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Stockmann posts reasonable results in difficult market conditions
16 Mar '09
5 min read
Expenses totalling EUR 6.0 million were recorded for the financial year due to the closure of the Smolenskaya department store. The effect of this on earnings was a total of EUR 14 million, taking into account, too, the overhead costs allocated to other units after the closure, and the lost margin.
Consolidated operating profit for the financial year was down by EUR 3.3 million to EUR 121.9 million.
Net financing expenses grew by EUR 44.4 million, reaching EUR 50.1 million (EUR 5.7 million). The increase in net financing expenses was mainly due to the costs of borrowed capital for the Lindex acquisition. Profit before taxes was EUR 71.7 million for the financial year, down EUR 47.7 million on the figure a year earlier. Direct taxes were EUR 32.7 million, inreasing by EUR 1.6 million on the previous year's figure.
Due to the weakening of the Swedish krona, a deferred tax liability of EUR 27.2 million was recognized on the basis of the unrealized exchange gain on the foreign currency loan taken out for the Lindex acquisition. Net profit for the financial year totalled EUR 39.1 million (EUR 88.4 million).
Fourth-quarter net profit declined, amounting to EUR 19.1 million (EUR 48.6 million).
Earnings per share in the financial year were EUR 0.67 (EUR 1.59) and, diluted for options, earnings were EUR 0.67 (EUR 1.58). Calculated without the increase of EUR 27.2 million in deferred tax liabilities as a result of the weakening of the Swedish krona, earnings per share in the financial year amounted to EUR 1.13. Equity per share was EUR 11.24 (EUR 10.66).
The Department Store Division's sales maintained the previous year's level, totalling EUR 1 218.9 million. Sales in Finland remained at the same level as the year before. International sales were boosted by the good like-for-like sales growth of the department stores in Russia and the Baltic countries and the new Bestseller stores, but were adversely affected by the closing of the Smolenskaya department store in Moscow. International sales grew by one per cent and their share of the division's sales was 29 per cent (28 per cent).
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Stockmann has launched a series of adjustment measures to adjust to the conditions of lower demand. Financing costs will be clearly lower than in 2008. The aim is a positive cash flow after net capital expenditure and to maintain the profitability of operations at a good level during 2009.
Consolidated operating profit for the financial year was down by EUR 3.3 million to EUR 121.9 million.
Net financing expenses grew by EUR 44.4 million, reaching EUR 50.1 million (EUR 5.7 million). The increase in net financing expenses was mainly due to the costs of borrowed capital for the Lindex acquisition. Profit before taxes was EUR 71.7 million for the financial year, down EUR 47.7 million on the figure a year earlier. Direct taxes were EUR 32.7 million, inreasing by EUR 1.6 million on the previous year's figure.
Due to the weakening of the Swedish krona, a deferred tax liability of EUR 27.2 million was recognized on the basis of the unrealized exchange gain on the foreign currency loan taken out for the Lindex acquisition. Net profit for the financial year totalled EUR 39.1 million (EUR 88.4 million).
Fourth-quarter net profit declined, amounting to EUR 19.1 million (EUR 48.6 million).
Earnings per share in the financial year were EUR 0.67 (EUR 1.59) and, diluted for options, earnings were EUR 0.67 (EUR 1.58). Calculated without the increase of EUR 27.2 million in deferred tax liabilities as a result of the weakening of the Swedish krona, earnings per share in the financial year amounted to EUR 1.13. Equity per share was EUR 11.24 (EUR 10.66).
The Department Store Division's sales maintained the previous year's level, totalling EUR 1 218.9 million. Sales in Finland remained at the same level as the year before. International sales were boosted by the good like-for-like sales growth of the department stores in Russia and the Baltic countries and the new Bestseller stores, but were adversely affected by the closing of the Smolenskaya department store in Moscow. International sales grew by one per cent and their share of the division's sales was 29 per cent (28 per cent).
Click here to read more details:
Stockmann has launched a series of adjustment measures to adjust to the conditions of lower demand. Financing costs will be clearly lower than in 2008. The aim is a positive cash flow after net capital expenditure and to maintain the profitability of operations at a good level during 2009.
Stockmann plc
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