The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Mark Josefson - Pareto Securities, Research Division - Analyst
: Great figures. Well done to the whole team. I have a couple of questions relating to Q1. First of all, with respect to the gross margin, at least 40
points or so at the Baumarkt, 30 at the holding level. You referred to the strong growth of online business has been an influence here. I wonder if
there is something in cost of sales that is different for online sales compared to the brand sales, the store sales, or is it that the online sales focus
on lower margin business? Or is it that greater visibility with online? I mean your sales have free Wi-Fi in all stores. Is it the greater price transparency
with everyone now offering things online means that there's a gentle easing or gentle pressure on prices generally? That's my first question, the
background to that.
The second question relates to selling and expense -- selling expenses up 1%. Now I would not put -- I would not expect sales cost to grow at the
same pace of sales. But 1% seems low, especially in the light of probable COVID-enforced additional costs. I'm talking about logistics here or on
hygiene for customers and staff. So is there anything that has helped the cost base in Q1 that we should be aware of? Or is it just a very good
housekeeping by the group?
And my final question, and it doesn't relate to Q1 but to Q2. I know you don't comment on current trading, but I was very interested by the different
monthly development of the sales with the Baumarkt subsidiary, flat, plus 18%, plus 34%. And for us on the outside, that provides a very good
guide to the volatility that you guys in the retail trade are facing. But with respect to June, has there been a big falling off in the pace? Or did June
at least start at a similar pace to what you saw in May of the plus 34%?
Question: Mark Josefson - Pareto Securities, Research Division - Analyst
: Yes. With respect to the minority payment, EUR 26 million in Q1 this year, quite a big increase over the EUR 12 million paid last year. But what is
the background to the higher rate of growth in minorities compared to the group's own net income?
Question: Mark Josefson - Pareto Securities, Research Division - Analyst
: Yes, yes. I mean it's a technical question, it's not the big -- maybe because it's a relatively small number that the percentage increase seems very
high. So I think we had EUR 12.3 million last Q1 for the holding group and EUR 26 million for this time. I just wondered if there's anything particular
with respect to minority payment.
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