AS TALLINNA KAUBAMAJA

ANNOUNCEMENT

27.10.99

 

 

COMMENTARY TO THE FINANCIAL RESULTS 09/99

 

The 9-months 1999 unaudited income statement and balance sheet of 

Tallinna Kaubamaja AS are consolidated under row-by-row method. 

Affiliated companies are consolidated under equity method. The 

income statement and balance sheet reflect the financial results 

of the parent company, and all subsidiaries and affiliated companies 

of Tallinna Kaubamaja AS.

 

The 9-months net sales of Tallinna Kaubamaja AS amounted to 663.8

million EEK, increasing by 115.4 million EEK or 21% from the same 

period last year. The parent company's net sales accounted for 

57.2% of the consolidated result (respective figure last year was 

69.5%). Increased share of subsidiaries was mainly due to expansion 

of Selver store chain, which also considerably increased the share 

of Kaubamaja's subsidiary A-Selver in the consolidated turnover. 

Tallinna Kaubamaja AS has met 68% of its annual gross turnover 

forecast.   

 

The 9-months net profit of Tallinna Kaubamaja AS amounted to 12.8 

million EEK. This result contains the 2.1 million EEK profit from 

share options. After 9 months, Tallinna Kaubamaja AS earnings per 

share stood at 1.88 EEK. The consolidated annual net profit forecast 

stands at 25 million EEK.   

 

The group's balance sheet volume, as opposed to the standings on 

30.09.98, has decreased by 11 million EEK, amounting to 382.66 

million EEK as of 30.09.99. Volume of owners' equity accounts for 

34.6% (34.2% on 30.06.99) and current assets for 38.1% (33.9% on 

30.06.99) of total balance sheet size. No substantial changes 

occurred in the liabilities and owners' equity side of the balance 

sheet during Q3 1999. Increase in the volume of current assets is 

mainly due to increase in the group's inventories by 14.8 million 

EEK in Q3.   

 

In accordance with the schedule, the company redeemed on 02.08 and 

01.09 commercial papers issued for total of 6 million EEK.   

 

On 12.10.1999 Tallinna Kaubamaja AS and AS Silikaat concluded a 

rent contract for establishment of trade center at Pärnu St. 238, 

Tallinn. 5000m2 of store premises in the new trade center will be 

used by A-Selver, the subsidiary of Tallinna Kaubamaja. In addition 

to A-Selver, the trade center also has 3400 m² of store premises for 

rent; the list of tenants includes Kaubamaja's sports store and 

auto-market. Auto-market is a new service targeted to customers who 

prefer to pre-order the goods.

The office premises on the upper floors of the trade center will also

be occupied by the Kaubamaja group. Kaubamaja will invest 50 million 

EEK into the project. The new trade center Selver is scheduled to be 

opened in fall 2000.

 

 

Urmo Vallner

Member of the Management Board

+372 6 400 200