886 37,613 3 3
sales
--------------------------------------------------------------------------------
Wholesale 5,741 4,498 28 28 16,631 14,669 13 13
sales
--------------------------------------------------------------------------------
Royalties 57 144 -60 -60 253 408 -38 -38
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 2,193 2,137 3 1 7,849 7,783 1 1
--------------------------------------------------------------------------------
Retail 1,340 1,300 3 -1 4,976 4,841 3 1
sales
--------------------------------------------------------------------------------
Wholesale 854 837 2 4 2,872 2,942 -2 0
sales
--------------------------------------------------------------------------------
Royalties - - - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA 2,475 2,256 10 10 9,246 8,280 12 12
--------------------------------------------------------------------------------
Retail 285 356 -20 -20 1,089 1,213 -10 -10
sales
--------------------------------------------------------------------------------
Wholesale 2,097 1,832 14 14 7,828 6,862 14 14
sales
--------------------------------------------------------------------------------
Royalties 94 67 39 39 328 205 60 60
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North 2,026 2,666 -24 -24 7,912 9,227 -14 -14
America
--------------------------------------------------------------------------------
Retail 1,427 1,738 -18 -17 5,234 5,898 -11 -11
sales
--------------------------------------------------------------------------------
Wholesale 556 831 -33 -34 2,177 2,380 -9 -8
sales
--------------------------------------------------------------------------------
Royalties 42 98 -57 -80 501 949 -47 -49
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacifi 4,962 4,481 11 8 18,837 17,672 7 6
c
--------------------------------------------------------------------------------
Retail 1,139 1,136 0 -3 3,460 3,159 10 10
sales
--------------------------------------------------------------------------------
Wholesale 3,823 3,345 14 13 15,377 14,513 6 5
sales
--------------------------------------------------------------------------------
Royalties - - - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Internation 11,656 11,541 1 1 43,844 42,962 2 2
al sales,
total
--------------------------------------------------------------------------------
Retail 4,190 4,530 -8 -4 14,759 15,111 -2 0
sales
--------------------------------------------------------------------------------
Wholesale 7,330 6,845 7 8 28,255 26,696 6 4
sales
--------------------------------------------------------------------------------
Royalties 136 165 -18 -25 829 1,154 -28 -31
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 28,174 27,481 3 4 99,614 95,652 4 4
--------------------------------------------------------------------------------
Retail 14,909 15,829 -6 -4 53,646 52,724 2 1
sales
--------------------------------------------------------------------------------
Wholesale 13,071 11,343 15 18 44,886 41,365 9 9
sales
--------------------------------------------------------------------------------
Royalties 193 309 -38 -43 1,082 1,563 -31 -33
--------------------------------------------------------------------------------
All figures in the table have been individually rounded to thousands of euros,
so there may be rounding differences in the totals.
Finland
In 2016, net sales in Finland rose by 6 percent to EUR 55,770 thousand
(52,690). Comparable retail sales were on a par with the previous year; sales
grew by 9 percent in outlet stores, but fell by 5 percent in other stores.
Wholesale sales rose by 13 percent due to nonrecurring promotional deliveries
taking place in the second half of the year.
In the October-December period, net sales in Finland grew by 4 percent to EUR
16,518 thousand (15,940). Comparable retail sales declined by 12 percent; sales
by outlet stores fell by 7 percent and those of other stores by 12 percent.
Wholesale sales grew by 28 percent due to nonrecurring promotional deliveries.
Scandinavia
In 2016, net sales in Scandinavia held steady at the previous year’s level and
were EUR 7,849 thousand (7,783). Euro-denominated retail sales grew by 3
percent; retail sales at comparable exchange rates rose by 1 percent. Wholesale
sales in euro terms fell by 2 percent, while sales at comparable exchange rates
were on a par with the previous year.
In the fourth quarter of the year, net sales grew by 3 percent and were EUR
2,193 thousand (2,137). Euro-denominated retail sales rose by 3 percent; retail
sales at comparable exchange rates fell by 1 percent. Wholesale sales rose in
euro terms by 2 percent and at comparable exchange rates by 4 percent.
EMEA
In 2016, net sales rose by 12 percent and were EUR 9,246 thousand (8,280).
Retail sales declined by 10 percent, whereas wholesale sales grew by 14
percent.
In the October-December period, net sales rose by 10 percent to EUR 2,475
thousand (2,256). Retail sales fell by 20 percent, whereas wholesale sales grew
by 14 percent.
North America
In 2016, net sales in North America fell by 14 percent to EUR 7,912 thousand
(9,227). Retail sales declined by 11 percent and wholesale sales by 9 percent.
The decline in retail sales was partly attributable to the absence of sales by
the Beverly Hills store, which was closed towards the end of the first quarter
of the comparison year, and to protracted construction works in the vicinity of
some stores, including the New York flagship store. The higher royalty income
booked in the previous year than in 2016 also contributed to the decrease in
net sales.
In the fourth quarter, net sales in North America fell by 24 percent and were
EUR 2,026 thousand (2,666). Retail sales declined by 18 percent and wholesale
sales by 33 percent. The decline in retail sales was partly due to protracted
construction works in the vicinity of the New York flagship store, which
reduced footfall. In addition, sales for the corresponding period of the
previous year were boosted by a clearance sale of old stock. The fall in
wholesale sales was mostly attributable to changes in wholesale contracts.
Asia-Pacific region
In 2016, net sales in the Asia-Pacific region grew by 7 percent to EUR 18,837
thousand (17,672). Wholesale sales improved by 6 percent. In Japan, which is
the most important country in this market area, sales rose by 6 percent, and in
other countries too, the trend was mostly positive. Retail sales (Australia)
grew by 10 percent, principally due to additional sales by stores opened in
2015 and 2016. Sales by comparable stores in Australia fell by 3 percent both
in euro terms and in terms of the sales currency.
In the October-December period, net sales rose by 11 percent and were EUR 4,962
thousand (4,481). Wholesale sales rose by 14 percent, whereas retail sales
(Australia) were on a par with the same period of the previous year. Sales by
comparable stores in Australia fell in euro terms by 9 percent and in terms of
the sales currency by 12 percent. The downswing was partly due to lower
footfall in the Sydney store.
FINANCIAL RESULT
In 2016, the Group's operating profit grew in comparison with the previous year
and was EUR 5,249 thousand (1,542), including a restructuring expense of EUR
847 thousand. Comparable operating profit was EUR 6,096 thousand (1,542).
Operating profit was improved by a reduced cost level including lower marketing
expenses than in the comparison year. Also, operating profit was boosted by
growth in retail and wholesale sales in Finland as well as growth in wholesale
sales in EMEA and the Asia-Pacific region. In Finland, growth in wholesale
sales was due to nonrecurring promotional deliveries taking place in the second
half of the year. The costs for the comparison year included the considerable
expenses associated with the closure of the store in Beverly Hills. A drag was
exerted on operating profit by discount-driven retail sales and a downturn in
relative sales margin. Operating profit was also adversely affected by the
royalty income from North America booked in the previous year, which was higher
than in 2016.
In the October-December period, the Group's operating profit grew relative to
the comparison period and amounted to EUR 1,767 thousand (1,345). Operating
profit was improved by nonrecurring promotional wholesale deliveries in
Finland, growth in wholesale sales in the Asia-Pacific region, and a reduced
cost level. A drag was exerted on operating profit by a decrease in retail
sales in Finland as well as a fall in retail and wholesale sales in North
America.
Marketing expenses for the year 2016 were EUR 4,440 thousand (5,063) or 4
percent of the Group's net sales (5).
The Group's depreciation and impairments totalled EUR 4,114 thousand (4,511) or
4 percent of net sales (5).
Operating profit margin for 2016 was 5.3 percent (1.6) and comparable operating
profit margin was 6.1 percent (1.6). In the October-December period of 2016,
operating profit margin was 6.3 percent (4.9).
Net financial expenses were EUR 79 thousand (247) or 0 percent of net sales
(0). Foreign exchange gains recorded in net financial items amounted to EUR 144
thousand (8).
Result for 2016 before taxes was EUR 5,170 thousand (1,294). Result after taxes
was EUR 4,032 thousand (803) and earnings per share were EUR 0.50 (0.10).
BALANCE SHEET
The consolidated balance sheet total as of 31 December 2016 was EUR 48,493
thousand (46,061). Equity attributable to the equity holders of the parent
company was EUR 28,316 thousand (27,129) or EUR 3.50 per share (3.35).
Non-current assets at the end of 2016 stood at EUR 15,633 thousand (17,359).
At the end of 2016, net working capital was EUR 15,277 thousand (13,039).
Inventories were EUR 21,357 thousand (18,488).
CASH FLOW AND FINANCING
In 2016, cash flow from operating activities was EUR 6,125 thousand (6,313) or
EUR 0.76 per share (0.78). Cash flow before cash flow from financing activities
was EUR 3,566 thousand (3,142).
In the fourth quarter, cash flow from operating activities was EUR 7,732
thousand (5,567) or EUR 0.96 per share (0.69). Cash flow before cash flow from
financing activities was EUR 7,266 thousand (4,081).
The Group's financial liabilities at the end of 2016 were EUR 5,979 thousand
(7,318).
At the end of the year, the Group's cash and cash equivalents amounted to EUR
3,482 thousand (4,249). In addition, the Group had unused committed long- and
short-term credit lines of EUR 14,406 thousand (15,166).
The Group's equity ratio at the end of 2016 was 58.5 percent (59.0). Gearing
was 8.8 percent (11.3).
INVESTMENTS
The Group's gross investments in 2016 were EUR 2,721 thousand (3,591) or 3
percent of net sales (4). Most of the investments were devoted to renewal of
the washing machinery at the company’s fabric printing factory in Helsinki, IT
systems, and store premises.
PERSONNEL
In 2016, the number of employees averaged 441 (460). At the end of the year,
the Group had 431 employees (476), of whom 111 (126) worked outside Finland.
The number of employees working outside Finland was broken down as follows:
Scandinavia 40 (41), EMEA 4 (9), North America 33 (43) and the Asia-Pacific
region 34 (33). The personnel at company-owned stores totalled 254 (248) at the
end of the year.
RESOLUTIONS OF THE ANNUAL GENERAL MEETING
The resolutions of Marimekko Corporation’s Annual General Meeting for 2016 have
been reported in the stock exchange release of 11 April 2016 and in the interim
report of 12 May 2016.
CHANGES IN MANAGEMENT AND GOVERNANCE MODEL
On 22 February 2016, Marimekko Corporation's Board of Directors resolved to
change Marimekko's governance model, in which the duties of the CEO and the
President were separate. Following the change, President Tiina Alahuhta-Kasko's
role has also included the duties of the CEO, involving among other things
responsibility for developing and implementing Marimekko's strategy together
with the Management Group as well as managing the company's financial affairs
and stakeholder relations. Tiina Alahuhta-Kasko has served as President of
Marimekko since 9 April 2015. Mika Ihamuotila continues to be employed by the
company pursuant to his full-time executive service agreement. Marimekko's
Annual General Meeting elected him as a member of the Board of Directors and,
from among its members, the Board elected him as its chairman. Thereafter his
post has been full-time Chairman of the Board. These changes came into effect
after the Annual General Meeting of 11 April 2016.
Chief Product Office (CPO) Niina Nenonen resigned her membership of the
Management Group on 15 March 2016; she continues with the company as Head of
Global Partner Sales, being responsible for the strategically important partner
markets especially in Asia. Lasse Lindqvist resigned as Chief Marketing Officer
(CMO) and member of the Management Group on 15 June 2016. Päivi Paltola started
as the company's new Chief Marketing Officer (CMO) and Management Group member
on 30 January 2017. Also, Tanya Strohmayer has been appointed as the company's
new HR Director and member of the Management Group; she will start in her post
on 10 February 2017.
Corporate governance statement
The corporate governance statement for 2016 is available on the company's
website at company.marimekko.com under Investors/Management/Corporate
governance.
SHARES AND SHAREHOLDERS
Share capital and number of shares
At the end of 2016, 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 7,270 shareholders at the
end of 2016 (7,084). Of the shares, 10.5 percent were owned by
nominee-registered or non-Finnish holders (20.1).
Information on the largest shareholders can be found on the company's website
at company.marimekko.com under Investors/Share information/Shareholders.
Share trading and the company's market capitalisation
In 2016, a total of 2,112,657 Marimekko shares were traded, representing 26.1
percent of the shares outstanding. The total value of the share turnover was
EUR 16,917,306. The lowest price of the Marimekko share was EUR 6.06, the
highest was EUR 9.73 and the average price was EUR 8.01. At the end of 2016,
the closing price of the share was EUR 9.48. The company's market
capitalisation on 31 December 2016 was EUR 76,689,503 (67,143,763).
Flagging notifications
Oy Moomin Characters Ltd’s share of Marimekko Corporation´s shares and voting
rights exceeded five (5) percent as a result of a transaction conducted on 27
April 2016. After the change the holding of Oy Moomin Characters Ltd was
585,000 shares which equals 7.23 percent of Marimekko Corporations’ total
amount of shares and voting rights.
Semerca Investments S.A.’s share of Marimekko Corporation´s shares and voting
rights fell below thresholds of ten (10) percent and five (5) percent as a
result of a transaction conducted on 27 April 2016. After the change the
holding of Semerca Investments S.A. was 400,377 shares which equals 4.95
percent of Marimekko Corporations’ total amount of shares and voting rights.
Authorisations
At the end of the year, the Board of Directors had no valid authorisations to
carry out share issues or to issue convertible bonds or bonds with warrants, or
to acquire or surrender Marimekko shares. The company holds none of its own
shares.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
The global economic cycle and factors of uncertainty affect consumers’
purchasing behaviour and buying power in all of the company’s market areas. The
major strategic risks for the near future are associated with the trend in
consumer confidence and overall economic trends especially in Finland and
Japan, which are the company's biggest single countries for business.
Near-term strategic risks also include risks related to changes in the
company's design, the focal points of collections, the product assortment and
product pricing, as well as increased competition arising from the digitisation
of retailing. The company’s ability to design, develop and commercialise new
products that meet consumers’ expectations while ensuring effective production,
sourcing and logistics has an impact on the company’s sales and profitability.
International e-commerce increases the options available to consumers and
multichannel business is of growing importance in the retail trade.
Strengthening competitiveness in a rapidly changing operating environment being
revolutionised by digitisation demands agility, efficiency and constant
re-evaluation of operations.
The distribution of Marimekko products is being expanded in all key market
areas. Growth is based primarily on opening retailer-owned Marimekko stores and
shop-in-shops and expanding e-commerce as well as setting up company-owned
stores. Changes in distribution channel solutions may impact the company's
sales and profitability. Expanding the network of company-owned stores and
building international e-commerce have increased the company’s investments,
lease liabilities of store premises and inventories as well as the company’s
fixed costs. Furthermore, major partnership agreements, the selection of
partners, and store lease agreements in Finland and abroad involve risks.
Intellectual property rights play a vital role in the company's success, and
the company’s ability to manage these rights may have an impact on the value
and reputation of the company. Agreements with freelance designers and fees
paid to designers based on these agreements are also an essential part of the
management of intellectual property rights.
The company’s operational risks prominently include those related to the
management and success of modernisation and internationalisation, the
operational reliability of procurement and logistics processes and information
systems, and changes in the prices of raw materials and other procurement
items. The company primarily uses subcontractors to manufacture its products.
Of the sustainability aspects of manufacturing, those related to the supply
chain and enhancing its transparency, in particular, are of growing importance
to customers. Any delays or disturbances in supply, or fluctuations in the
quality of products, may have a harmful impact on business. As product
distribution is expanded and operations are diversified, risks associated with
inventory management also grow. As Marimekko is a small company, ongoing
modernisation and development projects increase risks related to key personnel.
Among the company’s financial risks, those related to the structure of sales,
price trends for factors of production, changes in cost structure, changes in
exchange rates (particularly the US dollar, Swedish krona and Australian
dollar), taxation, and customers’ liquidity 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.
SUSTAINABILITY
Sustainability is part of Marimekko's values and it is embodied in everything
the company does. In its sustainability work, the company focuses in particular
on sustainable design and on securing the sustainability of the supply chain
and enhancing transparency. The company has a Code of Conduct specifying the
way of working for all employees and management. Marimekko's supplier partners
also have to commit themselves to compliance with the guidelines drawn up for
them, which among other things include a prohibition on child labour and forced
labour.
In 2016, Marimekko published its sustainability strategy extending to the year
2020, the key themes of which are sustainable and timeless design, engagement
of stakeholders, responsible supply chain, resource efficiency, and caring for
the environment and personnel. In the next few years, the company will focus on
increasing the proportion of more sustainably produced cotton and other more
sustainable raw materials in its products in addition to improving the
transparency of the supply chain.
Marimekko issues an annual sustainability review which can be found on the
company's website at company.marimekko.com under Sustainability/Sustainability
review. The core level of the GRI G4 guidelines provides the basis for
reporting. The next review will be issued in spring 2017.
MARKET OUTLOOK AND GROWTH TARGETS IN 2017
The general uncertainty in the global economy is forecast to continue, and the
estimated consumer demand varies in Marimekko's market areas. Retailers are
exercising caution in their additional purchases and in selecting new
suppliers, which is expected to impact Marimekko's wholesale sales also in
2017.
Finland, Marimekko’s important domestic market, accounts for about half of the
company’s net sales. There are signs of a more positive vibe for retailing,
and the trend is forecast to be moderate. Nonrecurring promotional deliveries
had a positive impact on the company's sales in 2016, but no similarly large
deliveries are in sight for 2017. Marimekko's sales in Finland, excluding
income from nonrecurring promotional deliveries, are expected to be roughly on
a par with the previous year.
The Asia-Pacific region, Marimekko's second-biggest market, plays a significant
part in the company's internationalisation. Japan is clearly the most important
country in this region to Marimekko; the other countries' combined share of the
company's net sales is still relatively small, as operations in these markets
are in fairly early stages. Japan already has a very comprehensive network of
Marimekko stores, and new ones are being opened at a rate of a few stores per
year. Sales are supported by enhancing the operations of stores and by
optimising the product range. Sales in the Asia-Pacific region this year are
forecast to be roughly on a par with the previous year. Most of the Marimekko
stores and shop-in-shops to be opened in 2017 will be in the Asia-Pacific
region, and the company sees growing demand for its products in this area
especially in the longer term. In Australia, prospects are expected to continue
to be positive.
In 2017, the main thrust in expansion will continue to be on openings of
retailer-owned Marimekko stores. The aim is to open around 10-20 new Marimekko
stores and shop-in-shops. The majority of the new stores will be shop-in-shops.
Furthermore, the company will continue the enhancement of the operations of
Marimekko stores opened in recent years. The company’s own e-commerce and other
online sales channels are forecast to continue to grow.
Royalty income from North America is expected to increase slightly due to a
licensing agreement concluded with a North American company.
The expenses of marketing operations in 2017 are forecast to be higher than in
2016 (EUR 4.4 million). The total investments are estimated at approximately
EUR 2 million (2.7).
FINANCIAL GUIDANCE FOR 2017
The Marimekko Group's net sales and comparable operating profit for 2017 are
forecast to be at the same level as in the previous year.
THE BOARD OF DIRECTORS’ PROPOSAL FOR THE DIVIDEND FOR THE 2016 FINANCIAL YEAR
On 31 December 2016, the parent company’s distributable funds amounted to EUR
17,482,078.62; profit for the financial year was EUR 5,576,900.81. The Board of
Directors will propose to the Annual General Meeting that a dividend of EUR
0.40 per share be paid for 2016. The Board will propose 10 April 2017 as the
dividend record date, and 19 April 2017 for the dividend payout. A dividend of
EUR 0.35 per share was paid for 2015 to a total of EUR 2,831,363.50.
Helsinki, 8 February 2017
Marimekko Corporation
Board of Directors
FINANCIAL STATEMENTS BULLETIN 2016, 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
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
Formulas for key figures
ACCOUNTING PRINCIPLES
This financial statements bulletin was prepared in compliance with IAS 34.
Marimekko has applied the same accounting principles in this financial
statements bulletin as were applied in the 2015 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 2015. The adoption
of new and updated standards has had no effect on the figures stated for the
financial year.
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 10-12/2 10-12/2 1-12/20 1-12/20
016 015 16 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 28,174 27,481 99,614 95,652
--------------------------------------------------------------------------------
Other operating income 85 166 376 335
--------------------------------------------------------------------------------
Increase or decrease in inventories of -718 -673 2,960 367
completed and unfinished products
--------------------------------------------------------------------------------
Raw materials and consumables -10,823 -10,085 -40,199 -35,208
--------------------------------------------------------------------------------
Employee benefit expenses -6,585 -6,968 -25,671 -26,232
--------------------------------------------------------------------------------
Depreciation and impairments -893 -1,174 -4,114 -4,511
--------------------------------------------------------------------------------
Other operating expenses -7,473 -7,402 -27,716 -28,861
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OPERATING RESULT 1,767 1,345 5,249 1,542
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 139 26 164 49
--------------------------------------------------------------------------------
Financial expenses 57 113 -243 -297
--------------------------------------------------------------------------------
196 139 -79 -247
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
RESULT BEFORE TAXES 1,963 1,483 5,170 1,294
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -440 -286 -1,138 -491
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET RESULT FOR THE PERIOD 1,524 1,198 4,032 803
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity holders 1,524 1,198 4,032 803
of the parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic and diluted earnings per share 0.19 0.15 0.50 0.10
calculated on the result attributable to
equity holders of the parent company, EUR
--------------------------------------------------------------------------------
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 10-12/ 10-12/ 1-12/ 1-12/
2016 2015 2016 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period 1,524 1,198 4,032 803
--------------------------------------------------------------------------------
Items that could be reclassified to profit or loss
at a future point in time
--------------------------------------------------------------------------------
Change in translation difference 50 -60 -14 112
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPREHENSIVE RESULT FOR THE PERIOD 1,573 1,138 4,018 915
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net result to equity holders of 1,573 1,138 4,018 915
the parent company
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 31.12.2016 31.12.2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 1,493 1,856
--------------------------------------------------------------------------------
Tangible assets 13,902 15,486
--------------------------------------------------------------------------------
Available-for-sale financial assets 16 16
--------------------------------------------------------------------------------
Deferred tax assets 222 -
--------------------------------------------------------------------------------
15,633 17,359
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 21,357 18,488
--------------------------------------------------------------------------------
Trade and other receivables 8,020 5,966
--------------------------------------------------------------------------------
Cash and cash equivalents 3,482 4,249
--------------------------------------------------------------------------------
32,860 28,703
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS, TOTAL 48,493 46,061
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS’ EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
COMPANY
--------------------------------------------------------------------------------
Share capital 8,040 8,040
--------------------------------------------------------------------------------
Reserve for invested non-restricted equity 502 502
--------------------------------------------------------------------------------
Translation differences 24 38
--------------------------------------------------------------------------------
Retained earnings 19,751 18,549
--------------------------------------------------------------------------------
Shareholders’ equity, total 28,316 27,129
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liabilities - 9
--------------------------------------------------------------------------------
Provisions 71 190
--------------------------------------------------------------------------------
Financial liabilities 2,594 3,834
--------------------------------------------------------------------------------
Finance lease liabilities 3,171 3,231
--------------------------------------------------------------------------------
5,836 7,264
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Trade and other payables 13,156 11,189
--------------------------------------------------------------------------------
Current tax liabilities 945 226
--------------------------------------------------------------------------------
Provisions 26 -
--------------------------------------------------------------------------------
Finance lease liabilities 214 253
--------------------------------------------------------------------------------
14,341 11,668
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities, total 20,177 18,932
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHAREHOLDERS’ EQUITY AND LIABILITIES, TOTAL 48,493 46,061
--------------------------------------------------------------------------------
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
6 5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net result for the period 4,032 803
--------------------------------------------------------------------------------
Adjustments
--------------------------------------------------------------------------------
Depreciation and impairments 4,114 4,511
--------------------------------------------------------------------------------
Financial income and expenses 79 247
--------------------------------------------------------------------------------
Taxes 1,138 491
--------------------------------------------------------------------------------
Cash flow before change in working capital 9,363 6,054
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in working capital -2,582 1,502
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in current non-interest-bearing -2,224 1,216
trade
receivables
--------------------------------------------------------------------------------
Increase (-) / decrease (+) in inventories -2,803 -930
--------------------------------------------------------------------------------
Increase (+) / decrease (-) in current non-interest-bearing 2,445 1,216
liabilities
--------------------------------------------------------------------------------
Cash flow from operating activities before financial items 6,781 7,556
and taxes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Paid interest and payments on other financial expenses -169 -305
--------------------------------------------------------------------------------
Interest received 33 49
--------------------------------------------------------------------------------
Taxes paid -520 -986
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES 6,125 6,313
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in tangible and intangible assets -2,559 -3,171
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FORM INVESTING ACTIVITIES -2,559 -3,171
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-term loans drawn 4,000 -
--------------------------------------------------------------------------------
Short-term loans paid -4,000 -
--------------------------------------------------------------------------------
Long-term loans drawn - 139
--------------------------------------------------------------------------------
Long-term loans paid -1,240 -
--------------------------------------------------------------------------------
Finance lease liabilities paid -261 -280
--------------------------------------------------------------------------------
Dividends paid -2,831 -2,831
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES -4,332 -2,973
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents -766 170
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the period 4,249 4,079
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 3,482 4,249
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(EUR 1,000) Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
Share Reserve for Translatio Retained Shareho
capital invested n earnings lders’
non-restricted difference equity,
equity s total
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 -74 20,577 29,045
equity
1 January 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the 803 803
period
--------------------------------------------------------------------------------
Translation 112 112
differences
--------------------------------------------------------------------------------
Total comprehensive 112 803 915
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,831 -2,831
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 38 18,549 27,129
equity
31 December 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 38 18,549 27,129
equity
1 January 2016
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comprehensive
result
--------------------------------------------------------------------------------
Net result for the 4,032 4,032
period
--------------------------------------------------------------------------------
Translation -14 -14
differences
--------------------------------------------------------------------------------
Total comprehensive -14 4,032 4,018
result for the
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions with
owners
--------------------------------------------------------------------------------
Dividends paid -2,831 -2,831
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders’ 8,040 502 24 19,751 28,316
equity
31 December 2016
--------------------------------------------------------------------------------
KEY FIGURES
1-12/2016 1-12/2015 Change, %
--------------------------------------------------------------------------
Earnings per share, EUR 0.50 0.10
--------------------------------------------------------------------------
Equity per share, EUR 3.50 3.35 5
--------------------------------------------------------------------------
Return on equity (ROE), % 14.5 2.9
--------------------------------------------------------------------------
Return on investment (ROI), % 15.8 4.5
--------------------------------------------------------------------------
Equity ratio, % 58.5 59.0
--------------------------------------------------------------------------
Gearing, % 8.8 11.3
--------------------------------------------------------------------------
Gross investments, EUR 1,000 2,721 3,591 -24
--------------------------------------------------------------------------
Gross investments, % of net sales 3 4
--------------------------------------------------------------------------
Contingent liabilities, EUR 1,000 32,709 36,252 -10
--------------------------------------------------------------------------
Average personnel 441 460 -4
--------------------------------------------------------------------------
Personnel at the end of the period 431 476 -9
--------------------------------------------------------------------------
Number of shares at the end of the period 8,089,610 8,089,610
--------------------------------------------------------------------------
Number of shares outstanding, average 8,089,610 8,089,610
--------------------------------------------------------------------------
SEGMENT INFORMATION
(EUR 1,000) 1-12/2016 1-12/2015 Change, %
---------------------------------------------------
Marimekko business
---------------------------------------------------
Net sales 99,614 95,652 4
---------------------------------------------------
Operating result 5,249 1,542
---------------------------------------------------
Assets 48,493 46,061 5
---------------------------------------------------
NET SALES BY MARKET AREA
(EUR 1,000) 10-12/ 10-12/ Change Change, 1-12/ 1-12/ Change Change,
2016 2015 , % % in 2016 2015 , % % in
currency currency
terms terms
--------------------------------------------------------------------------------
Finland 16,518 15,940 4 4 55,770 52,690 6 6
--------------------------------------------------------------------------------
Retail 10,719 11,299 -5 -5 38,886 37,613 3 3
sales
--------------------------------------------------------------------------------
Wholesale 5,741 4,498 28 28 16,631 14,669 13 13
sales
--------------------------------------------------------------------------------
Royalties 57 144 -60 -60 253 408 -38 -38
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Scandinavia 2,193 2,137 3 1 7,849 7,783 1 1
--------------------------------------------------------------------------------
Retail 1,340 1,300 3 -1 4,976 4,841 3 1
sales
--------------------------------------------------------------------------------
Wholesale 854 837 2 4 2,872 2,942 -2 0
sales
--------------------------------------------------------------------------------
Royalties - - - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EMEA 2,475 2,256 10 10 9,246 8,280 12 12
--------------------------------------------------------------------------------
Retail 285 356 -20 -20 1,089 1,213 -10 -10
sales
--------------------------------------------------------------------------------
Wholesale 2,097 1,832 14 14 7,828 6,862 14 14
sales
--------------------------------------------------------------------------------
Royalties 94 67 39 39 328 205 60 60
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
North 2,026 2,666 -24 -24 7,912 9,227 -14 -14
America
--------------------------------------------------------------------------------
Retail 1,427 1,738 -18 -17 5,234 5,898 -11 -11
sales
--------------------------------------------------------------------------------
Wholesale 556 831 -33 -34 2,177 2,380 -9 -8
sales
--------------------------------------------------------------------------------
Royalties 42 98 -57 -80 501 949 -47 -49
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asia-Pacifi 4,962 4,481 11 8 18,837 17,672 7 6
c
--------------------------------------------------------------------------------
Retail 1,139 1,136 0 -3 3,460 3,159 10 10
sales
--------------------------------------------------------------------------------
Wholesale 3,823 3,345 14 13 15,377 14,513 6 5
sales
--------------------------------------------------------------------------------
Royalties - - - -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Internation 11,656 11,541 1 1 43,844 42,962 2 2
al sales,
total
--------------------------------------------------------------------------------
Retail 4,190 4,530 -8 -4 14,759 15,111 -2 0
sales
--------------------------------------------------------------------------------
Wholesale 7,330 6,845 7 8 28,255 26,696 6 4
sales
--------------------------------------------------------------------------------
Royalties 136 165 -18 -25 829 1,154 -28 -31
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 28,174 27,481 3 4 99,614 95,652 4 4
--------------------------------------------------------------------------------
Retail 14,909 15,829 -6 -4 53,646 52,724 2 1
sales
--------------------------------------------------------------------------------
Wholesale 13,071 11,343 15 18 44,886 41,365 9 9
sales
--------------------------------------------------------------------------------
Royalties 193 309 -38 -43 1,082 1,563 -31 -33
--------------------------------------------------------------------------------
All figures in the table have been individually rounded to thousands of euros,
so there may be rounding differences in the totals.
NET SALES BY PRODUCT LINE
(EUR 1,000) 10-12/201 10-12/201 Change, % 1-12/201 1-12/201 Change, %
6 5 6 5
--------------------------------------------------------------------------------
Fashion 8,263 10,237 -19 35,516 38,810 -8
--------------------------------------------------------------------------------
Home 12,649 11,198 13 37,763 34,715 9
--------------------------------------------------------------------------------
Bags and 7,261 6,046 20 26,335 22,127 19
accessories
--------------------------------------------------------------------------------
Total 28,174 27,481 3 99,614 95,652 4
--------------------------------------------------------------------------------
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 10-12/2016 7-9/2016 4-6/2016 1-3/2016
-----------------------------------------------------------------
Net sales 28,174 26,949 23,543 20,948
-----------------------------------------------------------------
Operating result 1,767 3,670 871 -1,059
-----------------------------------------------------------------
Earnings per share, EUR 0.19 0.34 0.08 -0.12
-----------------------------------------------------------------
-----------------------------------------------------------------
(EUR 1,000) 10-12/2015 7-9/2015 4-6/2015 1-3/2015
-----------------------------------------------------------------
Net sales 27,481 24,590 23,446 20,135
-----------------------------------------------------------------
Operating result 1,345 1,228 294 -1,325
-----------------------------------------------------------------
Earnings per share, EUR 0.15 0.08 0.01 -0.14
-----------------------------------------------------------------
FORMULAS FOR KEY FIGURES
Comparable EBITDA:
Operating result - depreciation - impairments - items affecting comparability
Comparable operating result:
Operating result - items affecting comparability in operating result
Comparable operating result margin, %
Operating result - items affecting comparability in operating result x 100 /
Net sales
Earnings per share (EPS), EUR:
(Profit before taxes - income taxes) / Adjusted number of shares (average for
the financial year)
Equity per share, EUR:
Shareholders’ equity / Number of shares, 31 December
Return on equity (ROE), %:
Rolling 12 months (Profit before taxes - income taxes) X 100 / Shareholders’
equity (average for the financial year)
Return on investment (ROI), %:
Rolling 12 months (Profit before taxes + interest and other financial expenses)
X 100 / Balance sheet total - non-interest-bearing liabilities (average for the
financial year)
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 - tax liability
- current provisions - trade and other payables
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