XHEL:MEKKO ESEF Annual Report
Marimekko Oyj (XHEL:MEKKO)
ESEF Annual Report
2024-03-21
For: 2023-12-31
View Original
Added on
September 22, 2026
1
Financial Statements
and Report of the
Board of Directors 2023
2
Financial Statements and Report of Board of Directors 2023
Report of the Board of Directors 2023 3
Share and shareholders 7
Proposal for the distribution of profit 12
Key figures of the Group and formulas for the key figures 13
Consolidated financial statements, IFRS 16
Consolidated income statement 16
Consolidated balance sheet 17
Consolidated cash flow statement 18
Consolidated statement of changes in shareholders’ equity 19
Notes to the consolidated financial statements 20
Parent company financial statements, FAS 39
Parent company income statement 39
Parent company balance sheet 40
Parent company cash flow statement 41
Notes to the parent company financial statements 42
Signatures to the financial statements and the report of the Board of Directors 50
Auditor’s Report 51
Independent Auditor’s Reasonable Assurance Report on Marimekko Corporation’s ESEF Financial Statements 55
This is a voluntary published translation of the official ESEF Financial Statements.
Official Financial Statements are published in Finnish and can be found on the company’s website.
3
2023 IN BRIEF
• In 2023, Marimekko’s net sales grew by 5 percent and amounted to
EUR 174,105 thousand (166,515). Net sales were boosted in particular
by the growth of international wholesale sales. In addition, the good
development in Finnish retail sales increased net sales. In total, net sales
in Finland grew by 1 percent and international sales by 10 percent.
• Marimekko’s omnichannel retail sales grew globally by 3 percent with
nearly all market areas contributing to growth. Wholesale sales increased
in the Asia-Pacific region, North America and Scandinavia and, in total,
the Group’s wholesale sales grew globally by 6 percent. Licensing income
increased by 8 percent from the record-high level of the comparable year.
• Brand sales¹ of Marimekko products amounted to EUR 376,746 thousand
(382,253). 66 percent (66) of brand sales were international sales.
• Operating profit totaled EUR 31,400 thousand (30,236). Operating profit
included EUR 631 thousand (146) from items affecting comparability.
Comparable operating profit was EUR 32,031 thousand (30,382) equaling
to 18.4 percent of net sales (18.2).
• Operating profit was improved especially by increased net sales. On
the other hand, higher fixed costs decreased operating profit. Improved
relative sales margin had a positive effect on the operating profit.
• Result for the period was EUR 23,601 thousand (22,708) and earnings per
share were EUR 0.58 (0.56).
• The Board of Directors proposes that a dividend of EUR 0.37 per share
will be paid for 2023.
¹ Brand sales are given as an alternative non-IFRS key figure,
representing the reach of the Marimekko brand through
different distribution channels. An unofficial estimate of sales
of Marimekko products at consumer prices, brand sales are
calculated by adding together the company’s own retail net
sales and the estimated retail value of Marimekko products
sold by other retailers. The estimated retail value is based on
the company’s realized wholesale sales and licensing income.
Brand sales do not include VAT, and the key figure is not
audited. Some licensees provide exact retail figures, in which
case these figures are used in reporting brand sales. For other
licensing agreements, Marimekko’s own retail coefficients for
different markets are used.
OPERATING ENVIRONMENT
The following outlook information is based on
materials published by the Confederation of Finnish
Industries EK and Statistics Finland.
The world economy is estimated to grow in
2024, but the growth rate will vary clearly between
markets. Inflation, which has continued to slow
down towards the end of 2023, remains a central
factor to the global economy. The uncertainties
created by the geopolitical situations in, for
example, supply and logistics chains, can cause
reacceleration of inflation. The world economy
is expected to grow at a rate of 2.7 percent, but
growth in the Euro area in 2024 is expected to be
only 0.9 percent.
The economic outlook for Finland continues to
be weak and the estimates regarding the current
situation are now lower than during the coronavirus
pandemic. Companies’ expectations for the future
development of the economy have increased since
the fall but remain at a low level. The confidence
indicator for the retail trade improved in January
2024 but was still below the long-term average and
lower than in other EU countries. Retail sales have
decreased further, and sales expectations for the
coming months are lower than in the fall. Consumer
confidence, still below the long-term average, has
improved somewhat. Estimates concerning the
current state of personal finances remain at a very
low level but expectations for the future of personal
finances have improved. Expectations for Finland’s
economy continue to be very weak. Estimates
concerning inflation and expectations for its future
development are unchanged and continue to be at a
high level.
(Confederation of Finnish Industries EK: Business
Tendency Survey, January 2024; Confidence
Indicators, January 2024. Statistics Finland:
Consumer Confidence, January 2024.)
The working-day-adjusted turnover of the Finnish
retail trade increased by 2.5 percent in December
compared to the previous year, but the volume
of sales grew by only 0.1 percent. The cumulative
working-day-adjusted turnover of the retail trade in
the January-December period rose by 2.0 percent
but the volume of sales decreased by 2.9 percent.
(Statistics Finland: Turnover of Trade, retail trade
flash estimate, December 2023.)
Report of the Board of Directors 2023
4
Net sales by market area
(EUR 1,000) 2023 2022 Change, %
Finland 98,914 98,237 1
Retail sales 66,627 64,559 3
Wholesale sales 32,133 33,491 -4
Licensing income 154 187 -18
Scandinavia 15,557 13,956 11
Retail sales 4,386 4,157 5
Wholesale sales 11,096 9,799 13
Licensing income 75 -
EMEA 14,645 16,014 -9
Retail sales 3,008 2,492 21
Wholesale sales 10,802 11,603 -7
Licensing income 834 1,919 -57
North America 9,575 7,999 20
Retail sales 4,523 4,621 -2
Wholesale sales 4,688 2,761 70
Licensing income 365 617 -41
Asia-Pacific 35,415 30,309 17
Retail sales 6,775 6,619 2
Wholesale sales 26,883 23,455 15
Licensing income 1,758 234
International sales, total 75,191 68,278 10
Retail sales 18,691 17,890 4
Wholesale sales 53,469 47,618 12
Licensing income 3,031 2,770 9
Total 174,105 166,515 5
Retail sales 85,318 82,448 3
Wholesale sales 85,602 81,109 6
Licensing income 3,186 2,957 8
Wholesale net sales are
recognized according to the
geographical location of the
wholesale customer.
All figures in the table have
been individually rounded to
thousands of euros, so there
may be rounding differences
in the totals. The change
percentages have been
calculated on exact figures
before rounding.
Report of the Board of Directors 2023
NET SALES
The Group’s net sales in 2023 grew by 5 percent and
amounted to EUR 174,105 thousand (166,515). Net
sales were boosted in particular by the growth of
international wholesale sales. In addition, the good
development in Finnish retail sales increased net
sales. In total, international sales in 2023 grew by 10
percent and net sales in Finland by 1 percent.
Marimekko’s omnichannel retail sales grew
globally by 3 percent with nearly all market areas
contributing to growth. Wholesale sales increased
in the Asia-Pacific region, North America and
Scandinavia and, in total, the Group’s wholesale
sales grew globally by 6 percent. In the EMEA region,
actions to control gray exports weakened wholesale
sales. Licensing income increased by 8 percent from
the record-high level of the comparable year.
Net sales in Finland were EUR 98,914 thousand
(98,237). Despite the challenging macro-economic
environment, retail sales increased by 3 percent.
Many changes in the Finnish store network affected
the comparable retail sales, which decreased by
1 percent. In spite of a strong third quarter, the
cumulative wholesale sales in Finland were 4 percent
lower than in the comparable year as a result of
weakened general consumer demand.
Net sales in the Asia-Pacific region increased by
17 percent to EUR 35,415 thousand (30,309). The
growth was attributable, in particular, to increased
wholesale sales, partly boosted by the opening of
new markets but also to increased licensing income.
Wholesale sales in the market area increased by 15
percent, and in Japan, the most significant country
to Marimekko in this region, by 5 percent. In the
comparable year, wholesale sales in the region were
boosted by some of the wholesale deliveries in the
fourth quarter of 2021 being transferred to the first
quarter of 2022. Retail sales in the Asia-Pacific region
increased by 2 percent.
FINANCIAL RESULT
In 2023, the Group’s operating profit totaled EUR
31,400 thousand (30,236). Operating profit included
EUR 631 thousand (146) from items affecting
comparability. Comparable operating profit was
EUR 32,031 thousand (30,382). Operating profit was
improved especially by increased net sales. On the
other hand, higher fixed costs decreased operating
profit. Improved relative sales margin had a positive
effect on the operating profit.
Fixed costs in 2023 increased due to recruitments
made to strengthen the building blocks of
international growth as well as higher personnel costs
in the stores. Relative sales margin was improved by
increased licensing income and lower transport costs.
However, higher discounts resulting from weaker
general consumer demand and the tactical market
environment had a weakening impact on relative
sales margin.
5
Report of the Board of Directors 2023
Marketing expenses in 2023 were EUR 9,483
thousand (9,245), or 5 percent of the Group’s net
sales (6).
The Group’s depreciation amounted to EUR
9,180 thousand (9,651), representing 5 percent
of net sales (6).
In 2023, operating profit margin was 18.0 percent
(18.2) and comparable operating profit margin was
18.4 percent (18.2).
Net financial items in 2023 were EUR -1,663
thousand (-1,097), or 1 percent of net sales (1).
Financial items include exchange rate differences
amounting to EUR -626 thousand (-75), of which
EUR -497 thousand (-73) were unrealized.
The impact of lease liabilities on interest expenses
was EUR -1,020 thousand (-720).
The Group’s result before taxes in 2023 was EUR
29,737 thousand (29,139). Net result for the period
was EUR 23,601 thousand (22,708) and earnings per
share were EUR 0.58 (0.56).
BALANCE SHEET
The consolidated balance sheet total as at 31
December 2023 was EUR 123,258 thousand (114,587).
Equity was EUR 65,738 thousand (55,425), or EUR
1.62 per share (1.37).
Non-current assets at the end of the year stood
at EUR 37,259 thousand (36,108). Lease liabilities
amounted to EUR 32,294 thousand (31,824), and
financial liabilities were EUR 615 thousand (2,169).
In addition, the Group had unused committed credit
lines of EUR 31,932 thousand (14,591).
At the end of the year, net working capital was
EUR 24,345 thousand (20,557). Inventories were EUR
29,268 thousand (33,784).
CASHFLOW AND FINANCING
In 2023, cash flow from operating activities was EUR
29,427 thousand (20,141), or EUR 0.73 per share
(0.50). Cash flow before cash flow from financing
activities was EUR 27,402 thousand (19,142). Cash
flow before cash flow from financing activities
during the year was strengthened by the decrease
of inventories. On the other hand, cash flow was
negatively affected by higher current non-interest-
bearing trade receivables than in the comparison
year. Marimekko uses efficient internal credit
controls, letters of credit as well as customer credit
insurance in order to secure its receivables.
The Group’s cash and cash equivalents at the
end of the year amounted to EUR 37,044 thousand
(32,711). Dividends paid in 2023 totaled EUR 13,794
thousand (37,372). Return on capital employed
(ROCE) was at an excellent level, 33.0 percent (31.5).
The amount of interest-bearing credit facilities drawn
down was EUR 615 thousand (2,127). In addition,
the Group had unused committed credit lines of
EUR 31,932 thousand (14,591), as in January 2023,
with the continued general economic uncertainties,
Marimekko took additional short-term revolving credit
facilities, which include covenants, totaling EUR
16,000 thousand.
The Group’s equity ratio at the end of the
financial year was 54.1 percent (49.2). Gearing was
-6.3 percent (2.2). The ratio of net debt to 12-month
rolling EBITDA was -0.10 (0.03), i.e. well below the
company’s long-term goal, with the goal being a
maximum of 2.
INVESTMENTS
The Group’s gross investments in 2023 were EUR
2,033 thousand (999), or 1 percent of net sales (1).
The investments were mainly devoted to building
store and office premises as well as to digital
development. New lease agreements included in
balance sheet (IFRS 16) are not included in gross
investments in the review or comparison period.
RESEARCH AND DEVELOPMENT
Marimekko’s product design and development costs
arise from the design of collections and collaborations
on new materials and manufacturing methods. Design
costs are recorded in expenses.
STORE NETWORK
Omnichannel retail sales, operated by the company
itself or its partners, represents the core of
Marimekko’s distribution strategy. It is complemented
with select, and increasingly online, retailers to gain
scale and access to new customers. Even in the
digitalized business, physical stores play an important
role not only as a distribution channel but also as the
hearts of brand culture, supporting, in addition, sales
online and in other channels.
Good store locations that cater to its target
audience are essential for Marimekko. The operations
and efficiency of the store network are continuously
assessed and developed. In 2023, Marimekko entered
into three new markets operated by loose-franchise
partners: Singapore, Malaysia and Vietnam. Singapore
is an important global metropolis in South East Asia,
and the brand’s presence there has a wider impact in
Asia. Vietnam and Malaysia, in turn, are rapidly growing
markets, that offer interesting growth opportunities
for the brand. A total of 19 new Marimekko stores
or shop-in-shops were opened during the year, with
17 of them in Asia. In Copenhagen, a new flagship
store was opened and the Stockholm flagship store
was completely redesigned. Six stores around the
world were closed. In different markets, a total of 11
Marimekko pop-up stores were launched and both in
Finland and Thailand, Marimekko pop-up cafes served
customers. At the end of December, there were a total
of 167 Marimekko stores and shop-in-shops worldwide.
The stores’ net sales in each market are primarily
generated from sales to local customers, although
sales to tourists make up a significant portion of the
sales at certain central stores, especially during the
holiday seasons.
6
Report of the Board of Directors 2023
E-commerce plays an important role in
Marimekko’s omnichannel retail. Online sales in 2023
increased clearly. The company’s own and partner-
operated Marimekko webstores reach customers
in 35 countries. In addition, Marimekko also has
distribution through other online channels.
Digital service solutions are constantly increasing
the integration of e-commerce and in-store
retailing. For this reason, Marimekko reports its own
e-commerce net sales as part of retail sales and sales
through other online channels as part of wholesale
sales.
In order to accelerate its long-term international
growth, Marimekko continues to invest in its digital
and omnichannel business. The importance of online
sales in the company’s business will grow further, and
the shift to digital sales channels among customers
will influence Marimekko’s distribution channel
choices in the future.
SUSTAINABILITY
Marimekko’s operations and design philosophy
have always been based on a sustainable approach:
Marimekko wants to offer its customers timeless,
functional and high-quality products that bring them
long-lasting joy and that they will not want to throw
away. Determined sustainability efforts support the
company’s long-term success and sustainability has
been defined as one of the five strategic success
factors during the strategy period of 2023–2027.
The company’s sustainability strategy from 2021
to 2025 is built on three guiding principles as well
as related ambitious targets and a roadmap for the
entire value chain: timeless design brings joy for
generations to come, the products of tomorrow leave
no trace, and positive change through fairness and
equality. In 2023, the company’s activities included,
for example, work to increase organic and recycled
materials in its collections, lengthen the product
lifecycle as well as to promote innovations and
business models, which are in line with the principles
of the circular economy.
Statement of non-financial information
Marimekko issues a statement of non-financial
information for 2023 separately from the report of the
Board of Directors. The statement will be available at
Marimekko’s website company.marimekko.com and in
the Marimekko in year 2023 publication. Marimekko
reports in greater detail on its sustainability work and
on matters of the environment, health and safety in a
separate sustainability review published annually. The
review can be read on the company’s website. The
next review will be published in the second quarter of
2024.
PERSONNEL
In 2023, the number of employees, expressed as
full-time equivalents, averaged 462 (434). At the end
of the year, the Group had 468 (459) employees, of
whom 83 (76) worked outside Finland. The number of
employees working outside Finland was broken down
as follows: Scandinavia 33 (24), the EMEA region 0
(1), North America 16 (16) and the Asia-Pacific region
33 (35). The personnel at company-owned stores,
expressed as full-time equivalents, totaled 226 (218)
at the end of the year.
Salaries, wages and bonuses paid to personnel
amounted to EUR 26,245 thousand (24,155). In 2023,
the turnover of employees leaving was 11 percent (11).
More information on personnel and the development
of staff is available in the statement of non-financial
information.
MANAGEMENT
Board of Directors, management and auditors
Marimekko’s Annual General Meeting on 13 April 2023
appointed six members to the company’s Board of
Directors. Carol Chen, Mika Ihamuotila, Mikko-Heikki
Inkeroinen, Teemu Kangas-Kärki, Tomoki Takebayashi
and Marianne Vikkula were re-elected. From among
its members, the Board of Directors elected Mika
Ihamuotila as Chair of the Board and Teemu Kangas-
Kärki as Vice Chair of the Board.
From among its members, the Board of Directors
elected Teemu Kangas-Kärki as Chair and Mikko-
Heikki Inkeroinen and Marianne Vikkula as members
of the Audit and Remuneration Committee. All
members of the committee are independent of
the company and its significant shareholders.
The AGM re-elected KPMG Oy Ab, Authorized
Public Accountants, as the company’s auditor, with
Heli Tuuri, Authorized Public Accountant, as the
auditor with principal responsibility. It was decided
that the auditor’s fee will be paid as per invoice
approved by the company.
The following changes in the company’s
management took place in 2023. On 16 February
2023, Marimekko informed that Natacha Defrance
was appointed Senior Vice President of Sales in
Region East and member of the Management Group
and that General Counsel Essi Weseri was appointed
member of the Management Group as of 16 February
2023. The company also informed, on 2 November
2023, that it will merge its Digital Business unit
and IT organization to form a holistic Technology
unit and that Chief Digital Officer and member of
Marimekko Management Group Kari Härkönen will
step down from his position. Mikko-Heikki Inkeroinen
was appointed as new Chief Technology Officer and
member of the Management Group as of 29 January
2024. Inkeroinen resigned from his position as a
member of the Board of Directors of Marimekko on
the same date.
At the end of the year 2023, the company’s
Management Group comprised Tiina Alahuhta-Kasko
as Chair and Elina Anckar (Chief Financial Officer),
Rebekka Bay (Creative Director), Tina Broman (Chief
Supply Chain and Product Officer), Natacha Defrance
(Senior Vice President, Sales, Region East), Noora
Laurila (Senior Vice President, Sales, Region West),
7
Ownership by size of holding, 31 December 2023
Number of % of Number of shares % of holding
Number of shares shareholders shareholders and votes and votes
1–100 23,718 60.79 882,206 2.17
101–500 10,575 27.11 2,678,912 6.59
501–1,000 2,108 5.40 1,661,678 4.09
1,001–5,000 2,126 5.45 4,751,399 11.69
5,001–10,000 238 0.61 1,736,208 4.27
10,001–50,000 192 0.49 3,822,783 9.40
50,001–100,000 27 0.07 1,891,610 4.65
100,001–500,000 21 0.05 4,833,538 11.89
500,001– 9 0.02 18,390,836 45.24
Total 39,014 100.00 40,649,170 100.00
Ownership by sector, 31 December 2023
Number of shares % of holding
Owner and votes and votes
Nominee-registered and non-Finnish holders 5,560,500 13.68
Households 17,682,452 43.50
Financial and insurance corporations 4,984,793 12.26
Non-financial corporations and housing corporations 7,405,257 18.22
Non-profit institutions 304,272 0.75
General government 4,711,896 11.59
Total 40,649,170 100.00
Report of the Board of Directors 2023
Sanna-Kaisa Niikko (Chief Marketing Officer), Tanya
Strohmayer (Chief People Officer), Riika Wikberg
(Chief Business Development Officer) and Essi Weseri
(General Counsel) as members.
Corporate governance statement
The corporate governance statement for 2023 will
be issued separately from the report of the Board
of Directors. It will be available on the company’s
website and in the Marimekko in year 2023
publication.
Remuneration of the Board and management
The remuneration of Marimekko’s Board of Directors
and President & CEO is presented in more detail in
the Remuneration Report for 2023. Remuneration
Report will be available at Marimekko’s website and in
the Marimekko in year 2023 publication.
SHARES AND SHAREHOLDERS
Share capital and number of shares
Marimekko Corporation’s share is quoted in the
Consumer Discretionary sector of Nasdaq Helsinki
Ltd. Marimekko Corporation was listed on the I List of
the Helsinki Stock Exchange in March 1999 and on the
main list on 27 December 2002. Marimekko’s trading
code is MEKKO and its ISIN code is FI0009007660.
The company has one series of shares, each
conferring the same voting rights to their holders.
At the end of the financial year, the company’s fully
paid-up share capital, as recorded in the Trade
Register, amounted to EUR 8,040,000 and the
number of shares totaled 40,649,170.
Shareholdings
According to the book-entry register, Marimekko had
39,014 shareholders (36,616) at the end of December
2023. Of the shares, 13.68 percent (15.15) were owned
by nominee-registered or non-Finnish holders.
Monthly updated information on the largest
shareholders can be found on the company’s
website at company.marimekko.com under
Investors/Share information/Shareholders.
At the end of the financial year, members of
the Board of Directors and the Management Group
of the company either directly or indirectly owned
5,354,493 Marimekko shares corresponding to 13.17
percent of the number and voting rights of
the company’s shares. Updated information on
the management holdings can be found on the
company’s website at company.marimekko.com
under Investors/Share information/Shareholders/
Management’s shareholding.
Shareholder agreements
Marimekko has neither made nor is aware of any
shareholder agreements concerning the company’s
shares or other commitments agreeing on the
company’s ownership or the use of voting rights.
8
Report of the Board of Directors 2023
Largest shareholders according to the book-entry register, 31 December 2023
Number of shares % of holding
Owner and votes and votes
1. PowerBank Ventures Oy (Mika Ihamuotila) 5,088,500 12.52
2. Varma Mutual Pension Insurance Company 1,929,600 4.75
3. Ilmarinen Mutual Pension Insurance Company 1,926,940 4.74
4. Ehrnrooth Anna Sophia 1,651,885 4.06
5. Evli Finnish Small Cap Fund 1,066,418 2.62
6. Nordea Nordic Small Cap Fund 999,425 2.46
7. Oy Talcom Ab 505,000 1.24
8. Oy Etra Invest Ab 500,000 1.23
9. Elo Pension Insurance Company Ltd. 485,000 1.19
10. Alahuhta Matti 436,050 1.07
Total 14,588,818 35.88
Own shares
Marimekko did not acquire the company’s own
shares during the financial year. On 31 December
2023, Marimekko held 77,790 of its own shares,
corresponding to approximately 0.19 percent of the
total number of the company’s shares. Marimekko
shares held by the company carry no voting rights
and no entitlement to dividends.
Flagging announcements
There were no flagging announcements on
Marimekko shares in 2023.
Share trading and the company’s market
capitalization
In 2023, a total of 9,658,017 Marimekko shares
(14,263,348) were traded on Nasdaq Helsinki,
representing 23.76 percent (35.09) of the shares
outstanding. Share trading data takes into account
the new shares issued without payment following the
decision of the AGM on 12 April 2022. The total value
of the share turnover in the January-December period
was EUR 95,729,933 (171,076,384). The lowest price
of the share was EUR 8.56 (8.14), the highest was
EUR 13.60 (17.60) and the average price was EUR 9.91
(12.04). At the end of December, the closing price of
the share was EUR 13.31 (8.76).
The company’s market capitalization on 31
December 2023 was EUR 540,005,068, excluding
the Marimekko shares held by the company
(355,405,289).
Authorizations
The Annual General Meeting on 13 April 2023
authorized the Board of Directors to decide on
the acquisition of a maximum of 200,000 of the
company’s own shares in one or more instalments.
The maximum number of shares represents
approximately 0.5 percent of the total number of the
company’s shares. The shares would be acquired
with funds from the company’s non-restricted equity,
which means that the acquisition would reduce
funds available for distribution. The shares would
be acquired otherwise than in proportion to the
shareholdings of the shareholders through public
trading on Nasdaq Helsinki Ltd at the market price
prevailing at the time of acquisition and in accordance
with the rules and regulations of Nasdaq Helsinki Ltd.
The shares would be acquired to be used as a part
of the company’s incentive system, to be transferred
for other purposes or to be cancelled. The Board
of Directors is authorized to decide on all of the
other terms and conditions of the acquisition of the
shares. The authorization was not used in 2023. The
authorization is valid until 13 October 2024.
Furthermore, the AGM on 13 April 2023 authorized
the Board of Directors to decide on the issuance of
new shares and the transfer of the company’s own
shares in one or more instalments. The total number
of shares to be issued or transferred pursuant to
the authorization may not exceed 250,000 new or
the company’s own shares. The number of shares
represents approximately 0.6 percent of the total
number of the company’s shares. Pursuant to the
authorization, the Board may decide on a directed
share issue in deviation from the shareholders’ pre-
emptive rights for a weighty financial reason, such
as the company’s incentive system, personnel share
issue, developing the company’s capital structure,
using the shares as consideration in possible
company acquisitions or carrying out other business
transactions. The share issue may be subject to a
charge or free. A directed share issue can be free of
charge only if there is a particularly weighty financial
reason for the company and taking into account the
interests of all of the company’s shareholders. The
subscription price of the new shares and the amount
paid for the company’s own shares would be recorded
in the company’s reserve for invested non-restricted
equity. The Board of Directors is authorized to decide
on all of the other terms and conditions of the share
issue. The authorization was not used during the
period under review. The authorization is valid until 13
October 2024.
During the financial year, the Board of Directors
had no valid authorizations to issue convertible bonds
or bonds with warrants.
9
Report of the Board of Directors 2023
INFORMATION CONTAINED IN THE NOTES TO
THE FINANCIAL STATEMENTS
• Information on the Group’s personnel expenses is
disclosed in note 4.
• Financial risks are presented in note 20 and
information on financial instruments measured at
fair value is disclosed in note 17.
• Subsidiaries and related party transactions are
disclosed in note 19.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
Marimekko’s business exposes the company to
various risks. The risks and uncertainties presented
below have the potential to substantially weaken
Marimekko’s business conditions, sales, financial
results and position. Marimekko’s risk management
practices are described in the Corporate
Governance Statement.
The economic and political operating environment
The uncertainties related to the general
development of the global economy, such as the
risk of an economic recession, and geopolitical
tensions influence consumer confidence,
purchasing power and behavior in all of Marimekko’s
market areas. Declining consumer confidence
and purchasing power may have a significant
unfavorable impact on Marimekko’s sales and
profitability. This risk is emphasized in Finland and
Japan, which are the company’s biggest single
countries for business.
Geopolitical tensions can also affect
Marimekko’s procurement and logistics chains
and operating possibilities in certain countries.
Geopolitical tensions may lead to military action,
trade disputes, economic sanctions as well as
export and import restrictions that can affect the
reliability and efficiency of the company’s value
chain. Pandemics and epidemics may also have a
negative impact on Marimekko’s sales, profitability
and cash flow as well as the reliability and efficiency
of the company’s supply chain.
Sudden market movements, development of
inflation, changes in the price development of
production factors, exchange rates (particularly
the US dollar) and the company’s taxation, as well
as rising interest rates may affect Marimekko’s
financial position.
Marimekko is also exposed to labor market
disputes, and strikes and other labor market
disturbances may have a negative impact on the
company’s business.
Marimekko continuously monitors the
development of the economic and political
operating environment, takes various scenarios
into account in the management of the company’s
business, and adapts its operations as necessary.
The company’s strong balance sheet and stable
financial position introduce flexibility also in
exceptional circumstances. Risks are also mitigated
with diverse geographical presence throughout the
value chain.
The retail environment, customers and partners
The company’s growth in the longer term is based
primarily on omnichannel retail: on increasing
e-commerce, on partner-led retail in Asia, as well
as on enhancing the sales per square meter of
existing stores in the company’s main market areas.
In addition, the company expands its distribution
through physical and digital wholesale channels
appropriate for the Marimekko brand. The Asia-
Pacific region is Marimekko’s second-biggest market,
and especially Asia plays an important role in the
company’s international growth.
The importance of omnichannel business in the
retail trade has been emphasized over the past few
years. International e-commerce has increased the
options available to consumers and the significance
of big e-commerce operators. In addition, the
coronavirus pandemic accelerated the digitization of
retail and intensified the financial difficulties of some
traditional wholesale customers in the fashion sector,
such as department stores and multi-brand retailers.
Structural changes in the retail environment may
have an impact on Marimekko’s distribution channel
decisions, the prioritization of different distribution
channels, sales and profitability. The structural
changes can also lead to the creation of new revenue
models. Risks related to the sales structure may
have an impact on the company’s financial position.
Maintaining competitiveness in a rapidly changing
operating environment being revolutionized by
digitization demands agility, efficiency, flexibility and
the constant re-evaluation of operations from the
company.
Major partnership choices, partnering contracts
and other collaboration agreements involve
considerable risks. Store lease agreements in Finland
and abroad also contain risks. With the company’s
internationalization and the growing interest in its
brand, risks related to gray exports may increase,
which may have an impact on the company’s sales
and profitability. In addition, risks related to changes
in the company’s cost structure as well as the liquidity
of customers and partners may also have an impact
on the company’s financial position.
Other significant risks include risks related
to changes in the company’s design, product
assortment and product distribution and pricing.
Increased inflation creates pressure to raise prices
while the uncertainties in the global economy and
the operating environment may affect consumers’
purchasing power and behavior negatively. Fast
reactivity and competitive pricing are crucial in a
tactical operating environment. The company’s
ability to design, develop and commercialize new
products that meet consumers’ expectations while
ensuring the effectivity and quick reactions in the
production, sourcing and logistics as well as an active
work towards sustainability has an impact on the
company’s sales and profitability.
10
Report of the Board of Directors 2023
Supply chain
The risks related to Marimekko’s supply chain are
associated especially with production, procurement
and logistics processes and their reliability, flexibility
and efficiency, fluctuations in the prices of raw
materials and other factors of production as well as
the availability and price of logistics. For example,
geopolitical tensions (such as shipping disruptions
in the Red Sea due to attacks on vessels), cyber
security incidents and possible epidemics and
pandemics as well as other uncertainties in the global
economy may cause even significant disruptions
in production and logistics chains that may have a
negative impact on the company’s sales, profitability
and cash flow. In addition, fires, natural disasters
and machine breakdowns can cause damages to
supplier’s factories, Marimekko’s own textile printing
factory or the operations of the logistics chain.
Overall, it is of utmost importance to safeguard the
operational reliability of the company’s own printing
factory in all circumstances. The availability of biogas,
among other materials, is critical to the operations
of the company’s own printing factory. The company
has a business interruption insurance for assets
and business operations that covers insured risks of
damage in line with the terms and conditions of the
insurance.
Higher costs of raw materials, energy and other
factors of production may affect Marimekko’s sales
and profitability. Early commitment to product
orders from supplier partners, which is typical of
the industry, means that changes in costs affect the
company with a delay. These early commitments have
partly been further emphasized by the exceptional
situations, such as the Russian invasion of Ukraine
and shipping disruptions on the Red Sea, undermining
the company’s ability to optimize product orders and
respond to rapid changes in demand and consumer
behavior, which also increases risks related to
inventory management.
In addition to supply chain disruptions and even
earlier commitment to product orders, risks related to
inventory and product flow management increase as
product distribution is expanded and operations are
diversified, which may have a weakening impact on
the company’s sales, cash flow as well as on relative
profitability. Substantial non-recurring wholesale
promotions can also increase risks related to
procurement, transport and inventory management,
especially in exceptional circumstances. Any delays
or disturbances in supply, or fluctuations in the
quality of products, may have a harmful impact on
business, also on substantial non-recurring wholesale
promotions.
Marimekko works actively to ensure functioning
production and logistics chains, to avoid delays, to
mitigate the negative impacts of generally increased
costs, and to enhance inventory management.
Sustainability
Enhancing sustainability is increasingly important
for competitiveness in Marimekko’s industry, which
can have an impact on the company’s sales and
profitability, as versatile investments are required
for the enhancement. Risks and opportunities with
regard to Marimekko’s sustainability work and targets
include, for example, changes in consumer behavior
and in the company’s product portfolio weightings,
continuously evolving best practices in the industry
as well as increasing regulation that may affect, for
example, the company’s products, communications
and the value chain more broadly. The company’s
ability to anticipate changes, react to them and
actively advance its sustainability targets throughout
the value chain plays a key role with regard to the
company’s competitiveness. Compliance with
responsible business practices and legislation is also
important in maintaining the trust of customers and
other stakeholders; any failures or errors in this area
will involve reputation, financial liability and business
risks.
Marimekko primarily uses supplier partners to
manufacture its products. Global supply chains in
the fashion and design business are complex, which
makes it challenging for companies to ensure the
sustainability of the entire value chain despite active
sustainability work. Regarding the sustainability
elements of manufacturing, especially social aspects
related to the supply chain (e.g. human rights, working
conditions and remuneration) and environmental
aspects (e.g. production methods and raw materials
and chemicals used) as well as transparent
communications on these issues in compliance with
continuously increasing legislation, are of growing
significance to customers. These sustainability topics
apply to Marimekko’s sourcing and the company’s
own production as well as to licensed products.
The environment and climate change
Climate change increases the likelihood of extreme
weather phenomena and natural disasters, such as
floods, forest fires, wildfires and storms. Extreme
weather phenomena and natural disasters pose a
risk to the operational reliability and efficiency of
Marimekko’s value chain. Climate change-related
heatwaves, drought, water shortages, soil depletion
and other changes may, in turn, affect the availability
and price of the raw materials used in Marimekko’s
products, such as cotton. Extreme weather
phenomena and natural disasters may also affect
the availability of products if they cause damage to
the company’s suppliers’ factories, the company’s
own textile printing factory or hamper the logistics
chains. In addition, Marimekko has stores and offices
in areas in which extreme weather phenomena or
natural disasters may occur, and if they damage
stores or offices or cause momentary changes in
consumer behavior, it may result in lost sales as well
as expenses.
Risks related to climate change are managed by,
for example, increasing the share of materials with
lower emission intensity and water consumption in
Marimekko’s collections and exploring new material
and production method innovations. Marimekko’s
11
Report of the Board of Directors 2023
insurance program covers insured risks of damage in
line with the terms and conditions of the insurance.
Compliance
Compliance with the applicable legislation,
regulations and ethical business practices, as well
as product safety and quality, are essential for
Marimekko. Potential allegations, failures or mistakes
can lead to, for example, reputation and business
risks for the company, fines, claims for damages, or
criminal charges. Internationalization increases the
regulations applicable to the company’s operations
and elevates the risk of potential allegations, failures
and mistakes. Risks are prevented by focusing on
sustainability and compliance work as well as by
ensuring product safety and continuous quality
control.
Intellectual property rights
Intellectual property rights play a vital role in the
company’s success, and the company’s ability to
manage and protect these rights may have an impact
on the company’s business, value and reputation.
Agreements with freelance designers and fees
paid to designers based on these agreements
are also an essential part of the management of
intellectual property rights. As the company grows
and internationalizes, the risks related to intellectual
property rights, in particular to its most renowned
prints, may increase.
Information security risks
There are risks associated with information system
reliability, dependability and compatibility. With
digitization, internationalization and Russia’s war,
cybercrime and cyber attacks as well as various
other risks related to cybersecurity and personal
data protection have also increased. DoS attacks,
malfunctions in data communications or, for example,
in the company’s own online store, and system
changes may disrupt business or result in lost
sales. Personal data breaches can lead to claims
for damages, fines and reputation risks. Marimekko
manages risks with the systematic management
and development of cybersecurity. In addition,
the company has a cybersecurity insurance
program.
Personnel and competence
Potential new serious coronavirus infection waves
or new epidemics or pandemics may increase risks
related to taking care of the health and safety of
employees and securing sufficient workforce in cases
of sickness.
As Marimekko is a small company, risks related
to securing the necessary talent for international
growth as well as risks related to key personnel can
be significant. Marimekko’s competence development
efforts include training of personnel, succession
planning and performance management. These
measures support a performance-oriented, diverse
and inclusive culture.
MARKET OUTLOOK AND GROWTH TARGETS
FOR 2024
The uncertainties related to the development of the
global economy, such as geopolitical tensions and
their impact on the general economic situation and
general cost inflation influence consumer confidence,
purchasing power and behavior and, as a result,
can have an impact on Marimekko’s business in
2024, especially in the important domestic market
of Finland. Different exceptional situations, such as
Russia’s war in Ukraine and shipping disruptions on
the Red Sea, may cause even significant disruptions
in production and logistics chains, and may thus
have a negative impact on the company’s sales,
profitability and cash flow.
Finland, Marimekko’s important domestic market,
traditionally represents about half of the company’s
net sales. Sales in Finland in 2024 are impacted
by the weak general economy and low consumer
confidence as well as the development of purchasing
power and behavior. The tactical operating
environment also has an impact on the business.
In addition, the size and timing of non-recurring
promotional deliveries in wholesale create volatility
to Finnish sales estimate. Despite the weak market
situation, net sales in Finland are expected to be
approximately at the level of the previous year.
International sales are estimated to grow in 2024.
In the strategy period 2023–2027, Marimekko will
focus on Asia as the most important geographical
area for international growth. In 2024, net sales in
the Asia-Pacific region, Marimekko’s second-largest
market, are expected to increase. Japan is clearly the
most significant country in this region to Marimekko
and already has a very comprehensive network of
Marimekko stores. All brick-and-mortar Marimekko
stores and most online stores in Asia are partner-
owned. In 2024, the aim is to open approximately
10–15 new Marimekko stores and shop-in-shops, and
most of the planned openings will be in Asia.
Because of the seasonal nature of Marimekko’s
business, the major portion of the company’s euro-
denominated net sales and operating result are
traditionally generated during the second half of the
year. In 2024, Marimekko’s net sales are expected
to grow. Net sales in the first quarter of the year are
estimated to be approximately at the level of the
previous year, as wholesale sales, for example, will be
partly impacted by some of the wholesale deliveries in
Finland in the first quarter of 2024 being transferred
to the fourth quarter of 2023.
Licensing income in 2024 is forecasted to be
approximately at the previous year’s record level.
Marimekko develops its business with a long-term
view and aims to scale its profitable growth in the
upcoming years. In 2024, fixed costs are expected to
be up on the previous year. The general cost inflation
continues to affect Marimekko in 2024. Personnel
expenses are impacted, for example, by general pay
increases in different markets. In 2024, Marimekko
is celebrating the 60th anniversary of the Unikko
12
Report of the Board of Directors 2023
pattern, which provides the company with a unique
opportunity to grow international awareness through,
for example, various events around the world.
Marketing expenses are expected to increase (2023:
EUR 9.5 million).
Early commitments to product orders from
supplier partners, typical of the industry but partly
further emphasized by the exceptional situations,
undermine the company’s ability to optimize product
orders and respond to rapid changes in demand and
consumer behavior, which also increases risks related
to inventory management and relative profitability.
The domestic non-recurring wholesale promotional
deliveries also raise inventory risks. Marimekko
works actively to ensure functioning production
and logistics chains, to avoid delays, to mitigate the
negative impacts of generally increased costs, and to
enhance inventory management.
Marimekko is closely monitoring the general
economic situation, the development of consumer
confidence and purchasing power and the impacts
of different exceptional situations, and the company
will adjust its operations and plans according to the
circumstances.
FINANCIAL GUIDANCE FOR 2024
The Marimekko Group’s net sales for 2024 are
expected to grow from the previous year (2023: EUR
174.1 million). Comparable operating profit margin is
estimated to be approximately some 16–19 percent
(2023: 18.4 percent). Development of consumer
confidence and purchasing power, particularly in
Finland, global supply chain disruptions and the
general inflation development cause volatility to the
outlook for 2024.
Uncertainties related to the development of net
sales and result are described in more detail in the
Major risks and factors of uncertainty section.
DIVIDEND POLICY
Marimekko aims to pay a regular dividend every year.
The dividends to be paid and their amount and the
payout date depend on the company’s financial result,
financial situation, equity ratio, need for working
capital and other factors.
Marimekko intends to follow a stable and active
dividend policy that by and large reflects the
company’s earnings trend. Marimekko’s goal is to
distribute as dividends at least half of earnings per
share annually.
THE BOARD OF DIRECTORS’ PROPOSAL FOR
DIVIDENDS
On 31 December 2023, the parent company’s
distributable funds amounted to EUR 60,604,858.19;
profit for the financial year was EUR 25,359,472.05.
The Board of Directors proposes to the Annual
General Meeting that a dividend of EUR 0.37 per
share be paid for 2023.
The Board proposes 18 April 2024 as the dividend
payout record date and 25 April 2024 as the dividend
payout date. A dividend of EUR 0.34 per share was
paid for 2022.
ANNUAL GENERAL MEETING
The Annual General Meeting 2024 is planned to be
held on Tuesday, 16 April 2024 at 2.00 p.m.
Helsinki, 14 February 2024
Marimekko Corporation
Board of Directors
13
Key figures of the Group and formulas for the key figures
Return on equity (ROE)
%
Return on capital employed (ROCE)
%
Key financial figures
2023 2022 2021
Net sales, EUR 1,000 174,105 166,515 152,227
Change in net sales, % 4.6 9.4 23.2
Operating profit, EUR 1,000 31,400 30,236 31,249
% of net sales 18.0 18.2 20.5
Comparable operating profit, EUR 1,000 32,031 30,382 31,249
% of net sales 18.4 18.2 20.5
Financial income, EUR 1,000 393 1,241 851
Financial expenses, EUR 1,000 -2,056 -2,339 -1,403
Result before taxes, EUR 1,000 29,737 29,139 30,697
% of net sales 17.1 17.5 20.2
Taxes, EUR 1,000 6,137 6,430 6,289
Net result for the period, EUR 1,000 23,601 22,708 24,408
Balance sheet total, EUR 1,000 123,258 114,587 132,887
Net working capital, EUR 1,000 24,345 20,557 7,235
Interest-bearing liabilities, EUR 1,000 32,909 33,993 32,277
Shareholders’ equity, EUR 1,000 65,738 55,425 69,833
Net debt / EBITDA -0.10 0.03 -0.64
Return on equity (ROE), % 39.0 36.3 40.0
Return on capital employed (ROCE), % 33.0 31.5 33.0
Equity ratio, % 54.1 49.2 53.3
Gearing, % -6.3 2.2 -39.3
Gross investments, EUR 1,000 2,033 999 207
% of net sales 1.2 0.6 0.1
Employee salaries, wages and bonuses, EUR 1,000 26,245 24,155 21,273
Average personnel 462 434 401
Personnel at the end of the financial year 468 459 409
0
10
20
30
40
50
2021
40.0 36.3 39.0
2022 2023
0
10
20
30
40
2021
33.0 33.0
31.5
2022 2023
14
Key figures of the Group and formulas for the key figures
Per-share key figures
2023 2022 2021
Earnings per share (EPS), EUR¹ 0.58 0.56 0.60
Equity per share, EUR¹ 1.62 1.37 1.72
Dividend per share, EUR¹ ² 0.37² 0.34 0.72
Dividend per profit, %² 63.8² 60.7 119.6
Effective dividend yield, %² 2.8² 3.9 4.3
P/E ratio 22.9 15.5 28.1
Share issue adjusted average number of shares 40,571,380 40,623,999 40,554,370
Share issue adjusted number of shares at the end of the period 40,571,380 40,571,380 40,582,370
Effective dividend yield
%
P/E ratio
EUR
Earnings per share
EUR
Dividend per share
EUR
¹ Per-share key figures have been calculated and the figures for the comparable year have been restated using the new total number of shares following the issuance of
shares without payment (share split), in accordance with the decision made by the AGM on 12 April 2022
² The Board of Directors of Marimekko proposed on 14 February 2024 to the AGM on 16 April 2024 that a dividend of EUR 0.37 per share is paid for 2023
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2021
0.60 0.56 0.58
2022 2023
0
1
2
3
4
5
2021
4.3
3.9
2.8
2022 2023²
0
5
10
15
20
25
30
35
2021
2 8.1
15.5
22.9
2022 2023
0
0.2
0.4
0.6
0.8
2021
0.72
0.34
0.37
2022 2023²
15
Comparable EBITDA, EUR:
Operating result - depreciation - impairments - items affecting comparability
Comparable operating result, EUR:
Operating result - items affecting comparability in operating result
Comparable operating result margin, %:
(Operating result - items affecting comparability in operating result) x 100 / Net sales
Earnings per share (EPS), EUR:
(Profit before taxes - income taxes) / Adjusted number of shares (average for the period under review)
Comparable earnings per share (EPS), EUR:
(Comparable profit before taxes - income taxes on comparable profit) / Adjusted number of shares (average for
the period under review)
Equity per share, EUR:
Shareholders’ equity / Number of shares, 31 December
Return on equity (ROE), %:
Rolling 12 months (Profit before taxes - income taxes) x 100 / Shareholders’ equity (average)
Return on capital employed (ROCE), %:
Rolling 12 months (Profit before taxes + interest and other financial expenses) x 100 / Balance sheet total - non-interest-
bearing liabilities (average)
Equity ratio, %:
Shareholders’ equity x 100 / (Balance sheet total - advances received)
Gearing, %:
Interest-bearing net debt x 100 / Shareholders’ equity
Net working capital, EUR:
Inventories + trade and other receivables + current tax assets - tax liabilities - current provisions - trade and other payables
Net debt / EBITDA:
Interest-bearing net debt / Comparable rolling 12-month EBITDA
Formulas for key figures
Key figures of the Group and formulas for the key figures
Reconciliation of alternative key figures to IFRS
(EUR 1,000) 2023 2022 2021
Items affecting comparability
Employee benefit expenses -631 -146 -
Items affecting comparability in operating profit -631 -146 -
EBITDA 40,580 39,887 43,123
Employee benefit expenses 631 146 -
Comparable EBITDA 41,211 40,033 43,123
Operating profit 31,400 30,236 31,249
Employee benefit expenses 631 146 -
Comparable operating profit 32,031 30,382 31,249
Net sales 174,105 166,515 152,227
Operating profit margin, % 18.0 18.2 20.5
Comparable operating profit margin, % 18.4 18.2 20.5
Items affecting comparability are exceptional transactions that are not related to the company’s regular
business operations. The Group’s management exercises its discretion when making decisions regarding the
classification of items affecting comparability. These items include, for example, restructuring costs, expenses
related to ending employment contracts as well as exceptional and unexpected events.
16
Consolidated financial statements, IFRS
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) Note 1 Jan.–31 Dec. 2023 1 Jan.–31 Dec. 2022
NET SALES 1. 174,105 166,515
Other operating income 2. 91 108
Change in inventories of finished goods
and work in progress -4,489 7,721
Raw materials and consumables 3. -63,190 -72,115
Employee benefit expenses 4. -33,512 -30,846
Depreciation and impairments 5. -9,180 -9,651
Other operating expenses 6. -32,425 -31,497
OPERATING PROFIT 31,400 30,236
Financial income 7. 393 1,241
Financial expenses 8. -2,056 -2,339
-1,663 -1,097
RESULT BEFORE TAXES 29,737 29,139
Income taxes 9. -6,137 -6,430
NET RESULT FOR THE PERIOD 23,601 22,708
Distribution of net result to equity holders
of the parent company 23,601 22,708
Basic and diluted earnings per share
calculated on the result attributable to equity
holders of the parent company, EUR 10. 0.58 0.56
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 1 Jan.–31 Dec. 2023 1 Jan.–31 Dec. 2022
Net result for the period 23,601 22,708
Items that could be reclassified to profit or loss
at a future point in time
Change in translation difference 90 -40
COMPREHENSIVE RESULT FOR THE PERIOD 23,691 22,668
Distribution of net result to equity holders of the parent company 23,691 22,668
The notes are an integral part of the financial statements.
17
Consolidated financial statements, IFRS
CONSOLIDATED BALANCE SHEET
(EUR 1,000) Note 31 Dec. 2023 31 Dec. 2022
ASSETS
NON-CURRENT ASSETS
Intangible assets 11.1 453 288
Tangible assets 11.2 35,100 34,560
Other financial assets 11.3, 17. 595 512
Deferred tax assets 14. 1,110 748
CURRENT ASSETS
Inventories 12.1 29,268 33,784
Trade and other receivables 12.2 19,688 11,983
Cash and cash equivalents 17. 37,044 32,711
ASSETS, TOTAL 123,258 114,587
(EUR 1,000) Note 31 Dec. 2023 31 Dec. 2022
SHAREHOLDERS’ EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
OF THE PARENT COMPANY
Share capital 13. 8,040 8,040
Reserve for invested non-restricted equity 13. 1,228 1,228
Treasury shares 13. -541 -541
Translation differences -32 -122
Retained earnings 57,043 46,820
Shareholders’ equity, total 65,738 55,425
NON-CURRENT LIABILITIES
Lease liabilities 15.1, 20. 24,984 25,277
CURRENT LIABILITIES
Trade and other payables 16. 24,599 24,752
Current tax liabilities 12 416
Lease liabilities 15.2, 20. 7,309 6,547
Financial liabilities 17., 20. 615 2,169
Liabilities, total 57,520 59,162
SHAREHOLDERS’ EQUITY AND LIABILITIES, TOTAL 123,258 114,587
The notes are an integral part of the financial statements.
18
Consolidated financial statements, IFRS
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) 1 Jan.–31 Dec. 2023 1 Jan.–31 Dec. 2022
CASH FLOW FROM OPERATING ACTIVITIES
Net result for the period 23,601 22,708
Adjustments
Depreciation and impairments 9,180 9,651
Financial income and expenses 1,663 1,097
Taxes 6,137 6,430
Share-based payments 417 750
Cash flow before change in working capital 40,997 40,636
Change in working capital -3,342 -11,212
Increase (-) / decrease (+) in current non-interest-bearing
trade receivables -7,690 49
Increase (-) / decrease (+) in inventories 4,449 -7,809
Increase (+) / decrease (-) in current
non-interest-bearing liabilities -101 -3,452
Cash flow from operating activities before financial items and taxes 37,655 29,424
Paid interest and payments on other financial expenses -1,532 -1,130
Interest received and payments on other financial income 223 166
Taxes paid -6,919 -8,319
CASH FLOW FROM OPERATING ACTIVITIES 29,427 20,141
(EUR 1,000) 1 Jan.–31 Dec. 2023 1 Jan.–31 Dec. 2022
CASH FLOW FROM INVESTING ACTIVITIES
Investments in tangible and intangible assets -2,025 -999
CASH FLOW FROM INVESTING ACTIVITIES -2,025 -999
CASH FLOW FROM FINANCING ACTIVITIES
Short-term loans drawn 149 1,049
Short-term loans repaid -1,562 -665
Acquisition of treasury shares - -454
Payments of lease liabilities -7,381 -8,485
Dividends paid -13,794 -37,372
CASH FLOW FROM FINANCING ACTIVITIES -22,588 -45,927
Change in cash and cash equivalents 4,814 -26,784
Cash and cash equivalents at the beginning of the period 32,711 59,726
Effects of exchange rate fluctuations -482 -230
Cash and cash equivalents at the end of the period 37,044 32,711
The notes are an integral part of the financial statements.
19
Consolidated financial statements, IFRS
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Equity attributable to equity holders of the parent company
Reserve for invested
Treasury Translation Retained Shareholders’
(EUR 1,000) Share capital non-restricted equity shares differences earnings equity total
Shareholders’ equity, 1 Jan. 2022 8,040 1,228 -210 -81 60,856 69,833
Comprehensive result
Net result for the period 22,708 22,708
Translation differences -40 -40
Total comprehensive result for the period -40 22,708 22,668
Transactions with owners
Dividends paid -37,372 -37,372
Share-based payments 123 627 750
Acquisition of own shares -454 -454
Shareholders’ equity, 31 Dec. 2022 8,040 1,228 -541 -122 46,820 55,425
Shareholders’ equity, 1 Jan. 2023 8,040 1,228 -541 -122 46,820 55,425
Comprehensive result
Net result for the period 23,601 23,601
Translation differences 90 90
Total comprehensive result for the period 90 23,601 23,691
Transactions with owners
Dividends paid -13,794 -13,794
Share-based payments 417 417
Shareholders’ equity, 31. Dec. 2023 8,040 1,228 -541 -32 57,043 65,738
The notes are an integral part of the financial statements.
20
Consolidated financial statements, IFRS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ACCOUNTING POLICY APPLIED IN THE
CONSOLIDATED FINANCIAL STATEMENTS
21
Consolidated financial statements, IFRS
22
Consolidated financial statements, IFRS
23
Consolidated financial statements, IFRS
24
Consolidated financial statements, IFRS
25
Consolidated financial statements, IFRS
26
Consolidated financial statements, IFRS
27
Consolidated financial statements, IFRS
28
Consolidated financial statements, IFRS
11. NON-CURRENT ASSETS
29
Consolidated financial statements, IFRS
30
Consolidated financial statements, IFRS
31
11.2 Tangible assets
2022
Right-of-use Right-of-use assets, Advance payments
Buildings and Machinery and assets, buildings machinery and and acquisitions
(EUR 1,000) Land structures equipment and structures equipment in progress Total
Acquisition cost, 1 Jan. 2022 55 6,945 22,360 61,693 448 91,501
Translation differences 16 169 68 253
Increases 330 408 9,863 22 202 10,825
Decreases -1,185 -2,888 -4,073
Transfers between categories 121 -121
Acquisition cost, 31 Dec. 2022 55 6,106 20,170 71,624 470 81 98,507
Accumulated depreciation, 1 Jan. 2022 5,113 20,537 32,320 344 58,314
Translation differences 16 173 123 312
Accumulated depreciation of decreases -1,185 -2,888 -4,073
Depreciation during the financial year 228 473 8,623 68 9,393
Accumulated depreciation, 31 Dec. 2022 4,171 18,296 41,067 412 63,946
Book value, 31 Dec. 2022 55 1,935 1,874 30,557 59 81 34,560
12. CURRENT ASSETS
Consolidated financial statements, IFRS
32
Consolidated financial statements, IFRS
33
Consolidated financial statements, IFRS
34
Consolidated financial statements, IFRS
35
¹ Marimekko Corporation has branch in France.
² Marimekko AB has branches in Norway and Denmark.
³ Fee paid to Mika Ihamuotila for half-time duty pursuant to a separate service agreement.
Consolidated financial statements, IFRS
36
Consolidated financial statements, IFRS
37
Consolidated financial statements, IFRS
38
Consolidated financial statements, IFRS
39
Parent company financial statements, FAS
PARENT COMPANY INCOME STATEMENT
(€) Note 1 Jan.–31 Dec. 2023 1 Jan.–31 Dec. 2022
NET SALES 1. 168,742,808.88 160,601,405.90
Other operating income 2. 86,355.88 102,306.81
Change in inventories of finished goods and work in progress -4,735,944.43 7,099,917.90
Materials and services 3. -62,082,858.54 -71,610,777.87
Personnel expenses 4. -26,039,583.87 -24,658,905.29
Depreciation and impairments 5. -1,677,494.37 -1,425,586.83
Other operating expenses 6. -42,430,207.49 -41,272,819.79
OPERATING PROFIT 31,863,076.06 28,835,540.83
Financial income and expenses 7. -91,439.55 84,806.78
RESULT BEFORE APPROPRIATIONS AND TAXES 31,771,636.51 28,920,347.61
Appropriations 8. -172,809.00 -213,470.86
Income taxes 9. -6,239,355.46 -5,856,825.98
NET RESULT FOR THE PERIOD 25,359,472.05 22,850,050.77
40
Parent company financial statements, FAS
PARENT COMPANY BALANCE SHEET
(€) Note 31 Dec. 2023 31 Dec. 2022
ASSETS
FIXED ASSETS
Intangible assets 10.1 5,943,073.44 5,001,939.84
Tangible assets 10.2 2,091,294.81 1,955,619.63
Investments 10.3
Participations in Group companies 1,939,748.32 1,905,837.91
Other shares and participations 271,425.58 188,531.38
Other receivables 323,854.00 2,535,027.90 323,854.00 2,418,223.29
FIXED ASSETS, TOTAL 10,569,396.15 9,375,782.76
CURRENT ASSETS
Inventories 11. 26,342,614.37 31,017,549.13
Current receivables 12. 32,485,912.66 22,199,051.61
Cash in hand and at banks 32,348,915.99 26,616,403.29
CURRENT ASSETS, TOTAL 91,177,443.02 79,833,004.03
ASSETS, TOTAL 101,746,839.17 89,208,786.79
(€) Note 31 Dec. 2023 31 Dec. 2022
SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY 13.
Share capital 8,040,000.00 8,040,000.00
Reserve for invested non-restricted equity 1,227,957.00 1,227,957.00
Retained earnings 34,017,429.14 24,961,647.57
Net result for the period 25,359,472.05 22,850,050.77
SHAREHOLDERS’ EQUITY, TOTAL 68,644,858.19 57,079,655.34
ACCUMULATED APPROPRIATIONS 14. 1,296,453.29 1,123,644.29
LIABILITIES 15.
Current liabilities 31,805,527.69 31,005,487.16
LIABILITIES, TOTAL 31,805,527.69 31,005,487.16
SHAREHOLDERS’ EQUITY AND LIABILITIES, TOTAL 101,746,839.17 89,208,786.79
41
Parent company financial statements, FAS
PARENT COMPANY CASH FLOW STATEMENT
(€) 1 Jan.–31 Dec. 2023 1 Jan.–31 Dec. 2022
CASH FLOW FROM OPERATIONS
Net result for the period 25,359,472.05 22,850,050.77
Depreciation and impairments 1,677,494.37 1,425,586.83
Change in depreciation difference 172,809.00 213,470.86
Financial income and expenses 91,439.55 -84,806.78
Taxes 6,239,355.46 5,856,825.98
Cash flow before change in working capital 33,540,570.43 30,261,127.66
Change in working capital
Increase (-) / decrease (+) in current non-interest-bearing
trade receivables -10,025,658.64 -56,970.47
Increase (-) / decrease (+) in inventories 4,674,934.76 -7,197,519.24
Increase (+) / decrease (-) in current
non-interest-bearing liabilities 1,206,888.05 -2,613,094.07
Cash flow from operations before financial items and taxes 29,396,734.60 20,393,543.88
Paid interest and payments on other financial expenses -328,254.85 -275,737.04
Interest received and payments on other financial income 612,175.94 485,016.94
Taxes paid -6,659,352.23 -7,878,413.93
CASH FLOW FROM OPERATIONS 23,021,303.46 12,724,409.85
(€) 1 Jan.–31 Dec. 2023 1 Jan.–31 Dec. 2022
CASH FLOW FROM INVESTMENTS
Investments in tangible and intangible assets -2,754,303.15 -2,753,188.59
Purchase of subsidiary shares -33,910.41 -
Change in loan receivables -407,112.71 -
CASH FLOW FROM INVESTMENTS -3,195,326.27 -2,753,188.59
CASH FLOW FROM FINANCING
Acquisition of treasury shares - -453,644.41
Dividends paid -13,794,269.20 -37,372,208.03
CASH FLOW FROM FINANCING -13,794,269.20 -37,825,852.44
Change in cash and cash equivalents 6,031,707.99 -27,854,631.18
Cash and cash equivalents at the beginning of the financial year 26,616,403.29 54,676,657.68
Effects of exchange rate fluctuations -299,195.29 -205,623.21
Cash and cash equivalents at the end of the financial year 32,348,915.99 26,616,403.29
42
Parent company financial statements, FAS
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
ACCOUNTING POLICY
Marimekko Corporation’s financial statements have
been prepared in accordance with the legislation and
regulations that are in force in Finland. The financial
year of the company is the calendar year.
Valuation of fixed assets
Fixed assets are recorded in the balance sheet at the
original acquisition cost less depreciation according
to plan. Depreciation according to plan has been
calculated using straight-line depreciation on the
estimated useful life of the fixed assets.
Periods of depreciation:
· intangible rights 5 years
· computer software 3–5 years
· other capitalized expenditure 3–15 years
· buildings 30 years
· machinery and equipment 5–15 years.
Shares have been valuated at fair value in
accordance with IFRS 9 standard.
More information on valuation can be found in the
notes to the consolidated financial statements.
Derivatives
The company has derivatives that are valued in fair
value through profit and loss in accordance with IFRS,
KILA’s (Finnish accounting board’s) statement and
Finnish Accounting law 5:2a. Hedge accounting is
not applied to derivatives. According to the fair value
hierarchy, currency derivatives are valued according
to level 2, where the fair values are based on
observable inputs on the balance sheet date, which
are other than quoted prices.
Inventories
Inventories are presented at the acquisition cost or
at the lower probable net realisation value. The value
of inventories does not include any share of fixed
purchasing and manufacturing costs.
Pension commitments
The pension security of the company’s personnel has
been arranged under the statutory employee pension
plan (TyEL) through a pension insurance company.
Items denominated in foreign currency
The foreign-currency-denominated receivables and
liabilities of the company have been converted to
euro amounts using the exchange rate quoted by the
European Central Bank on the closing date.
Revenue recognition
Revenue is recognized when the buyer obtains control
of the product – that is when the significant risks and
rewards of ownership have been transferred to the
buyer. In wholesale, this is mainly the moment when
the goods are handed over to the customer as set
forth in the agreed delivery clause. In wholesale and
export trade, the terms of delivery determine the
point of time when the customer obtains control of
the goods. In retail where cash or a credit card is used
as means of payment, the income is recognized at the
time of sale.
More information on revenue recognition can
be found in the notes to the consolidated financial
statements.
Leasing
Leasing payments are treated as rental expenditures.
Appropriations
Appropriations consist of depreciation differences
due to differences between accounting and tax
depreciation of tangible and intangible assets.
Taxes
Income taxes include income taxes calculated on
the result for the financial year and taxes paid or
refunded in previous financial years. Deferred taxes
are not recognized in the parent company’s income
statement and balance sheet.
Branches
Branches are consolidated into Marimekko
Corporation’s accounts and intercompany items have
been eliminated. Marimekko Corporation has branch
in France.
43
Parent company financial statements, FAS
NOTES TO THE INCOME STATEMENT
1. NET SALES BY MARKET AREA
(€) 2023 2022
Finland 98,913,993.58 105,589,161.67
Other countries 69,828,815.30 55,012,244.23
Total 168,742,808.88 160,601,405.90
2. OTHER OPERATING INCOME
(€) 2023 2022
Rental income 54,000.00 54,000.00
Other income 32,355.88 48,306.81
Total 86,355.88 102,306.81
3. MATERIALS AND SERVICES
(€) 2023 2022
Materials and supplies
Purchases during the financial year 40,007,296.95 47,300,768.51
Increase (-) / decrease (+) in inventories -70,930.00 -87,681.00
Total 39,936,366.95 47,213,087.51
External services 22,146,491.59 24,397,690.36
Total 62,082,858.54 71,610,777.87
4. PERSONNEL EXPENSES
(€) 2023 2022
Salaries, wages and bonuses 21,669,677.04 20,691,881.20
Pension and pension insurance payments 3,591,466.59 3,358,159.77
Other indirect social expenditure 778,440.24 608,864.32
Total 26,039,583.87 24,658,905.29
Salaries and bonuses for management
Members of the Board of Directors and the President and CEO 712,595.00 1,305,240.00
Itemised in the note 19 to the consolidated financial statements.
Average number of employees
2023 2022
Average number of employees
Salaried employees 365 343
Production personnel 19 21
Total 384 364
5. DEPRECIATION AND IMPAIRMENTS
(€) 2023 2022
Intangible assets
Intangible rights 43,750.08 33,945.83
Computer softwares 970,356.86 811,173.13
Other capitalised expenditure 195,780.96 170,237.25
Total 1,209,887.90 1,015,356.21
Tangible assets
Buildings and structures 5,038.88 5,038.88
Machinery and equipment 462,567.59 405,191.74
Total 467,606.47 410,230.62
Total 1,677,494.37 1,425,586.83
44
Parent company financial statements, FAS
6. OTHER OPERATING EXPENSES
(€) 2023 2022
Leases 7,660,106.78 7,221,906.12
Marketing 13,478,116.53 12,658,208.09
Other costs 21,291,984.18 21,392,705.58
Total 42,430,207.49 41,272,819.79
Auditor’s fee
(€) 2023 2022
KPMG
Audit 81,057.73 82,108.98
Other services 3,360.00 29,275.00
Total 84,417.73 111,383.98
7. FINANCIAL INCOME AND EXPENSES
(€) 2023 2022
Other interest and financial income
From Group companies 391,887.32 325,301.04
From others 306,257.55 1,235,501.68
Changes in value of investments 82,894.18 -
Change in fair value of derivatives 1,788.00 -
Total 782,827.05 1,560,802.72
Interest and other financial expenses
Change in fair value of shares - 20,655.41
Change in fair value of derivatives - 42,009.00
To others 874,266.60 1,413,331.53
Total 874,266.60 1,475,995.94
Financial income and expenses, total -91,439.55 84,806.78
Financial income and expenses include exchange rate differences (net)
Realised -26,852.50 44,128.33
Unrealised -501,271.82 -74,836.03
Total -528,124.32 -30,707.70
8. APPROPRIATIONS
(€) 2023 2022
Change in depreciation difference -172,809.00 -213,470.86
9. INCOME TAXES
(€) 2023 2022
Income taxes on operations 6,239,355.46 5,856,825.98
Total 6,239,355.46 5,856,825.98
45
Parent company financial statements, FAS
NOTES TO THE BALANCE SHEET
10. FIXED ASSETS
10.1 Intangible assets
2023
Advance payments
Intangible Computer Other capitalized and acquisitions
(€) rights software expenditure in progress Total
Acquisition cost, 1 Jan. 2023 1,866,392.00 10,100,423.40 7,463,121.77 1,076,696.26 20,506,633.43
Increases 77,370.08 46,944.16 147,459.92 1,787,361.23 2,059,135.39
Transfers between categories 764,211.37 91,886.11 -764,211.37 91,886.11
Decreases -268,965.22 -684,401.33 -953,366.55
Acquisition cost, 31 Dec. 2023 1,943,762.08 10,642,613.71 7,018,066.47 2,099,846.12 21,704,288.38
Accumulated depreciation, 1 Jan. 2023 1,744,760.14 8,117,803.42 5,642,130.03 15,504,693.59
Depreciation during the financial year 43,750.08 970,356.86 195,780.96 1,209,887.90
Accumalated depreciaton of decreases -268,965.22 -684,401.33 -953,366.55
Accumulated depreciation, 31 Dec. 2023 1,788,510.22 8,819,195.06 5,153,509.66 15,761,214.94
Book value, 31 Dec. 2023 155,251.86 1,823,418.65 1,864,556.81 2,099,846.12 5,943,073.44
2022
Advance payments
Intangible Computer Other capitalized and acquisitions
(€) rights software expenditure in progress Total
Acquisition cost, 1 Jan. 2022 1,814,663.85 8,945,180.57 8,233,131.62 519,191.49 19,512,167.53
Increases 54,043.88 223,317.87 283,817.69 1,661,780.34 2,222,959.78
Transfers between categories 1,104,275.57 -1,104,275.57
Decreases -172,350.61 -1,053,827.54 -1,226,178.15
Re-classification -2,315.73 -2,315.73
Acquisition cost, 31 Dec. 2022 1,866,392.00 10,100,423.40 7,179,304.08 1,076,696.26 20,506,633.43
Accumulated depreciation, 1 Jan. 2022 1,710,814.31 7,478,980.93 6,525,720.29 15,715,515.53
Depreciation during the financial year 33,945.83 811,173.10 170,237.28 1,015,356.21
Accumalated depreciaton of decreases -172,350.61 -1,053,827.54 -1,226,178.15
Accumulated depreciation, 31 Dec. 2022 1,744,760.14 8,117,803.42 5,642,130.03 15,504,693.59
Book value, 31 Dec. 2022 121,631.86 1,982,619.98 1,820,991.74 1,076,696.26 5,001,939.84
46
Parent company financial statements, FAS
10.2 Tangible assets
2023
Advance payments
Land and Buildings and Machinery and Other tangible and acquisitions
(€) water areas structures equipment tangible assets in progress Total
Acquisition cost, 1 Jan. 2023 38,165.97 285,816.33 13,465,156.30 28,033.93 81,244.40 13,898,416.93
Increases 278,532.43 416,635.33 695,167.76
Transfers between categories 337,393.62 -429,279.73 -91,886.11
Decreases -230,182.45 -461,580.56 -691,763.01
Acquisition cost, 31 Dec. 2023 38,165.97 55,633.88 13,619,501.79 28,033.93 68,600.00 13,809,935.57
Accumulated depreciation, 1 Jan. 2023 215,692.04 11,727,105.26 11,942,797.30
Depreciation during the financial year 5,038.88 462,567.59 467,606.47
Cumulative depreciation of decreases -230,182.45 -461,580.56 -691,763.01
Accumulated depreciation, 31 Dec. 2023 -9,451.53 11,728,092.29 11,718,640.76
Book value, 31 Dec. 2023 38,165.97 65,085.41 1,891,409.50 28,033.93 68,600.00 2,091,294.81
2022
Advance payments
Land and Buildings and Machinery and Other tangible and acquisitions
(€) water areas structures equipment tangible assets in progress Total
Acquisition cost, 1 Jan. 2022 38,165.97 417,400.00 15,878,233.74 28,033.93 16,361,833.64
Increases 328,325.25 201,905.35 530,230.60
Transfers between categories 120,660.95 -120,660.95
Decreases -131,583.67 -2,862,063.64 -2,993,647.31
Acquisition cost, 31 Dec. 2022 38,165.97 285,816.33 13,465,156.30 28,033.93 81,244.40 13,898,416.93
Accumulated depreciation, 1 Jan. 2022 342,236.83 14,183,977.16 14,526,235.65
Depreciation during the financial year 5,038.88 405,191.74 410,230.62
Cumulative depreciation of decreases -131,583.67 -2,862,063.64 -2,993,647.31
Accumulated depreciation, 31 Dec. 2022 215,692.04 11,727,105.26 11,942,797.30
Book value, 31 Dec. 2022 38,165.97 70,124.29 1,738,051.04 28,033.93 81,244.40 1,955,619.63
47
Parent company financial statements, FAS
10.3 Investments
2023
Shares in Group Other shares and Other
(€) companies participations receivables Total
Acquisition cost, 1 Jan. 2023 1,905,837.91 188,531.38 323,854.00 2,418,223.29
Increases 33,910.41 33,910.41
Changes in value 82,894.20 82,894.20
Acquisition cost, 31 Dec. 2023 1,939,748.32 271,425.58 323,854.00 2,535,027.90
Book value, 31 Dec. 2023 1,939,748.32 271,425.58 323,854.00 2,535,027.90
2022
Shares in Group Other shares and Other
(€) companies participations receivables Total
Acquisition cost, 1 Jan. 2022 2,196,000.00 209,186.80 323,854.00 2,729,040.80
Changes in value -20,655.42 -20,655.42
Transfers between groups -290,162.09 -290,162.09
Acquisition cost, 31 Dec. 2022 1,905,837.91 188,531.38 323,854.00 2,418,223.29
Book value, 31 Dec. 2022 1,905,837.91 188,531.38 323,854.00 2,418,223.29
Detailed information of Group holdings are presented in note 19 to the consolidated financial statements.
11. INVENTORIES
(€) 2023 2022
Raw materials and consumables 5,064,766.00 4,993,836.00
Finished products/goods 21,277,848.37 26,013,792.80
Advance payments - 9,920.33
Total 26,342,614.37 31,017,549.13
12. CURRENT RECEIVABLES
(€) 2023 2022
Trade receivables 16,316,711.23 9,945,871.70
Receivables from Group companies
Trade receivables 8,480,148.81 5,498,626.54
Loan receivables 5,722,305.73 5,517,269.55
Prepaid expenses and accrued income 1,498.16 228,072.56
Total 14,203,952.70 11,243,968.65
Other receivables 17,912.88 2,096.00
Prepaid expenses and accrued income 1,947,335.85 1,007,115.26
Total 32,485,912.66 22,199,051.61
The grouping of other receivables, prepaid expenses and accrued income has been specified during the
financial year. Comparative figures have been amended accordingly.
Prepaid expenses and accrued income
Royalty receivables 227,268.03 224,290.91
Occupational health care reimbursement 130,000.00 96,000.00
Other prepaid expenses and accrued income 1,590,067.82 686,824.35
Total 1,947,335.85 1,007,115.26
48
Parent company financial statements, FAS
13. SHAREHOLDERS’ EQUITY
Restricted Shareholders’ equity
(€) 2023 2022
Share capital, 1 Jan. 8,040,000.00 8,040,000.00
Share capital, 31 Dec. 8,040,000.00 8,040,000.00
Restricted Shareholders’ equity, total 8,040,000.00 8,040,000.00
Non-restricted Shareholders’ equity
Reserve for invested non-restricted equity, 1 Jan. 1,227,957.00 1,227,957.00
Reserve for invested non-restricted equity, 31 Dec. 1,227,957.00 1,227,957.00
Treasury shares, 1 Jan. -541,105.08 -210,232.94
Transfer of own shares - 122,772.27
Acquisition of own shares - -453,644.41
Treasury shares 31. Dec -541,105.08 -541,105.08
Retained earnings, 1 Jan. 48,352,803.42 62,997,194.52
Dividends paid -13,794,269.20 -37,371,669.60
Shares transferred as share reward - -122,772.27
Retained earnings, 31 Dec. 34,558,534.22 25,502,752.65
Net result for the period 25,359,472.05 22,850,050.77
Non-restricted Shareholders’ equity, total 60,604,858.19 49,039,655.34
Shareholders’ equity, total 68,644,858.19 57,079,655.34
Calculation of distributable funds, 31 Dec.
(€) 2023 2022
Retained earnings 34,558,534.22 25,502,752.65
Net result for the period 25,359,472.05 22,850,050.77
Treasury shares -541,105.08 -541,105.08
Reserve for invested non-restricted equity 1,227,957.00 1,227,957.00
Total 60,604,858.19 49,039,655.34
14. ACCUMULATED APPROPRIATIONS
(€) 2023 2022
Accumulated depreciation difference
Intangible rights 24,310.85 19,326.55
Other capitalised expenditure 771,333.76 616,123.19
Machinery and equipment 372,866.54 356,439.29
Buildings and structures 127,942.14 131,755.26
Total 1,296,453.29 1,123,644.29
15. LIABILITIES
(€) 2023 2022
Advances received 1,760,847.64 1,850,285.73
Trade payables 9,250,777.88 9,293,361.94
Debts to Group companies
Trade payables 2,609,605.63 1,660,183.74
Accrued liabilities and deferred income 6,587,405.43 6,206,536.14
Other current liabilities 4,376,503.65 4,234,251.72
Accrued liabilities and deferred income 7,220,387.46 7,760,867.89
Total 31,805,527.69 31,005,487.16
Accrued liabilities and deferred income
Wages and salaries with social security contributions 4,932,486.19 4,617,985.49
Unpaid designer provisions and agent fees 771,665.77 660,538.53
Return accruals 655,062.04 1,359,890.76
Other accrued liabilities and deferred income 861,173.46 1,122,453.11
Total 7,220,387.46 7,760,867.89
The grouping of other current liabilities, accrued liabilities and deferred income has been specified during the
financial year. Comparative figures have been amended accordingly.
49
Parent company financial statements, FAS
16. GUARANTEES, CONTINGENT LIABILITIES AND OTHER COMMITMENTS
(€) 2023 2022
Leasing liabilities
Payments due in the following financial year 526,478.65 493,725.09
Payments due later 433,175.79 413,748.94
Total 959,654.44 907,474.03
Liabilities relating to lease agreements
Payments due in the following financial year 5,342,003.39 4,918,934.71
Payments due later 23,967,539.81 24,487,671.69
Total 29,309,543.20 29,406,606.40
Guarantees on behalt of subsidiaries 803,852.81 2,402,853.86
Indirect liability for rent and other guarantees 4,076,274.64 4,089,138.02
17. DERIVATIVES
(€) 2023 2022
Nominal value
Currency derivatives - 1,417,155.00
Fair value
Negative fair values - -42,009.00
Total - -42,009.00
Age distribution - Nominal value
Currency derivatives
Less than a year - 1,417,155.00
Total - 1,417,155.00
50
Signatures to the financial statements and
the report of the Board of Directors
THE AUDITOR’S NOTE
A report on the audit performed has been issued today.
Helsinki, 14 February 2024
KPMG Oy Ab
Heli Tuuri
Authorized Public Accountant, KHT
Helsinki, 14 February 2024
Mika Ihamuotila
Chair of the Board
Teemu Kangas-Kärki Carol Chen
Vice Chair of the Board Member of the Board
Tomoki Takebayashi Marianne Vikkula
Member of the Board Member of the Board
Tiina Alahuhta-Kasko
President and CEO
51
TO THE ANNUAL GENERAL MEETING OF MARIMEKKO CORPORATION
Auditor’s Report
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of Marimekko Corporation (business identity code 0111316-2) for the
year ended 31 December 2023. The financial statements comprise the consolidated balance sheet, income
statement, statement of comprehensive income, statement of changes in equity, statement of cash flows and
notes, including material accounting policy information, as well as the parent company’s balance sheet, income
statement, statement of cash flows and notes.
In our opinion
• the consolidated financial statements give a true and fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU
• the financial statements give a true and fair view of the parent company’s financial performance and financial
position in accordance with the laws and regulations governing the preparation of financial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit and Remuneration Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under
good auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent
company and group companies are in compliance with laws and regulations applicable in Finland regarding
these services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of
regulation (EU) 537/2014. The non-audit services that we have provided have been disclosed in note 6 to the
consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is determined based
on our professional judgement and is used to determine the nature, timing and extent of our audit procedures
and to evaluate the effect of identified misstatements on the financial statements as a whole. The level of
materiality we set is based on our assessment of the magnitude of misstatements that, individually or in
aggregate, could reasonably be expected to have influence on the economic decisions of the users of the
financial statements. We have also taken into account misstatements and/or possible misstatements that in our
opinion are material for qualitative reasons for the users of the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. The significant risks of material misstatement referred to in the EU Regulation No 537/2014
point (c) of Article 10(2) are included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes consideration of
whether there was evidence of management bias that represented a risk of material misstatement due to fraud.
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Auditor’s Report
THE KEY AUDIT MATTER
Revenue recognition (”Revenue recognition and net sales” in the consolidated accounting principles and note 1)
Valuation and existence of inventory (“Inventories” in the consolidated accounting principles and note 12.1)
HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Marimekko Group’s revenue is generated from wholesale and retail sales of clothes, bags and accessories, and
interior decoration products as well as licensing income. Group’s net sales, EUR 174 million, is a significant item
in the financial statements consisting of a large number of transactions from different revenue streams as well
as diverse sales contracts and terms with customers.
Wholesale contracts include several different delivery terms and might contain right of return, which
determine when the ownership of the product is transferred to the customer. Retail sales mainly consists of
small transactions paid by cash or payment cards and the revenue is recognized when the product is sold to the
customer. Revenue from licensing is recognized in accordance with the terms of the contract.
Revenue recognition is a key audit matter due to a large number of transactions as well as for a risk that
revenue is recognized in an incorrect period.
Marimekko purchases, manufactures and sells consumer goods and is subject to changing consumer demands.
Inventory consists of fabrics and other raw materials as well as half-finished and finished goods including
clothes, bags, accessories and interior decoration products.
Inventories are valued at the lower of acquisition cost or probable net realizable value. Manufactured
inventories include a share of directly attributable general costs of production.
Inventory value EUR 29 million is a significant item in Marimekko’s balance sheet and inventories are in
several locations. Inventory accounting includes manual processes in valuation and compiling the inventory
balances and it increases, therefore the risk for human errors. In addition, inventory include management’s
judgement on probable net realizable value.
In our audit of different revenue streams, we have tested company’s key controls related to sales and
performed substantive audit procedures, among others with data-analytics methods.
• We have formed an understanding of accounting principles and practices in different revenue streams and
evaluated the appropriateness of the revenue recognition principles in relation to IFRS.
• We have tested revenue, discounts, campaign discounts and margins in both wholesale and retail sales with
data-analytics methods.
• For wholesale we have selected a sample of sales transactions comparing them to sales invoices, contracts,
delivery notes and payments received.
• For retail sales we have reviewed cash and sales routines in selected retail stores.
• We have tested that the revenue has been recognized in the right financial period by comparing sales
transactions, invoices and delivery terms to actual deliveries as well as by testing possible return provisions
and a sample of credit invoices made at the beginning of 2024.
• We have also compared selected accounts receivables to the confirmations received from counterparties.
• We have reviewed the most significant licensing contracts and that the revenue has been recognized in
accordance with the contract terms.
• In addition, we considered the appropriateness of the disclosure regarding net sales.
In our audit of valuation and existence of inventories we have tested the company’s key controls and performed
substantive audit procedures, among others with data-analytics methods.
• We have attended physical stock takings in selected inventory locations. We have analyzed company’s own
results of stocktaking differences and how they have been resolved.
• We have compared the value of selected inventory items to the latest purchase prices.
• We have tested slow-moving inventory items as well as exceptional values in inventory accounting with data
analytics methods.
• We have compared the unit prices of selected inventory items to their sales prices.
• In addition, we considered the appropriateness of the disclosure regarding inventory.
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Auditor’s Report
Responsibilities of the Board of Directors and the President and CEO for the Financial Statements
The Board of Directors and the President and CEO are responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU,
and of financial statements that give a true and fair view in accordance with the laws and regulations governing
the preparation of financial statements in Finland and comply with statutory requirements. The Board of
Directors and the President and CEO are also responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Board of Directors and the President and CEO are responsible
for assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as
applicable, matters relating to going concern and using the going concern basis of accounting. The financial
statements are prepared using the going concern basis of accounting unless there is an intention to liquidate
the parent company or the group or cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with good auditing practice will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of the
financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of the Board of Directors’ and the President and CEO’s use of the going
concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the parent company’s or the group’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the parent company or the
group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events so that the financial
statements give a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
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Auditor’s Report
OTHER REPORTING REQUIREMENTS
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting on 12 April 2018, and our appointment
represents a total period of uninterrupted engagement of 6 years.
Other Information
The Board of Directors and the President and CEO are responsible for the other information. The other
information comprises the report of the Board of Directors and the information included in the Annual Report,
but does not include the financial statements or our auditor’s report thereon. We have obtained the report of
the Board of Directors prior to the date of this auditor’s report, and the Annual Report is expected to be made
available to us after that date. Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
With respect to the report of the Board of Directors, our responsibility also includes considering whether the
report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.
In our opinion, the information in the report of the Board of Directors is consistent with the information in
the financial statements and the report of the Board of Directors has been prepared in accordance with the
applicable laws and regulations.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Helsinki, 14 February 2024
KPMG OY AB
HELI TUURI
Authorised Public Accountant, KHT
55
Independent Auditor’s Reasonable Assurance Report on
Marimekko Corporation’s ESEF Financial Statements
TO THE BOARD OF DIRECTORS OF MARIMEKKO CORPORATION
We have undertaken a reasonable assurance engagement in respect of whether the consolidated
financial statements for the year ended 31 December, 2023 included in the digital financial statements
74370053IOY42B9YJ350-2023-12-31-en.zip of Marimekko Corporation (Business ID 0111316-2) have been
marked up with iXBRL markups in accordance with the requirements of Article 4 of EU Delegated Regulation
2018/815 (ESEF RTS).
The Responsibility of the Board of Directors and Managing Director
The Board of Directors and Managing Director are responsible for preparing the report of the Board of
Directors and financial statements (ESEF financial statements) that comply with the requirements of
ESEF RTS. This responsibility includes:
• preparation of ESEF financial statements in XHTML format in accordance with Article 3 of the ESEF RTS
• marking up the primary statements and the notes to the consolidated financial statements, and the
company identification data included in the ESEF financial statements with iXBRL tags in accordance with
Article 4 of the ESEF RTS; and
• ensuring consistency between ESEF financial statements and audited financial statements.
The Board of Directors and the Managing Director are also responsible for such internal control as they
deem necessary to prepare the ESEF financial statements in accordance with the requirements of the
ESEF RTS.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical requirements applicable in Finland,
which apply to the engagement we have performed, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
The auditor applies International Standard on Quality Management ISQM 1, which requires the firm to
design, implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulations
requirements.
Auditor’s Responsibility
In accordance with the Engagement Letter our responsibility is to express an opinion on whether the marking
up of the consolidated financial statements included in the ESEF financial statements comply in all material
respects with the Article 4 of the ESEF RTS. We conducted our reasonable assurance engagement in accordance
withInternational Standard on Assurance Engagements 3000.
The engagement involves procedures to obtain evidence whether;
• the primary statements of the consolidated financial statements included in the ESEF financial statements
are, in all material respects, marked up with iXBRL tags in accordance with Article 4 of the ESEF RTS, and;
• whether the notes to the consolidated financial statements and the company identification data included
in the ESEF financial statements data, have been marked up, in all material respects, with iXBRL tags in
accordance with Article 4 of the ESEF RTS; and
• whether the ESEF financial statements and the audited financial statements are consistent with each other.
The nature, timing and the extent of procedures selected depend on practitioner’s judgement. This includes
the assessment of the risks of material departures from the requirements set out in the ESEF RTS, whether due
to fraud or error.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Opinion
In our opinion, the primary statements of the consolidated financial statements, the notes to the consolidated
financial statements and the company identification data included in the ESEF financial statements of
Marimekko Corporation identified as 74370053IOY42B9YJ350-2023-12-31-en.zip for the year ended 31
December 2023 are, in all material respects, marked up in compliance with the ESEF Regulatory Technical
Standard.
Our audit opinion on the audit of the consolidated financial statements of Marimekko Corporation for the
year ended 31 December 2023 is set out in our Auditor’s Report dated 14 February 2024. In this report, we do
not express any audit opinion or other assurance conclusion on the consolidated financial statements.
Helsinki, 18 March 2024
KPMG OY AB
Heli Tuuri
Authorised Public Accountant, KHT
56
marimekko.com