Tallinna Kaubamaja's earnings plummet by a third on year ({{contentCtrl.commentsTotal}})

A coronavirus awareness sign outside Kaubamaja in Viru Keskus in Tallinn during the emergency situation.
A coronavirus awareness sign outside Kaubamaja in Viru Keskus in Tallinn during the emergency situation. Source: ERR/ Helen Wright

The consolidated unaudited profit of listed Estonian retailer Tallinna Kaubamaja Grupp for the first half of 2020 dropped 34.1 percent year on year to €4.1 million, while revenue inched up 0.5 percent to €346.5 million.

Pretax profit amounted to €9.9 million, marking a reduction of 21.7 percent on year, Tallinna Kaubamaja Grupp informed the stock exchange.

Tartu Kaubamaja department store, the Viimsi Keskus shopping mall, and the historic Kaubamaja building in central Tallinn were also closed and are all part of the group.

Consolidated unaudited sales revenue for the second quarter of the year totaled 171 million euros, being smaller by 5.8 percent than the sales revenue posted for the same period in 2019. 

Kaubamaja said in a release to the stock exchange: "The crisis months brought on by the spread of the new coronavirus left a deep mark on the economic results of the group in the first six months of the year. Closure of stores and movement restrictions caused the popularity of the group's e-stores to increase explosively, but still, the sales revenue in the segments in which business operations were limited was significantly lower than the sales revenue in 2019."

In order to limit the spread of the virus, the government of the Republic of Estonia declared an emergency situation on March 12. On March 25, an additional order was issued to close all shopping malls from March 27.

As a result, all stores of the group's footwear trade segment, the industrial goods departments of the Kaubamaja segment, and I.L.U. shops were closed for visitors from that date.

From March 16, the Lithuanian car showroom of the group's car trade segment was closed for almost a month. 

On May 11, permission was granted to reopen stores in Estonia. 

Tallinna Kaubamaja Grupp CEO Raul Puusepp said: "The emergency situation at the beginning of the spring season, which is very important for fashion goods retail, lowered the sales margin on fashion goods. In May, when shopping centers were reopened, recovery took longer for the Tallinn and Tartu Kaubamaja department stores located in city centers compared with the malls situated on the outskirts, since offices in the city center were mostly closed and tourists were not allowed into the city."

As of June 1, 2020, the result of the supermarkets segment of Tallinna Kaubamaja Grupp includes the results of ABC Supermarkets AS. As at the end of June, the supermarkets segment included the Selver store chain with 53 Selver stores, 16 Comarket stores, two Delice stores, the Solaris grocery store, the e-Selver mobile store, and a cafe with a total selling space of 113,800 square meters, as well as the central kitchen of Kulinaaria OU. 

The consolidated sales revenue of the supermarkets business segment in the first six months of 2020 was €246.5 million, marking an increase of 7.7 percent over the same period of last year. Consolidated sales revenue in the second quarter of 2020 totaled €128.2 million, being bigger by 8.8 percent than in the same period of last year. 

During the first six months of 2020, 18.3 million purchases were made at the supermarkets, 7.4 percent less than in the year before. During the crisis, customers made fewer visits to supermarkets but the average value per purchase increased.

The Kaubamaja department store business segment posted a sales revenue of €37 million for the first six months of the year, which is 21.7 percent less than in the same period of last year.

The sales revenue of Kaubamaja department stores in the second quarter of 2020 was €15.8 million, marking a reduction of 35 percent from the same period of 2019. The pretax profit of Kaubamaja department stores in the second quarter of 2020 was zero, being weaker by €0.9 million that the pretax profit for the second quarter of last year. 

The sales revenue of the car trade segment totaled €57.9 million in the first six months of 2020, smaller by 6.7 percent than in the same period in 2019. The sales revenue of €24.8 million of the second quarter of 2020 was smaller by 30.5 percent than the sales revenue of the same period in 2019.

The sales revenue of the footwear trade segment was €2.9 million in the first six months of 2020, smaller by 28 percent than in the corresponding period in 2019.

In the second quarter, the segment's sales revenue totaled €1.3 million, 41.0 percent less than during the same period in 2019.

The loss of the footwear segment in the first six months of the year totaled €1.2 million. The loss of the comparable period in 2019 was €0.6 million. The loss sustained in the second quarter of the year totaled €0.2 million, a result weaker by €0.08 million than in the same period of 2019.

The sales revenue earned by the real estate segment outside the group totaled €2.3 million in the first six months of 2020, having decreased by 19.4 percent in comparison with the previous year.

In the second quarter of 2020, the sales revenue earned in the real estate segment outside the group was €0.9 million. During the period in question, sales revenue decreased by 33.9 percent. The sales revenue earned in the real estate segment was €4.6 million in the first six months of 2020. During the reference period, profit decreased by 14.3 percent. 

During the first six months of 2020, the average number of employees at Tallinna Kaubamaja Grupp was 4,459, bigger by 4.7 percent than in the same period of 2019 due to the acquisition of ABC Supermarkets AS in May 2020. 

The companies of Tallinna Kaubamaja Grupp are Kaubamaja AS, Selver AS, Kulinaaria OU, ABC Supermarkets AS, Viking Security AS, Tallinna Kaubamaja Kinnisvara AS, Tartu Kaubamaja Kinnisvara OU, UAB TKM Lietuva, SIA TKM Latvija, KIA Auto AS, AS Viking Motors, KIA Auto UAB, Forum Auto SIA, Verte Auto SIA, TKM Auto OU, OU TKM Beauty, OU TKM Beauty Eesti, AS TKM King and Ravala Parkla AS.

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Editor: Helen Wright

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