Unaudited consolidated interim accounts for the second quarter and
first six months of 2023
Segments (EURm) |
Q2/23 |
Q2/22 |
Change |
6m/23 |
6m/22 |
Change |
Supermarkets |
154.5 |
143.8 |
7.4% |
301.7 |
283.3 |
6.5% |
Department stores |
27.0 |
26.8 |
0.7% |
51.7 |
48.5 |
6.7% |
Cars |
55.9 |
38.6 |
44.7% |
97.6 |
72.6 |
34.4% |
Security |
3.5 |
2.3 |
55.1% |
6.4 |
4.5 |
40.3% |
Real Estate |
1.6 |
1.5 |
5.5% |
3.2 |
3.0 |
5.8% |
Total sales |
242.5 |
213.0 |
13.8% |
460.5 |
411.9 |
11.8% |
|
|
|
|
|
|
|
Supermarkets |
4.6 |
3.1 |
48.3% |
6.3 |
5.4 |
17.1% |
Department stores |
1.0 |
2.2 |
-55.9% |
0.2 |
0.5 |
-61.2% |
Cars |
4.7 |
3.1 |
50.2% |
7.7 |
5.3 |
47.0% |
Security |
0.1 |
0.0 |
86.7% |
0.1 |
0.0 |
217.1% |
Real Estate |
3.0 |
2.8 |
7.5% |
5.5 |
5.4 |
0.8% |
IFRS 16 |
-0.5 |
-0.6 |
-11.8% |
-1.0 |
-1.0 |
1.7% |
Total profit before tax |
12.8 |
10.7 |
20.5% |
18.7 |
15.6 |
20.5% |
The consolidated unaudited sales revenue of the
Group in the second quarter of 2023 was 242.5 million euros, which
was 13.8% more than the sales revenue of the previous year. The
sales revenue in the first six months was 460.5 million euros,
which was an 11.8% increase in comparison with the result of the
first six months of 2022, when the sales revenue was 411.9 million
euros. The consolidated unaudited net profit of the Group in the
second quarter of 2023 was 12.8 million euros, which was 20.5%
higher than the profit of the comparable period last year. The net
profit of the Group in the first six months of 2023 was 13.4
million euros, which exceeded the result of the previous comparable
period by 21.4%. The pre-tax profit earned in in the first half was
18.7 million euros, showing a 20.5% increase compared to last year.
Net profit was affected by the dividend payment, from which 5.3
million euros of income tax was calculated in the first quarter of
2023; 4.5 million euros of income tax was calculated a year
before.
The significant increase in the sales revenue of
the Group in the second quarter of 2023 is partly due to the
general price increase reaching the sales prices of the retail
segments of the Group, unfortunately sometimes leading to a slight
decrease in volume consumption. The supply chain issues in the car
segment in recent years increased the number of customers who
wanted to buy a car, which greatly contributed to the strong 44.7%
increase in sales revenue of the car segment after the improvement
of car availability. However, the prices of vehicles have also
increased and in terms of volume sales, the growth of the car
segment is slightly more modest. The resurgence of availability
across the market has led to more flexible pricing. The increasing
pressure on the margin accompanying the decrease in the purchasing
power of customers is also affecting other retail segments of the
Group. Customers who value quality have supported the recovery of
sales revenue in the Kaubamaja department stores segment. The
impact of comprehensive cost-saving measures implemented by the
supermarket segment, which suffered the most due to extremely high
energy prices in 2022, to mitigate cost growth has been more
evident in the reporting period. Cost-saving measures combined with
lower energy costs have strengthened the profit position of the
supermarkets and helped bring the operating margin of the segment
back close to 2021 levels. The labour costs of the Group increased
by 12.5% in the second quarter of 2023, while the number of
employees decreased by 5.7%. Compared to the previous year, the
shoe stores of the Group have been closed.
In the second quarter, the largest store in the
supermarket segment in Tallinn, Järve, was closed for renovation
works for nearly two months. Reopened at the end of May, the
renovated Järve Selver has been well received by customers. In the
first quarter, the supermarket segment renovated the Ringtee Selver
in Tartu. In addition, the supermarket segment plans to renovate
the Solaris store in the centre of Tallinn and open a new
hypermarket by the Tallinn roundabout in the reporting year. In the
Kaubamaja department stores segment, development work on the
e-store platform continued in the second quarter. In addition,
preparatory work was started for the renovation of the I.L.U.
cosmetics store in Kristiine Centre, the updated opening of which
is planned for August. In the first quarter, the Ülemiste I.L.U.
cosmetics store was renovated: the sales area was increased by
almost half to 460 square metres. The NYX make-up shop-in-shop with
a separate entrance was opened in the Ülemiste I.L.U. cosmetics
store. In the real estate segment, the solar park built on the roof
of Viimsi Centre was completed in the second quarter In January,
the underperforming WOW Selver was closed in Saaremaa, and in May,
Punane Selver in Lasnamäe, Tallinn, closed as well.
Supermarkets
In the first six months of 2023, the
consolidated sales revenue of the supermarket business segment was
301.7 million euros, an increase of 6.5% as compared to the same
period of the previous year. In the second quarter, the
consolidated sales revenue was 154.5 million euros, an increase of
7.4% as compared to the same period of the previous year. The
average sales revenue per square metre of selling space was 0.43
thousand euros per month in the first six months of 2023 and 0.44
thousand euros per month in the second quarter of 2023, which is
respectively 7.2% and 7.3% more than in the same periods of the
previous year. From the point of view of comparable stores, the
revenue from the sale of goods per square metre of selling space
was 0.44 thousand euros in the first half of the year and 0.45
thousand euros in the second quarter, an increase of 8.8% and 10.6%
respectively, compared to the reference period. In the first half
of 2023, 21.7 million purchases were made from the stores, which
was 3.5% more than in the reference year.
In the second quarter of 2023, both pre-tax
profit and net profit were 4.6 million euros, which was 1.5 million
euros more than in the reference period. The consolidated pre-tax
profit of the supermarket segment in the first half of the year was
6.3 million euros, increasing by 0.9 million euros compared to the
previous year. The net profit in the first half of the year was 5.2
million euros, increasing compared to the previous year by 1.9
million euros. The difference between net profit and profit before
income tax is due to the income tax paid on dividends – this year,
the income tax on dividends was 1.0 million euros less than the
year before.
The financial results of the first half of 2023
were affected by the turnover added from the opening of the Priisle
and Tabasalu Selver supermarkets in Tallinn in 2022 and the lost
turnover due to the closure of WOW Selver in Saaremaa in January
and the closure of Punane Selver in May. The temporary closure of
Ringtee Selver in Tartu and the temporary suspension of sales of
the largest Selver store in Tallinn, Järve, due to renovation works
also had a significant impact. All the projects listed above have
also involved one-time costs and investments. The turnover results
of the supermarket segment continue to be affected by accelerated
inflation. The significant increase in the price of food products
has changed the buying habits of customers and keeps the volume
sales of goods below the level of last year. The decline in volume
sales stopped at the end of the second quarter. The warm weather
had a positive effect on the sale of seasonal goods while the
demand for industrial goods that are not essential on a daily basis
is more modest. Expenditures on energy carriers are at the level of
last year thanks to the implementation of savings opportunities and
stabilisation of prices. At the same time, the sharp and high
increase in energy prices and raw material prices that started at
the beginning of 2022 has raised almost all expenses. Price
increases, despite the search and implementation of savings
opportunities, have a significant impact on the financial result.
The growth of labour costs in the supermarket segment has been 12%
in the first half of the year, exceeding the growth rate of sales
revenue. On the one hand, this has resulted from the general
pressure to raise wages, but there has also been a constant search
for ways to increase the efficiency of work processes, reduce
working hours, and thereby increase employee wages.
The sales revenue of e-commerce decreased due to
the higher reference base in the first quarter. However, in the
second quarter, the sales revenue of the e-commerce returned to
growth, exceeding the sales revenue of last year by more than 25%.
At the beginning of 2023, e-Selver earned two titles in the public
survey organised by the Estonian Ecommerce Association: the title
of the best e-store in the category of food e-stores and the title
of the people’s favourite e-store in general.
The rapid decline in the production volume of
Kulinaaria OÜ, which belongs to the supermarket segment, which
started in the second half of last year, slowed down in the first
quarter, and in the second half of the second quarter, it has begun
to rapidly approach the volume of the reference period. An
important goal of Selveri Köök is the continuous development of new
products, keeping up with the change in consumption habits and
constantly offering customers new tastes. At the beginning of May,
the food magazine Oma Maitse chose our seafood risotto and
strawberry-pistachio curd cake among its favourites. The same
products were also recognised in the Eesti Parim Toiduaine 2023
competition. When it comes to packaging, Kulinaaria OÜ has
completely switched to salad boxes made of 100% recycled material,
which ensure food safety and hygiene. In addition, their production
of which requires less plastic.
Selver has renovated two stores this year. In
February, the renovated Ringtee Selver in Tartu was reopened to
customers and in May, the largest store of the Selver chain, Järve
Selver, was reopened in Tallinn. In July, the renovation of the
Solaris Grocery Store in Tallinn will begin and one new store is
planned to open in the second half of the year. In the first
quarter, fourteen Selver stores started issuing identity documents
issued by the Police and Border Guard Board. By the end of the
second quarter, this number had reached 40.
As at the end of March, the supermarket segment
includes 70 Selver stores, one Delice store, Solaris food store,
Rändpood store, and a cafe, with a total sales area of 116.2
thousand m²; in addition, e-Selver, which is an e-store with the
largest service area in Estonia, and the central kitchen Kulinaaria
OÜ.
Department store segment
The sales revenue of the Kaubamaja department
stores business segment for the six months of 2023 was 51.7 million
euros, exceeding the sales of the same period last year by 6.7%.
The sales revenue of the second quarter was 27.0 million euros,
which exceeded the result of the comparable period last year by
0.7%. The pre-tax profit of the Kaubamaja department store segment
for the six months of 2023 was 0.2 million euros, 61.2% lower than
a year ago. In the second quarter, the pre-tax profit was 1.0
million euros, 55.9% less than last year.
The average sales revenue of Kaubamaja
department stores per square metre of selling space was 0.3
thousand euros per month in the first six months, 6.4% higher than
in the same period last year. Last year, the full-scale war that
started in Ukraine on 24 February negatively affected sales in the
second half of the first quarter. This spring, however, customer
interest was high and the number of visits to stores was much
higher than last year. The discount of winter season goods was
affected by a warmer than average winter in the first six months of
the year, which is why the discount percentages were higher this
year, but the increased sales volumes compensated for the lower
margin and had a positive effect on the result. At the same time,
the result of the second quarter was negatively affected by the
construction works of the Old City Harbour tramline in the centre
of Tallinn, which started at the beginning of April, as a result of
which most of the intersections surrounding the Kaubamaja
department store were closed by the beginning of July. Pedestrians
were also affected. Therefore, the Group offered higher discount
percentages for the summer campaign this year.
In the second quarter of 2023, the sales revenue
of TKM Beauty Eesti OÜ, which operates the I.L.U. cosmetics stores,
was 1.9 million euros, 24.1% more than in the second quarter of
2022. In the second quarter of 2023, the profit was 0.06 million
euros, 0.02 million euros more than during the comparable period in
2022. The sales revenue of the first six months of 2023 was 3.6
million euros, 24.9% more than during the same period of 2022. In
the first six months of 2023, profit was 0.1 million euros, 0.08
million euros more than during the comparable period in 2022. The
good sales result of the second quarter was driven by the newly
renovated I.L.U. cosmetics store in Ülemiste Centre. All other
stores also grew with the support of successful marketing
campaigns. Preparatory work for the renovation of the store in
Kristiine Centre began, the updated opening of which is planned for
August.
The 2022 reference base of the Kaubamaja
department store segment was affected by the closure of shoe stores
operated by TKM King AS in the second quarter of 2022. The sales
revenue of the shoe stores in the first half of 2022 was 2.0
million euros and the profit, 0.02 million euros. The sales revenue
for the second quarter of 2022 was 0.7 million euros and the
profit, 0.4 million euros. By the end of the second quarter of
2022, all ABC KING and SHU shoe stores operated by TKM King AS were
closed, the lease agreements with the centres were terminated, and
the employees of the stores were laid off.
Car trade
The sales revenue of the car trade segment for
the first half of 2023 was 97.6 million euros, increasing by 34.4%
compared to the same period last year. The sales revenue of 55.9
million euros in the second quarter was 44.7% higher than the sales
revenue of the second quarter of 2022. During the first six months,
a total of 3,169 new vehicles were sold, 1,708 of them in the
second quarter. The net profit of the segment in the first half of
2023 was 6.6 million euros, exceeding the profit of the same period
of the previous year by 1.7 million euros. The pre-tax profit of
the segment in the first half of 2023 was 7.7 million euros,
exceeding the profit for the first half of 2022 by 2.5 million
euros. The pre-tax profit of the second quarter of 2023 was 4.7
million euros, which is 1.6 million euros more than the profit of
the same period of the year before.
Regarding the first half and second quarter of
2023, it can be said in summary that the supply of new vehicles has
improved both in terms of brands represented by the Group and by
competitors. The sales of the Kia importer to the contracted
dealers of Kia increased by 16% and profitability was also affected
by the significantly improved availability of the Kia Sorento and
the EV6 electric car. On the one hand, the improvement of the
situation has made it possible to increase sales. On the other
hand, however, price pressure has increased. The sales success in
the second quarter is thanks to largescale sales to fleet customers
and car rental companies, such as Bolt, Citybee, and Herz.
After-sales services and body repair departments are working at
full capacity, as the fleet of brands sold by the Group has been
constantly growing. The increase in the price of new cars has led
to a greater interest in used cars. An increase in interest in
electric cars and plug-in hybrid vehicles can also be seen.
The Group obtained the right to start selling
new Škoda vehicles in Lithuania. The new Škoda Superb mid-class
sedan and the KIA EV9 electric SUV are expected to hit the market
in the near future.
Security segment
The sales revenue of the security segment
outside the Group in the first half of 2023 was 6.4 million euros,
increasing by 40.3% in comparison with the same period of last
year. The pre-tax profit of the segment in the first half of the
year was 0.1 million euros, increasing by 0.1 million euros
compared to the same period last year. The sales revenue of the
segment outside the Group in the second quarter of 2023 was 3.5
million euros, increasing by 55.1% compared to the same period last
year. The pre-tax profit of the second quarter of the segment was
0.1 million euros, increasing by 0.03 million euros compared to the
same period last year.
The second quarter was successful for all
business areas of the security segment and both turnover and profit
increased. Fallen energy prices had a positive effect on profits,
but the pressure for other input prices to increase remains strong.
The risks of customers and cooperation partners ending up in
payment difficulties have increased.
In May, an agreement was signed to acquire a
100% stake in Skarabeus Julgestusteenistus OÜ and at the beginning
of July, the necessary approval for the transaction was received
from the Competition Authority. Skarabeus Julgestusteenistus OÜ is
a pan-Estonian security company with departments in Tallinn, Tartu,
Pärnu, and Central Estonia, which provides manned security, patrol,
and technical security services. The turnover of the company in
2022 was 3.1 million euros and the company employs 168 people. The
acquisition of the stake in Skarabeus Julgestusteenistus OÜ enables
the security segment to strengthen its business activities in all
areas by providing positive synergy through the integration of
strong industry know-how, increased operational capacity, and cost
efficiency. The transaction creates an opportunity to continue
successful growth and develop new services.
Real estate
The sales revenue of the real estate segment
outside the Group was 3.2 million euros in the first six months of
2023. Sales revenue increased by 5.8% compared to the same period
the previous year. The sales revenue of the segment outside the
Group in the second quarter was 1.6 million euros. Sales revenue
increased by 5.5% compared to the previous year. The pre-tax profit
of the real estate segment in the first half of 2023 was 5.5
million euros, with the profit increasing by 0.8%. The pre-tax
profit of the second quarter of the segment was 3.0 million euros.
Pre-tax profit increased by 7.5% over the comparison period.
The number of visitors to the shopping centres
belonging to the segment, which at the end of last year due to the
uncertainty in the economy turned into a decline, has again shown
strong growth since the beginning of the year. This has been
supported by high-quality and inspiring marketing campaigns to
highlight the good reputation of the centres for both high-quality
product selection and service. The success of the centres in both
Estonia and Latvia has contributed to the growth of the sales
revenue of the segment in the first half of the year. In May, a car
wash operated by an external party was opened in the immediate
vicinity of Peetri Selver.
The profit of the segment is greatly affected by
the increase in the cost of loan money due to the increase in
interest rates in the euro area intended by the European Central
Bank to tighten monetary policy, as the majority of the loan
portfolio of the Group is concentrated in the real estate segment.
The interest expense has multiplied compared to the reference base
of a year ago. The increase in profit in the second quarter was
affected by a one-time fine due to the early termination of a lease
agreement.
The construction of the Viimsi Centre solar
energy park, which started at the end of last year, was completed
in May. This is the second building of the Group that has an
electricity generation plant installed on its roof where the
produced electricity is mainly used for the building itself.
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
In thousands of euros
|
30.06.2023 |
31.12.2022 |
ASSETS |
|
|
Current assets |
|
|
Cash and cash equivalents |
12,947 |
22,436 |
Trade and other receivables |
22,878 |
27,200 |
Inventories |
93,209 |
89,194 |
Total current assets |
129,034 |
138,830 |
Non-current assets |
|
|
Long-term receivables and
prepayments |
307 |
299 |
Investments in associates |
1,702 |
1,722 |
Investment property |
63,860 |
63,623 |
Property, plant and equipment |
419,262 |
420,600 |
Intangible assets |
22,374 |
21,723 |
Total non-current assets |
507,505 |
507,967 |
TOTAL ASSETS |
636,539 |
646,797 |
|
|
|
LIABILITIES AND EQUITY |
, |
|
Current liabilities |
|
|
Borrowings |
45,178 |
97,107 |
Trade
and other payables |
99,803 |
111,449 |
Total current liabilities |
144,981 |
208,556 |
Non-current liabilities |
|
|
Borrowings |
258,274 |
190,825 |
Deferred tax liabilities |
5,299 |
5,299 |
Provisions for other liabilities and charges |
575 |
458 |
Total non-current liabilities |
264,148 |
196,582 |
TOTAL LIABILITIES |
409,129 |
405,138 |
Equity |
|
|
Share capital |
16,292 |
16,292 |
Statutory reserve capital |
2,603 |
2,603 |
Revaluation reserve |
105,750 |
106,981 |
Retained earnings |
102,765 |
115,783 |
TOTAL EQUITY |
227,410 |
241,659 |
TOTAL LIABILITIES AND EQUITY |
636,539 |
646,797 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
In thousands of euros
|
|
II quarter 2023 |
II quarter 2022 |
6 months 2023 |
6 months 2022 |
|
|
|
|
|
|
Revenue |
242,465 |
212,996 |
460,548 |
411,919 |
|
Other
operating income |
528 |
535 |
860 |
862 |
|
|
|
|
|
|
|
Cost of
merchandise |
-176,409 |
-153,471 |
-334,982 |
-299,784 |
|
Service
expenses |
-14,230 |
-14,377 |
-30,125 |
-29,014 |
|
Staff
costs |
-26,869 |
-23,881 |
-52,721 |
-46,228 |
|
Depreciation,
amortisation and impairment losses |
-10,212 |
-9,779 |
-20,278 |
-19,421 |
|
Other expenses |
-190 |
-174 |
-583 |
-487 |
|
Operating profit |
15,083 |
11,849 |
22,719 |
17,847 |
|
Finance income |
15 |
1 |
16 |
2 |
|
Finance costs |
-2,291 |
-1,232 |
-4,097 |
-2,391 |
|
Finance income on shares of associates accounted for using the
equity method |
41 |
44 |
110 |
102 |
|
Profit before tax |
12,848 |
10,662 |
18,748 |
15,560 |
|
Income tax expense |
-1 |
-1 |
-5,301 |
-4,480 |
|
NET PROFIT FOR THE FINANCIAL YEAR |
12,847 |
10,661 |
13,447 |
11,080 |
|
Other comprehensive income: |
|
|
|
|
|
Items that will not be subsequently reclassified to profit or
loss |
|
|
|
|
|
Other comprehensive income for the financial year |
0 |
0 |
0 |
0 |
|
TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR |
12,847 |
10,661 |
13,447 |
11,080 |
Basic and diluted earnings per share (euros) |
0.32 |
0.26 |
0.33 |
0.27 |
|
Raul Puusepp
Chairman of the Board
Phone +372 731 5000
- Börs_Kaubamaja_2Q2023_eng
Tallinna Kaubamaja Grupp... (LSE:0IZA)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Tallinna Kaubamaja Grupp... (LSE:0IZA)
Gráfica de Acción Histórica
De May 2023 a May 2024