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TALLINNA KAUBAMAJA GROUP UNAUDITED CONSOLIDATED INTERIM ACCOUNTS FOR THE FIRST QUARTER AND 3 MONTHS OF 2016

TALLINN, 14.04.2016, www.nasdaqbaltic.com - The total consolidated unaudited sales revenue of Tallinna Kaubamaja Group of the 1st quarter of 2016 amounted to 136.9 million euros, growth 10.8%.

Compared to the 1st quarter of 2015, when the sales revenue was 123.5 million euros, the growth was 10.8%. The sales revenue increased in all segments of the Group. The net loss of the accounting period was 0.2 million euros due to income tax calculated from dividends in the amount of 5.2 million euros. The loss of the 1st quarter of 2015 was 1.2 million euros, including income tax in the amount of 3.9 million euros. The profit before tax was almost twice as high compared to the previous year, amounting to 5.0 million euros.

The 1st quarter results of this accounting year are successful in every aspect. Sales revenue grew across all segments, as did the EBITDA. The success was a result of carefully considered marketing campaigns, well-planned stock management and improving of the service quality. Sales was also supported by the economic environment with its favourable consumption dynamics and the specifics of the 2016 calendar – the leap year and the early Easter holidays. Viimsi Selver and e-Selver that were successfully launched in 2015 had a significant positive impact on sales revenue. Positive sales results in the footwear trade segment and reduced losses confirm right choices in footwear brand selection combined with changes in the type of service. The growth of profit before tax was supported by improved margin as a result of the optimisation of trade processes and the administrative expenses. The winter, which arrived at the beginning of the year, benefitted the sale of fashion goods by reducing the depth of the end of season discount campaign for fashion goods. Labour costs were increased by the extended stores network and implementing a remuneration system, based on good sales’ results. Read more