Sok Corporation Interim Report 1 January–30 June 2005

Total Page:16

File Type:pdf, Size:1020Kb

Sok Corporation Interim Report 1 January–30 June 2005 SOK CORPORATION INTERIM REPORT 1 JANUARY–30 JUNE 2005 ECONOMIC ENVIRONMENT totalled EUR 4,151 million, an increase of 6.3 per cent on the previous year. Th e growth in sales was attributable largely to the Th e world economy grew by 5.0 per cent in 2004, an exceptionally favourable trend in the grocery trade and ABC service station robust pace of economic growth. Th is growth is set to continue at store and fuel sales. a healthy rate although it will decelerate to settle at around four per cent this and next year. Sales by business area Finland’s gross domestic product registered a growth of 3.7 per cent for last year. Growth for this year will remain perceptibly € million ± prev. yr. % below this rate. Th e more subdued economic growth predicted S markets 1 120 +5.6 for the eurozone and the prolonged labour dispute in the paper Prisma hypermarkets 876 +5.6 industry will slash growth in goods exports dramatically. ETLA, Sale and Alepa stores 241 +4.8 the Research Institute of the Finnish Economy forecasts a growth Grocery trade, total 2 236 +5,5 of 1.5 per cent for the GDP in the current year. Private consump- Service station stores and fuel sales 445 +23.6 tion expenditure is forecast to rise 2.8 per cent. Consumer confi dence has remained strong. However, confi - Department stores and speciality stores 161 +5.5 dence in Finland’s forthcoming economic trend and employment Hotels (accommodation) 87 +3.2 took a tumble during late spring. Weakened confi dence in the eco- Restaurants 210 0.0 nomic trend in Finland has aff ected consumer intentions only to a minor degree. Th e relatively healthy underlying tone in the Finn- Motor trade and accessories 381 -0.6 ish economy generates the conditions for consumer confi dence Agricultural trade 543 +5.1 to hold steady at a relatively optimistic level. In July, consumer Other profi t centres 8 +25.6 confi dence took a modest upward swing with the settlement of the labour market disputes. Operations in Finland, total 4 072 +6.2 Growth in retail sales in the current year is likely to remain more Baltic operations 79 +12.3 moderate than last year. Th is year, growth in households’ dispos- S Group, total 4 151 +6.3 able income will rise at a slower rate than in the two preceding years due to a slight acceleration in infl ation and no reduction in taxation. According to advance information from Statistics Fin- land, the value of retail sales, excluding the motor trade, was up At the end of June, the S Group had 1,384 locations in Finland, 4.5 per cent in January–May. as against 1,371 at the same time the year before. Th e advance information from Statistics Finland shows that Th ere were 22 regional cooperative societies and 20 local coop- the value of the motor trade was up 5.3 per cent by the end of erative societies. Th e number of cooperative societies’ members May. Growth within the grocery trade came to 1.9 per cent and came to 1,480,541 (an increase of 5.3%). the growth percentage in the department store trade amounted Investments by members of the cooperative societies amounted to 3.6 per cent. By the end of June, grocery sales by the member to EUR 651.2 million, representing growth of EUR 31.6 million companies of the Finnish Food Marketing Association were down on the same period a year earlier. 0.2 per cent on the previous year. According to the wholesale and Bonus sales by the S Group amounted to EUR 2,496.2 million, retail trade statistics issued by Statistics Finland, growth in apparel an increase of 12.8 per cent on the previous year. Members were sales for the fi rst four months of the year came to 6.6 per cent. paid a total of EUR 89.4 million in bonuses, an increase of EUR Hardware sales for the same period were up 7.4 per cent. 12.4 million on the previous year (an increase of 16.2%) According to the Finnish Hotel and Restaurant Association Th e S Group’s sales in the current year will top the previous FHR, sales in the hotel and restaurant sector grew by 2 per cent year’s fi gure. Judging by the trend in earnings in the fi rst part of in the fi rst quarter of the year. According to Statistics Finland, the the year, the S Group’s aggregate full-year earnings are estimated number of overnight stays in hotels showed an increase of 4.1 per to be on a par with the result in 2004. cent by the end of May. Following the slow months in the fi rst part of the year, demand in the agricultural trade took an upward swing with the onset of spring. Th e outlook for this season’s harvests is optimistic through- Development of the associated companies, out almost the entire country and even better than average in some 1 January–30 June 2005 areas. Th e trade situation at year-end, with the exception of de- SOK Corporation’s major associated company is the Inex Group, clined tractor sales, looks promising for the country as a whole. which is responsible for producing sourcing and logistics serv- ices for convenience goods as well as logistics services for general merchandise delivered to the S Group’s chain stores and certain S Group business development, other customers. 1 January–30 June 2005 Th e Inex Group’s net turnover in January–June amounted to Th e S Group comprises cooperative societies and SOK with its EUR 981 million, an increase of 8.1 per cent. Th e company post- subsidiaries. Th e S Group’s retail sales during January–June 2005 ed a profi t, with improved earnings on the previous year. – 1 – OPERATIONS OF SOK CORPORATION, subsidiary AS Sokotel has signed a preliminary agreement with 1 JANUARY–30 JUNE 2005 Pontos Oy for building a new hotel in the heart of Tallinn next to the present Sokos Hotel Viru. Th e hotel is scheduled to open its doors in the spring 2007. Operations of SOK Changes after the close of the report period SOK is the parent company of SOK Corporation. In accordance Tampereen Sokos Oy and KOy Tampereen Valtakulma will merge with its statutes, SOK’s task is to promote and develop the opera- into SOK, and AS Ramare will merge into AS Prisma Peremarket. tions of the cooperative societies and other organisations belong- SOK and Cooperative Tradeka Corporation have entered into ing to the S Group and to attend to the management and super- negotiations concerning the transfer of the entire shares outstand- vision of the Group’s overall resources for maximum effi ciency, ing of the sourcing and logistics company Inex Partners Oy to whilst also monitoring, within the framework of the Cooperatives SOK. Act, the operations and best interests of the S Group and its con- stituent organisations. SOK is in charge of the S Group’s strategic guidance. Its tasks Net turnover are to provide the S Group companies with services related to SOK Corporation’s net turnover for the period 1 January–30 June chain management, membership and marketing along with gen- 2005 was EUR 2,029 million, an increase of 12.0 per cent on the eral chain and corporate services, including development activities same period a year earlier. Operations abroad accounted for 3.7 connected with these services and the S Group’s other operations. per cent of net turnover. Other important services for the S Group’s operations are pur- chasing, rental services and assortment and invoicing services for SOK Corporation’s net turnover by business area goods delivered directly from manufacturers to the chain units. Via its nationwide and regional subsidiaries, SOK is able to off er € million € million ± prev. yr. its members a wider spectrum of services in accordance with the 1 Jan.–30 June 1 Jan.–30 June % decisions taken within the S Group. In addition, in the Baltic area 2005 2004 SOK engages in the grocery and motor trade as well as the hotel Grocery trade 36 27 29.9 business via its subsidiaries. Fuel sales 328 168 95.3 Department stores and Changes in the Group structure speciality stores 16 51 -68.9 Changes during the report period Hotel and restaurants 84 81 3.1 In a deal made at the beginning of the year, the Tampereen Sokos Oy business was sold to Pirkanmaa Cooperative Society. In the Motor trade and accessories 187 181 3.5 same connection, SOK sold the shares in KOy Kauppahalli Piha to Agricultural trade 433 431 0.5 Pirkanmaa Cooperative Society, and KOy Tampereen Valtakulma Consumer goods sourcing 244 224 9.3 sold the Sokos property it owned to Sampo Pankki plc, a bank. EDI invoicing 674 635 6.1 In transactions between SOK and HOK-Elanto, SOK’s subsidi- ary Sokotel Oy sold the Memphis restaurant and Coff ee House Real-estate, rental and other businesses that operate in the Helsingin Sokos property to HOK- service operations 106 101 4.7 Elanto on 1 January 2005. Sokotel Oy will continue to run the Eliminations -79 -88 -10.3 Sokos Hotel Vaakuna and the Ravintola Loiste restaurant business Total 2 029 1 812 12.0 in the above premises. Sokotel Oy in turn purchased the Hotel Presidentti business from HOK-Elanto on 1 January 2005.
Recommended publications
  • Tallinn Travel Guide
    TALLINN TRAVEL GUIDE FIREFLIES TRAVEL GUIDES TALLINN Steeped in Medieval charm, yet always on the cutting- edge of modernity, Tallinn offers today’s travelers plenty to see. The city is big enough and interesting enough to explore for days, but also small and compact enough to give you the full Tallinn experience in just a few hours. DESTINATION: TALLINN 1 TALLINN TRAVEL GUIDE Kids of all ages, from toddlers to teens, will love ACTIVITIES making a splash in Tallinn’s largest indoor water park, conveniently located at the edge of Old Town. Visitors can get their thrills on the three water slides, work out on the full length pool or have a quieter time in the bubble-baths, saunas and kids’ pool. The water park also has a stylish gym offering various training classes including water aerobics. Aia 18 +372 649 3370 www.kalevspa.ee Mon-Fri 6.45-21.30, Sat-Sun 8.00-21.30 If your idea of the perfect getaway involves whacking a ball with a racquet, taking a few laps at MÄNNIKU SAFARI CENTRE high speed or battling your friends with lasers, The Safari Centre lets groups explore the wilds of then Tallinn is definitely the place to be. Estonia on all-terrain quad bikes. Groups of four to 14 people can go on guided trekking adventures There are sorts of places to get your pulse rate up, that last anywhere from a few hours to an entire from health and tennis clubs to skating rinks to weekend. Trips of up to 10 days are even available.
    [Show full text]
  • S Group and Responsibility 2014
    S Group ...................................................................................................................................................... 1 CEO's Review ........................................................................................................................................ 1 Review by the CEO – Unparalleled benefits and convenience from your own store ...................... 1 S Group in brief ..................................................................................................................................... 2 Regional co-operatives .................................................................................................................... 2 S Group’s business model .............................................................................................................. 3 Values, vision and strategy .............................................................................................................. 4 S Group's key figures in 2014 ......................................................................................................... 6 Business Operations ............................................................................................................................ 6 Supermarket trade ........................................................................................................................... 7 Case: Kotimaista product line ....................................................................................................... 10 Department
    [Show full text]
  • Customer Satisfaction Level of S-Card Members in Sokos Hotel Ilves
    CUSTOMER SATISFACTION LEVEL OF S-CARD MEMBERS IN SOKOS HOTEL ILVES Eric Thande Bachelor’s thesis Aprill 2012 Degree Programme in Tourism Tampere University of applied sciences 2 ABSTRACT Tampere University of Applied Sciences Degree Programme in Tourism ERIC THANDE Customer Satisfaction of S-card members in Sokos Hotel Ilves Bachelor's thesis 44 pages, attachment 3 pages April 2012 Companies try to find point of uniqueness to differentiate themselves from their competitors. In order for the companies to differentiate themselves from competitors, they must measure their customer satisfaction level. This way they can take corrective action to strengthen their relationship with the customers. The main aim of this thesis is to measure the customer satisfaction of level of S-card members. The research is carried out in Sokos hotel Ilves located in Tampere Finland. The author also aims at measuring the service quality offered by the employees. The theoretical framework of this thesis is concentrated on customer satisfaction, service quality and loyalty. Questionnaire feedback was analyzed using SERVQUAL service dimensions and employ service quality reports using employee customer service model. The results of the questionnaire and employee reports indicated the overall satisfaction to be high. The author concluded that the S-card program is doing well against the ever increasing competition. Sokos hotel brand is trustworthy and reliable as seen from the respondent´s feedback. Key words: Customer satisfaction, service quality, loyalty 3 CONTENTS
    [Show full text]
  • The Role of Location in the International Market Selection in Hotel Business
    THE ROLE OF LOCATION IN THE INTERNATIONAL MARKET SELECTION IN HOTEL BUSINESS Case: SOK Corporation Master’s Thesis in International Business Author Anu Ruuskanen 10208 Supervisors Dr. Sc., Ph. D. Kari Liuhto M. Sc. Jenni Jaakkola 7.5.2008 Turku CONTENTS 1 INTRODUCTION ............................................................................................... 4 1.1 Trends in hotel business .............................................................................. 5 1.2 Earlier studies on hotel internationalization ................................................. 8 1.3 Objectives of the study.............................................................................. 10 2 INTERNATIONAL MARKET SELECTION .................................................... 12 2.1 The meaning of the international market selection .................................... 12 2.2 The international market selection process ................................................ 14 2.3 Determinants of the international market selection .................................... 17 3 THE ROLE OF LOCATION IN THE INTERNATIONAL MARKET SELECTION PROCESS.................................................................................... 24 3.1 The role of location ................................................................................... 24 3.2 Location theories ...................................................................................... 26 4 SPECIAL CHARACTERISTICS OF HOTELS IN INTERNATIONALIZATION PROCESS ........................................................................................................
    [Show full text]
  • CHESSS Feasibility Study CONSOLIDATED REPORT
    Project M/ 371-1 CEN‟s Horizontal European Services Standardization Strategy CHESSS Feasibility Study CONSOLIDATED REPORT In response to EU Mandate M/ 371 Commenced January 2007 and Completed July 2008 Prepared by the CHESSS Consortium Consisting of members nominated by: AENOR; BSI; DS; DIN; EVS; NEN Project Manager: Mr. Quincy Lissaur CHESSS Contents Section 1: Final project report Section 2: Module reports 2:1 Module 1 2:2 Module 2 2:3 Module 3 2:4 Module 4 2:5 Module 5 2:6 Module 6 2:7 Module 7 page ii FINAL REPORT CHESSS Feasibility Study CEN‟s Horizontal European Services Standardization Strategy In response to Mandate M/371 Written by Mr. Quincy Lissaur Project Executive CHESSS Initiative CHESSS TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................... 3 INTRODUCTION ................................................................................................................ 5 METHODOLOGY ................................................................................................................ 8 CONCLUSIONS & RECOMMENDATIONS ...................................................................... 15 THE BENEFITS ................................................................................................................ 28 NEXT STEPS .................................................................................................................... 29 ANNEX A .........................................................................................................................
    [Show full text]
  • Sok CORPORATION FINANCIAL STATEMENT BULLETIN 1 JANUARY – 31 DECEMBER 2012
    SOK CORPORATION FINANCIAL STATEMENT BULLETIN 1 JANUARY – 31 DECEMBER 2012 – 1 – Report of the Executive Board DEVELOPMENT OF THE OPERATING ing related to the cooperative enterprises’ grocery and consumer ENVIRONMENT goods procurement, which belongs to the procurement and ser- vice business (segment). International operations accounted for The general market development in 2012 was very two-sided. The 4.0 per cent of revenue, or EUR 474 million. beginning of the year was characterised by hopeful confidence SOK Corporation’s operating loss was EUR 24.4 million (EUR in the economy recovering slowly. Employment was developing +18.8 million). SOK Corporation’s result before taxes was EUR well and salary and wage solutions supported private consump- -27.1 million (EUR 19.5 million). The weaker result compared tion. Consumer confidence in the development of the economy to the previous year was primarily due to the weakened result of strengthened. However, in the summer the re-erupted euro crisis the automotive trade and accessories as well as the costs related to and the modest export demand weakened the economic situation opening the new logistics centre for consumer goods and launch- in the operating environment. The confidence of households in ing the procurement business operating model. In addition, the the development of the situation weakened considerably in the result for 2012 being weaker than in the previous year was affect- latter half of the year, when negative news about the future devel- ed by the large sales gains included in the comparison year’s result. opment of employment increased. However, the impact of the de- The Corporation’s return on capital employed, including the clining economy on private consumption was minimal last year.
    [Show full text]
  • SOK:N Pjohtaja Kari Neilimo
    SOK Communications and publications 27 January 2005 1 (4) Press release, 27 January 2005 Released for immediate publication The S Group performed well amidst tough competition Retail sales up 11 per cent The S Group’s retail sales rose to EUR 8,080 million last year, an increase of 11.0 per cent on the previous year. The S Group’s largest retail area, the grocery trade, reported hefty sales growth in Finland of 11.4 per cent – a big increase compared with the trend in Finland’s grocery trade nationwide. The S Group’s retail sales in Finland rose to EUR 7,929 million last year. Growth amounted to 10.9 per cent, outpacing the average growth in Finland’s retail trade. The cooperative societies’ share of the S Group’s retail sales was EUR 6,653 million, or 83.9 per cent, and SOK Corporation accounted for 16.1 per cent. The cooperative societies’ retail sales increased by 12.9 per cent and SOK Corporation’s in turn by 1.7 per cent on the figures a year earlier. “The S Group’s good growth figures in 2004 are attributable to several different factors. Apart from the sales increase brought by the merger of HOK and Elanto, the other cooperative societies also turned in good results in their own areas of operations. Furthermore, our success stems in large measure from the growth in sales by SOK’s businesses. What’s more, the number of customer-owners of the S Group’s regional cooperative societies grew by over 100,000 new members for the fourth year in succession.
    [Show full text]
  • SOK Corporation's 2017
    SOK Corporation's 2017 Financial Statements 1 Jan –31 Dec 2017 6 2 SOK Corporation's Financial Statements 2017 6 SOK Corporation's Financial Statements 2017 Executive board report on operations .......................4 SOK Corporation Key Ratios 2013–2017 .................56 Consolidated financial statements, IFRS .................10 Parent Cooperative’s Consolidated income statement.......................................10 Financial Statement, FAS ..............................................58 Consolidated statement of financial position ...................11 Income statement of SOK ...............................................58 Consolidated statement of cash flows ..............................12 Balance sheet of SOK ......................................................59 Consolidated statement of changes in equity ...................13 Cash flow statement of SOK ...........................................60 Notes to the consolidated financial statements: Notes to SOK’s financial statements ................................61 Company information ..............................................14 Accounting policies for consolidated Executive Board’s proposal for the distribution financial statements ...................................................14 of SOK’s distributable surplus ...................................70 1. Segment information ..........................................22 2. Other operating income .....................................26 Auditor’s report ..............................................................71
    [Show full text]
  • Suomen Osuuskauppojen Keskuskunta SOK Corporation
    Suomen Osuuskauppojen Keskuskunta SOK Corporation Annual Report 2005 Suomen Osuuskauppojen Keskuskunta SOK Corporation Annual Report 2005 1 Contents 4 CEO’s Review 7 The S Group 13 SOK Corporation 19 Business-by-business review 19 Market trade 21 Service station stores and fuel sales 22 Department store and speciality store trade 24 Hotel and restaurant business 26 Motor trade and accessories 28 Agricultural trade 29 Procurements and logistics 31 Neighbouring countries 32 Corporate governance within SOK Corporation 38 Accountability 38 Personnel 43 Environment 46 Sponsorship and international contacts 48 Financial Statements 2005 48 Executive Board Report on Operations 54 Consolidated Income Statement 55 Consolidated Balance Sheet 56 Consolidated Cash Flow Statement 57 SOK Income Statement 58 SOK Balance Sheet 59 SOK Cash Flow Statement 60 Accounting Policies 63 Notes to the Consolidated and SOK Income Statement and Balance Sheet 77 Key Ratios and their Method of Calculation 78 Executive Board’s Proposal for the Disposal of SOK’s Profi t for the Year 79 Auditors’ Report 79 Statement of the Supervisory Board 3 CEO’s Review The S Group’s cooperative enterprises Increasing patronage by our – customer-owners’ own store customer-owners Th e S Group’s task is to provide services and benefi ts for its Th e S Group succeeded well in carrying out its mission last year. members, its customer-owners. Th is mission guides both strategic Bonus sales targeted at customer-owners outstripped the development and practical operations, and it underlies day-to-day S Group’s overall sales growth. Customer-owners thus showed their service for customer-owners at all our S Group locations.
    [Show full text]
  • Sokos Hotel Viru
    ORIGINAL SOKOS HOTEL VIRU If you haven’t been in the legendary Viru Hotel, you haven’t seen all of Tallinn. The first skyscraper and prominent landmark in Estonia offers breath taking views of Tallinn Bay and Tallinn’s UNESCO protected medieval Old Town. The hotel has the widest range of room types, restaurants, entertainment facilities, relaxation services and the “must see” KGB museum all under the same roof. Original Sokos Hotel Viru provides direct access to the Viru Centre shopping mall and is close to theatres and popular cultural centres. Location In the very heart of Tallinn – at the gates of Tallinn’s main attraction, the medieval Old Town. The main concert halls, Estonia Opera House, shopping and entertainment centres are all within walking distance. Accommodation The cosy Standard rooms are styled on the trendy sober Northern design. All rooms are equipped with a 32-inch flat screen TV and free Wi-Fi with all mod cons. For more exclusivity or a business related stay, the spacious Superior room with extra comfort and spacious working facilities is the perfect choice. Luxury is sometimes absolutely essential – our high floor suites and Junior Suites with sauna provide exceptional grounds for pleasant memories. For family adventure, we proudly recommend Onni the Squirrel rooms with fun bunk bed and special amenities for children. Meeting facilities The hotel has modern meeting, banqueting and dinner facilities for groups of 10 to 1,100 guests. We also have over 500 m² of exhibition space and multiple fair solutions. Dining The Merineitsi Restaurant combined with the banquet hall provides an ample Scandinavian style breakfast from 7:00-11:00 as well as conference, buffet and dinner catering for up to 400 guests at a time.
    [Show full text]
  • Official Program
    7th ECR Baltic Forum 13-14 November 2013, Sokos Hotel Viru, Tallinn, Estonia The forum main sponsor Official Program consumer and tion shopper a focus ollabor c e fficien chain t supply ade air tr air f ainability ainability t and sus de v elopmen people tion orma f in t usiness b ed ed onnect c with an extended Shopper Marketing session! Our sponsors and supporters: Latvija EIROPAS SAVIENĪBA Agenda (working language: English) Detailed agenda and speakers information also available on ecr-baltic.org and mobile: ecrf.mobi 13 November 2013 ECR Baltic Forum pre-events 10:00 Retail - Manufacturer tour thanks to Kalev and Prisma Start from Sokos Hotel Viru Tallinn, Viru väljak 4, Tallinn 10:20 Retail visit: Mustamäe Prisma A.H. Tammsaare tee 116, Tallinn 12:00 Lunch break near Kalev 13:30 Manufacturer visit: Kalev AS, Põrguvälja tee 6, Lehmja küla, Rae vald, Harjumaa 15:30 Return to Sokos Hotel Viru 19:30 The "Ice breaking" event with ECR Baltic Board, Speakers and Sponsors at restaurant Merineitsi at Sokos Hotel Viru, Tallinn. Estonian Christmas menu | Dress code: smart business 14 November 2013 ECR Baltic Forum 9:00 Registration 10:30 Welcome message from moderator and introduction to Estonia by Anti Orav 10:40 Opening by ECR Baltic Board: Jorma Rautanen, Prisma 10:50 The Baltic economies: Happy times are here again? by Morten Hansen Stockholm School of Economics, Riga 11:10 Need to collaborate on non-competitive topics and measurement of the performance through 10 for 20 by Vincent Carton, ECR Europe 11:10 The European Supply Chain Initiative
    [Show full text]
  • S Group's Year 2013
    S Group’s year 2013 SOK Corporation’s Financial Statements S Group is a forerunner in wind power in Finland. Our objective is to generate 50% of the electricity we need with our own wind power. Contents Contents Streamlining to serve you better 4 Today’s co-operative activities 5 New horizons in the grocery trade 6 Multichannel operations offer good service 10 New winds blowing in the ABC chain 14 Targeted personalised service 18 A changing palette of operations 22 Competitive advantage from logistics 23 Competent S Group personnel 24 Closer interaction with customers 26 Big decisions at S-Bank 28 What is S Group? 30 S Group’s Key Figures 2009–2013 33 Corporate Governance and Management System 34 SOK Supervisory Board 2013 38 SOK Executive Board 2014 40 SOK Corporation’s Corporate Management Team 2014 41 SOK Corporation’s Organisation March 1st, 2014 42 SOK Corporation’s Financial Statement’s 2013 43 3 S Group’s year 2013 CEO’s Review S Group’s financial result remained at the previous year’s level in 2013. Our goals are set slightly higher in 2014, although the overall economic situation continues to be challenging. Streamlining to serve you better inland, and the retail seg- For S Group, 2014 marks the innovative. In addition, it also re- ment in particular, faced beginning of many changes. We quires that we possess a new kind Fdifficult times in 2013, and will continue to streamline our of courage to involve our person- S Group’s journey was not easy operations in order to secure our nel in building new innovations, either.
    [Show full text]