Jelmoli and Fust turnovers per comparable sales floor area significantly above prior mid-year level. Group turnover of CHF 494.3 million for the first half of 2006 matched the mid-2005 level despite sales floor area reductions above all at the Jelmoli Zurich department store. This is equivalent to a 1.1% rise in turnover per sales floor area.
Jelmoli and Fust turnovers per comparable sales floor area significantly above prior mid-year level
Group turnover of CHF 494.3 million for the first half of 2006 matched the mid-2005 level despite sales floor area reductions above all at the Jelmoli Zurich department store. This is equivalent to a 1.1% rise in turnover per sales floor area.
Jelmoli Zurich turnover (including Specialty Businesses) per comparable sales floor area was 1.8% higher than at mid-year 2005. During the second half of 2005 part of the Gourmet Factory and some ground floor areas were transferred to specialized operators. Since November 2005 the former Young-Fashion Street store on the second floor is operated by "New Yorker", a trend shop specialized in modern fashion for young people. In total about 10% of the Jelmoli Zurich sales floor area is no longer self-operated since last autumn. Furthermore, a Molino restaurant and a Fashion Bazaars store had to be closed for the time being due to demolition of the old Thônex suburban shopping centre near Geneva. While these outages led to 10.4% lower turnover, a further increase of 1.8% was attained in turnover per comparable sales floor area, and overall turnover (including external tenants) at the Jelmoli Zurich shopping gallery was 1.8% higher than per mid-2005.
Fust turnover for the first half-year 2006 rose above all in multimedia business, thanks to excellent TV and Home Cinema sales prior to the World football championships, while domestic appliances and kitchen/bathroom turnover also exceeded the prior mid-year level significantly. Thanks also to the four Eschenmoser stores acquired at the beginning of June and the ongoing sales floor optimization, overall turnover increased by 3.0% (comparable: + 0.8%).
Higher rental incomeRental income increased by 4.0% overall to CHF 68.0 million. The temporary cessation of rental income from our properties in Thônex (Geneva) and on Sihlstrasse Zurich, where extensive reconstruction and new building projects respectively are currently underway, was compensated by rental income from five new properties (in Frauenfeld and from the 4 Eschenmoser stores acquired). Thanks to optimization of the rental structure at Jelmoli Zurich, the utilization of previously vacant floor areas, and new rental agreements on a more profitable basis at some of our larger shopping centres, comparable rental income rose by 3.3%.
Further rise in operating cash flow expected
The cost reduction measures introduced last year at Jelmoli Zurich and by Fust, some of which did not take effect until the second half of 2005, will continue to have a positive effect this year on operating cash flow in the retail trade segment. Together with higher rental income in the real estate segment, this is expected to substantially improve Group operating cash flow (EBITDA) for the first half-year 2006.
Now that definitive construction approval has been received, our Thônex project can go ahead as planned.
Source: Jelmoli Holding
