Estonia, Good for Business, Markets and Companies, Retail

The reduced utility charges resulting from the softer winter and efficiently managed discount campaigns had a positive impact on the result of Kaubamaja. The sales revenue of OÜ TKM Beauty Eesti, the company operating I.L.U. cosmetics stores, was 1.0 million euros in the first quarter of 2014, showing a year-over-year growth of 0.6%. Loss earned in the first quarter was 0.1 million euros, a decrease of 0.01 million euros compared to the same period in 2013. Internet stores that sell cosmetics at more favorable prices have become a major competition to I.L.U stores, although they do not provide any guarantees to the quality of goods.

The sales revenue of the car trade segment was 12.4 million euros in the first quarter of 2014. The sales revenue exceeded the year-over-year results by 37.6%. The pre-tax profit earned in this segment in the first quarter of 2014 was 0.1 million euros. Profit earned in the first quarter of 2014 was 76.7% lower than the same period last year. The significantly higher share of fleet-sales influenced the margins in the first quarter of 2014. Due to supply problems of the new KIA Sportage model, the retail sales of Sportages suffered in the first quarter of 2014. The new car dealership opened in Latvia at the end of 2013 started to sell Peugeot and Cadillac cars in addition to KIAs; on the other hand, the new dealership increased rent and utility costs and also marketing costs to promote the new models compared to last year.

The sales revenue of footwear was 3.4 million euros in the first quarter of 2014, a growth of 25.9% compared to the same period of 2013. The loss in the first quarter of 2014 was 0.8 million euros, an increase of 0.2 million euros compared to the loss in the first quarter of 2013. The significantly higher sales revenue compared to the previous year as well as the increased loss were primarily related to the clearance sales of ABC King and Shu stores in Viru Keskus in Tallinn. The stock of previous seasons was also reduced during the clearance sales.

The sales revenue of the real estate business segment earned outside of the group was 0.8 million euros in the first quarter of 2014, an increase of 0.1 million euros or 10.2%, year-over-year. The pre-tax profit of the real estate segment was 2.1 million euros in the first quarter of 2014, an increase of 0.1 million or 3.2% as compared to the same period in the previous financial year. Spaces added in 2013 that are rented to other segments of the group account for the growth of profit. By the end of 2013, Peetri Selver in Rae rural municipality and a car dealership in Ulmana Street in Riga were completed.