Income statement
Consolidated net sales of first quarter 2010 was 49.0 mil. kroons/3.1 mil. euros (53.1 mil. kroons/3.4 mil. euros in same period of 2009) representing a 8% decrease on the first quarter compared to Q1 2009. The Group’s gross margin in the first quarter of 2010 was 24.5% compared to 19.5% in the first quarter of 2009. Consolidated operating profit amounted to 3.4 mil. kroons/219 thousand euros (0.3 mil. kroons/17 thousand euros in same period 2009). The consolidated operating margin of net sales was 7.0% (0.5% in Q1 2009).
Consolidated net profit amounted to 3.0 mil. kroons/191 thousand euros, compared to net loss 0.6 mil. kroons/43 thousand euros in Q1 2009), and the net margin was 6.1% (-1.3% in Q1 2009). In Q1 2010, the Group’s return on equity was 4.0% (-1.0% in Q1 2009) and return on assets was 2.2% (-0.4% in Q1 2009).
Position of financial statement
As of 31.3.2010 the total assets of Viisnurk amounted to 135.1 mil. kroons/8.6 mil. euros (31.12.2009: 132.8 mil. kroons/8.5 mil. euros). The liabilities of the company accounted for 44.9% (31.12.2009: 46.2%) thereof, i.e. 60.7 mil. kroons/3.9 mil. euros (31.12.2009: 61.3 mil. kroons/3.9 mil. euros).
Receivables and prepayments have increased by 5.0 mil. kroons/0.3 mil. euros i.e. 26% decrease with 3 months. The reason of increase of receivables is small sales in December 2009, which essentially lowered the amount of receivables at the end of December.
Inventories decreased by 2.1 mil. kroons/0.1 mil. euros to reach 44.1 mil. kroons/2.8 mil. euros on 31.3.2010. (31.12.2009: 41.9 mil. kroons/2.7 mil. euros). Property, plant and intangibles decreased by 1.6 mil. kroons/0.1 mil. euros mainly as a result of depreciation.
Short-term loans decreased by 1.5 mil. kroons/0.1 mil. euros and amounted to 6.5 mil. kroons/0.4 mil. euros in 31 March 2010 (31.12.2009: 8.0 mil. kroons/0.5 mil. euros). Supplier payables, tax liabilities, other payables, including payables to employees, and provisions amounted to 23.9 mil. kroons/1.5 mil. euros (31.12.2009: 22.9 mil. kroons/1.5 mil. euros). Current and non-current liabilities decreased by 0.6 mil. kroons/38 thousand euros to 60.7 mil. kroons/3.9 mil. euros (31.12.2009: 61.3 mil. kroons/3.9 mil. euros).
Net sales by business segments
|
|
th. EEK
|
th. EUR
|
% of net sales
|
|||
|
|
Q1 2010
|
Q1 2009
|
Q1 2010
|
Q1 2009
|
Q1 2010
|
Q1 2009
|
|
Furniture Factory
|
26,086
|
27,598
|
1,667
|
1,764
|
53.2%
|
52.0%
|
|
Skano
|
6,528
|
8,934
|
417
|
571
|
13.3%
|
16.8%
|
|
Building Materials Division
|
19,422
|
20,387
|
1,242
|
1,303
|
39.6%
|
38.4%
|
|
Elimination
|
(3,034)
|
(3,833)
|
(194)
|
(245)
|
(6.1)%
|
(7.2)%
|
|
TOTAL
|
49,012
|
53,086
|
3,132
|
3,393
|
100.0%
|
100.0%
|
Net sales by geographical segments
|
|
th. EEK
|
th. EUR
|
% of net sales
|
|||
|
|
Q1 2010
|
Q1 2009
|
Q1 2010
|
Q1 2009
|
Q1 2010
|
Q1 2009
|
|
Finland
|
22,692
|
21,704
|
1,450
|
1,387
|
46.3%
|
40.9%
|
|
Russia
|
9,722
|
12,514
|
622
|
799
|
19.8%
|
23.6%
|
|
Estonia
|
7,110
|
7,871
|
454
|
503
|
14.5%
|
14.8%
|
|
Ukraine
|
2,385
|
2,894
|
152
|
185
|
4.9%
|
5.5%
|
|
Sweden
|
2,110
|
559
|
135
|
36
|
4.3%
|
1.1%
|
|
Lithuania
|
1,442
|
2,218
|
92
|
142
|
2.9%
|
4.2%
|
|
Latvia
|
762
|
2,368
|
49
|
151
|
1.6%
|
4.5%
|
|
Germany
|
690
|
743
|
44
|
48
|
1.4%
|
1.4%
|
|
Kazakhstan
|
639
|
629
|
41
|
40
|
1.3%
|
1.2%
|
|
India
|
226
|
0
|
14
|
0
|
0.5%
|
0.0%
|
|
Belarusian
|
104
|
119
|
7
|
8
|
0.2%
|
0.2%
|
|
Portugal
|
0
|
1,245
|
0
|
79
|
0.0%
|
2.3%
|
|
Other countries
|
1,130
|
222
|
72
|
15
|
2.3%
|
0.4%
|
|
TOTAL
|
49,012
|
53,086
|
3,393
|
3,393
|
100.00%
|
100.00%
|
Regarding the markets, turnover has increased in Sweden, Finland and Kazakhstan. Turnover has decreased in most in Portugal, Russia and Latvia.
Profit by business segments
|
|
th. EEK
|
th. EUR
|
||
|
|
Q1 2010
|
Q1 2009
|
Q1 2010
|
Q1 2009
|
|
Furniture Factory
|
2,330
|
1,616
|
149
|
103
|
|
Skano
|
(68)
|
(778)
|
(4)
|
(50)
|
|
Building Materials Division
|
1,543
|
(248)
|
98
|
(16)
|
|
Elimination
|
(379)
|
(325)
|
(24)
|
(20)
|
|
TOTAL
|
3,426
|
265
|
219
|
17
|
|
Net financial costs
|
(440)
|
(938)
|
(28)
|
(60)
|
|
NET PROFIT
|
2,986
|
(673)
|
191
|
(43)
|
The net sales of AS Viisnurk Furniture Division in the first quarter amounted to 29.6 mil. kroons/1.9 mil. euros (2009: 32.7 mil. kroons/2.1 mil. euros). As compared to the Q1 of previous year the turnover of the division has decreased by 3.1 mil. kroons/0.2 mil. euros (9.5%).
Furniture Retail – Skano
AS Viisnurk retail business is operated by a private limited company OÜ Skano and its subsidiaries in Latvia, Lithuania and Ukraine. Skano has totally 10 stores in Tallinn, Pärnu, Riga, two in Vilnius, Kaunas, two in Kiev, Donetsk and Kharkiv at the end of the first quarter. There were opened one store in Kiev and decided to close one store in Vilnius.
Retail sales by countries
|
|
th. EEK
|
th. EUR
|
% of net sales
|
Number of stores
|
||||
|
|
Q1 2010
|
Q1 2009
|
Q1 2010
|
Q1 2009
|
Q1 2010
|
Q1 2009
|
31.03.10
|
31.03.09
|
|
Estonia
|
2,443
|
2,200
|
156
|
141
|
37.4%
|
24.6%
|
2
|
2
|
|
Latvia
|
387
|
1,730
|
24
|
110
|
5.9%
|
19.4%
|
1
|
1
|
|
Lithuania
|
1,427
|
2,110
|
91
|
135
|
21.9%
|
23.6%
|
3
|
3
|
|
Ukraine
|
2,271
|
2,894
|
145
|
185
|
34.8%
|
32.4%
|
4
|
4
|
|
TOTAL
|
6,528
|
8,934
|
416
|
571
|
100.0%
|
100.0%
|
10
|
10
|
The retail sale drastically decreased in Latvia. The readiness for purchase is very low in Latvia. The sale in Estonia has increased and in Lithuania and Ukraine decreased. Within the first quarter this year the retail sale has decreased by 26.9% as compared to the same period last year.
Furniture Factory
The Furniture Factory’s sales in the first quarter in one of the company’s basic target market in Finland has increased and on other – In Russia, decreased. Also there is smaller sales to Skano. Our clients does not estimate demands recovering in near future.
The net sales of the Furniture Factory in the first quarter amounted to 26.1 mil. kroons/1.7 mil. euros and profit to 2.3 mil. kroons/149 thousand euros. In the same period last year, the turnover of the factory totalled to 27.6 mil. kroons/1.8 mil. euros and the profit 1.6 mil. kroons/103 thousand euros. As compared to the previous year the turnover of the factory has decreased by 1.5 mil. kroons/97 thousand euros and the profit has increased by 0.7 mil. kroons/46 thousand euros.
Furniture Factory sales by countries
|
|
th EEK
|
th EUR
|
% of net sales
|
|||
|
|
Q1 2010
|
Q1 2009
|
Q1 2010
|
Q1 2009
|
Q1 2010
|
Q1 2009
|
|
Russia
|
13,329
|
10,328
|
852
|
660
|
51.1%
|
37.4%
|
|
Finland
|
7,977
|
11,691
|
510
|
747
|
30.6%
|
42.4%
|
|
Kazakhstan
|
639
|
629
|
41
|
40
|
2.4%
|
2.3%
|
|
Estonia
|
494
|
306
|
32
|
20
|
1.9%
|
1.1%
|
|
Germany
|
451
|
620
|
29
|
40
|
1.7%
|
2.2%
|
|
Belarusian
|
104
|
119
|
7
|
8
|
0.4%
|
0.4%
|
|
Others
|
66
|
72
|
4
|
5
|
0.3%
|
0.3%
|
|
Subsidiaries
|
3,026
|
3,833
|
193
|
245
|
11.6%
|
13.9%
|
|
TOTAL
|
26,086
|
27,598
|
1,668
|
1,765
|
100.0%
|
100.0%
|
The net sales of the Building Materials Division in the first quarter amounted to 19.4 mil. kroons/1.2 mil. euros and profit to 1.5 mil. kroons/98 thousand euros. In the same period last year, the turnover of the division totalled to 20.4 mil. kroons/1.3 mil. euros and the loss 0.2 mil. kroons/16 thousand euros. As compared to the previous year the turnover of the division has decreased by 1.0 mil. kroons/62 thousand euros and the profit has increased by 1.8 mil. kroons/114 thousand euros.
Net sales by geographical segments
|
|
th. EEK
|
th. EUR
|
% of net sales
|
|||
|
|
Q1 2010
|
Q1 2009
|
Q1 2010
|
Q1 2009
|
Q1 2010
|
Q1 2009
|
|
Finland
|
9,363
|
11,376
|
598
|
727
|
48.2%
|
55.8%
|
|
Estonia
|
4,173
|
5,365
|
267
|
343
|
21.5%
|
26.3%
|
|
Sweden
|
2,110
|
559
|
135
|
36
|
10.9%
|
2.7%
|
|
Russia
|
1,745
|
823
|
112
|
53
|
9.0%
|
4.0%
|
|
Latvia
|
375
|
638
|
24
|
41
|
1.9%
|
3.1%
|
|
Germany
|
239
|
123
|
15
|
8
|
1.2%
|
0.6%
|
|
India
|
226
|
0
|
14
|
0
|
1.2%
|
0.0%
|
|
Ukraine
|
114
|
0
|
7
|
0
|
0.6%
|
0.0%
|
|
Lithuania
|
15
|
108
|
1
|
7
|
0.1%
|
0.5%
|
|
Portugal
|
0
|
1,245
|
0
|
80
|
0.0%
|
6.1%
|
|
Other countries
|
1,064
|
150
|
68
|
10
|
5.4%
|
0.7%
|
|
TOTAL
|
19,424
|
20,387
|
1,241
|
1,305
|
100.0%
|
100.0%
|
The biggest growth has been in sales to Sweden, There were no sales to Portugal. The sales in our biggest market, in Finland has decreased.
Forecast and development
Skano. According to preliminary plans Skano do not plan openings of new stores in 2010. Company needs to minimize risks related to expanding in cool economical situation and keep sufficient liquidity. Management consider about new openings in Ukraine – two stores in Dnipropetrovs’k and one store in Kiev.
Furniture Factory. For 2010 management forecasts continuously small sales in retail market, also in markets not related in Skano retail business, and it means continously small production volume in furniture factory. Agreements with employees to use shortened working time are effective until 31.03.2011.
Building Materials Division. Based on low demand for building materials in target markets management continues with decreased production volume. In main production line factory continues with three shifts instead of four. In Isotex line are used one or two shifts accordingly the demand of clients.
In all business segments management looking for new markets and main tension is focused into Near- and Far-East countries.
|
|
Th EEK
|
Th EEK
|
Th EUR
|
Th EUR
|
|
|
31.3.2010
|
31.12.2009
|
31.3.2010
|
31.12.2009
|
|
|
|
|
|
|
|
Cash and bank
|
2,875
|
6,091
|
184
|
389
|
|
Receivables and prepayments
|
23,784
|
18,810
|
1,520
|
1,202
|
|
Inventories
|
44,058
|
41,912
|
2,816
|
2,680
|
|
Total current assets
|
70,717
|
66,813
|
4,520
|
4,271
|
|
|
|
|
|
|
|
Investment property
|
2,893
|
2,893
|
185
|
185
|
|
Tangible fixed assets
|
61,469
|
63,083
|
3,928
|
4,031
|
|
Intangible fixed assets
|
12
|
14
|
1
|
1
|
|
Total fixed assets
|
64,374
|
65,990
|
4,114
|
4,217
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
135,091
|
132,803
|
8,634
|
8,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt obligations
|
6,537
|
8,048
|
418
|
514
|
|
Payables and prepayments
|
23,864
|
22,742
|
1,525
|
1,454
|
|
Short-term provisions
|
79
|
118
|
5
|
8
|
|
Total current liabilities
|
30,480
|
30,908
|
1,948
|
1,976
|
|
|
|
|
|
|
|
Non-current debt obligations
|
27,084
|
27,084
|
1,731
|
1,731
|
|
Non-current provisions
|
3,132
|
3,303
|
200
|
211
|
|
Total non-current liabilities
|
30,216
|
30,387
|
1,931
|
1,942
|
|
|
|
|
|
|
|
Total liabilities
|
60,696
|
61,295
|
3,879
|
3,918
|
|
|
|
|
|
|
|
Share capital at nominal value
|
44,991
|
44,991
|
2,875
|
2,875
|
|
Issue premium
|
5,698
|
5,698
|
364
|
364
|
|
Statutory capital reserve
|
4,499
|
4,499
|
288
|
288
|
|
Currency translation reserve
|
307
|
406
|
20
|
26
|
|
Retained profits
|
15,914
|
15,759
|
1,017
|
1,007
|
|
Net profit for the year
|
2,986
|
155
|
191
|
10
|
|
Total equity
|
74,395
|
71,508
|
4,755
|
4,570
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
135,091
|
132,803
|
8,634
|
8,488
|
|
|
Th EEK
|
Th EEK
|
Th EUR
|
Th EUR
|
|
|
1st quarter 2010
|
1st quarter 2009
|
1st quarter 2010
|
1st quarter 2009
|
|
|
|
|
|
|
|
RETURN ON SALES
|
49,012
|
53,086
|
3,132
|
3,393
|
|
|
|
|
|
|
|
Cost of production sold
|
(37,027)
|
(42,728)
|
(2,366)
|
(2,731)
|
|
|
|
|
|
|
|
Gross profit
|
11,985
|
10,358
|
766
|
662
|
|
|
|
|
|
|
|
Marketing expenses
|
(7,208)
|
(8,878)
|
(460)
|
(567)
|
|
General administrative expenses
|
(1,482)
|
(1,516)
|
(95)
|
(97)
|
|
Other income
|
501
|
1,058
|
32
|
67
|
|
Other expenses
|
(370)
|
(756)
|
(24)
|
(48)
|
|
|
|
|
|
|
|
Operating profit
|
3,426
|
266
|
219
|
17
|
|
Financial income and financial expenses
|
(440)
|
(939)
|
(28)
|
(60)
|
|
|
|
|
|
|
|
Profit (loss) before taxes
|
2,986
|
(673)
|
191
|
(43)
|
|
|
|
|
|
|
|
NET PROFIT (LOSS) FOR THE PERIOD
|
2,986
|
(673)
|
191
|
(43)
|
|
|
|
|
|
|
|
Basic earnings per share
|
0.66
|
(0.15)
|
0.04
|
(0.01)
|
|
Diluted earnings per share
|
0.66
|
(0.15)
|
0.04
|
(0.01)
|
|
|
|
|
|
|
|
Currency translation differences
|
(99)
|
(123)
|
(6)
|
(6)
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME
|
2,887
|
(796)
|
185
|
(49)
|
Einar Pähkel
CFO
+372 447 8331
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