Sales results for 2012 and the 4th quarter

The consolidated unaudited sales revenue of the Tallinna Kaubamaja Group in 2012 was 467.7 million euros, having grown by 7.3% compared to the result of 2011. In the 4^th quarter, the group’s sales revenue was 127.4 million euros, which is 6.6% more than the sales revenue earned the year before. 

Supermarkets

The consolidated sales revenue of the supermarket business segment and the sales revenue earned in Estonia in 2012 was 329.9 million euros, having increased by 3.8% compared to the previous year. Of that, the consolidated sales revenue of the 4^th quarter and the sales revenue earned in Estonia was 86.8 million euros, which shows an increase of 4.6% compared to the same period of the previous year. The sales revenue of Selver stores per one square metre of selling space was an average of 0.38 thousand euros a month, which is 1.1% more than during the same period of the previous year. The month’s average sales revenue of goods per one square metre of selling space in the 4^th quarter was 0.39 thousand euros, showing a decrease of 0.8% compared to the same period of the previous year. The sales revenue of comparable goods per one square metre of selling space was an average of 0.38 thousand euros in 2012 and 0.40 thousand euros in the 4^th quarter, indicating a growth of 1.5% and a decline of 0.1%, respectively. 32.7 million purchases were made from Selver stores in 2012, which is 1.9% lower than the number of purchases made during the same period of the previous year. Compared to 2011, the Selver chain grew by one supermarket opened in May in Saku and one gourmet store opened in October in Tallinna Kaubamaja. In November, another gourmet store was opened in the Solaris Centre in Tallinn. Furthermore, another three Selver stores were added to the Selver chain in the end of the 4^th quarter. December saw the opening of two supermarkets – the Vahi Selver in Tartu and a Selver in Rapla – and one convenient store Koduselver in Tallinn. Opening new stores in the end of the 4^th quarter did not have a significant impact on the sales results of the entire Selver chain as of yet. The larger share of campaigns, incl. campaigns directed at loyal customers, has had a positive effect on the increase of an average purchase. In addition, the turnover seen during the Christmas and end-of-the-year period was greater than the average increase in turnover in 2011. The renewed loyalty programme and the efforts made to improve service quality made further contributions to the increase of the sales revenue. The peculiarities of the renewed loyalty programme will have an impact on sales revenue, since the bonus points awarded to customers decrease the sales revenue in accounting terms. Compared to the previous year, the ever-strengthening competition in the retail market has also affected the increase of the sales revenue. Since 1 October 2012, Kulinaaria OÜ has been active in the supermarket segment as an independent subsidiary operating the Selver Kitchen. The external sales revenue of Kulinaaria OÜ in the 4^th quarter was 0.2 million euros. Successful product development, expanding activities that now also include event catering and an increased customer base in 2012 have resulted in a 7.6% increase in the external sales revenue, which has been made comparable. In 2012, the Selver Kitchen put out 4515 tonnes of production, which makes it the market leader in its field in Estonia. As of the end of December 2012 the chain of Selver stores included 38 Selver stores and two gourmet stores. The selling space of the stores as of the end of 2012 was 73.1 thousand square meters. 

Department stores

The sales revenue of the department store business segment in 2012 was 86.3 million euros, having grown by 7.1% compared to the previous year. The sales revenue earned in the 4^th quarter was 26.0 million euros, which was 2.9% higher than the revenue earned in the 4^th quarter of 2011. In 2012, the month’s average sales revenue of department stores per one square metre of selling space was 0.29 thousand euros, which is 8.9% more than in 2011. The reference base of the sales revenue in the 4^th quarter increased due to the discount campaigns organised since November 2011 both in Tallinn and Tartu in relation to closing the Sports and Digital Department. The summarised sales revenue of 2012 was negatively impacted by extensive renovation works carried out in the Women’s and Children’s Departments of Tallinna Kaubamaja since mid-January to March and the renovation works done in the Women’s, Beauty and Shoe Departments of Tartu Kaubamaja in the 3rd quarter. On the other hand, the thorough reorganisation of sales spaces has in conclusion increased the sales efficiency of the department stores. The sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. beauty stores, was 4.1 million euros in 2012, having increased by 28.1% compared to 2011. Of that, the sales revenue earned in the 4^th quarter was 1.4 million euros, which was 19.4% more than the result achieved during the same period in 2011. In April 2011 the I.L.U. chain opened a fifth store in the Ülemiste Centre in Tallinn, and in August 2012, the sixth store of the I.L.U. chain was opened in the Tasku Centre in Tartu. 

Cars

The sales revenue of the car trade segment earned in the 2012 without inter-segment transactions was 34.3 million euros, thus exceeding the revenue of the same period of the year before by 64.9%. The sales revenue of the fourth quarter in the sum of 9.8 million euros was greater than the revenue of the year before by 49.2% The reason for the increased turnover is the addition of the new KIA cee'd Sportwagon into the model range. The vehicle has been warmly welcomed by customers. The sales of the crossover SUV KIA Sportage are still active and in the 4^th quarter, the model range grew by the new generation of the SUV KIA Sorento. The sales growth of KIA in the Baltic states in 2012 was remarkable. By countries, it was 102% in Estonia, 66% in Latvia and 38% in Lithuania, which makes the average increase in sales 69%. In 2012, a total of 1,898 vehicles were sold in the vehicle segment, i.e. 770 vehicles more than the year before. The sales of the Opel and Cadillac models sold by Viking Motors AS, which were added to the vehicle segment in July 2012 reached 32 in the 4^th quarter. The sales revenue of Viking Motors in the 4^th quarter of this year was 1.6 million euros.

Footwear

The turnover of the footwear segment in 2012 was 14.4 million euros, having increased by 3.1% by the end of the year. In the 4^th quarter, the turnover was 4.1 million euros, which is 2.6% higher than the result achieved during the same period in 2011. Three new stores were opened in the 4^th quarter of 2012 – the Viljandi Shu (01.11.2012), the Port Artur Shu in Pärnu (15.11.2012) and the Lõunakeskus ABC King in Tartu (08.12.2012). As of the end of December, Suurtüki NK OÜ owns 16 stores and ABC King AS owns 10 stores. Plans for February 2013 include opening a Shu store in the shopping centre Tsentraal in Jõhvi.

Real Estate

The external sales revenue of the real estate business segment earned in 2012 was 2.9 million euros, having grown by 2.7% compared to the previous year. The external sales revenue of the real estate business segment earned in the 4^th quarter of 2012 was 0.7 million euros, which indicates a decrease of 1.1% compared to the same period of the previous year. The increase in revenue that occurred in the beginning of the year was mainly caused by the reorganisation of the tenants and leased spaces of Tartu Kaubamaja Kinnisvara OÜ in the first half of 2012. In the second half of 2012, the group needed to start using some spaces that were previously rented out for its own purposes; this caused a slight decrease in the external sales revenue in the end of the year. 

         Raul Puusepp
         Chairman of the Board
         Tel +372 731 5000