Stockmann Group’s Financial Statement Bulletin 2013
Helsinki, Finland, 2014-02-13 07:00 CET (GLOBE NEWSWIRE) —
STOCKMANN plc, Financial Statement Release 13.2.2014 at 8.00 EET
October – December 2013:
Consolidated revenue was EUR 607.8 million (EUR 643.8 million), down by 4.5 per cent excluding terminated franchising operations.
Operating profit was EUR 48.3 million (EUR 56.8 million).
January – December 2013:
Consolidated revenue was EUR 2 037.1 million (EUR 2 116.4 million), down by 2.3 per cent excluding terminated franchising operations.
Operating profit was EUR 54.4 million (EUR 87.3 million).
Profit for the period was EUR 48.4 million (EUR 53.6 million).
Earnings per share were EUR 0.67 (EUR 0.74), which includes a tax refund of EUR 0.37.
The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.40 per share be paid.
CEO Hannu Penttilä:
The retail sector is undergoing a challenging time in Finland, as economic growth stagnated in 2013 and consumers had less purchasing power. The Stockmann Group’s full-year revenue was slightly down in a weak market. The considerable weakening of the Russian rouble created further challenges for both revenue and profitability. Stockmann’s operating profit declined, despite the extensive cost savings programme that was initiated in the spring.
After the successful Crazy Days campaign in October, Christmas sales were disappointing for our department stores in Finland and in Russia. The Stockmann online store in Finland almost doubled its revenue in 2013. This represented 5 per cent of the Finnish department stores’ revenue in the product categories sold online.
Lindex continued to perform very well in the fourth quarter. It increased its sales in all of its markets and improved its operating profit by 27 per cent. Lindex has worked hard to create a respected brand and an attractive store concept. The efforts are paying off. An interesting new market will open in China next autumn, which will also mark Lindex’s 60th anniversary.
2013 was a year of major changes for Seppälä. These included a brand renewal, a reduction in the number of stores, and the updating of key IT systems following Lindex’s example. However, the changes have not yet had an impact on the financial result, which weakened significantly. We target to close over 20 additional Seppälä stores in Russia in 2014.
Stockmann’s profit for the year decreased less than the operating profit, due to a tax refund to Lindex. As a result, earnings per share were EUR 0.67.
A weak market environment will continue in 2014 and low purchasing power must be taken into account, particularly in Finland. The outlook for Russia is very uncertain. The market environment in Sweden, Norway and the Baltic countries is expected to be stable. We are carrying out structural changes in order to adapt the cost structure to slow growth and to improve our performance. At comparable exchange rates, Stockmann expects the Group’s revenue to increase slightly in 2014. Revenue growth is expected to take place in the second half of the year. Operating profit is expected to be somewhat higher than in 2013.
Outlook for 2014
The European economy is expected to improve slightly in 2014, but uncertainty will continue in the retail market, particularly in Finland. Purchasing power is expected to remain low, which will have a negative effect on consumer purchasing behaviour.
The Russian rouble has weakened considerably and economic growth in Russia is estimated to stay on a low level. As a consequence, the retail market outlook is expected to weaken.
The outlook for the affordable fashion market in Sweden is expected to improve slightly in 2014. The retail market in the Baltic countries is expected to remain relatively stable. Low consumer confidence may, however, affect consumers’ willingness to make purchases in all market areas.
As a consequence of the uncertain outlook, Stockmann launched a cost savings programme in spring 2013. The programme will continue in 2014, focusing on long-term structural changes in order to adapt the cost structure to the slow growth and to improve performance.
The Group’s capital expenditure is estimated to be lower than depreciation, and to amount to approximately EUR 60 million in 2014.
At comparable exchange rates, Stockmann expects the Group’s revenue to increase slightly in 2014. Revenue growth is expected to take place in the second half of the year. Operating profit is expected to be somewhat higher than in 2013. The first-quarter operating result will be negative due to normal seasonal variation.
|Revenue, EUR mill.||607.8||643.8||2 037.1||2 116.4|
|Revenue growth, %||-5.6||2.8||-3.7||5.5|
|Gross margin, %||49.5||49.5||48.6||49.5|
|Operating profit, EUR mill.||48.3||56.8||54.4||87.3|
|Net financial costs, EUR mill.||9.0||8.7||27.6||32.4|
|Profit before tax, EUR mill.||39.3||48.2||26.8||54.9|
|Profit for the period, EUR mill.||36.5||47.7||48.4||53.6|
|Earnings per share, undiluted, EUR||0.51||0.66||0.67||0.74|
|Equity per share, EUR||12.42||12.40|
|Cash flow from operating activities, EUR mill.||183.2||141.1||125.4||123.7|
|Capital expenditure, EUR mill.||13.1||19.4||56.8||60.3|
|Net gearing, %||87.3||90.9|
|Equity ratio, %||43.8||42.8|
|Number of shares, undiluted, weighted average, 1 000 pc||72 049||71 945|
Return on capital employed,
rolling 12 months
|Personnel, average||15 362||16 101||14 963||15 603|
This company announcement is a summary of the Stockmann Financial Statements Bulletin 2013 and includes the most relevant information of the bulletin. The complete bulletin is attached to this release as a pdf file and is also available on the company’s website at stockmanngroup.com.
Annual General Meeting 2014
The Annual General Meeting of Stockmann plc will be held on Tuesday 18 March 2014 at 2 p. m. at Finlandia Hall in Helsinki, Finland (address: Mannerheimintie 13). Notice of the Annual General Meeting which includes proposals to the meeting is published as a separate stock exchange release on 13 February 2014.
Financial releases in 2014
Stockmann will publish its financial statements, the report by the Board of Directors and an electronic version of the Annual Report 2013 on the company’s website at stockmanngroup.com in the week starting on 24 February 2014. The printed Annual Report will be available in the week starting on 10 March 2014.
The 2014 interim reports will be released on 29 April 2014, 13 August 2014, and 29 October 2014.
Press and analyst briefing and conference call
A press and analyst briefing in Finnish will be held today, on 13 February 2014 at 9.15 a.m. at the Fazer À la Carte restaurant on the 8th floor of Stockmann’s Helsinki city centre department store, Aleksanterinkatu 52.
A conference call in English will be held today, on 13 February 2014 at 11.15 a.m. EET. To participate the conference call, please dial +358 9 8864 8511 and, when requested, key in the meeting room number *657899* including the asterisks. The presentation material will be available for downloading on the company’s website from 9.15 a.m. EET onwards.
Hannu Penttilä, CEO, tel. +358 9 121 5801
Pekka Vähähyyppä, CFO, tel. +358 9 121 3351