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PROFIT OF TALLINNA KAUBAMAJA GROWS NEARLY SIXFOLD ON YEAR in Q2

TALLINN, Aug 26, BNS – The listed Estonian retailer Tallinna Kaubamaja has posted a net profit of 77.4 million kroons (EUR 4.95 mln) for the second quarter of this year compared to the year-earlier 13.9 million kroons.

TALLINN, Aug 26, BNS - The listed Estonian retailer Tallinna Kaubamaja has posted a net profit of 77.4 million kroons (EUR 4.95 mln) for the second quarter of this year compared to the year-earlier 13.9 million kroons.

The group's quarterly sales revenue was 1.58 billion kroons, 5 percent smaller than a year ago.

The consolidated sales revenue in the first half of 2010 amounted to three billion kroons, down by 6 percent year-on-year, and net profit totaled 71.5 million kroons in contrast to a loss of 38.4 million kroons in the same period last year.

"It's again possible to earn profit in retail trade," CEO Raul Puusepp said in a comment on the results. The group succeeded in making profit also in the car and footwear segments, he added.

According to Puusepp, sales figures have shown steady improvement over the last few months but overall consumption in the first half fell slightly short of last year's.

Despite the pressure caused by the continuous decrease in turnover, the group was able to raise the cost-effectiveness of stores. The drastic cutbacks of 2009 have justified themselves and created a confident and sustainable base for the company by now. In the first half of the year the group was able to improve profit by 109.9 million kroons primarily by cutbacks in wages and operating costs, Tallinna Kaubamaja said in the statement to the stock exchange.

The six-month turnover of the group's chain of super- and hypermarkets Selver, at 2.3 billion kroons, showed a year-on-year decline of 3 percent. In Estonia Selver made a profit of 54.5 million kroons, up by 34.3 million kroons from last year. Selver has 35 stores in Estonia.

Sales revenue in Latvia was 0.2 million kroons compared to 77.9 million kroons last year. Selver earned no revenue in Latvia in the second quarter. The pre-tax and net loss of Selver Latvia was 24.8 million kroons, decreasing by 21.7 million on an annual comparison.

The sales revenue of the department store segment in the first half of the year came in at 538 million kroons, which is 8 percent less than a year earlier. The department stores made a loss of 5.1 million kroons during the reporting period, down by 5.4 million kroons year-on-year.