The first-quarter sales revenue of Tallinna Kaubamaja Grupp increased by 9.6%13.04.2023
In the first quarter of 2023, the consolidated unaudited sales revenue of Tallinna Kaubamaja Grupp was 218.1 million euros, which was 9.6% more than the sales revenue of the same period in 2022. The net profit of the Group for the first quarter of 2023 was 0.6 million euros, which increased by 43.2% compared to the first quarter of 2022. The pre-tax profit was 5.9 million euros, which was 1.0 million euros more than the result of the year before.
‘Despite the rapid pace of price increases and changes in consumption behaviour, the Group was able to increase sales revenue and keep operating costs under control. Customers have become more cautious and buy fewer products, which is why the increase in sales revenue is largely due to higher sales prices. All companies of the Group have made quick decisions based on changes in the economic environment, and thanks to successfully organised campaigns, they have been able to improve results and secure their market position. The share of loyal customers in sales results continues to be high and has a stable growth rate,’ said Raul Puusepp, Chairman of the Management Board of Tallinna Kaubamaja Grupp. ‘Due to rapid price increases and difficult economic conditions, the pressure on wage growth is also a problem – wage costs increased by more than 15% during the first quarter,’ Puusepp added.
‘In the first quarter, several important investments were made and development processes were started and completed – Ringtee Selver was renovated in Tartu and large-scale renovation works were started in Järve Selver, which will open its doors already in May. We also plan to renovate Solaris Centre foodstore in the centre of Tallinn and open the new Kurna hypermarket by the Tallinn ring road,’ Raul Puusepp introduced the most important developments. ‘The cosmetics store chain I.L.U. opened the third completely renewed store in the Ülemiste centre. The sales area of the store increased by almost half,’ added Puusepp. ‘We are also continuing to focus on projects related to environmental protection and energy saving – the construction of a solar park on the roof of the Viimsi Centre was started at the end of last year. Its completion is expected soon. This is the second building of the Group with an energy production plant installed on its roof. The produced electricity is mainly used for the building itself,’ added Puusepp. As a new project, Puusepp highlights the cooperation project of Viking Security with Koduandur OÜ, in the framework of which the companies offer a social security service for the elderly in the city of Tallinn.
The consolidated sales revenue of the supermarket business segment was 147.2 million euros in the first quarter of 2023, increasing by 5.5% in comparison with the same period of last year. The consolidated pre-tax profit of the segment in the first quarter was 1.7 million euros, which is 0.6 million euros less than in the previous year. The consolidated net profit of the supermarket segment was 0.5 million euros, which is 0.4 million euros more than last year. The difference between the net profit and profit before income tax is due to the income tax paid on dividends – this year, the income tax on dividends was 1.0 million euros lower than in the year before. In the first quarter of 2023, 9.5 million purchases were made from Selver stores, accounting for an increase of 4.4% compared to the previous year. As at the end of March, the supermarket segment includes 71 Selver stores, 1 Delice store, the Solaris food store, the mobile store, and the café, with a total sales area of 116.9 thousand m2. There is also e-Selver – the e-shop with the largest service area in Estonia – as well as the central kitchen Kulinaaria OÜ.
The sales revenue of the Kaubamaja department stores segment in the first three months of 2023 was 24.7 million euros, 14.1% more than in the same period of the previous year. The pre-tax loss of the Kaubamaja department store segment in the first quarter of 2023 was 0.8 million euros. The pre-tax loss decreased by 0.9 million euros. The spring season started very successfully and the Ilu Aeg campaign had the highest sales figures ever.
In the first quarter of 2023, the sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. cosmetics stores, was 1.7 million euros, which was 25.8% more than in the same period in 2022. In the first quarter, the profit was 0.04 million euros, which is an improvement of 0.06 million euros compared to the loss of the comparable period in 2022.
The sales revenue of the car trade segment in the first quarter of 2023 was 41.7 million euros. Sales revenue increased by 22.7% compared to the previous year. The consolidated pre-tax profit of the segment in the first quarter was 3.0 million euros, which is 0.9 million euros more than in the previous year. In the first three months of the year, a total of 1,461 new passenger cars were sold, which is 14.4% more than last year.
The sales revenue of the security segment outside the Group in the first quarter of 2023 was 2.9 million euros, increasing by 25.6% in comparison with the same period of last year. The pre-tax profit of the segment in the first quarter was 0.1 million euros, increasing by 0.05 million euros compared to the same period of last year. Turnovers of all business areas of the security segment increased in the first quarter and profitability also improved. The sales revenue of the real estate segment outside the Group in the first quarter of 2023 was 1.6 million euros, increasing by 6.0% in comparison with the first quarter of the last year. The pre-tax profit of the segment was 2.5 million euros in the first quarter. The profit decreased by 6.3% in the reference period.