The third quarter sales revenue of Tallinna Kaubamaja Group increased by 5.0%

The consolidated unaudited sales revenue of Tallinna Kaubamaja Group for the third quarter was 216.5 million euros, which exceeded the previous year’s sales revenue by 5.0%. The nine-month sales revenue was 628.4 million euros, an increase of 4.0% compared to 2021. The group’s consolidated unaudited net profit for the third quarter of 2022 was 7.8 million euros, which was 38.2% weaker than last year. The group’s net profit for the nine months of 2022 was 18.9 million euros, which was 7.1% less than last year’s result. The pre-tax profit in the first nine months was 23.3 million euros, it decreased by 5.3% compared to the previous year.

“The keywords of the third quarter were high inflation and an increase in energy costs. Although the purchasing power of the population has not decreased so sharply due to wage growth, consumers have become cautious when making purchases. Considering the complicated economic situation and pressure on the sales margin, one can be satisfied with a moderate increase in sales revenue thanks to careful planning and adaptation to the situation,” Raul Puusepp, chairman of the management board of Tallinna Kaubamaja Group, said. “It is noteworthy that the Group’s heat and electricity costs increased by nearly three times in the third quarter, which puts pressure on profits. The threat of war to Europe and the unstable state of energy security affect business every day.

This situation has led to a rapid increase in costs, the transfer of which to retail prices is neither possible nor reasonable. In order to avoid rapid price increases, processes are reviewed and efforts are made to find places to save energy. The use of energy-efficient solutions is considered for all new stores. We see how rising energy costs have forced many local small producers to close, coffee shops in shopping centres and other small businesses are also closing their doors. This will have a significant long-term impact on the diversity of the trade environment,” Puusepp stated.

“Sustainable and energy saving principles are followed in all companies of the Group. In the third quarter we made preparations for the opening of a new nearly 2000 m² Selver store in Tabasalu near Tallinn. The most up-to-date and environmentally friendly technological solutions are planned for the store. The entire cold park is based on a CO₂-based cooling system, which allows energy to be saved by nearly a fifth. There are also important technological changes in the heating system and water use. The construction work has been completed for the establishing of a solar energy park on the roof of Pirita Selver.

The similar park is planned to be built on the roof of Viimsi Keskus in the near future,” Puusepp said. “Furthermore, the Group is constantly engaged in making digital solutions more effective. In August the Partnercard app was completed, which helps to significantly reduce paper receipts and makes shopping in the Group’s retail stores significantly more convenient. The Partner card app fulfils all functions of the Partner card, works both as a purchase remote and as a means of payment. Almost 90,000 people had downloaded the Partnercard app by the beginning of October,” Puusepp added.

Read more here: Unaudited consolidated interim accounts for the third quarter and first nine months of 2022