Marimekko Corporation INTERIM REPORT
4 November 2010 at 9 a.m.
MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2010
In the January-September period of 2010, the Marimekko Group's net sales fell
slightly; operating profit improved clearly. Net sales fell by 1.0% to EUR 51.2
million (EUR 51.8 million). The decrease was partly attributable to an extensive
price-led promotion organised in Finland in the first quarter of 2009 to reduce
inventories. In addition, in 2009, net sales for the corresponding period
included higher revenues from individual promotions than this year. Operating
profit increased by 51.9% to EUR 6.0 million (EUR 3.9 million). Profit after
taxes for the period was EUR 4.4 million (EUR 3.0 million) and earnings per
share were EUR 0.55 (EUR 0.37).
Due to better-than-expected average sales margin and cost development, the
company revised its operating profit estimate for 2010 on 25 October 2010.
Operating profit is expected to be better than in 2009. Operating profit is also
expected to be slightly better than the 2009 operating profit excluding
non-recurring items. Operating profit for 2009 included a EUR 0.5 million
non-recurring cost related to personnel cuts. The net sales estimate remains
unchanged. Net sales for 2010 are expected to be approximately at the same level
as in 2009.
1-9/ 1-9/ Change, 1-12/
2010 2009 % 2009
Net sales, EUR 1,000 51,223 51,754 -1.0 72,473
Operating profit, EUR 1,000 5,981 3,938 51.9 6,291
Profit before taxes
EUR 1,000 5,969 3,985 49.8 6,354
Profit for the period,
EUR 1,000 4,421 2,962 49.3 4,701
Earnings per share, EUR 0.55 0.37 0.59
Equity per share, EUR 4.06 3.74 8.6 3.96
Cash flow from operating
activities, EUR 1,000 922 5,368 9,941
Return on equity (ROE), % 18.3 12.8 14.8
Return on investment (ROI), % 24.8 17.3 20.1
Equity ratio, % 80.4 77.8 77.7
Mika Ihamuotila, President and CEO:
”The Group's net sales for the January-September period of 2010 were nearly at
the level of the comparison period. The trend in Marimekko's profitability
during the review period was quite positive, even slightly better than expected.
Operating profit improved by 51.9%, reaching EUR 6.0 million. The measures taken
in 2009 to enhance operational efficiency and the continuous development of
business operations are bearing fruit. An increase in average sales margin has a
major impact on profitability. The rise in sales margin is partly due to the
fact that, during the current year, we have carried out fewer price-led
promotions than last year. A favourable trend in expenses also contributed to
the improvement in profitability. Earnings for the period were boosted by lower
operating and marketing expenses compared to the same period the year before.
Full-year marketing expenses are expected to be at the same level as in 2009.
The international projects in the USA, Northern Europe and East Asia, announced
in August, have progressed according to plan. A Marimekko shop-in-shop in Crate
and Barrel's Soho store in New York and South Korea's first Marimekko store,
located in Seoul, opened in mid—October. New retail shops of our own will open
in Berlin and Malmö in November. Our operations are developing in the right
direction, and we are making steady progress in line with our chosen strategy.
It should be borne in mind, however, that the investments made especially in
developing the product range and in opening new stores and distribution channels
depressed earnings in the second and third quarters. These investments will
continue to have an impact on the Group's earnings for the remainder of the
year. The company's earnings trend is likely to be adversely affected by the
investments required for internationalisation, which I feel are justified in the
long run, as well as, at least in the shorter term, the steep rise in cotton
prices."
For additional information, contact:
Mika Ihamuotila, President and CEO, tel. +358 9 758 71
Thomas Ekström, CFO, tel. +358 9 758 7261
MARIMEKKO CORPORATION
Group Communications
Piia Pakarinen
Tel. +358 9 758 7293
Fax +358 9 755 3051
E-mail: piia.pakarinen@marimekko.fi
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Principal media
Marimekko's website www.marimekko.com
Marimekko, established in 1951, is a leading Finnish textile and clothing design
company renowned for its original prints and colours. The company designs and
manufactures high-quality clothing, interior decoration textiles, bags, and
other accessories. Marimekko products are sold in about 40 countries. Products
with Marimekko designs are also manufactured under licence in various countries.
In 2009, the company's net sales amounted to EUR 72.5 million, of which
international sales accounted for 27.3%. The Group employs approximately 370
people. The company's share is quoted on NASDAQ OMX Helsinki Ltd.
MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 SEPTEMBER 2010
MARKET SITUATION
In early autumn, economic growth accelerated in Finland and the rest of Europe.
A strong recovery was seen in the Finnish economy during the summer. Economic
growth in the United States has slowed down, which is considered a bad sign. US
consumer confidence has at no point risen to the European level; the direction
of the country's economic development depends on domestic demand and employment
trends. Economic growth also slowed down in Japan. (Confederation of Finnish
Industries EK: Economic Review, 17 September 2010) In Finland, retail sales
expectations are positive, and sales are anticipated to pick up somewhat towards
Christmas. (Confederation of Finnish Industries EK: Business Confidence
Indicators, October 2010). From January to September 2010, the value of retail
sales in Finland increased by 2.9% (Statistics Finland: Retail trade turnover
2010, September, quick estimate). In the January-August period of 2010, retail
sales of clothing (excluding sportswear) grew by 3.2% (Textile and Fashion
Industries TMA). Sales of womenswear rose by 2.7%, sales of menswear by 5.6%,
and sales of childrenswear by 1.3%. Sales of bags grew by 2.5%. From January to
August 2010, exports of clothing (SITC 84) fell by 5% and imports rose by 1%;
exports of textiles (SITC 65) decreased by 7%, while imports grew by 16%
(National Board of Customs, monthly review, August 2010).
NET SALES
July-September
In the July-September period of 2010, the Marimekko Group's net sales decreased
by 0.1% to EUR 19,468 thousand (EUR 19,492 thousand). Sales in Finland fell by
2.5% to EUR 13,828 thousand (EUR 14,183 thousand). The difference in relation to
the comparison period is due to revenues from a one-off promotion in the
corresponding period of the previous year. International sales increased by 6.2%
to EUR 5,640 thousand (EUR 5,309 thousand). The growth was generated by the
delivery of initial inventories to two new retailer-owned Marimekko stores.
January-September
In the January-September period of 2010, the Marimekko Group's net sales
decreased by 1.0% to EUR 51,223 thousand (EUR 51,754 thousand). Net sales in
Finland fell by 2.1% to EUR 35,426 thousand (EUR 36,173 thousand). The decline
was partly attributable to an extensive price-led promotion organised in the
first quarter of 2009 to reduce inventories. In addition, in 2009, net sales for
the corresponding period included higher revenues from individual promotions
than this year. International sales increased by 1.4% to EUR 15,797 thousand
(EUR 15,581 thousand). The growth was generated by the delivery of initial
inventories to two new retailer-owned Marimekko stores in the third quarter. The
share of international sales in the Group's net sales amounted to 30.8% (30.1%).
The breakdown of the Group's net sales by product line was as follows: clothing
39.8%, interior decoration 42.8%, and bags 17.4%. Net sales by market area were:
Finland 69.1%, the other Nordic countries 10.4%, the rest of Europe 7.5%, North
America 5.0%, and other countries (Japan and other regions outside Europe and
North America) 8.0%.
BUSINESS UNIT REVIEWS
Clothing
In the January-September period of 2010, net sales of clothing fell by 4.1% to
EUR 20,376 thousand (EUR 21,253 thousand). Sales decreased in Finland and the
market area referred to as "the rest of Europe", while other market areas saw
growth in sales. International sales accounted for 26.1% of net sales of
clothing.
Interior decoration
Net sales of interior decoration products increased by 4.2% to EUR 21,906
thousand (EUR 21,029 thousand). Almost all of the growth came from North America
and the market areas referred to as “the rest of Europe” and “other countries”.
In Finland and the other Nordic countries, sales increased slightly.
International sales accounted for 35.4% of net sales of interior decoration
products.
Bags
Net sales of bags fell by 5.6% to EUR 8,941 thousand (EUR 9,472 thousand). Sales
increased in North America and the market area referred to as “the rest of
Europe”. In other market areas, sales decreased. International sales accounted
for 30.6% of net sales of bags.
Sales in Finland
In the January-September period of 2010, Marimekko's retail sales, i.e. sales by
Marimekko's own retail shops in Finland, fell by 3.7%. Domestic wholesale sales
decreased by 1.9%. The decline in retail sales was partly due to changes in
sales areas in the Helsinki shops. Both retail and wholesale sales in Finland
were adversely affected by the extensive price-led promotion organised in the
first quarter of 2009 to reduce inventories.
International sales
In the January-September period of 2010, Marimekko's international sales
(previously "exports and international operations") increased by 1.4% to EUR
15,797 thousand (EUR 15,581 thousand). The growth was generated by the delivery
of initial inventories to two new retailer-owned Marimekko stores in the third
quarter. Net sales in North America rose by 10.3% to EUR 2,546 thousand
(EUR 2,309 thousand). Sales in other export markets were at the same level as in
the comparison period. In the market area referred to as “the other Nordic
countries”, net sales amounted to EUR 5,315 thousand (EUR 5,317 thousand), in
the rest of Europe to EUR 3,830 thousand (EUR 3,843 thousand), and in the market
area referred to as “other countries” to EUR 4,106 thousand (EUR 4,112
thousand). The largest export countries were Japan, Sweden, the United States,
Denmark and Norway.
Licensing
Royalty earnings from sales of licensed products increased markedly. The
majority of the growth came from the Unites States and Japan.
Production
During the January-September period of 2010, the output of the Herttoniemi
textile printing factory increased by 1.1%. The production volume of the Sulkava
factory decreased somewhat compared with the corresponding period of the
previous year. The output of the Kitee factory declined substantially as a
result of changes to the production structure implemented in 2009.
EARNINGS
July-September
In the July-September period of 2010, the Group's operating profit increased by
43.7% from the comparison period to EUR 4,170 thousand (EUR 2,901 thousand).
Earnings per share were EUR 0.38 (EUR 0.27). Operating profit for the
corresponding period in 2009 included a EUR 0.5 million non-recurring cost
related to personnel cuts. Earnings for the period were boosted by an increase
in average sales margin, lower operating expenses and higher royalty income.
During the current year, revenues generated from one-off promotions were lower
than in the corresponding period of the previous year, which weakened earnings.
January-September
In the January-September period of 2010, the Group's operating profit increased
by 51.9% to EUR 5,981 thousand (EUR 3,938 thousand). Operating profit as a
percentage of net sales was 11.7% (7.6%). Marketing expenses for the period
amounted to EUR 1,882 thousand (EUR 2,217 thousand), representing 3.7% (4.3 %)
of the Group's net sales.
Earnings for the period were boosted by an increase in average sales margin as
well as the fact that operating and marketing expenses were lower and royalty
income was higher than in the comparison period. Full-year marketing expenses
are expected to be at the same level as in 2009. Investments in product
development and building up the company's international distribution network, on
the other hand, weighed down earnings. During the current year, revenues
generated from one-off promotions were lower than in the corresponding period of
the previous year, which also weakened earnings.
The Group's depreciation amounted to EUR 1,108 thousand (EUR 1,031 thousand),
representing 2.2% (2.0%) of net sales. Net financial expenses totalled EUR 12
thousand (net financial income of EUR 47 thousand), or 0.02% (0.1%) of net
sales.
Profit for the period after taxes stood at EUR 4,421 thousand (EUR 2,962
thousand), representing 8.6% (5.7%) of net sales. Earnings per share were
EUR 0.55 (EUR 0 37).
INVESTMENTS
The Group's gross investments amounted to EUR 689 thousand (EUR 782 thousand),
representing 1.3% (1.5%) of net sales. The majority of investments were directed
at acquisitions and updates of information systems.
EQUITY RATIO AND FINANCING
The Group's equity ratio was 80.4% at the end of the period (77.8% on 30
September 2009, 77.7% on 31 December 2009). The ratio of interest-bearing
liabilities minus financial assets to shareholders' equity (gearing) was -21.0%,
while it was -20.3% at the end of the corresponding period in the previous year
(-32.2% on 31 December 2009).
At the end of the period, the Group's financial liabilities stood at EUR 0 (EUR
0). The Group's financial assets at the end of the period amounted to EUR 6,860
thousand (EUR 6,092 thousand).
SHARES AND SHARE PRICE TREND
Share capital
At the end of the period, the company's fully paid-up share capital, as recorded
in the Trade Register, amounted to EUR 8,040,000 and the number of shares
totalled 8,040,000.
Shareholdings
According to the book-entry register, Marimekko had 6,676 (6,723) shareholders
at the end of the period. Of the shares, 14.5% were registered in a nominee's
name and 15.8% were in foreign ownership. The number of shares owned either
directly or indirectly by members of the Board of Directors and the President of
the company was 1,086,440, representing 13.5% of the total share capital and of
the votes conferred by the company's shares.
The largest shareholders according to the book-entry register on 30 September
2010
Number of Percentage
shares and of holding
votes and votes
1. Muotitila Ltd 1,045,200 13.00
2. Semerca Investment Ltd 850,377 10.58
3. ODIN Finland 403,218 4.98
4. Varma Mutual Employment
Pension Insurance Company 385,920 4.80
5. Nordea Nordic Small Cap Fund 269,204 3.35
6. Ilmarinen Mutual Pension
Insurance Company 265,419 3.30
7. Veritas Pension Insurance Company 220,000 2.74
8. Sairanen Seppo 71,379 0.89
9. Mutual Fund Tapiola Finland 58,555 0.73
10. Foundation for Economic Education 50,000 0.62
11. Scanmagnetics Oy 40,000 0.50
12. Fromond Elsa 37,000 0.46
13. Haapanala Auvo 35,000 0.43
14. Westerberg Olof 33,600 0.42
15. Karvonen Eero 27,900 0.34
Total 3,789,772 47.14
Nominee-registered 1,167,358 14.52
Others 3,082,870 38.34
Total 8,040,000 100.00
Flaggings
SEB Asset Management S.A.'s share of Marimekko Corporation's share capital and
voting rights rose to 5.13%, or 412,259 shares, as a result of a transaction
concluded on 5 February 2010.
SEB Asset Management S.A.'s share of Marimekko Corporation's share capital and
voting rights declined to 0.00%, or 0 shares, due to a stock loan on 15 April
2010 and increased back to 5.13%, or 412,259 shares, when the stock loan ended
on 28 April 2010.
The combined share of Marimekko Corporation's share capital and voting rights
held by organisations controlled by Credit Suisse Group AG rose to 5.60%, or
450,000 shares, as a result of a transaction concluded on 20 April 2010. After
the transaction, Credit Suisse Securities (Europe) Ltd owned 400,000 Marimekko
shares and Credit Suisse Securities (USA) LLC owned 50,000 shares. The total
share of Marimekko Corporation's share capital and voting rights held by the
aforementioned organisations controlled by Credit Suisse Group AG decreased to
less than 5.00% as a result of a transaction concluded on 23 April 2010.
Authorisations
At the end of the review period, the Board of Directors had no valid
authorisations to carry out share issues or issue convertible bonds or bonds
with warrants, or to acquire or surrender Marimekko shares.
Share trading
During the review period, a total of 730,312 Marimekko shares were traded,
representing 9.1% of the shares outstanding. The total value of Marimekko's
share turnover was EUR 8,129,599. The lowest share price was EUR 10.00, the
highest was EUR 13.29 and the average share price during the period was
EUR 11.19. At the end of the period, the closing price of the share was
EUR 11.28. The company's market capitalisation on 30 September 2010 was
EUR 90,691,200 (EUR 83,374,800 on 30 September 2009, EUR 82,812,000 on 31
December 2009).
PERSONNEL
During the January-September period of 2010, the number of employees averaged
372 (408. At the end of the period, the Group employed 378 (403) people, of whom
18 (16) worked abroad.
CHANGES IN THE COMPANY'S MANAGEMENT
Minna Kemell-Kutvonen commenced on 1 July 2010 as Creative Director of all of
the Marimekko Group's product lines and a member of the Management Group. Piia
Rossi, Director for Marimekko's own retail shops in Finland and member of the
Management Group, resigned on 16 August 2010. Päivi Lonka was appointed Sales
Director for the Group, responsible for sales and shops, as of 16 August 2010.
The appointed persons have also previously held management positions in the
company.
RISK MANAGEMENT AND MAJOR RISKS
Marimekko's risk management and key risks related to its business are described
in the 2009 Annual Report and Financial Statements Bulletin. No major changes
have occurred in the general risk factors since the review presented in the
report of the Board of Directors on 2 February 2010. The particular risks in the
near future are associated with the development of consumers' purchasing
behaviour.
In addition, the company will closely monitor the near-term trend in cotton
prices. The risks related to changes in raw material prices are explained in the
2009 Annual Report and Financial Statements Bulletin. A variety of raw materials
are used to manufacture Marimekko's products, the most important being cotton.
So far, the price increase of cotton has not had an effect on the companys's
earnings. The risks related to raw material price fluctuations are diminished by
taking the fluctuations into account in product pricing. If the price of cotton
remains at its present high level or rises further and if the company fails to
pass the increased raw material costs on to selling prices, the company's
earnings may be affected.
The management and monitoring of change and ensuring sufficient core expertise,
as well as monitoring the trend in cotton prices and any action required are
emphasised in near term risk management.
RESEARCH AND DEVELOPMENT
Marimekko's product planning and development costs arise from the design of
collections. Design costs are recorded in expenses.
THE ENVIRONMENT, HEALTH AND SAFETY
Responsibility for the environment and nature is an integral aspect of
Marimekko's business. In environmental matters, the company's business
supervision is largely based on legislation and other regulations.
Environmental, health and safety issues are reported in the 2009 Annual Report.
The framework for reporting is provided by the G3 guidelines of the Global
Reporting Initiative (GRI).
DECISIONS OF THE ANNUAL GENERAL MEETING
The decisions of Marimekko Corporation's Annual General Meeting are reported in
the stock exchange release dated 15 April 2010 as well as in the interims
reports published on 6 May 2010 and 12 August 2010.
MAJOR EVENTS AFTER THE CLOSE OF THE REVIEW PERIOD
Changes in the company's management
After the retirement of Helinä Uotila, Director for Marimekko's production,
purchases and interior decoration line, on 1 November 2010, all three of the
company's product lines are managed by one Product Director, Niina Nenonen. She
was previously in charge of the company's clothing and bags product lines. The
organisational changes implemented in 2010 aim to improve consistency in design
across the different product lines, enhance efficiency in production and
sourcing, and develop product assortment planning to better respond to the needs
of different distribution channels. As of 1 November 2010, the Marimekko Group's
Management Group comprises Mika Ihamuotila as the Chair and Thomas Ekström
(finance and administration), Malin Groop (marketing), Minna Kemell-Kutvonen
(design), Päivi Lonka (sales), and Niina Nenonen (product lines).
International projects
On 12 August 2010, Marimekko announced that it will carry out significant
international projects during the remainder of 2010.
In the United States, a subsidiary, Marimekko North America LLC, was established
in October 2010 to manage and develop the local operations in collaboration with
the brand management firm C2Group. The renowned home furnishings retailer Crate
and Barrel opened a Marimekko shop-in-shop in its Soho store in New York in
mid-October. Marimekko and Crate and Barrel are also exploring further
opportunities for collaboration, including additional US shop-in-shops and
ecommerce. Marimekko's long-term goal is to expand the distribution of its
products in the United States through high-end department and specialty stores
as well as by increasing the number of Marimekko stores.
The first Marimekko concept store in South Korea was opened in Seoul in
mid-October. The store is owned by I.D. Look Co., Ltd., a subsidiary of
Marimekko's Japanese distributor Look Inc. In November 2010, Marimekko will open
its own retail shops in Berlin and Malmö.
OUTLOOK FOR THE REMAINDER OF 2010
Marimekko Corporation operates in a field where economic trends affect its
business activities. In the January-September period of 2010, net sales
decreased slightly, while operating profit improved clearly. Earnings for the
period were boosted by an increase in average sales margin as well as the fact
that operating and marketing expenses were lower and royalty income was higher
than in the comparison period. Full-year marketing expenses are expected to be
at the same level as in 2009. Investments in product development and building up
the company's international distribution network, on the other hand, weighed
down earnings. During the current year, revenues generated from one-off
promotions were lower than in the corresponding period of the previous year,
which also weakened earnings
The majority of the Group's net sales are generated in Finland. In recent years,
however, international sales have increasingly been driving Marimekko's net
sales growth. During 2010, international sales are estimated to grow slightly.
In 2009, the Group's net sales and earnings included significant revenues
generated from individual promotions. This year, similar revenues that increase
net sales and improve earnings are estimated to be lower. In the second and
third quarters, earnings were depressed by additional investments in product
development and building up the company's international distribution network.
These investments will continue to have an impact on the Group's earnings for
the remainder of the year.
The company revised its operating profit estimate for 2010 on 25 October 2010
due to better-than-expected average sales margin and cost development. Operating
profit is expected to be better than in 2009. Operating profit is also expected
to be slightly better than the 2009 operating profit excluding non-recurring
items. Operating profit for 2009 included a EUR 0.5 million non-recurring cost
related to personnel cuts.
The net sales estimate provided in the interim review on 12 August 2010 remains
unchanged. Net sales for 2010 are expected to be approximately at the same level
as in 2009.
Due to the seasonality of Marimekko's business, the major portion of the
company's net sales and earnings are traditionally generated during the last two
quarters of the year. In the last quarter, a significant share of sales is
accounted for by retail sales.
Helsinki, 4 November 2010
MARIMEKKO CORPORATION
Board of Directors
Information presented in the interim report has not been audited.
APPENDICES
Accounting principles
Consolidated income statement and comprehensive consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in shareholders' equity
Key indicators
Consolidated net sales by market area and product line
Segment information
Quarterly trend in net sales and earnings
Accounting principles
This interim report was prepared in accordance with IAS 34: Interim Financial
Reporting. The same accounting principles were applied as in the 2009 financial
statements. The new or amended standards and interpretations that have become
effective in 2010 and whose contents are presented in the financial statements
for 2009 have had no effect on the information in the interim report.
FORMULAS FOR THE KEY FIGURES
Earnings per share (EPS), EUR:
(Profit before taxes - income taxes) / Number of shares (average for the
financial period)
Equity per share, EUR:
Shareholders' equity / Number of shares, 30 September
Return on equity (ROE), %:
(Profit before taxes - income taxes) X 100 / Shareholders' equity (average for
the financial period)
Return on investment (ROI), %:
(Profit before taxes + interest and other financial expenses) X 100 / (Balance
sheet total - non-interest-bearing liabilities (average for the financial
period))
Equity ratio, %
Shareholders' equity X 100 / (Balance sheet total - advances received)
Gearing, %:
Interest-bearing net debt X 100 / Shareholders' equity
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2010 2009 2010 2009 2009
NET SALES 19,468 19,492 51,223 51,754 72,473
Other operating
income 3 4 13 35 41
Increase or decrease
in inventories of
completed and
unfinished products -42 1,163 -1,072 1,396 -2,135
Raw materials and
consumables 7,051 6,695 19,860 19,212 26,890
Employee benefit
expenses 3,786 4,349 12,459 13,542 18,202
Depreciation 385 334 1,108 1,031 1,394
Other operating
expenses 4,121 4,054 12,900 12,670 17,602
OPERATING PROFIT 4,170 2,901 5,981 3,938 6,291
Financial income 3 7 9 60 86
Financial expenses -40 -7 -21 -13 -23
-37 0 -12 47 63
PROFIT BEFORE TAXES 4,133 2,901 5,969 3,985 6,354
Income taxes 1,075 741 1,548 1,023 1,653
NET INCOME FOR
THE PERIOD 3,058 2,160 4,421 2,962 4,701
Distribution of
net income to equity
holders of
the parent company 3,058 2,160 4,421 2,962 4,701
Basic and diluted
earnings per share
calculated on the
profit attributable
to equity holders of
the parent
company, EUR 0.38 0.27 0.55 0.37 0.59
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2010 2009 2010 2009 2009
Net income for the period 3,058 2,160 4,421 2,962 4,701
Other comprehensive income
Change in translation
difference -4 -10 -5 -9 4
COMPREHENSIVE
INCOME FOR THE PERIOD 3,054 2,150 4,416 2,953 4,705
Distribution of net income
to equity holders of
the parent company 3,054 2,150 4,416 2,953 4,705
CONSOLIDATED BALANCE SHEET
(EUR 1,000) 30.9.2010 30.9.2009 31.12.2009
ASSETS
NON-CURRENT ASSETS
Tangible assets 9,184 9,739 9,805
Intangible assets 619 417 409
Available-for-sale
financial assets 12 20 20
9,815 10,176 10,234
CURRENT ASSETS
Inventories 16,708 15,548 15,229
Trade and other receivables 7,188 6,605 5,241
Current tax assets 18 268 18
Cash and cash equivalents 6,860 6,092 10,245
30,774 28,513 30,733
ASSETS, TOTAL 40,589 38,689 40,967
SHAREHOLDERS' EQUITY
AND LIABILITIES
EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT COMPANY
Share capital 8,040 8,040 8,040
Translation differences -3 -11 2
Retained earnings 24,586 22,044 23,783
Shareholders' equity, total 32,623 30,073 31,825
NON-CURRENT LIABILITIES
Deferred tax liabilities 692 688 683
CURRENT LIABILITIES
Trade and other payables 7,274 7,928 7,874
Current tax liabilities - - 585
7,274 7,928 8,459
Liabilities, total 7,966 8,616 9,142
SHAREHOLDERS' EQUITY AND
LIABILITIES, TOTAL 40,589 38,689 40,967
The Group has no liabilities resulting from derivative contracts, and there are
no outstanding guarantees or any other contingent liabilities which have been
granted on behalf of the management of the company or its shareholders.
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) 1-9/ 1-9/ 1-12/
2010 2009 2009
CASH FLOW FROM OPERATING ACTIVITIES
Net profit for the period 4,421 2,962 4,701
Adjustments
Depreciation according to plan 1,108 1,031 1,394
Financial income and expenses 12 -47 -63
Taxes 1,548 1,024 1,653
Cash flow before change
in working capital 7,089 4,970 7,685
Change in working capital -3,670 1,403 2,997
Increase (-) / decrease (+) in
current non-interest-bearing
trade receivables -1,594 -486 834
Increase (-) / decrease (+) in
inventories -1,479 1,737 2,055
Increase (-) / decrease (+) in
current non-interest-bearing
liabilities -597 152 108
Cash flow from operating activities
before financial items and taxes 3,419 6,373 10,682
Paid interest and payments on
other financial expenses -21 -14 -24
Interest received 9 94 120
Taxes paid -2,485 -1,085 -837
CASH FLOW FROM OPERATING ACTIVITIES 922 5,368 9,941
CASH FLOW FROM INVESTING ACTIVITIES
Investments in tangible
and intangible assets -689 -782 -1,202
CASH FLOW FROM INVESTING ACTIVITIES -689 -782 -1,202
CASH FLOW FROM FINANCING ACTIVITIES
Short-term loans repaid - -185 -185
Dividends paid -3,618 -4,422 -4,422
CASH FLOW FROM FINANCING ACTIVITIES -3,618 -4,607 -4,607
Change in cash and cash equivalents -3,385 -21 4,133
Cash and cash equivalents
at the beginning of the period 10,245 6,112 6,112
Cash and cash equivalents
at the end of the period 6,860 6,091 10,245
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(EUR 1,000)
Equity attributable to equity holders of the parent company
Shareholders'
Share Translation Retained equity,
capital differences earnings total
Shareholders'
equity
1 Jan. 2009 8,040 -2 23,504 31,542
Comprehensive
income for the
period -9 2,962 2,953
Dividends paid -4,422 -4,422
Shareholders'
equity
30 Sept. 2009 8,040 -11 22,044 30,073
Shareholders'
equity
1 Jan. 2010 8,040 2 23,783 31,825
Comprehensive
income for the
period -5 4,421 4,416
Dividends paid -3,618 -3,618
Shareholders'
equity
30 Sept. 2010 8,040 -3 24,586 32,623
KEY INDICATORS
1-9/ 1-9/ Change, 1-12/
2010 2009 % 2009
Earnings per share, EUR 0.55 0.37 48.6 0.59
Equity per share, EUR 4.06 3.74 8.6 3.96
Return on equity (ROE), % 18.3 12.8 14.8
Return on investment (ROI), % 24.8 17.3 20.1
Equity ratio, % 80.4 77.8 77.7
Gearing, % -21.0 -20.3 -32.2
Gross investments, EUR 1,000 689 782 -11.9 1,202
Gross investments,
% of net sales 1.3 1.5 1.7
Contingent liabilities,
EUR 1,000 9,142 16,828 -45.7 11,306
Average personnel 372 408 -8.8 400
Personnel at the end of
the period 378 403 -6.2 370
Number of shares at the end
of the period (1,000) 8,040 8,040 8,040
Number of shares outstanding,
average (1,000) 8,040 8,040 8,040
NET SALES BY MARKET AREA
(EUR 1,000) 7-9/ 7-9/ Change, 1-9/ 1-9/ Change, 1-12/
2010 2009 % 2010 2009 % 2009
Finland 13,828 14,183 -2.5 35,426 36,173 -2.1 52,711
Other Nordic
countries 1,881 2,029 -7.3 5,315 5,317 0.0 7,042
Rest of Europe 1,382 1,374 0.6 3,830 3,843 -0.3 4,821
North America 935 746 25.3 2,546 2,309 10.3 3,003
Other
countries 1,442 1,160 24.3 4,106 4,112 -0.1 4,896
TOTAL 19,468 19,492 -0.1 51,223 51,754 -1.0 72,473
NET SALES BY PRODUCT LINE
(EUR 1,000) 7-9/ 7-9/ Change, 1-9/ 1-9/ Change, 1-12/
2010 2009 % 2010 2009 % 2009
Clothing 7,434 7,693 -3.4 20,376 21,253 -4.1 27,466
Interior
decoration 8,281 8,091 2.3 21,906 21,029 4.2 32,687
Bags 3,753 3,708 1.2 8,941 9,472 -5.6 12,320
TOTAL 19,468 19,492 -0.1 51,223 51,754 -1.0 72,473
SEGMENT INFORMATION
(EUR 1,000) 1-9/2010 1-9/2009 Change, % 1-12/2009
Marimekko business
Net sales 51,223 51,754 -1.0 72,473
Operating profit 5,981 3,938 51.9 6,291
Assets 40,569 38,689 4.9 40,967
QUARTERLY TREND IN NET SALES AND EARNINGS
(EUR 1,000) 7-9/ 4-6/ 1-3/ 10-12/
2010 2010 2010 2009
Net sales 19,468 15,747 16,008 20,719
Operating result 4,170 588 1,223 2,353
Earnings per share, EUR 0.38 0.05 0.12 0.22
(EUR 1,000) 7-9/ 4-6/ 1-3/ 10-12/
2009 2009 2009 2008
Net sales 19,492 15,999 16,263 22,061
Operating result 2,901 1,058 -21 1,845
Earnings per share, EUR 0.27 0.10 0.00 0.17
