Interim report for 1 January - 31 March 2011
(Thomson Reuters ONE) -
KESKO CORPORATION STOCK EXCHANGE RELEASE 28.04.2011 AT 09.00 1(24)
Financial performance in brief:
*The Group's net sales for January-March increased by 7.4%.
*The operating profit excluding non-recurring items for January-March was ?34.9
million, up ?14.0 million on the previous year (?20.9 million).
*The Kesko Group's net sales are expected to increase during the next twelve
months. The operating profit excluding non-recurring items is expected to grow
during the next twelve months, regardless of significant expansion costs of the
store site network. The Group has amended its guidance on profitability
performance. Previously, the operating profit excluding non-recurring items was
expected to remain at the achieved level.
Key performance indicators
1-3/2011 1-3/2010
Net sales, ? million 2,103 1,958
Operating profit excl. non-recurring items, ? million 34.9 20.9
Operating profit, ? million 35.7 20.9
Profit before tax, ? million 36.1 21.9
Capital expenditure, ? million 64.1 42.0
Earnings/share, ?, diluted 0.25 0.15
Earnings/share excl. non-recurring items, ?, basic 0.24 0.15
31.3.2011 31.3.2010
Equity ratio, % 54.4 51.3
Equity/share, ? 22.04 19.69
FINANCIAL PERFORMANCE
Net sales and profit for January-March 2011
The Group's net sales in January-March 2011 were ?2,103 million, which is 7.4%
up on the corresponding period of the previous year (?1,958 million). In
Finland, net sales increased by 6.6% and in other countries by 12.7%.
International operations accounted for 14.6% (13.9%) of the net sales. In the
food trade, net sales grew by 3.9%, and K-food stores' grocery sales performance
was up 4.9%. In the home and speciality goods trade, net sales decreased by
2.0% and in the building and home improvement trade, net sales increased by
15.1%. In the car and machinery trade, net sales grew by 18.1%, in comparable
terms by 26.1%.
1-3/2011 Net sales, M? Change, % Operating profit Change, M?
excl. non-recurring
items, M?
Food trade 948 +3.9 41.4 +9.7
Home and speciality
goods trade 348 -2.0 -7.4 -7.5
Building and home
improvement trade 570 +15.1 -9.1 +4.7
Car and machinery trade 279 +18.1 12.2 +5.9
Common operations and
eliminations -42 +2.9 -2.2 +1.3
Total 2,103 +7.4 34.9 +14.0
The operating profit excluding non-recurring items for January-March was ?34.9
million (?20.9 million), representing 1.7% (1.1%) of the net sales.
Profitability improved in the food trade, the building and home improvement
trade and the car and machinery trade.
Operating profit was ?35.7 million (?20.9 million). The operating profit
includes a total of ?0.8 million of non-recurring items. The Group's profit
before tax for January-March was ?36.1 million (?21.9 million).
The Group's earnings per share were ?0.25 (?0.15). The Group's equity per share
was ?22.04 (?19.69).
In January-March, the K-Group's (i.e. Kesko's and the chain stores') retail and
B2B sales (VAT 0%) were ?2,520 million, up 7.4% compared to the previous year.
During the same period, K-food stores' grocery sales grew by 4.9% (VAT 0%). In
January-March, the K-Group chains' sales entitling to K-Plussa points were
?1,271 million excluding tax, up 3.5% compared to the previous year. In January-
March, the K-Plussa customer loyalty programme gained 21,838 new households. At
the end of March, there was 2,106,779
K-Plussa households.
Finance
In January-March, the cash flow from operating activities was ?-25.3 million
(?8.0 million). The cash flow from operating activities was negatively impacted
by higher inventories and receivables. The cash flow from investing activities
was ?-67.7 million (?-41.5 million). It included ?1.7 million (?1.1 million) of
proceeds from the sales of fixed assets.
Throughout January-March, the Group's liquidity and solvency remained at an
excellent level. At the end of the period, liquid assets totalled ?724 million
(?687 million). Interest-bearing liabilities were ?444 million (?458 million)
and interest-bearing net liabilities ?-279 million (?-229 million) at the end of
March. Equity ratio was 54.4% (51.3%) at the end of the period.
In January-March, the Group's net finance costs were ?0.6 million (net finance
income ?0.8 million).
Taxes
The Group's taxes in January-March were ?11.2 million (?6.9 million). The
effective tax rate was 31.0% (31.4%), affected by loss-making foreign
operations.
Capital expenditure
In January-March, the Group's capital expenditure totalled ?64.1 million (?42.0
million), or 3.0% (2.1%) of the net sales. Capital expenditure in store sites
was ?54.6 million (?32.5 million) and other capital expenditure ?9.5 million
(?9.5 million). Capital expenditure in foreign operations represented 19.6%
(39.5%) of total capital expenditure.
Personnel
In January-March, the average number of employees in the Kesko Group was 18,158
(17,557) converted into full-time employees. In Finland, the average increase
was 69 people, while outside Finland, it was 531.
At the end of March 2011, the total number of employees was 21,670 (21,059), of
whom 12,140 (12,110) worked in Finland and 9,530 (8,949) outside Finland.
Compared to the end of March 2010, there was an increase of 30 people in Finland
and 581 people outside Finland.
In January-March, the Group's staff cost increased by ?9.7 million, or by 7.6%,
compared to the previous year.
SEGMENTS
Seasonal nature of operations
The Group's operating activities are affected by seasonal fluctuations. The net
sales and operating profits of the reportable segments are not earned evenly
throughout the year. Instead, they vary by quarter depending on the
characteristics of each segment.
Food trade
1-3/2011 1-3/2010
Net sales, ? million 948 912
Operating profit excl. non-recurring items, ? million 41.4 31.7
Operating profit as % of net sales excl. non-recurring
items 4.4 3.5
Capital expenditure, ? million 30.9 16.5
Net sales, ? million 1-3/2011 Change, %
Sales to K-food stores 734 +4.2
Kespro 164 +4.8
Others 50 -2.5
Total 948 +3.9
January-March 2011
In Kesko's food trade, the net sales for January-March were ?948 million (?912
million), up 3.9%. During the same period, the grocery sales of K-food stores
increased by 4.9% (VAT 0%). Good sales performance was achieved especially by K-
citymarkets and K-supermarkets. The sales performance of Pirkka products was
excellent and sales growth stood at 28.3% (VAT 0%). In January-March, the growth
rate of the total grocery trade market in Finland is estimated at some 3.5% (VAT
0%) compared to the previous year (Kesko's own estimate). The sales performance
was adversely impacted by all of Easter sales falling in the second quarter of
this year. The price change in the grocery market is estimated to have stood at
some 4% compared to the previous year (VAT 0%, Kesko's own estimate).
In January-March, the operating profit excluding non-recurring items of the food
trade was ?41.4 million (?31.7 million), or ?9.7 million up on the previous
year. Sales growth is partly attributable to increased selections of Pirkka
products and local foods in particular. Cost efficiency improved in logistics as
well as purchasing and store site operations. Operating profit was ?42.1 million
(?31.7 million).
In January-March, capital expenditure in the food trade was ?30.9 million (?16.5
million), of which capital expenditure in store sites was ?29.0 million (?11.5
million).
In January-March, three new K-supermarkets and three K-markets were opened. In
addition, renovations and extensions were made in 14 stores. In April, a K-
citymarket was opened in Tammisto, Vantaa, another in Palokka, Jyväskylä and a
K-supermarket was opened in Sysmä.
The most significant store sites being built are the new K-citymarkets in
Hyvinkää, in Hämeensaari, Hämeenlinna, in Kouvola, in Karisto, Lahti, in
Päivölä, Seinäjoki and in Äänekoski. K-supermarket Mäntsälä is being extended
into a K-citymarket and K-citymarket Kolmisoppi in Kuopio is being extended. New
K-supermarkets are being built in Kilo, Espoo, in Hattula, in Myllypuro,
Helsinki, in Jalasjärvi, in Veikkola, Kirkkonummi, in Lappeenranta, Mäntyharju,
Pietarsaari, Pori, Savonlinna and Vihti. K-market Mukkula in Lahti and K-market
Pähkinä in Vantaa are being extended into K-supermarkets.
Home and speciality goods trade
1-3/2011 1-3/2010
Net sales, ? million 348 355
Operating profit excl. non-recurring items, ? million -7.4 0.1
Operating profit as % of net sales excl. non-recurring
items -2.1 0.0
Capital expenditure, ? million 8.1 3.5
Net sales, ? million 1-3/2011 Change, %
K-citymarket home and speciality goods 135 -1.4
Anttila 109 -3.8
Intersport 41 -2.9
Indoor 41 +14.3
Musta Pörssi 16 -23.0
Kenkäkesko 6 -7.2
Total 348 -2.0
January-March 2011
In the home and speciality goods trade, the net sales for January-March were
?348 million (?355 million), down 2.0%. Asko and Sotka increased their sales. At
the beginning of February, the Anttila department store in Tikkurila was closed
because its lease term expired. The Anttila department store in Hämeenlinna is
being converted into a K-citymarket, which will open in October 2011. As a
result of network restructuring, there were 13 less Musta Pörssi stores at the
end of March.
The operating profit excluding non-recurring items of the home and speciality
goods trade for January-March was ?-7.4 million (?0.1 million), showing a ?7.5
million year-on-year decrease. In addition to sales decrease, the operating
profit performance is partly attributable to the launch of Anttila's new
logistics centre, as well as the development of Anttila's and K-citymarket's
home and speciality goods selection.
Capital expenditure in the home and speciality goods trade in January-March was
?8.1 million (?3.5 million).
In late March, an Anttila Koti store was opened in Tiiriö, Hämeenlinna. It is a
new type of store mainly selling home and interior decoration goods. Budget
Sport opened a new store in Lahti at the end of March.
The gradual introduction of Anttila's new automated logistics centre has
progressed according to plan. The logistics centre will make e-commerce and
department store logistics significantly more efficient.
Building and home improvement trade
1-3/2011 1-3/2010
Net sales, ? million 570 495
Operating profit excl. non-recurring items, ? million -9.1 -13.8
Operating profit as % of net sales excl. non-recurring
items -1.6 -2.8
Capital expenditure, ? million 18.7 18.0
Net sales, ? million 1-3/2011 Change, %
Rautakesko Finland 280 +11.7
K-rauta Sweden 43 +20.4
Byggmakker Norway 123 +13.5
Rautakesko Estonia 10 +3.2
Rautakesko Latvia 8 +3.1
Senukai Lithuania 44 +18.8
Stroymaster Russia 43 +23.8
OMA Belarus 19 +77.8
Total 570 +15.1
January-March 2011
In the building and home improvement trade, the net sales for January-March were
?570 million (?495 million), up 15.1%. Sales in the building and home
improvement trade increased in all operating countries. The growth rate and
structure vary between countries in terms of private customers and B2B
customers. The steadiest growth was seen in the largest markets in the Nordic
countries, whereas the Baltic countries still are an uncertain basis for growth.
In January-March, the net sales in Finland were ?280 million, an increase of
11.7%. The building and home improvement product lines contributed ?201 million
to the net sales in Finland, an increase of 11.3%. The agricultural supplies
trade contributed ?79 million to the net sales, up 12.8%.
The net sales from foreign operations in the building and home improvement trade
were ?290 million (?244 million), an increase of 18.6%. The net sales from
foreign operations increased by 14.8% in terms of local currencies. In Sweden,
net sales increased by 7.3% in terms of kronas. In Norway, net sales increased
by 9.6% in terms of krones. In Russia, net sales increased by 20.0% in terms of
rubles, and in Belarus, by 81.9% in terms of rubles. Foreign operations
contributed 50.8% to the net sales of the building and home improvement trade.
The operating profit excluding non-recurring items of the building and home
improvement trade was ?-9.1 million (?-13.8 million), up ?4.7 million. The
profit performance was impacted by the fact that sales growth was derived from
basic building materials with low margins and by the costs related to the
international enterprise resource planning system. Operating profit was ?-9.1
million (?-13.8 million).
Capital expenditure in the building and home improvement trade totalled ?18.7
million (?18.0 million), of which 67.3% (92.1%) abroad and 85.7% in store sites.
The retail sales of the K-rauta and Rautia chains in Finland grew by 11.7% to
?176 million (VAT 0%). The sales of Rautakesko B2B Service increased by 12.2%.
As a whole, the growth rate of Rautakesko's building materials sales is
estimated to have exceeded that of the market in Finland. The retail sales of
the K-maatalous chain were ?79 million (VAT 0%), up 17.3%.
In January-March, Rautakesko's chains did not open new stores. On 16 April
2011, a new K-rauta was opened in St. Petersburg, Russia. A store site for a new
K-rauta was acquired in Turku, where also a new Rautia-K-maatalous store is
being built. New K-rauta stores are being built in Kuopio and Kouvola. In
Sweden, K-rauta stores are being built in Uppsala and Haparanda, and two more K-
rauta stores in Moscow, Russia.
Car and machinery trade
1-3/2011 1-3/2010
Net sales, ? million 279 236
Operating profit excl. non-recurring items, ? million 12.2 6.4
Operating profit as % of net sales excl. non-recurring
items 4.4 2.7
Capital expenditure, ? million 6.0 4.0
Net sales, ? million 1-3/2011 Change, %
VV-Auto 218 +28.1
Konekesko 61 -7.3
Total 279 +18.1
January-March 2011
In January-March, the net sales of the car and machinery trade were ?279 million
(?236 million), up 18.1%. The comparable net sales of the car and machinery
trade grew by 26.1%. The discontinued Baltic grain and agricultural inputs trade
has been eliminated from the comparable net sales.
VV-Auto's net sales for January-March were ?218 million (?170 million), an
increase of 28.1%. In Finland, new registrations of passenger cars increased by
22.6% and those of vans by 48.4% compared to the previous year. In January-
March, the combined market share of passenger cars and vans imported by VV-Auto
was 18.9% (19.1%). Order books continued at a record high level. Availability of
vehicles coupled with dockworkers' stoppage affected delivery times.
Konekesko's net sales for January-March were ?61 million (?66 million), down
7.3% compared to the previous year, as a result of the discontinuation of the
Baltic grain and agricultural inputs trade. Konekesko's comparable net sales
grew by 19.7%. The net sales in Finland were ?49 million, up 14.5%. The net
sales from Konekesko's foreign operations were ?13 million, down 44.4%. In line
with its strategy, Konekesko concentrates on the machinery trade also in the
Baltic countries.
In January-March, the operating profit excluding non-recurring items of the car
and machinery trade was ?12.2 million (?6.4 million), which was ?5.9 million
higher than in the previous year. The strong profit is attributable to excellent
sales performance and cost management. The operating profit for January-March
was ?12.2 million (?6.4 million).
Capital expenditure in the car and machinery trade was ?6.0 million (?4.0
million) in January-March.
Changes in the Group composition
There were no significant changes in the Group composition during the reporting
period.
Shares, securities market and Board authorisations
At the end of March 2011, Kesko Corporation's share capital totalled
?197,282,584. Of all shares 31,737,007, or 32.2%, were A shares and 66,904,285,
or 67.8%, were B shares. The aggregate number of shares was 98,641,292. Each A
share entitles to ten (10) votes and each B share to one (1) vote. During the
reporting period, there were no changes in the company's share capital or the
number of shares.
The price of a Kesko A share quoted on NASDAQ OMX Helsinki (the Helsinki stock
exchange) was ?34.70 at the end of 2010, and ?32.89 at the end of March 2011,
representing a decrease of 5.2%. Correspondingly, the price of a B share was
?34.93 at the end of 2010, and ?33.00 at the end of March 2011, representing a
decrease of 5.5%. In January-March, the highest A share price was ?36.00 and the
lowest was ?30.26. For B share, they were ?35.81 and ?29.86 respectively. In
January-March, the Helsinki stock exchange (OMX Helsinki) All-Share index fell
by 1.9%, the weighted OMX Helsinki CAP index by 0.3%, while the Consumer Staples
Index was down 3.9% during the same period.
At the end of March 2011, the market capitalisation of A shares was ?1,044
million, while that of B shares was ?2,208 million. Their combined market
capitalisation was ?3,252 million, a decrease of ?187 million from the end of
2010. In January-March 2011, 504,558 A shares were traded on the Helsinki stock
exchange at a total value of ?17 million, while 17.8 million B shares were
traded at a total value of ?580 million.
The company operates the 2007 stock option scheme for management and other key
personnel, under which the share subscription period of 2007A option rights
began on 1 April 2010, that of 2007B option rights on 1 April 2011, and that of
2007C option rights will begin at the beginning of April 2012. The 2007A and
2007B option rights have also been included on the official list of the Helsinki
stock exchange since the beginning of the share subscription periods. A total of
9,650 2007A option rights were traded during the reporting period at a total
value of ?14,103.
In addition to the authorisations by the Annual General Meeting of 4 April 2011
to acquire a total maximum of 1,000,000 own B shares and to issue a total
maximum of 1,000,000 own B shares held by the company, the Board of Directors
also has the authorisation by the Annual General Meeting of 30 March 2009 to
issue a maximum of 20,000,000 new B shares against payment or other
consideration. The authorisations have not been used. Further information on
Board authorisations is available at www.kesko.fi.
At the end of March 2011, the number of shareholders was 40,873, which is 2,615
more than at the end of 2010. At the end of March 2011, foreign ownership of all
shares was 23%, and foreign ownership of B shares was 34%.
Flagging notifications
Kesko Corporation did not receive flagging notifications during the reporting
period.
Main events during the reporting period
Merja Haverinen, M.Soc.Sc., was appointed Kesko Corporation's Senior Vice
President for Corporate Communications and Responsibility starting from 1 April
2011. Paavo Moilanen, Senior Vice President for Corporate Communications and
Responsibility, retired on 1 April 2011, in accordance with his service
contract. (Stock exchange release on 4 February 2011).
Events after the reporting period
Kesko's Annual General Meeting was held on 4 April 2011. President and CEO Matti
Halmesmäki announced in his review that Kesko Food will open four large-scale
grocery stores in Russia in 2012-2013. Kesko Food's objective is to achieve ?500
million in net sales and a positive operating result in Russia by 2015. The
capital expenditure is estimated at ?300 million in 2011-2015. At the same time
with new construction, Kesko Food will continue to explore business acquisition
opportunities in both St. Petersburg and Moscow. (Stock exchange release on 4
April 2011).
On 4 April 2011, Kesko's Board of Directors decided to introduce a new share-
based compensation plan for some 150 Kesko management personnel and other named
key personnel, in which a maximum of 600,000 own B shares held by the company
can be granted to people in the target group within a period of three years. The
plan encourages its participants to commit to the Kesko Group and provides them
with the opportunity to receive company shares, if the targets set in the share-
based compensation plan are achieved. A commitment period of three calendar
years is attached to the shares issued in compensation, during which shares must
not be transferred. (Stock exchange release on 4 April 2011).
Resolutions of the 2011 Annual General Meeting and decisions of the Board's
organisational meeting
Kesko Corporation's Annual General Meeting, held after the end of the reporting
period on 4 April 2011, adopted the financial statements for 2010 and discharged
the Board members and the Managing Director from liability. The General Meeting
also resolved to distribute ?1.30 per share as dividends, or a total of
?128,233,679.60, as proposed by the Board of Directors. The dividend pay date
was 14 April 2011. The General Meeting also resolved to leave the number of
Board members unchanged at seven, elected PricewaterhouseCoopers Oy as the
company's auditor, with APA Johan Kronberg as the auditor with principal
responsibility, and approved the Board's proposals to authorise the Board to
acquire a total maximum of 1,000,000 own B shares, and to issue a total maximum
of 1,000,000 own B shares held by the company itself. The General Meeting also
approved the Board's proposal to decide in 2011 on the donation of a total
maximum of ?300,000 for charitable or corresponding purposes.
The organisational meeting of Kesko Corporation's Board of Directors, held after
the Annual General Meeting, decided to maintain the compositions of the Board's
Audit Committee and Remuneration Committee unchanged.
More detailed information on the resolutions of the 2011 Annual General Meeting
and on the decisions of the Board's organisational meeting was given in stock
exchange releases on 4 April 2011.
Responsibility
The theme of Kesko's Day of Commerce seminar was "Finland's future lies in
competent and industrious people". At the same time, the nearly 700 invited
guests celebrated Kesko's 70th anniversary.
For the seventh time, Kesko ranked in the list of 'the Global 100 Most
Sustainable Corporations'. Kesko's ranking is now 26(th), compared with 33(rd) a
year before.
SAM (Sustainable Asset Management) assessed Kesko's performance in
responsibility work and placed it in Silver Class in the Food & Drug Retailers
sector of the SAM Sustainability Yearbook 2011. The assessment of companies in
this sector included aspects such as health and nutrition, environmental
systems, eco-efficiency of operations and standards of suppliers.
World Finance Magazine recognised Kesko for the best corporate governance in
Finland in terms of development and reporting.
Kesko participated in the WWF's worldwide Earth Hour 2011 event by switching off
office and store lights for one hour on 26 March 2011.
Kesko Food is one of the founder members of Pro Luomu ry, a registered
association for organic sector operators, founded on 22 March 2011. Kesko Food's
selections include nearly 700 organic products. The Pirkka range offers some 50
organic products.
Risk management
The Kesko Group has an established and comprehensive risk management process.
Risks and their management are regularly assessed within the Group and reported
to the Group's management. Kesko's risk management and risks related to business
operations are described in more detail in the corporate governance section of
Kesko's website. During the first months of the year, no material changes have
taken place in the risk components presented in Kesko's 2010 Annual report and
financial statements.
The most significant risks for Kesko's operating activities in the near future
are involved in the general economic development and consumer confidence in
Kesko's operating area and their impacts on the Kesko Group's sales and profit
performance.
The risks and uncertainties related to profit performance are described in the
future outlook section of this release.
Future outlook
Estimates of the future outlook for the Kesko Group's net sales and operating
profit excluding non-recurring items are given for the 12 months following the
reporting period (4/2011-3/2012) in comparison with the 12 months preceding the
reporting period (4/2010-3/2011).
The outlook for trends in consumer demand has remained steady, as a result of
high consumer confidence and continuously low interest rate levels. The trend in
economic development involves significant uncertainties relating to the
evolution of total production, tightening taxation and possible ramifications of
disturbances in the financial market.
The steady development in the grocery trade is expected to continue. The home
and speciality goods trade is expected to develop in line with the trend in
private consumption. The building and home improvement market is expected to
strengthen as a result of increasing housing construction. In the car and
machinery trade, the sales of new cars are expected to grow, and the situation
in the machinery market is expected to recover.
The Kesko Group's net sales are expected to grow during the next twelve months.
During the next twelve months, the operating profit excluding non-recurring
items is expected to increase regardless of significant expansion costs of the
store site network.
Helsinki, 27 April 2011
Kesko Corporation
Board of Directors
The information in this interim report is unaudited.
Further information is available from Arja Talma, Senior Vice President, CFO,
telephone +358 10 53 22113, and Eva Kaukinen, Vice President, Corporate
Controller, telephone +358 10 53 22338. A Finnish-language webcast from the
media and analyst briefing on the interim report can be accessed at www.kesko.fi
at 11.00. An English-language web conference on the interim report will be held
today at 14.30 (Finnish time). The web conference login is available at
www.kesko.fi.
Kesko Corporation's interim report for the period January-June will be released
on 26 July 2011. In addition, the Kesko Group's sales figures are published each
month. News releases and other company information are available on Kesko's
website at: www.kesko.fi.
KESKO CORPORATION
Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility
ATTACHMENTS
Accounting policies
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated cash flow statement
Group performance indicators
Net sales by segment
Operating profit by segment
Operating profits excl. non-recurring items by segment
Operating margins excl. non-recurring items by segment
Capital employed by segment
Return on capital employed excl. non-recurring items by segment
Capital expenditure by segment
Segment information by quarter
Personnel average and at 31 March
Group contingent liabilities
Calculation of performance indicators
K-Group's retail and B2B sales
DISTRIBUTION
NASDAQ OMX Helsinki
Main news media
www.kesko.fi
ATTACHMENTS:
Accounting policies
This interim report has been prepared in accordance with the IAS 34 standard.
The interim report has been prepared in accordance with the same principles as
the annual financial statements for 2010, with the exception of the following
changes due to the adoption of new and revised IFRS standards and IFRIC
interpretations.
-IAS 24 (revised), Related Party Disclosures
-IAS 32 (amendment), Financial Instruments: Presentation - Classification of
Rights Issues
-IFRIC 14 (amendment), Prepayments of a Minimum Funding Requirement
-IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments
- Annual amendments to the IFRSs (Annual Improvements)
The above amendments to standards and interpretations do not have a material
impact on the reported income statement, statement of financial position or
notes.
The Group accounts for real estate company acquisitions as acquisitions of
tangible assets. Previously, real estate company acquisitions were accounted for
as business combinations in accordance with IFRS 3. Adjustments relating to the
cost of acquisitions have been made retrospectively.
Consolidated income statement (? million),
condensed
1-3/ 1-3/ Change, % 1-12/
2011 2010 2010
Net sales 2,103 1,958 7.4 8,777
Cost of goods sold -1,814 -1,694 7.1 -7,547
Gross profit 289 263 9.7 1,230
Other operating income 160 147 9.3 699
Staff cost -138 -128 7.6 -521
Depreciation and impairment charges -29 -27 5.5 -121
Other operating expenses -247 -234 5.7 -981
Operating profit 36 21 70.3 307
Interest income and other finance income 5 6 -13.1 23
Interest expense and other finance costs -4 -4 3.3 -15
Exchange differences -1 -1 87.6 -1
Income from associates 1 0 (..) 0
Profit before tax 36 22 65.1 312
Income tax -11 -7 63.1 -97
Profit for the period 25 15 66.0 216
Attributable to
Owners of the parent 25 15 62.3 205
Non-controlling interests 0 0 (..) 11
Earnings per share (?) for
profit attributable to equity
holders of the parent
Basic 0.25 0.15 61.4 2.08
Diluted 0.25 0.15 61.4 2.06
Consolidated statement of
comprehensive income
(? million)
1-3/ 1-3/ Change, % 1-12/
2011 2010 2010
Net profit for the period 25 15 66.0 216
Other comprehensive income
Exchange differences on translating foreign
operations -1 3 (..) 5
Cash flow hedge revaluation -5 -1 (..) 21
Revaluation of available-for-sale financial
assets -1 1 (..) 1
Other items - - - -1
Tax relating to other comprehensive income 1 0 (..) -6
Total other comprehensive income for the period,
net of tax -5 3 (..) 20
Total comprehensive income
for the period 19 18 8.3 236
Attributable to
Owners of the parent 22 18 21.9 224
Non-controlling interests -2 0 (..) 12
(..) Change over 100%
Consolidated statement of financial
position (? million), condensed
31.3.2011 31.3.2010 Change, % 31.12.2010
ASSETS
Non-current assets
Tangible assets 1,295 1,131 14.5 1,261
Intangible assets 178 178 0.0 180
Interests in associates and other
financial assets 63 36 73.9 61
Loans and receivables 71 65 8.0 72
Pension assets 183 321 -43.1 186
Total 1,789 1,732 3.3 1,759
Current assets
Inventories 796 684 16.3 757
Trade receivables 681 669 1.7 620
Other receivables 151 154 -2.0 183
Financial assets at fair value through
profit or loss 164 324 -49.3 242
Available-for-sale financial assets 512 297 72.4 549
Cash and cash equivalents 47 66 -28.9 56
Total 2,351 2,194 7.1 2,406
Non-current assets held for sale 1 1 -0.8 1
Total assets 4,141 3,927 5.4 4,167
31.3.2011 31.3.2010 Change, % 31.12.2010
EQUITY AND LIABILITIES
Equity 2,174 1,938 12.2 2,152
Non-controlling interests 56 65 -12.9 59
Total equity 2,231 2,002 11.4 2,210
Non-current liabilities
Interest-bearing liabilities 229 244 -6.3 235
Non-interest-bearing liabilities 6 6 -5.9 5
Deferred tax liabilities 84 119 -29.5 87
Pension obligations 2 2 -5.8 2
Provisions 12 14 -15.9 12
Total 332 385 -13.8 340
Current liabilities
Interest-bearing liabilities 216 214 0.9 242
Trade payables 878 804 9.2 838
Other non-interest-bearing liabilities 459 496 -7.4 507
Provisions 26 27 -4.8 29
Total 1,579 1,540 2.5 1,616
Total equity and liabilities 4,141 3,927 5.4 4,167
(..) Change over 100%
Consolidated statement of changes in equity (? million)
Share Issue Share Other Cur- Revalu- Re- Non- Total
capital of premi- reser- rency ation tained cont-
share um ves trans- sur- earn- rol-
capital lation plus ings ling
differ- inte-
ences rests
Balance at
1.1.2010 197 0 194 243 -7 -3 1,381 64 2,070
Shares
subscribed
with options 0 1 1
Option cost 2 0 2
Dividends -89 -89
Other changes 0 0 0
Net profit for
the period 15 0 15
Other
comprehensive
income
Exchange
differences on
translating
foreign
operations 0 3 0 0 3
Cash flow
hedge
revaluation -1 -1
Revaluation of
available-for-
sale financial
assets 1 1
Other
components
Tax relating
to other
comprehensive
income 0 0
Total other
comprehensive
income 0 3 0 0 0 3
Balance at
31.3.2010 197 0 195 243 -4 -3 1,310 65 2,002
Balance at
1.1.2011 197 0 198 243 -3 14 1,503 59 2,210
Shares
subscribed
with options
Option cost 1 0 1
Dividends
Other changes 0 0 0
Net profit for
the period 25 0 25
Other
comprehensive
income
Exchange
differences on
translating
foreign
operations 0 1 0 -3 -1
Cash flow
hedge
revaluation -5 -5
Revaluation of
available-for-
sale financial
assets -1 -1
Other
components
Tax relating
to other
comprehensive
income 1 1
Total other
comprehensive
income 0 1 -4 0 -3 -5
Balance at
31.3.2011 197 0 198 243 -1 9 1,529 56 2,231
Consolidated cash flow statement (? million), condensed
1-3/ 1-3/ Change% 1-12/
2011 2010 2010
Cash flow from operating
activities
Profit before tax 36 22 65.1 312
Planned depreciation 29 27 5.8 116
Finance income and
costs 1 -1 (..) -6
Other adjustments 8 -7 (..) 97
Change in working capital
Current non-interest-bearing
trade and other receivables,
increase (-)/ decrease (+) -61 -63 -1.9 -15
Inventories
increase (-)/ decrease (+) -40 -13 (..) -82
Current non-interest-bearing
liabilities,
increase (+)/decrease (-) -13 55 (..) 153
Financial items and tax 15 -13 (..) -136
Net cash generated from operating activities -25 8 (..) 438
Cash flow from investing
activities
Capital expenditure -69 -44 57.8 -367
Sales of fixed assets 2 1 59.2 124
Increase of non-current
receivables 0 - (..) -
Decrease of non-current
receivables - 1 (..) 4
Net cash used in investing
activities -68 -41 63.2 -240
Cash flow from financing
activities
Increase (+)/ decrease (-) in
interest-bearing liabilities -29 8 (..) 39
Increase (-)/decrease (+) in
current interest-bearing
receivables 0 -2 -83.6 11
Dividends paid - - - -106
Equity increase - 1 (..) 4
Increase (-)/ decrease (+) in short-term money market
investments 86 -180 (..) -114
Other items 0 -3 -88.6 -15
Net cash used in financing
activities 57 -176 (..) -181
Change in cash and cash
equivalents -36 -209 -82.7 18
Cash and cash equivalents
and current portion of
available-for-sale financial
assets at 1 Jan. 509 491 3.7 491
Currency translation difference adjustment and
revaluation 0 1 -91.9 0
Cash and cash equivalents
and current portion of
available-for-sale financial
assets at 31 Mar. 473 283 67.3 509
(..) Change over 100%
Group's performance indicators
1-3/2011 1-3/2010 Change, 1-12/2010
pp
Return on capital employed, % 7.2 4.4 2.8 16.0
Return on capital employed, %, moving 12 mo 16.6 11.3 5.3 16.0
Return on capital employed excl. non-
recurring items, % 7.0 4.4 2.7 14.0
Return on capital employed excl. non-
recurring items, %, moving 12 mo 14.6 8.5 6.1 14.0
Return on equity, % 4.5 2.9 1.5 10.1
Return on equity, %, moving 12 mo 10.7 7.0 3.7 10.1
Return on equity excl. non-recurring items,
% 4.4 2.9 1.4 8.7
Return on equity excl. non-recurring items,
%, moving 12 mo 9.3 4.9 4.4 8.7
Equity ratio, % 54.4 51.3 3.2 53.5
Gearing, % -12.5 -11.5 -1.1 -16.8
Change,%
Capital expenditure, ? million 64.1 42.0 52.4 325.3
Capital expenditure, % of net sales 3.0 2.1 41.9 3.7
Earnings per share, basic, ? 0.25 0.15 61.4 2.08
Earnings per share, diluted, ? 0.25 0.15 61.4 2.06
Earnings per share excl. non-recurring
items, basic, ? 0.24 0.15 58.4 1.78
Cash flow from operating activities,
? million -25 8 (..) 438
Cash flow from investing activities,
? million -68 -41 63.2 -240
Equity/share, ? 22.04 19.69 11.9 21.81
Personnel, average 18,158 17,557 3.4 18,215
(..) Change over 100%
Group's performance indicators by quarter 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
2010 2010 2010 2010 2011
Net sales, ? million 1,958 2,279 2,231 2,310 2,103
Change in net sales, % -3.0 6.4 4.6 7.3 7.4
Operating profit, ? million 20.9 79.0 123.9 82.8 35.7
Operating margin, % 1.1 3.5 5.6 3.6 1.7
Operating profit excl. non-recurring items, ?
million 20.9 78.1 88.7 80.5 34.9
Operating margin excl. non-recurring items, % 1.1 3.4 4.0 3.5 1.7
Finance income/costs,
? million 0.8 -0.2 0.8 4.6 -0.6
Profit before tax, ? million 21.9 78.7 124.5 87.3 36.1
Profit before tax, % 1.1 3.5 5.6 3.8 1.7
Return on capital employed, % 4.4 16.1 26.4 17.5 7.2
Return on capital employed excl. non-recurring
items, % 4.4 15.9 18.9 17.0 7.0
Return on equity, % 2.9 10.6 16.1 11.5 4.5
Return on equity excl. non-recurring items, % 2.9 10.5 11.1 11.2 4.4
Equity ratio, % 51.3 51.4 53.4 53.5 54.4
Capital expenditure,
? million 42.0 45.7 35.9 201.6 64.1
Earnings per share, diluted, ? 0.15 0.51 0.81 0.59 0.25
Equity per share, ? 19.69 20.30 21.11 21.81 22.04
Segment information
Net sales by segment, 1-3/ 1-3/ Change, 1-12/
(? million) 2011 2010 % 2010
Food trade, Finland 948 912 3.9 3,896
Food trade, other countries* - - - -
Food trade total 948 912 3.9 3,896
- of which intersegment trade 43 42 3.0 162
Home and speciality goods trade, Finland 344 350 -1.8 1,553
Home and speciality goods trade, other countries* 4 4 -12.8 15
Home and speciality goods trade total 348 355 -2.0 1,569
- of which intersegment trade 3 5 -27.2 23
Building and home improvement trade, Finland 280 251 11.7 1,163
Building and home improvement trade, other countries* 290 244 18.6 1,357
Building and home improvement trade total 570 495 15.1 2,519
- of which intersegment trade 1 0 (..) 0
Car and machinery trade, Finland 266 213 25.0 859
Car and machinery trade, other countries* 13 23 -44.5 96
Car and machinery trade total 279 236 18.1 955
- of which intersegment trade 0 0 (..) 0
Common operations and eliminations -42 -40 2.9 -162
Finland total 1,797 1,686 6.6 7,309
Other countries total* 306 272 12.7 1,468
Group total 2,103 1,958 7.4 8,777
* Net sales in countries other than Finland.
(..) Change over 100%
Operating profit by segment (? million) 1-3/ 1-3/ 1-12/
2011 2010 Change 2010
Food trade 42.1 31.7 10.4 158.4
Home and speciality goods trade -7.4 0.1 -7.5 103.4
Building and home improvement trade -9.1 -13.8 4.7 23.9
Car and machinery trade 12.2 6.4 5.9 33.9
Common operations and eliminations -2.2 -3.4 1.2 -12.8
Group total 35.7 20.9 14.7 306.7
Operating profit excl. non-recurring items by segment (? 1-3/ 1-3/ 1-12/
million) 2011 2010 Change 2010
Food trade 41.4 31.7 9.7 160.1
Home and speciality goods trade -7.4 0.1 -7.5 66.0
Building and home improvement trade -9.1 -13.8 4.7 24.0
Car and machinery trade 12.2 6.4 5.9 33.1
Common operations and eliminations -2.2 -3.4 1.3 -15.0
Group total 34.9 20.9 14.0 268.1
Operating margins excl. non-recurring 1-3/ 1-3/ 1-12/ Moving 12 mo
items by segment 2011 2010 Change, pp 2010 3/2011
Food trade 4.4 3.5 0.9 4.1 4.3
Home and speciality goods trade -2.1 0.0 -2.2 4.2 3.7
Building and home improvement trade -1.6 -2.8 1.2 1.0 1.1
Car and machinery trade 4.4 2.7 1.7 3.5 3.9
Group total 1.7 1.1 0.6 3.1 3.2
Capital employed by segment, cumulative
average (? million) 1-3/ 1-3/ 1-12/
2011 2010 Change 2010
Food trade 556 608 -53 590
Home and speciality goods trade 409 433 -24 431
Building and home improvement trade 658 631 27 627
Car and machinery trade 149 201 -52 168
Common operations and eliminations 218 43 175 101
Group total 1,990 1,916 74 1,918
Return on capital employed excl. non- 1-3/ 1-3/ 1-12/ Moving
recurring items by segment, % 2011 2010 Change, pp 2010 12 mo 3/2011
Food trade 29.8 20.8 8.9 27.1 29.3
Home and speciality goods trade -7.3 0.1 -7.3 15.3 13.7
Building and home improvement trade -5.5 -8.7 3.2 3.8 4.5
Car and machinery trade 32.8 12.7 20.1 19.6 25.0
Group total 7.0 4.4 2.7 14.0 14.6
Capital expenditure by segment (? million) 1-3/ 1-3/ 1-12/
2011 2010 Change 2010
Food trade 31 16 14 117
Home and speciality goods trade 8 3 5 45
Building and home improvement trade 19 18 1 78
Car and machinery trade 6 4 2 18
Common operations and eliminations 0 0 0 67
Group total 64 42 22 325
Segment information by quarter
Net sales by segment 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
(? million) 2010 2010 2010 2010 2011
Food trade 912 976 986 1 022 948
Home and speciality goods trade 355 334 378 501 348
Building and home improvement trade 495 712 687 625 570
Car and machinery trade 236 298 218 203 279
Common operations and eliminations -40 -41 -39 -42 -42
Group total 1,958 2,279 2,231 2,310 2,103
Operating profit by segment (? million) 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
2010 2010 2010 2010 2011
Food trade 31.7 42.2 47.3 37.2 42.1
Home and speciality goods trade 0.1 7.0 50.6 45.6 -7.4
Building and home improvement trade -13.8 17.9 19.9 -0.2 -9.1
Car and machinery trade 6.4 15.0 8.6 3.9 12.2
Common operations and eliminations -3.4 -3.2 -2.5 -3.7 -2.2
Group total 20.9 79.0 123.9 82.8 35.7
Operating profit excl. non-recurring items by 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
segment (? million) 2010 2010 2010 2010 2011
Food trade 31.7 42.1 49.5 36.8 41.4
Home and speciality goods trade 0.1 7.0 13.2 45.7 -7.4
Building and home improvement trade -13.8 17.9 20.0 -0.2 -9.1
Car and machinery trade 6.4 14.1 8.7 3.9 12.2
Common operations and eliminations -3.4 -3.1 -2.8 -5.7 -2.2
Group total 20.9 78.1 88.7 80.5 34.9
Operating margins excl. non-recurring items by 1-3/ 4-6/ 7-9/ 10-12/ 1-3/
segment (? million) 2010 2010 2010 2010 2011
Food trade 3.5 4.3 5.0 3.6 4.4
Home and speciality goods trade 0.0 2.1 3.5 9.1 -2.1
Building and home improvement trade -2.8 2.5 2.9 0.0 -1.6
Car and machinery trade 2.7 4.7 4.0 1.9 4.4
Group total 1.1 3.4 4.0 3.5 1.7
Personnel average and at 31 March
Personnel average by segment
1-3/2011 1-3/2010 Change
Food trade 2,646 2,822 -176
Home and speciality goods trade 5,363 5,264 99
Building and home improvement trade 8,587 7,985 602
Car and machinery trade 1,162 1,109 53
Common operations 401 378 23
Group total 18,158 17,557 601
Personnel at 31 March*
by segment 2011 2010 Change
Food trade 2,912 3,201 -289
Home and speciality goods trade 7,468 7,284 184
Building and home improvement trade 9,622 8,994 628
Car and machinery trade 1,230 1,158 72
Common operations 438 422 16
Group total 21,670 21,059 611
* total number incl. part-time employees
Group's contingent liabilities
(? million)
31.3.2011 31.3.2010 Change, %
For own commitments 211 224 -6.1
For shareholders 0 0 0.0
For others 7 5 27.7
Lease liabilities for machinery and fixtures 23 22 6.4
Lease liabilities for real estate 2,306 2,291 0.6
Contingent liabilities arising from
derivative financial instruments
Fair value
Values of underlying instruments at 31 Mar. 31.3.2011 31.3.2010 31.3.2011
Interest rate derivative contracts
Forward and future contracts - 0 -
Interest rate swap contracts 201 206 4.42
Currency derivative contracts
Forward and future contracts 210 519 -3.83
Currency swap contracts 100 100 -15.95
Option contracts
Unternehmensinformation / Kurzprofil:
Datum: 28.04.2011 - 08:01 Uhr
Sprache: Deutsch
News-ID 53973
Anzahl Zeichen: 65594
contact information:
Town:
Kesko
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 167 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Interim report for 1 January - 31 March 2011"
steht unter der journalistisch-redaktionellen Verantwortung von
Kesko Oyj (Nachricht senden)
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