Intershop Communications AG announces revenues of EUR 16.3 million in H1 2016

Jena, 2016-Aug-06 — /EPR Retail News/ — Intershop Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omni-channel commerce, generated revenues of EUR 16.3 million in the first half of 2016 (previous year: EUR 21.0 million). The drop in revenues is attributable to the project delays of the first quarter, which were offset only partly in the second quarter. Compared to the weaker first quarter, however, both Intershop’s revenues and earnings showed a positive trend in Q2. At EUR 9.1 million, second-quarter revenues exceeded the company’s first-quarter revenues by 25%.

Intershop’s important product revenues amounted to EUR 6.6 million in the first six months of 2016, down 10% on the previous year. Service revenues declined by close to 29% to EUR 9.7 million, reflecting the changed customer structure and the increased use of partner companies. Compared to the first three months, service revenues picked up by 14% and this positive trend is expected to continue.

The gross margin increased by 4 percentage points on the previous year to 46%. At EUR 8.8 million, operating expenses were down by 6% on the same period of the previous year, which is mainly attributable to reduced personnel and consulting expenses. In the second quarter of 2016, Intershop posted moderately positive earnings before interest and taxes (EBIT) of EUR 0.07 million. EBIT for the first six months of 2016 were still negative at EUR -1.3 million (previous year: EUR -0.5 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) were also slightly negative in the reporting period, at EUR -0.1 million (previous year: EUR 1.4 million). The result for the period came in at EUR -1.6 million (previous year: EUR -0.6 million), which is equivalent to earnings per share of EUR -0.05 (previous year: EUR -0.02).

Cash flow from operations amounted to EUR -1.4 million in the reporting period (previous year: EUR 2.5 million) and is primarily attributable to the half-year loss. At EUR 11.8 million, total cash and cash equivalents were up by an impressive 53% on the prior year reporting date on 30 June. The equity ratio stood at 61% on 30 June 2016, which also exceeded the 58% posted on 31 December 2015.

Says Dr. Jochen Wiechen, CEO of Intershop Communications AG: “The latest analysis by US analyst house Gartner once again confirms that Intershop is among the world’s leading providers of e-commerce platforms. We did a great job in the second quarter and business has clearly picked up. We are optimistic about the second half of the year and maintain our forecast for the full year in view of our large pipeline of orders.”

The interim report on the first six months of 2016 is available for download at

About Intershop
Intershop Communications AG (founded in Germany 1992; Prime Standard: ISH2) is the leading independent provider of omni-channel commerce solutions. Intershop offers high-performance packaged software for internet sales, complemented by all necessary services. Intershop also acts as a business process outsourcing provider, covering all aspects of online retailing up to fulfillment. Around the globe more than 300 enterprise customers, including HP, BMW, Würth, and Deutsche Telekom run Intershop solutions. Intershop is headquartered in Jena, Germany, and has offices in the United States, Europe, Australia, and China. More information about Intershop can be found online at

This news release contains forward-looking statements regarding future events or the future financial and operational performance of Intershop. Actual events or performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such difference could include, among other things: Intershop’s limited operating history, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, significant dependence on large single customer deals, consumer trends, the level of competition, seasonality, risks related to electronic security, possible governmental regulation, and general economic conditions.


Head of Corporate Communication
Phone: +49 3641 50-1000
Fax: +49 3641 50-1309

Source: Intershop

PHILIPPINES: SM Investments Corporation records 11% consolidated net income growth for H1 2016

Pasay City, Philippines, 2016-Aug-05 — /EPR Retail News/ — SM Investments Corporation (SM) posted consolidated net income of PHP15.0 billion for the January to June period, a growth of 11% over last year.

Excluding extraordinary items, recurring income grew by 8%. Consolidated revenues rose 8.5% to PHP151.1 billion in the first half from PHP139.2 billion in the same period last year. “Our strong first half performance reflects continued economic growth, boosted in part by election spending. We continue to focus on cost efficiencies and operating margin improvements.

With the merger of our retail businesses we now cater to a much wider range of consumer needs and we look forward to benefiting from increasing consumer spending,” SM President Harley T. Sy said.

During the period, the property business contributed the most to consolidated net income at 41%. This was followed by banks with 38% and retail with 21%.

SM Retail reported sustained growth in total sales of 9% to PHP105.1 billion, while net income rose 14% to PHP3.5 billion. Net margin expanded to 3.4% from 3.2% twelve months ago. At end-June 2016, SM Retail had a total of 328 stores, comprising 55 THE SM STORES, 47 SM Supermarkets, 45 SM Hypermarkets, 147 Savemore stores and 34 WalterMart stores.

The Food Retail Group pursued its aggressive expansion in both urban and rural communities nationwide, adding 12 mid-sized format Savemore stores, two SM Supermarkets, one SM Hypermarket and two WalterMart stores. Meanwhile, Alfamart increased its number of stores to 146 as of end-June from 99 at the start of the year.

THE SM STORE opened two stores in SM San Jose Del Monte in Bulacan in April and in SM Trece Martires in Cavite in May. As of the first half, the total gross selling area of all 55 department stores stood at 729,722 sqm.

Early this year, SM announced the merger of SM Retail with Sy family-owned specialty store assets with over 1,400 outlets. The merger received final approval from the Securities and Exchange Commission on 7 July 2016. The merger is seen to create value and boost earnings given the strong competitive position of the specialty stores and their synergies with SM malls.

SM Prime Holdings reported consolidated net income of PHP12.6 billion. Recurring net income increased by 12% year-on-year. Consolidated revenues reached PHP39.2 billion, an increase of 9% from PHP35.9 billion in the same period last year. Rental revenues from retail and commercial spaces accounted for 56% of consolidated revenues and grew 13% in the period to PHP22.0 billion.

During the first half, SM Prime opened SM San Jose Del Monte in Bulacan and SM Trece Martires in Cavite, bringing total Philippine operating malls to 58 with a GFA of almost 7.5 million sqm.

With an additional six malls in China, SM Prime’s total GFA is 8.5 million sqm. The company is expected to open two more malls this year, namely Cherry SM Congressional in Quezon City and SM City East Ortigas. It is also expanding SM Center Molino in Cavite and SM City San Pablo in Laguna this year.

The housing group, led by SM Development Corporation (SMDC), recorded a 6% increase in real estate sales to PHP13.0 billion. As a result, net income stood at PHP3.2 billion, up 7%.

Reservation sales rose by 18% to 8,091 units, translating to a 20% increment in sales value worth PHP22.6 billion from PHP18.8 billion. Reservation sales were largely generated from Shore 2 Residences, Coast Residences and S Residences in Pasay City.

For the rest of the year, SM Prime plans to launch additional 6,000 to 8,000 units in cities of Quezon, Pasay and Tagaytay and economic housing in the provinces of Bulacan, Cavite and Cabanatuan.

SM Prime also successfully opened the iconic Conrad Manila in the Mall of Asia Complex in June this year with 347 rooms. This brings the total hotels in the company’s portfolio to seven with a combined 1,510 rooms.

BDO Unibank, Inc. (BDO) recorded an increase by 13% in net income to PHP13.2 billion on broad-based improvement across the bank’s businesses and a one-time gain from the consolidation of BDO Life.

Net interest income grew 17% in the six-month period to PHP31.7 billion. Customer loan portfolio grew 21% to PHP1.4 trillion while CASA deposits advanced by 23%.

BDO recently secured final regulatory approval for the acquisition of full interest in Generali Pilipinas Life Assurance Corp. (renamed as BDO Life Assurance). This is part of refocusing efforts on the insurance business to solidify the bank’s presence in the middle income market.

The bank also announced an agreement with TPG Growth for the latter to acquire a 40% stake in BDO’s rural bank subsidiary One Network Bank (ONB). The collaborative partnership is seen accelerating ONB’s expansion and coverage of the underserved market segments.

China Banking Corporation reported net income growth of 30% to PHP3.3 bilion for the first half, driven by strong growth in its core and fee-based businesses.

Net interest income was up 7% to PHP8.0 billion on the back of higher volume of earning assets. Net loans expanded 12% year-on-year to PHP324.0 billion. The CASA to total deposits ratio stood at 51.7%.
>Balance Sheet As of end-June 2016, total assets of SM grew 7% to PHP770.2 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 39% net debt to 61% equity

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares. SM’s retail operations enjoy a strong brand franchise consisting of THE SM STORE and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores.

SM’s property arm, SM Prime Holdings, Inc., is among the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank). Combined, these two banks have a network of over 1,000 branches nationwide.

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
Tel. No. (632) 857-0117

Source: SM Investments Corporation

Food retailer O’KEY Group H1 2016: net retail revenue increased by 10.1% YoY

Moscow, 2016-Jul-22 — /EPR Retail News/ — O’KEY Group S.A. (LSE: OKEY), one of the largest food retailers in Russia, announces operating results for the Second Quarter and the First Half of 2016. All materials published by the Group are available on its website

Key highlights for Q2 2016:

 Group net retail revenue increased by 5.8% y-o-y from RUB 37,608 million to RUB 39,825 million
 Traffic increased 11.3% y-o-y with average ticket declining 5.0% y-o-y  Trade LFL revenue increased 2.3% y-o-y while LFL traffic grew 4.1% and average LFL ticket declined 1.8%
 Retail revenue net of sales in the discounter chain grew by 2.4% to RUB 38,559 million
 Traffic net of discounters rose 3.7% y-o-y with average ticket net of discounters declining 1.3% y-o-y
 In Q2 2016, the Group opened one hypermarket and 7 discounters
 Total selling area increased by 6.4% to 602,208 m2 , selling area of hypermarkets increased by 1.7% to 521,068 m2, selling area of supermarkets declined by 9.9% to 48,457 m2 and selling area of discounters reached 32,683 m2

Key highlights for H1 2016:

 Group net retail revenue increased by 10.1% y-o-y from RUB 74,880 million to RUB 82,412 million
 Traffic increased 12.6% y-o-y with average ticket declining 2.3% y-o-y
 Trade LFL revenue increased 5.5% y-o-y while LFL traffic grew 4.5% and average LFL ticket rose by 1.0%
 Retail revenue net of sales in the discounter chain rose by 7.1% to RUB 80,191 million
 Traffic net of discounters rose 5.8% y-o-y with average ticket net of discounters growing 1.2% y-o-y
 In H1 2016, the Group opened one supermarket (closed four supermarkets), opened one hypermarket (closed one) and added 13 discounter stores


Heigo Kera, CEO and Chairman of the Board of Directors of O’KEY Group, said,
In Q2 2016, we demonstrated solid growth of the key operating indicators in spite of the weak macroeconomic environment and intensifying competitive pressure. We delivered strong LFL growth driven by sustained increase in traffic as our customers increasingly appreciate the recent changes in the sales mix, enhanced assortment and more appealing value proposition. However, the average ticket declined as trading down among our customer base continued while food inflation slowed down.

In H2 2016, we will continue to maintain competitive pricing and further improve our value proposition. We continue development of our food private labels and plan to add overall 200-300 SKUs to our That’s What You Need and O’KEY lines. We are also redesigning and relaunching our non-food private labels with increased focus on product quality. In Q3 we will open two more hypermarkets (in Moscow and Tyumen) with elements of a new store concept, a more modern look and feel, new approaches to organization and zoning of the floor space and easier navigation».

Armin Burger, Chief Executive of the Discounter Chain, added,
During the quarter, we continued expansion of our discounter chain the DA! brand, having opened 7 additional stores in Moscow and neighboring regions. We are seeing steady increase in customer traffic adjusted for seasonal trends. In Q2 2016, my team continued to enhance assortment, adding more private label items across all categories, and worked on improving organisation of the floor space. Overall, the hard discounter project is finding its target audience, the rational customers appreciating value-for-money we are offering in our chain».

In Q2 2016, net retail revenue increased 5.8% y-o-y to RUB 39,825 million primarily driven by strong improvement in traffic as a result of the Company’s focus on enhancing value proposition, rebalancing assortment, changing the sales mix, as well as the growing contribution from discounter stores.

In Q2 2016, LFL sales grew 2.3% as a result of the 4.1% improvement in LFL traffic and in spite of the 1.8% decline in LFL ticket as consumer purchasing power remains under pressure in a tough macroeconomic environment. May results were impacted by 2016 holidays calendar as Easter coincided with Spring and Labor Day, as well as unusually hot weather in the North-West region resulting in lower consumer spending in big cities compared to May 2015. In June, the Group delivered much stronger results though growing from higher base as June 2015 numbers already reflect the impact of the turnaround initiatives which management of the Group introduced a year ago.

Additional information
The Group will report its First Half 2016 Reviewed Operating and Financial Results on 17 August 2016. Management of the Group will be holding a conference call to provide an update and discuss the results.

These materials contain statements about future events and expectations that are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this announcement should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in this announcement. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

O’KEY is one of the largest retail chains in Russia. Its primary retail format is the modern Western European style hypermarket under the “O’KEY” brand reinforced by O’KEY supermarket. The Group is developing the innovative discounter format under the “DA!” brand. O’KEY is the first among Russian food retailers to launch e-commerce operations in St. Petersburg and Moscow based on hypermarket assortment.

The Group opened its first hypermarket in St. Petersburg in 2002 and has demonstrated continuous growth ever since. As of 20 July 2016, O’KEY operates 157 stores across Russia: 71 hypermarkets, 37 supermarkets and 49 discounters.

For further information please contact:
Nikolay Minashin
Head of Investor Relations
Ph. +7(495)663-6677, ext. 127

Source: O’key Group