Income statement
Consolidated net sales of second quarter 2010 was 50.5 mil. kroons/3.2 mil. euros (51.1 mil. kroons/3.3 mil. euros in same period of 2009) representing a 1% decrease on the second quarter compared to Q2 2009. The Group’s gross margin in the second quarter of 2010 was 24.8% compared to 23.1% in the second quarter of 2009. Consolidated operating profit amounted to 3.5 mil. kroons/225 thousand euros (0.8 mil. kroons/52 thousand euros in 2009). The consolidated operating margin of net sales was 7.0% (up from 1.6% in Q2 2009).
Consolidated net profit amounted to 3.1 mil. kroons/197 thousand euros in Q2 2010 (0.1 mil. kroons/5 thousand euros in Q2 2009), and the net margin was 6.1% (0.2% in Q2 2009). In Q2 2010, the Group’s return on equity was 4.0% (0.0% in Q2 2009) and return on assets was 2.2% (0.0% in Q2 2009).
Position of financial statement
As of 30.6.2010 the total assets of Viisnurk amounted to 142.4 mil. kroons/9.1 mil. euros (31.12.2009: 132.8 mil. kroons/8.5 mil. euros). The liabilities of the company accounted for 46% (31.12.2009: 46.2%) thereof, i.e. 65.2 mil. kroons/4.2 mil. euros (31.12.2009: 61.3 mil. kroons/3.9 mil. euros).
Receivables and prepayments have increased by 8.2 mil. kroons/0.5 mil. euros i.e. 44% decrease with 6 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 increased by 5.2 mil. kroons/0.3 mil. euros to reach 47.1 mil. kroons/3.0 mil. euros on 30.6.2010. (31.12.2009: 41.9 mil. kroons/2.7 mil. euros). Property, plant and intangibles increased by 0.2 mil. kroons/0.01 mil. euros.
Short-term loans decreased by 0.1 mil. kroons/0.01 mil. euros and amounted to 8.1 mil. kroons/0.5 mil. euros in 30.6.2010 (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 26.8 mil. kroons/1.7 mil. euros (31.12.2009: 22.9 mil. kroons/1.5 mil. euros). Current and non-current liabilities increased by 3.9 mil. kroons/0.2 mil. euros to 65.2 mil. kroons/4.2 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
|
|||
|
|
Q2 2010
|
Q2 2009
|
Q2 2010
|
Q2 2009
|
Q2 2010
|
Q2 2009
|
|
Furniture Factory
|
24,397
|
26,157
|
1,559
|
1,671
|
48.3%
|
51.2%
|
|
Skano
|
6,468
|
9,396
|
414
|
601
|
12.8%
|
18.4%
|
|
Building Materials Division
|
22,820
|
19,721
|
1,458
|
1,260
|
45.2%
|
38.6%
|
|
Elimination
|
(3,177)
|
(4,137)
|
(203)
|
(264)
|
(6.3%)
|
(8.1%)
|
|
TOTAL
|
50,508
|
51,137
|
3,228
|
3,268
|
100.0%
|
100.0%
|
Net sales by geographical segments
|
|
th. EEK
|
th. EUR
|
% of net sales
|
|||
|
|
Q2 2010
|
Q2 2009
|
Q2 2010
|
Q2 2009
|
Q2 2010
|
Q2 2009
|
|
Finland
|
20,117
|
24,225
|
1,285
|
1,548
|
39.8%
|
47.4%
|
|
Russia
|
11,368
|
6,329
|
728
|
406
|
22.5%
|
12.4%
|
|
Estonia
|
9,782
|
9,421
|
626
|
602
|
19.4%
|
18.4%
|
|
Lithuania
|
2,218
|
2,763
|
142
|
176
|
4.4%
|
5.4%
|
|
Sweden
|
1,820
|
877
|
116
|
56
|
3.6%
|
1.7%
|
|
Ukraine
|
1,217
|
2,788
|
78
|
178
|
2.4%
|
5.5%
|
|
Latvia
|
1,209
|
1,628
|
78
|
104
|
2.4%
|
3.2%
|
|
Kazakhstan
|
582
|
1,125
|
37
|
72
|
1.2%
|
2.2%
|
|
Great Britain
|
501
|
0
|
32
|
0
|
1.0%
|
0.0%
|
|
Germany
|
487
|
872
|
30
|
56
|
1.0%
|
1.7%
|
|
Denmark
|
348
|
142
|
22
|
9
|
0.7%
|
0.3%
|
|
Malaysia
|
236
|
0
|
15
|
0
|
0.5%
|
0.0%
|
|
China
|
219
|
0
|
14
|
0
|
0.4%
|
0.0%
|
|
India
|
128
|
7
|
8
|
0
|
0.3%
|
0.0%
|
|
Portugal
|
0
|
781
|
0
|
49
|
0.0%
|
1.5%
|
|
Other countries
|
276
|
179
|
17
|
12
|
0.4%
|
0.3%
|
|
Total
|
50,508
|
51,137
|
3,228
|
3,268
|
100.00%
|
100.00%
|
Concerning the markets, turnover has been decreased in Finland and retail stores related markets. There are increased sales into Russia and Sweden. Sales into Asia has initiated.
Profit by business segments
|
|
th. EEK
|
th. EUR
|
||
|
|
Q2 2010
|
Q2 2009
|
Q2 2010
|
Q2 2009
|
|
Furniture Factory
|
2,570
|
1,579
|
164
|
101
|
|
Skano
|
(20)
|
(1,609)
|
(2)
|
(103)
|
|
Building Materials Division
|
1,529
|
637
|
98
|
41
|
|
Elimination
|
(566)
|
208
|
(35)
|
13
|
|
TOTAL
|
3,513
|
813
|
225
|
52
|
|
Net financial costs
|
(428)
|
(731)
|
(28)
|
(47)
|
|
NET PROFIT
|
3,085
|
82
|
197
|
5
|
Smaller loss of Skano is partially caused by strengthening of Ukrainian hryvnia.
The net sales of AS Viisnurk Furniture Division in second quarter amounted to 27.7 mil. kroons/1.8 mil. euros (2009: 31.4 mil. kroons/2.0 mil. euros). As compared to the Q2 of previous year the turnover of the division has decreased by 3.7 mil. kroons/238 thousand euros (11.9%).
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, Vilnius, Kaunas, Kiev (2), Donetsk, Kharkiv and Dnipropetrovs’k at the end of the second quarter. There were closed one store in Vilnius and opened one store in Dnipropetrovs’k in second quarter.
Retail sales by countries
|
|
th. EEK
|
th. EUR
|
% of net sales
|
Number of stores
|
||||
|
|
Q2 2010
|
Q2 2009
|
Q2 2010
|
Q2 2009
|
Q2 2010
|
Q2 2009
|
30.6.10
|
30.6.09
|
|
Estonia
|
2,521
|
2,878
|
161
|
184
|
39.0%
|
30.6%
|
2
|
2
|
|
Latvia
|
636
|
1,149
|
41
|
73
|
9.8%
|
12.2%
|
1
|
1
|
|
Lithuania
|
2,096
|
2,585
|
134
|
165
|
32.4%
|
27.5%
|
2
|
3
|
|
Ukraine
|
1,215
|
2,784
|
78
|
178
|
18.8%
|
29.6%
|
5
|
4
|
|
TOTAL
|
6,468
|
9,396
|
414
|
600
|
100.0%
|
100.0%
|
10
|
10
|
The retail sale of the Furniture Division decreased most in Latvia and Ukraine. Within the second quarter this year the retail sale has decreased by 31.2% as compared to the same period last year.
Furniture Factory
The Furniture Factory’s sales in the second quarter in the company’s basic target market in Russia have increased and in Finland have decreased. Sales to Skano have also decreased.
The net sales of the Furniture Factory in second quarter amounted to 24.4 mil. kroons/1.6 mil. euros and profit to 2.6 mil. kroons/0.2 mil. euros. In the same period of the last year, the turnover of the division totalled 26.2 mil. kroons/1.8 mil. euros and the net profit 1.6 mil. kroons/0.1 thousand euros. As compared to the previous year the turnover of the division has decreased by 1.8 mil. kroons/0.1 mil. euros and the profit has increased by 1.0 mil. kroons/0.1 mil. euros.
Furniture Factory sales by countries
|
|
th EEK
|
th EUR
|
% of net sales
|
|||
|
|
Q2 2010
|
Q2 2009
|
Q2 2010
|
Q2 2009
|
Q2 2010
|
Q2 2009
|
|
Russia
|
11,479
|
14,868
|
734
|
950
|
47.1%
|
56.8%
|
|
Finland
|
8,770
|
5,296
|
561
|
338
|
35.9%
|
20.2%
|
|
Kazakhstan
|
582
|
1,125
|
37
|
72
|
2.4%
|
4.3%
|
|
Estonia
|
3
|
382
|
0
|
24
|
0.0%
|
1.5%
|
|
Others
|
386
|
349
|
25
|
22
|
1.6%
|
1.3%
|
|
Subsidiaries
|
3,177
|
4,137
|
203
|
264
|
13.0%
|
15.8%
|
|
TOTAL
|
24,397
|
26,157
|
1,560
|
1,670
|
100.0%
|
100.0%
|
The net sales of the Building Materials Division in second quarter amounted to 22.8 mil. kroons/1.5 mil. euros and profit to 1.5 mil. kroons/0.1 mil. euros. In the same period of the last year, the turnover of the division totalled 19.7 mil. kroons/1.3 mil. euros and the net profit 0.6 mil. kroons/41 thousand euros. As compared to the previous year the turnover of the division has increased by 3.1 mil. kroons/0.2 mil. euros and the profit has increased by 0.9 mil. kroons/57 thousand euros.
Net sales by geographical segments
|
|
th. EEK
|
th. EUR
|
% of net sales
|
|||
|
|
Q2 2010
|
Q2 2009
|
Q2 2010
|
Q2 2009
|
Q2 2010
|
Q2 2009
|
|
Finland
|
8,638
|
9,357
|
552
|
598
|
37.9%
|
47.4%
|
|
Estonia
|
6,875
|
6,271
|
439
|
401
|
30.1%
|
31.8%
|
|
Russia
|
2,598
|
1,033
|
166
|
66
|
11.4%
|
5.2%
|
|
Sweden
|
1,820
|
877
|
116
|
56
|
8.0%
|
4.4%
|
|
Latvia
|
574
|
479
|
37
|
31
|
2.5%
|
2.4%
|
|
Great Britain
|
501
|
0
|
32
|
0
|
2.2%
|
0.0%
|
|
Germany
|
484
|
490
|
31
|
31
|
2.1%
|
2.5%
|
|
Denmark
|
349
|
121
|
22
|
8
|
1.5%
|
0.6%
|
|
Malaysia
|
236
|
0
|
15
|
0
|
1.0%
|
0.0%
|
|
China
|
219
|
0
|
14
|
0
|
1.0%
|
0.0%
|
|
India
|
128
|
7
|
8
|
0
|
0.6%
|
0.0%
|
|
Lithuania
|
122
|
179
|
8
|
11
|
0.5%
|
0.9%
|
|
Ukraine
|
1
|
4
|
0
|
0
|
0.0%
|
0.0%
|
|
Portugal
|
0
|
781
|
0
|
50
|
0.0%
|
4.0%
|
|
Other countries
|
276
|
122
|
18
|
8
|
1.2%
|
0.6%
|
|
TOTAL
|
22,820
|
19,721
|
1,458
|
1,260
|
100.0%
|
100.0%
|
Forecast and development
Skano. Management believes that Ukraine has gained political stability and it improves its economical conditions. We have found suitable premises with good price and quality and will plan to open in third quarter one store 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 continuously small production volume in furniture factory. Agreements with employees to use shortened working time are effective until 31.03.2011.
Building Materials Division. In third quarter of 2010 factory 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. Management believes into small recovery of markets and forecasts growth of sales and production in third quarter.
AS Fortum Termest informed the company for ending the operating contract of boiler-house belonging to AS Viisnurk. After the end of contract AS Viisnurk continues heat production by itself.
|
|
Th EEK
|
Th EEK
|
Th EUR
|
Th EUR
|
|
|
30.6.2010
|
31.12.2009
|
30.6.2010
|
31.12.2009
|
|
|
|
|
|
|
|
Cash and bank
|
2,100
|
6,091
|
134
|
389
|
|
Receivables and prepayments
|
27,001
|
18,810
|
1,725
|
1,202
|
|
Inventories
|
47,115
|
41,912
|
3,011
|
2,680
|
|
Total current assets
|
76,216
|
66,813
|
4,870
|
4,271
|
|
|
|
|
|
|
|
Investment property
|
2,893
|
2,893
|
185
|
185
|
|
Tangible fixed assets
|
63,270
|
63,083
|
4,044
|
4,031
|
|
Intangible fixed assets
|
11
|
14
|
1
|
1
|
|
Total fixed assets
|
66,174
|
65,990
|
4,230
|
4,217
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
142,390
|
132,803
|
9,100
|
8,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt obligations
|
8,130
|
8,048
|
520
|
514
|
|
Payables and prepayments
|
26,702
|
22,742
|
1,706
|
1,454
|
|
Short-term provisions
|
54
|
118
|
3
|
8
|
|
Total current liabilities
|
34,886
|
30,908
|
2,229
|
1,976
|
|
|
|
|
|
|
|
Non-current debt obligations
|
27,084
|
27,084
|
1,731
|
1,731
|
|
Non-current provisions
|
3,225
|
3,303
|
206
|
211
|
|
Total non-current liabilities
|
30,309
|
30,387
|
1,937
|
1,942
|
|
|
|
|
|
|
|
Total liabilities
|
65,195
|
61,295
|
4,166
|
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
|
(5)
|
406
|
0
|
26
|
|
Retained profits
|
15,914
|
15,759
|
1,017
|
1,007
|
|
Net profit for the year
|
6,098
|
155
|
390
|
10
|
|
Total equity
|
77,195
|
71,508
|
4,934
|
4,570
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
142,390
|
132,803
|
9,100
|
8,488
|
|
|
Th EEK
|
Th EEK
|
Th EUR
|
Th EUR
|
|
|
6 m 2010
|
6 m 2009
|
6 m 2010
|
6 m 2009
|
|
|
|
|
|
|
|
RETURN ON SALES
|
99,510
|
104,223
|
6,360
|
6,661
|
|
|
|
|
|
|
|
Cost of production sold
|
(75,008)
|
(82,052)
|
(4,794)
|
(5,244)
|
|
|
|
|
|
|
|
Gross profit
|
24,502
|
22,171
|
1,566
|
1,417
|
|
|
|
|
|
|
|
Marketing expenses
|
(14,707)
|
(17,816)
|
(940)
|
(1,138)
|
|
General administrative expenses
|
(3,484)
|
(3,032)
|
(223)
|
(194)
|
|
Other income
|
1,217
|
1,332
|
78
|
85
|
|
Other expenses
|
(589)
|
(1,576)
|
(38)
|
(101)
|
|
|
|
|
|
|
|
Operating profit
|
6,939
|
1,079
|
443
|
69
|
|
Financial income and financial expenses
|
(841)
|
(1,670)
|
(53)
|
(107)
|
|
|
|
|
|
|
|
Profit (loss) before taxes
|
6,098
|
(591)
|
390
|
(38)
|
|
|
|
|
|
|
|
NET PROFIT (LOSS) FOR THE PERIOD
|
6,098
|
(591)
|
390
|
(38)
|
|
|
|
|
|
|
|
Basic earnings per share
|
1.36
|
(0.13)
|
0.09
|
(0.01)
|
|
Diluted earnings per share
|
1.36
|
(0.13)
|
0.09
|
(0.01)
|
|
|
|
|
|
|
|
Currency translation differences
|
(411)
|
223
|
(26)
|
16
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME
|
5,687
|
(368)
|
364
|
(22)
|
Einar Pähkel
CFO
+372 447 8331
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