Financial Statements 2019
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Financial Statements 2019 Financial Statements Financial Statements 2019 marimekko.com RISTÖM E RISTÖM E Ä RK Ä RK P K P K M I M I Y Y M M IL T IL T JÖMÄRK JÖMÄRK Printed matter Painotuote 4041 0820 4041 0820 1 Renowned for bold prints Marimekko is a Finnish lifestyle design CONTENTS company whose original prints and colours have brought joy to people’s everyday lives 2 From the President and CEO since 1951. Our product portfolio includes 4 2019 in a nutshell high-quality clothing, bags and accessories 5 Financial targets as well as home décor items ranging from textiles to tableware. 6 Strategy Timelessness has been the cornerstone 8 Sustainability at Marimekko of our design since the very beginning. 10 Report of the Board of Directors Marimekko is not about fast fashion. We aim to offer our customers long-lived products 18 Proposal for the distribution of profit that they will not want to throw away. In 20 Key figures of the Group and formulas for the key figures best cases, our products are passed on from 22 Share and shareholders one generation to the next. When Marimekko was founded, its 26 Financial statements for the financial year unparalleled printed fabrics gave it a strong 1 January to 31 December 2019 and unique identity. Even today, we have 26 Consolidated financial statements, IFRS our own printing factory in Helsinki that 26 Consolidated income statement produces around a million metres of fabric every year. The printing mill serves both 27 Consolidated balance sheet as a factory and as a creative hub for our 28 Consolidated cash flow statement design and product development team. 29 Consolidated statement of changes in shareholders’ equity In 2019, brand sales of our products worldwide amounted to 251 million euros 30 Notes to the consolidated financial statements and our net sales were 125 million euros. 54 Parent company financial statements, FAS There are roughly 150 Marimekko stores 54 Parent company income statement in 15 countries, and online store serves customers in 32 countries. Flagship stores 55 Parent company balance sheet are located in Helsinki, Stockholm, New 56 Parent company cash flow statement York, Tokyo and Sydney. Our key markets 57 Notes to the parent company financial statements are Northern Europe, North America and the Asia-Pacific region, and we approach them 64 Signatures to the financial statements and through key cities. We employ about 450 the report of the Board of Directors people. The Marimekko share is quoted on 65 Auditor’s report Nasdaq Helsinki Ltd. 71 Statement of non-financial information 2019 82 Corporate governance © Marimekko Corporation 90 Board of Directors and management Puusepänkatu 4 00880 Helsinki 92 Information for shareholders Finland Tel. +358 9 758 71 marimekko.com company.marimekko.com 2 From the President and CEO Marimekko’s strong development We started our long-term work to Uniqlo in November 2019. The Uniqlo continued in 2019. Our net sales modernise our collections and our brand x Marimekko brand collaboration again increased in all market areas and some years ago. I am pleased that presented us with a unique opportunity comparable operating profit improved the fruits of this work have begun to to introduce a very large global audience significantly. We are in a good position show in our results: among our product to Marimekko and so strengthen our core to enter the new decade and continue lines, the strongest growth was seen in business through increased international our efforts on the path of our long-term 2019 in the categories that spearhead brand awareness. In September, we international growth strategy. our communication activities, namely received a lot of visibility in the United Our goal in the strategy period fashion (20 percent) and bags (17 States as our prints were part of an extending to 2022 is to achieve percent). This growth was supported anniversary collection by Target, one markedly stronger growth and by interesting product launches. In of the biggest retail chains in the profitability than before. In 2019, our August, we introduced the Marimekko country and renowned for its designer net sales increased by 12 percent and Kioski collection, in which our most partnerships. The Anniversary Collection our comparable operating profit grew by iconic prints meet unisex streetwear. featured reissued limited-edition 40 percent. Another year of continued The concept premiered at Dover Street products from Target’s 20 designer strong development shows that we are Market in Ginza, Tokyo, a multibrand collaboration collections from the past 20 moving in the right direction. store favoured by fashion opinion years. Our net sales for the full year rose leaders, and many of the items were At Marimekko, we believe in the to EUR 125.4 million (111.9) and our sold out in hours. Marimekko Kioski power of a meaningful, omnichannel and comparable operating profit improved appeals to a new, younger customer personal customer experience. We want to EUR 17.1 million (12.2). Operating base and has been welcomed with to challenge the traditional way of doing profit, which in 2018 included a equal enthusiasm in other markets, retail business and to blend the physical nonrecurring taxable capital gain of too. In early autumn, we also launched and digital worlds into an inspiring EUR 6.0 million on the sale of our a new leather bag line inspired by the and easy customer experience. During head office, was EUR 17.1 million timeless design language of our classic Milan Design Week – the world’s leading (17.7). Comparable operating profit bag styles. With bags and accessories, design event – in April, we piloted a was boosted by both sales growth and we can offer our customers even more totally new kind of service concept, a improved relative sales margin. Growth complete looks and outfits, and they fully-decorated, shoppable Marimekko was seen especially in retail sales in also provide a convenient way to home where customers could purchase Finland, wholesale sales and licensing acquaint new customers with our brand. individual products or, if they preferred, income in the Asia-Pacific region and In addition to a product portfolio that even the entire décor including furniture wholesale sales in EMEA. Net sales appeals to a broader global customer through an online app. increased in Finland by 12 percent and base, international growth requires Digital service solutions are constantly in the Asia-Pacific region, Marimekko’s building brand awareness. In this increasing the integration of e-commerce second-biggest market, by 19 percent. work, different brand collaborations and in-store retailing. Marimekko focuses Altogether, international sales grew by are important for us. Our competitive major efforts on creating a seamless 12 percent during the year. A favourable advantages in these collaborations are customer experience between different trend in regular-priced sales, more our easily recognisable prints and our channels. At the beginning of 2019, we moderate discount promotions and empowering values. As a continuation launched online sales in China in order to product portfolio optimisation as well as of our successful partnership in spring improve the availability of our products increased licensing income contributed 2018, we launched a new limited- and, together with our local partner to the improvement in relative sales edition collaboration collection with who is responsible for the operation margin. the Japanese global apparel retailer of the Marimekko stores in China, to 3 ”Marimekko’s strong development continued in 2019.” offer an omnichannel experience to to 88 percent (64). Our activities also entrepreneurship and doing things our customers in this market, which is included improving the transparency together, and committed and motivated strategically important to us. China is of the supply chain, launching regular employees are our key asset. one of the world’s most advanced and Q&A sessions for consumers in social It delights me that a large proportion rapidly developing online marketplaces, media, entitled Behind the Patterns, as of Marimekko employees play a part in so I am convinced that we will gain well as voluntarily preparing our first building our future also as shareholders: valuable lessons in the future of digital statement of non-financial information in spring 2019, half of those entitled business there. E-commerce is of targeted to investors. In addition, we took part in a share issue directed to growing importance in Marimekko’s began drafting our new sustainability our personnel and freelance designers. business in different markets, and in strategy and, in 2020, we will announce During the year, a large number of other 2019, vigorous growth in online sales new and significantly more ambitious new investors also became interested continued. sustainability targets for our operations. in Marimekko’s story. Moreover, as a As consumer values shift towards We started the year 2020 in fully result of an upward trend in our market a preference for more sustainable renovated premises. We believe that capitalisation, Marimekko was moved to choices, we believe that the original the new look of our head office will the segment of mid-cap companies on Marimekko design philosophy based increase the Marimekko house’s appeal the Nasdaq Helsinki stock exchange at on timeless and sustainable thinking is as a destination for fans of our brand. the beginning of 2020. perhaps more topical today than ever Especially, the renovation will support We are pleased that the results of our before. Sustainable choices are part of our workplace culture as we build efforts to execute our long-term strategy our daily work, and during the year, for Marimekko’s international success are showing and we are determined to example, we managed to increase the story together with our personnel.