Financial impacts

Sales, result and investments

The extended store hours, lowered prices and enhanced product range increased S Group's customer volumes and grew sales and profit in 2016.

Retail sales excluding taxes by business area, EUR  million

2016

2015

2014

Prisma

3,451

3,336

3,405

S-Market

3,322

3,177

3,246

Sale

629

617

611

Alepa

348

346

345

Other supermarket trade

5

5

5

Supermarket trade*

7,755

7,479

7,616

Sokos

225

217

255

Emotion

41

39

37

Pukumies Oy

12

19

22

Other specialty store

8

20

10

Department stores and speciality stores

300

295

324

ABC service stations

544

783

850

Lähi-ABC stations

172

-

-

Unmanned ABC stations

661

643

704

ABC fuel oil sales

33

32

40

ABC-Deli

45

50

74

Other service stations

70

97

101

Other unmanned stations

2

3

4

Other ABC business operations

6

0.2

0.2

Service station store and fuel sales

1,543

1,608

1,774

Travel industry

292

285

274

Restaurant business

501

517

524

Travel industry and hospitality business*

793

802

798

Hardware trade

197

184

207

Automotive trade and accessories

339

309

301

Agricultural trade

76

112

150

Others

15

15

12

S-Group total

11,020

10,804

11,182

* The figures include sales in the Baltic countries and Russia.
All sales VAT 0%

The favourable result development of the consumer goods trade and hotels, in particular, increased the result of S Group as a whole.

Operating result, EUR  million

2016

2015

2014

Regional cooperatives

262

248

218

SOK Corporation

29

17

8

S-Group total

290

265

226

 

In 2016, S Group's largest individual investment was the grocery trade logistics centre, being built in Sipoo. The logistics centre, which is already partly in operation, accounted for approximately a quarter of the investments in 2016.

Investments, EUR million

2016

2015

2014

S Group

511

558

526

 

Outlets

S Group's extensive network of outlets brings services close to all consumers. There is an S Group grocery store in 284 municipalities in continental Finland.

Outlets

2016

2015

2014

Supermarket trade

948

930

920

Department stores and speciality stores

80

77

76

Service station store and fuel sales

238 (446)

236 (444)

238 (439)

Travel industry and hospitality business

278 (775)

301 (798)

319 (813)

Hardware trade

25

24

25

Automotive trade and accessories

36

35

35

Agricultural trade

11

13

14

Others

17

17

16

S-Group total

1,633

1,632

1,643

* The number of outlets also includes the online store (one outlet).
The number of outlets in parentheses includes restaurants, stores and stations located in connection with other outlets.

 

Cooperative activities and co-op membership

Because of the cooperative form of business, the money circulating in the operations of S Group's cooperatives benefits the co-op members and ensures regional well-being and vitality. Earnings from the operations are invested for the benefit of the co-op members by developing services and renovating outlets, or distributed to the co-op members in the form of various benefits, such as the Bonus and the payment method-related benefits.

Key figures of co-op membership

2016

2015

2014

Co-op members

2,292,039

2,225,506

2,109,025

New co-op members

97,028

91,566

92,113

Bonus paid, EUR million

353

343

379

Payment method-related benefit, EUR million

7

6

6

Payment of interest on membership fee, EUR million

17

14

13

Return of surplus, EUR million

17

21

24

Co-op member benefits on average, EUR/member

172

173

212

 

Taxes and social influence

S Group and the cooperatives create well-being regionally in many ways. Cooperatives are significant employers, and local purchases and investments generate economic well-being throughout the country.

Cooperatives are important regional employers in Finland. S Group's indirect impact on the state tax revenue is considerable and the tax revenue generated by the retail Group is primarily distributed regionally across Finland. In particular, tax withholding from salaries and the corporate tax paid by S Group are, to a large extent, accumulated by municipalities. The tax revenue is used to finance services offered by society in each cooperative's region. The figure below shows the accumulation of tax withholdings in the cooperatives' regions.

S Group's tax footprint describes the taxes remitted to the state of Finland and municipalities in 2016. In addition to direct and indirect taxes, S Group's tax footprint includes the tax-like payments related to the personnel and the tax withholdings from the employees' salaries.  In addition to the remittances included in the tax footprint, S Group has paid local taxes on the operations of the companies in Estonia, Latvia, Lithuania and Russia in accordance with the regulations of each country.

In the recent years, the focus of taxation has shifted from income taxes towards indirect taxes. Indirect taxes include value added tax and various excise duties, such as alcohol, tobacco and confectionary taxes, as well as fuel tax. Value added tax is a common consumption tax ultimately paid by the consumers of goods and services, that is, mostly households. S Group remits value added tax to the state as a company selling goods and services. The 2016 tax footprint only includes the value added tax portion remitted to the state by S Group. Excise duties are consumption taxes included in the price of the product, which are levied from product manufacturers, producers, importers or wholesale. Excise duties are included in many products sold by S Group, such as alcohol tax, sweets tax, tobacco tax, fuel tax and environmental taxes presented below.

In addition to the taxes described in the tax footprint, S Group also pays the following taxes and fees: transfer tax, lottery tax, tax at source and car tax. These are not included in the figure.

 

Responsibility partnerships

S Group's responsibility cooperation includes culture, sports, social activities and various donations. In 2016, a total support amount of EUR 5.5 million was paid.

S Group's nationwide partners include the Finnish Red Cross, the Mannerheim League for Child Welfare (MLL), the Children's Day Foundation, and the Football Association of Finland.

Responsibility co-operation is also carried out regionally, and the regional cooperatives extensively support local activities. For example, the ‘Kannustajat' (‘Supporters') concept is a way for the cooperatives to provide transparent support for the hobbies and activities of children and young people. Co-op members can become supporters and influence the target and amount of the support the cooperative pays.

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