FINANCIAL STATEMENTS BULLETIN OF MARIMEKKO CORPORATION, 1 January–31 December 2019: A strong year for
This release is a summary of Marimekko’s financial statements bulletin for the January-December period of 2019. The complete report is attached to this release as a pdf file and it is also available on the company’s website at company.marimekko.com under Releases & publications.
The fourth quarter in brief
- Net sales grew by 17 percent to
EUR 34.7 million (Q4/2018: 29.7). Growth came primarily from retail and wholesale sales inFinland as well as increased wholesale sales and licensing income in theAsia-Pacific region . Wholesale sales growth in theAsia-Pacific relative to the comparison period was mainly due to the fact that a part of wholesale deliveries to the region took place in the first quarter of 2019 instead of the final quarter of 2018. - Operating profit was
EUR 3.0 million (1.2). Comparable operating profit improved by 87 percent and wasEUR 3.0 million (1.6). - Earnings were boosted by sales growth, whereas higher fixed costs had a weakening impact on results.
2019 in brief
- Net sales rose by 12 percent to
EUR 125.4 million (2018: 111.9). Sales grew in all market areas. Retail sales inFinland , wholesale sales and licensing income in theAsia-Pacific region as well as wholesale sales in EMEA especially contributed to growth. - Comparable operating profit rose by 40 percent to
EUR 17.1 million (12.2). Operating profit wasEUR 17.1 million (17.7). Operating profit for 2018 included a nonrecurring taxable capital gain ofEUR 6.0 million on the sale of the company’s head office. - Operating profit was boosted by sales growth and improved relative sales margin. Higher fixed costs had a weakening impact on results.
The Board of Directors’ proposal for dividends
The Board of Directors will propose to the Annual General Meeting that a dividend of
Financial guidance for 2020
The Marimekko Group’s net sales for 2020 are forecasted to be higher than in the previous year. Comparable operating profit is estimated to be approximately at the same level as or higher than the year before.
Key figures
(EUR million) | 10–12/ 2019 | 10–12/ 2018 | Change, % | 1–12/ 2019 | 1–12/ 2018 | Change, % |
Net sales | 34.7 | 29.7 | 17 | 125.4 | 111.9 | 12 |
International sales | 12.8 | 11.4 | 12 | 54.3 | 48.3 | 12 |
% of net sales | 37 | 38 | 43 | 43 | ||
EBITDA | 6.2 | 1.8 | 29.7 | 20.2 | 47 | |
Comparable EBITDA * | 6.2 | 2.2 | 186 | 29.7 | 14.7 | 102 |
Operating profit | 3.0 | 1.2 | 144 | 17.1 | 17.7 | -3 |
Comparable operating profit | 3.0 | 1.6 | 87 | 17.1 | 12.2 | 40 |
Operating profit margin, % | 8.7 | 4.2 | 13.6 | 15.8 | ||
Comparable operating profit margin, % | 8.7 | 5.4 | 13.6 | 10.9 | ||
Result for the period | 2.1 | 0.9 | 136 | 13.0 | 13.7 | -5 |
Earnings per share, EUR | 0.26 | 0.11 | 136 | 1.61 | 1.70 | -5 |
Comparable earnings per share, EUR | 0.26 | 0.15 | 74 | 1.61 | 1.15 | 40 |
Cash flow from operating activities * | 7.8 | 5.8 | 36 | 29.0 | 12.2 | 137 |
Return on investment (ROI), % | 17.9 | 47.6 | ||||
Equity ratio, % * | 40.2 | 70.0 | ||||
Ratio of net debt to EBITDA ** | - | - | 0.35 | - | ||
Gross investments | 1.3 | 0.2 | 2.6 | 1.3 | 103 | |
Personnel at the end of the period | 450 | 445 | 1 | |||
outside | 98 | 102 | -4 | |||
Brand sales *** | 73.9 | 50.5 | 46 | 250.8 | 248.4 | 1 |
outside | 45.2 | 27.6 | 64 | 156.6 | 167.2 | -6 |
proportion of international sales, % | 61 | 55 | 62 | 67 | ||
Number of stores | 151 | 153 | -1 |
The change percentages in the table were calculated on exact figures before the amounts were rounded to millions of euros. Reconciliation of key figures to IFRS can be found in the table section of the financial statements bulletin. The figure for comparable earnings per share takes account of similar items as comparable operating profit; tax effect included.
* IFRS 16 had an impact on the change in comparable EBITDA, cash flow from operating activities, and equity ratio. The figures for gross investments do not include the impact of IFRS 16.
** Due to the adoption of IFRS 16, the ratio of net debt to EBITDA at year end (one of the company’s long-term financial goals) was reported for the first time at the end of the financial year 2019.
*** Brand sales are given as an alternative non-IFRS key figure. Brand sales, consisting of estimated sales of
“Marimekko’s strong development continued in 2019. Our net sales increased in all market areas and comparable operating profit improved significantly. We are in a good position to enter the new decade and continue our efforts on the path of our long-term international growth strategy.
“In 2019, our net sales increased by 12 percent and our comparable operating profit grew by 40 percent. Another year of continued strong development shows that we are moving in the right direction and making good progress towards our long-term financial goals of annual net sales growth exceeding 10 percent and an operating profit margin of 15 percent.
“Our net sales for the full year amounted to
“In the October-December period, our net sales grew by 17 percent to
“In our strategy period extending to 2022, our goal is to achieve markedly stronger growth and profitability than before. Accomplishing this goal requires an internationally recognised and desirable brand as well as a product portfolio that appeals to an increasingly broad global customer base. As a continuation of our successful partnership in spring 2018, we launched a new limited-edition collaboration collection with the Japanese global apparel retailer Uniqlo in November. The Uniqlo x Marimekko brand collaboration again presented us with a unique opportunity to introduce a very large global audience to
“In 2020, we will further enhance our investments in international growth, among other things, by increasing marketing to raise our global awareness and by further strengthening our competences in international business. We have also begun planning an experimental omnichannel retail experience of the future while revamping and expanding our store network and investing in the development of digital business, which is an important driver of growth for us. As we continue our work for international growth, at the same time we naturally carefully monitor the development of exceptional circumstances such as the coronavirus and the unstable situation in
“We started the new year in fully renovated premises. We believe that the new look of our head office will increase the
”The year 2020 is historic for
Market outlook and growth targets for 2020
Uncertainty in the global economy is forecast to continue, partly because of the unpredictability of the political situation. Consumer demand forecasts vary among Marimekko’s different market areas. For example the coronavirus epidemic and the unstable situation in
The
In 2019,
The key drivers of the company's growth are e-commerce, increasing the sales per square metre of existing stores in all markets, and partner-led retail in
Licensing income in 2020 is estimated to be markedly lower than in the previous year.
In 2020,
Because of the seasonal nature of Marimekko’s business, the major portion of the company’s net sales and earnings are traditionally generated during the last two quarters of the year, and this is expected to be the case in 2020 as well, to a particularly large extent especially for earnings due also to the timing of growth investments. In the final quarter of the year, holiday sales make up a significant share of net sales.
Media and investor conference
A conference for media and institutional investors will be held in English on 13 February at
Further information:
Elina Anckar, CFO, tel. +358 9 758 7261
MARIMEKKO CORPORATION
Corporate Communications
Tel. +358 40 5846944
anna.tuominen@marimekko.com
DISTRIBUTION:
Key media
Attachment
- Marimekko_Financial_Statements_Bulletin_2019
© OMX, source