AS Viisnurk in short
Consolidated net sales of 2010 increased by 5.9% and amounted to 217.9 mil. kroons/13.9 mil. euros. At the same time, consolidated net profit amounted to 12.1 mil. kroons/0.8 mil. euros, compared to 155 thousand kroons/10 thousand euros in 2009.
Consolidated net sales of fourth quarter 2010 was 63.4 mil. kroons/4.1 mil. euros, representing a 17.2% increase on the fourth quarter compared to the same period 2009. Consolidated operating profit amounted to 3.8 mil. kroons/243 thousand euros, which means the growth of 52%. Consolidated net profit increased by 43% and amounted to 3.3 mil. kroons/209 thousand euros.
In the fourth quarter all business segments of the Concern were profitable. AS Viisnurk has overcome well the global economic crisis and is now exiting the crisis. In fourth quarter sales revenue increased in all fields of business. The sales of construction materials showed up the highest growth, namely 37%. Also retail sale made a good 10% growth. The cost saving programme implemented in SKANO retail chain and 10% increase of the sales turned the retail sale into profit in fourth quarter.
Income statement
Consolidated net sales of fourth quarter 2010 was 63.4 mil. kroons/4.1 mil. euros (54.1 mil. kroons/3.5 mil. euros in same period of 2009) representing a 17.2% increase on the fourth quarter compared to fourth quarter 2009. The Group’s gross margin in the fourth quarter of 2010 was 22.1% compared to 20.0% in the fourth quarter of 2009. Consolidated operating profit amounted to 3.8 mil. kroons/243 thousand euros (2.5 mil. kroons/161 thousand euros profit in 2009). The consolidated operating margin of net sales was 6.0 (4.7% in Q4 2009).
Consolidated net profit amounted to 3.3 mil. kroons/209 thousand euros, compared to 2.3 mil. kroons/144 thousand euros in Q4 2009), and the net margin was 5.2% (4.2% in Q4 2009). In Q4 2010, the Group’s return on equity was 3.9% (3.2% in Q4 2009) and return on assets was 2.3% (1.7% in Q4 2009).
Position of financial statement
As of the end of 2010 the total assets of Viisnurk amounted to 142.6 mil. kroons/9.1 mil. euros (31.12.2009: 132.8 mil. kroons/8.5 mil. euros). The liabilities of the company accounted for 42% (31.12.2009: 46%) thereof, i.e. 59.2 mil. kroons/3.8 mil. euros (31.12.2009: 61.3 mil. kroons/3.9 mil. euros).
Receivables and prepayments are at the same level 18.7 mil. kroons/1.2 mil. euros (31.12.2009: 18.8 mil. kroons/1.2 mil. euros).
Inventories decreased by 3.0 mil. kroons/0.2 mil. euros (7.3%) to reach 38.9 mil. kroons/2.5 mil. euros at 31 December 2010. (31.12.2009: 41.9 mil. kroons/2.7 mil. euros). Property, plant and intangibles increased by 3.2 mil. kroons/0.2 mil. euros.
Short-term loans increased by 13.6 mil. kroons/0.9 mil. euros and amounted in 31 December 2010 21.6 mil. kroons/1.4 mil. euros (31.12.2009: 8.0 mil. kroons/0.5 mil. euros). Short-term bank loan at the amount of 10.1 mil. kroons/649 thousand euros prolonged in January 2011. Supplier payables, tax liabilities, other payables, including payables to employees, and provisions amounted to 23.0 mil. kroons/1.5 mil. euros (31.12.2009: 22.9 mil. kroons/1.5 mil. euros). Current and non-current liabilities decreased by 2.1 mil. kroons/0.1 mil. euros to 59.2 mil. kroons/3.8 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
|
|||
|
|
Q4 2010
|
Q4 2009
|
Q4 2010
|
Q4 2009
|
Q4 2010
|
Q4 2009
|
|
Furniture Factory
|
32,780
|
31,155
|
2,095
|
1,991
|
51.7%
|
57.6%
|
|
Skano
|
9,611
|
8,667
|
614
|
554
|
15.2%
|
16.0%
|
|
Building Materials Division
|
24,995
|
18,250
|
1,597
|
1,166
|
39.4%
|
33.7%
|
|
Elimination
|
(3,953)
|
(3,952)
|
(252)
|
(252)
|
(6.2%)
|
(7.3%)
|
|
TOTAL
|
63,433
|
54,120
|
4,054
|
3,459
|
100.0%
|
100.0%
|
Net sales by geographical segments
|
|
th. EEK
|
th. EUR
|
% of net sales
|
|||
|
|
Q4 2010
|
Q4 2009
|
Q4 2010
|
Q4 2009
|
Q4 2010
|
Q4 2009
|
|
Finland
|
22,497
|
21,063
|
1,438
|
1,346
|
35.5%
|
38.9%
|
|
Russia
|
17,132
|
12,959
|
1,095
|
828
|
27.0%
|
23.9%
|
|
Estonia
|
11,432
|
10,129
|
731
|
647
|
18.0%
|
18.7%
|
|
Ukraine
|
3,768
|
3,267
|
241
|
209
|
5.9%
|
6.0%
|
|
Latvia
|
2,264
|
1,552
|
145
|
99
|
3.6%
|
2.9%
|
|
Sweden
|
1,647
|
1,427
|
105
|
91
|
2.6%
|
2.6%
|
|
Kazakhstan
|
1,599
|
607
|
102
|
39
|
2.5%
|
1.1%
|
|
Lithuania
|
1,476
|
1,717
|
94
|
110
|
2.3%
|
3.2%
|
|
Denmark
|
697
|
455
|
45
|
29
|
1.1%
|
0.8%
|
|
Germany
|
248
|
377
|
16
|
24
|
0.4%
|
0.7%
|
|
Other countries
|
673
|
567
|
42
|
37
|
1.1%
|
1.2%
|
|
TOTAL
|
63,433
|
54,120
|
4,054
|
3,459
|
100.0%
|
100.0%
|
Regarding the markets, turnover has increased most in Russia and Kazakhstan. Sale in Lithuania and Germany has decreased.
Profit by business segments
|
|
th. EEK
|
th. EUR
|
||
|
|
Q4 2010
|
Q4 2009
|
Q4 2010
|
Q4 2009
|
|
Furniture Factory
|
2,538
|
3,305
|
162
|
211
|
|
Skano
|
389
|
156
|
25
|
(10)
|
|
Building Materials Division
|
835
|
(671)
|
53
|
(43)
|
|
Elimination
|
41
|
51
|
3
|
3
|
|
TOTAL
|
3,803
|
2,529
|
243
|
161
|
|
Net financial costs
|
(416)
|
(206)
|
(27)
|
(13)
|
|
PROFIT BEFORE TAXES
|
3,387
|
2,323
|
216
|
148
|
|
Income tax
|
(104)
|
(69)
|
(7)
|
(4)
|
|
NET PROFIT
|
3,283
|
2,254
|
209
|
144
|
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 12 stores in Tallinn, Pärnu, Riga, Vilnius, Kaunas, Kiev (3), Donetsk, Kharkiv and Dnipropetrovs’k (2) at 31.12.2010. There were two stores opened in third quarter – one in Dnipropetrovs’k and one in Kiev.
Retail sales by countries
|
|
th. EEK
|
th. EUR
|
% of net sales
|
Number of stores
|
||||
|
|
Q4 2010
|
Q4 2009
|
Q4 2010
|
Q4 2009
|
Q4 2010
|
Q4 2009
|
31.12.09
|
31.12.09
|
|
Estonia
|
3,445
|
2,676
|
220
|
171
|
35.8%
|
30.9%
|
2
|
2
|
|
Latvia
|
1,261
|
1,067
|
81
|
68
|
13.1%
|
12.3%
|
1
|
1
|
|
Lithuania
|
1,336
|
1,771
|
87
|
113
|
14.2%
|
20.4%
|
2
|
3
|
|
Ukraine
|
3,539
|
3,153
|
226
|
202
|
36.8%
|
36.4%
|
7
|
3
|
|
TOTAL
|
9,611
|
8,667
|
614
|
554
|
100.0%
|
100.0%
|
12
|
9
|
The retail sale of Skano has increased by 10.9% in fourth quarter compared by the same quarter last year. The growth of sales came from Estonia and Ukraine, sales decreased in Lithuania.
Furniture Production
The Furniture Factory’s sales in 4th quarter in the company’s basic target market in Russia and Finland have decreased and clients does not estimate sales recovering in near future.
The net sales of the Furniture Factory in fourth quarter amounted to 32.8 mil. kroons/2.1 mil. euros and profit to 2.5 mil. kroons/162 thousand euros. In the same period of the last year, the turnover of the division totalled 31.2 mil. kroons/2.0 mil. euros and the profit 3.3 mil. kroons/211 thousand euros. As compared to the previous year the turnover of the factory has increased by 1.6 mil. kroons/0.1 mil. euros and the profit has decreased by 0.8 mil. kroons/49 thousand euros.
Furniture factory sales by countries
|
|
th. EEK
|
th. EUR
|
% of net sales
|
|||
|
|
Q4 2010
|
Q4 2009
|
Q4 2010
|
Q4 2009
|
Q4 2010
|
Q4 2009
|
|
Finland
|
13,082
|
15,334
|
836
|
980
|
39.9%
|
49.2%
|
|
Russia
|
14,079
|
10,727
|
900
|
685
|
42.9%
|
34.4%
|
|
Kazakhstan
|
1,207
|
607
|
77
|
39
|
3.7%
|
1.9%
|
|
Germany
|
0
|
245
|
0
|
15
|
0.0%
|
0.8%
|
|
Others
|
459
|
499
|
29
|
32
|
1.4%
|
1.6%
|
|
Skano
|
3,953
|
3,743
|
253
|
238
|
12.1%
|
12.0%
|
|
TOTAL
|
32,780
|
31,155
|
2,095
|
1,991
|
100.0%
|
100.0%
|
The net sales of the Building Materials Division in fourth quarter amounted to 25.0 mil. kroons/1.6 mil. euros and profit to 0.8 mil. kroons/53 thousand euros. In the same period of the last year, the turnover of the division totalled 18.3 mil. kroons/1.2 mil. euros and the loss 0.7 mil. kroons/43 thousand euros. As compared to the previous year the turnover of the division has increased by 37% i.e. 6.7 mil. kroons/431 thousand euros and the profit has increased by 1.5 mil. kroons/96 thousand euros.
Net sales by geographical segments
|
|
th. EEK
|
th. EUR
|
% of net sales
|
|||
|
|
Q4 2010
|
Q4 2009
|
Q4 2010
|
Q4 2009
|
Q4 2010
|
Q4 2009
|
|
Finland
|
9,364
|
5,729
|
598
|
366
|
37.5%
|
31.4%
|
|
Estonia
|
7,672
|
7,045
|
490
|
450
|
30.7%
|
38.6%
|
|
Russia
|
3,053
|
2,232
|
195
|
143
|
12.2%
|
12.2%
|
|
Sweden
|
1,647
|
1,427
|
105
|
91
|
7.8%
|
7.8%
|
|
Latvia
|
1,003
|
455
|
64
|
29
|
2.5%
|
2.5%
|
|
Denmark
|
697
|
455
|
45
|
29
|
2.5%
|
2.5%
|
|
Germany
|
248
|
132
|
16
|
8
|
0.7%
|
0.7%
|
|
Ukraine
|
230
|
114
|
15
|
7
|
0.6%
|
0.6%
|
|
Great Britain
|
154
|
0
|
10
|
0
|
0.6%
|
0.0%
|
|
Lithuania
|
110
|
(54)
|
7
|
(3)
|
0.4%
|
(0.3%)
|
|
Other countries
|
817
|
506
|
52
|
33
|
4.6%
|
2.0%
|
|
Subsidiaries
|
0
|
209
|
0
|
13
|
0.0%
|
1.1%
|
|
TOTAL
|
24,995
|
18,250
|
1,597
|
1,167
|
100.0%
|
100.0%
|
Skano. We do not expect any growth of retail sale in the first quarter of 2011. Therefore we shall continue to save the costs and do not plan any major extension of the retail chain. We shall open only one store in Rocca al Mare retail centre in Tallinn in February 2011.
Furniture factory. In the first quarter of 2011 we expect similar turnover as in the preceding quarters in the furniture factory, but the volume will still remain lower than the production capabilities would allow. Therefore the workload is continuously low in the furniture factory. Agreements have been concluded with the employees for application of undertime until 31.03.2011. From April 1, 2011 the business hours will be extended, however for most of the employees the weekly number of business hours will remain below 40.
The Building Materials Division. Work was started with full load at the end of 2010. At the main production line the production is performed in four shifts round the clock. On Isotex lines one or two shifts are used as necessary. At the same time turnover has increased and we expect high sales numbers also in the future. By the first quarter of 2011 the entire production volume has been sold out.
AS Fortum Termest and AS Viisnurk terminated the operator agreement of the boiler plant belonging to AS Viisnurk from 01.02.2011 and AS Viisnurk will continue to produce heat in the boiler plant. As AS Viisnurk has no main heat lines, heat is produced only for the company itself.
|
|
Th EEK
|
Th EEK
|
Th EUR
|
Th EUR
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
Cash and bank
|
15,823
|
6,091
|
1,011
|
389
|
|
Receivables and prepayments
|
18,749
|
18,810
|
1,198
|
1,202
|
|
Inventories
|
38,865
|
41,912
|
2,484
|
2,680
|
|
Total current assets
|
73,437
|
66,813
|
4,693
|
4,271
|
|
|
|
|
|
|
|
Investment property
|
2,893
|
2,893
|
185
|
185
|
|
Tangible fixed assets
|
65,982
|
63,083
|
4,217
|
4,031
|
|
Intangible fixed assets
|
315
|
14
|
20
|
1
|
|
Total fixed assets
|
69,190
|
65,990
|
4,422
|
4,217
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
142,627
|
132,803
|
9,115
|
8,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt obligations
|
21,629
|
8,048
|
1,383
|
514
|
|
Payables and prepayments
|
22,881
|
22,742
|
1,462
|
1,454
|
|
Short-term provisions
|
122
|
118
|
8
|
8
|
|
Total current liabilities
|
44,632
|
30,908
|
2,853
|
1,976
|
|
|
|
|
|
|
|
Non-current debt obligations
|
11,472
|
27,084
|
733
|
1,731
|
|
Non-current provisions
|
3,102
|
3,303
|
198
|
211
|
|
Total non-current liabilities
|
14,574
|
30,387
|
931
|
1,942
|
|
|
|
|
|
|
|
Total liabilities
|
59,206
|
61,295
|
3,784
|
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
|
250
|
406
|
16
|
26
|
|
Retained profits
|
15,914
|
15,759
|
1,017
|
1,007
|
|
Net profit for the year
|
12,069
|
155
|
771
|
10
|
|
Total equity
|
83,421
|
71,508
|
5,331
|
4,570
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
142,627
|
132,803
|
9,115
|
8,488
|
|
th. EEK
|
Q4 2010
|
Q4 2009
|
2010
|
2009
|
|
|
|
|
|
|
|
RETURN ON SALES
|
63,433
|
54,120
|
217,948
|
205,790
|
|
|
|
|
|
|
|
Cost of production sold
|
(49,407)
|
(43,293)
|
(166,879)
|
(163,337)
|
|
|
|
|
|
|
|
Gross profit
|
14,026
|
10,827
|
51,069
|
42,453
|
|
|
|
|
|
|
|
Marketing expenses
|
(8,461)
|
(7,059)
|
(31,312)
|
(33,433)
|
|
General administrative expenses
|
(2,616)
|
(1,408)
|
(6,687)
|
(5,462)
|
|
Other income
|
1,225
|
686
|
3,101
|
2,408
|
|
Other expenses
|
(371)
|
(517)
|
(2,292)
|
(3,189)
|
|
|
|
|
|
|
|
Operating profit
|
3,803
|
2,529
|
13,879
|
2,777
|
|
|
|
|
|
|
|
Financial income and financial expenses
|
(416)
|
(206)
|
(1,706)
|
(2,553)
|
|
|
|
|
|
|
|
Profit before taxes
|
3,387
|
2,323
|
12,173
|
224
|
|
Prepaid income tax
|
(104)
|
(69)
|
(104)
|
(69)
|
|
|
|
|
|
|
|
NET PROFIT FOR THE PERIOD
|
3,283
|
2,254
|
12,069
|
155
|
|
Currency translation differences
|
(106)
|
(329)
|
(156)
|
153
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME
|
3,177
|
1,925
|
11,913
|
308
|
|
Basic earnings per share
|
0.73
|
0.50
|
2.68
|
0.03
|
|
Diluted earnings per share
|
0.73
|
0.50
|
2.68
|
0.03
|
|
|
|
|
|
|
|
th. EUR
|
Q4 2010
|
Q4 2009
|
2010
|
2009
|
|
|
|
|
|
|
|
RETURN ON SALES
|
4,054
|
3,459
|
13,929
|
13,152
|
|
|
|
|
|
|
|
Cost of production sold
|
(3,158)
|
(2,767)
|
(10,665)
|
(10,439)
|
|
|
|
|
|
|
|
Gross profit
|
896
|
692
|
3,264
|
2,713
|
|
|
|
|
|
|
|
Marketing expenses
|
(541)
|
(452)
|
(2,001)
|
(2,137)
|
|
General administrative expenses
|
(167)
|
(90)
|
(427)
|
(349)
|
|
Other income
|
78
|
44
|
198
|
154
|
|
Other expenses
|
(23)
|
(33)
|
(147)
|
(204)
|
|
|
|
|
|
|
|
Operating profit
|
243
|
161
|
887
|
177
|
|
|
|
|
|
|
|
Financial income and financial expenses
|
(27)
|
(13)
|
(109)
|
(163)
|
|
|
|
|
|
|
|
Profit before taxes
|
216
|
148
|
778
|
14
|
|
Prepaid income tax
|
(7)
|
(4)
|
(7)
|
(4)
|
|
|
|
|
|
|
|
NET PROFIT FOR THE PERIOD
|
209
|
144
|
771
|
10
|
|
Currency translation differences
|
(7)
|
(21)
|
(10)
|
12
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME
|
202
|
123
|
761
|
22
|
|
Basic earnings per share
|
0.04
|
0.03
|
0.17
|
0.00
|
|
Diluted earnings per share
|
0.04
|
0.03
|
0.17
|
0.00
|
|
|
|
|
|
|
Einar Pähkel
CFO
+372 447 8331
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