Last update: 24.11.2024 02:40 (GMT+2)
TALLINNA FARMAATSIATEHASE AS
ANNOUNCEMENT
31.08.1999
COMMENTARY TO H1 1999 UNAUDITED FINANCIAL RESULTS
The H1 1999 net sales of Tallinna Farmaatsiatehas amounted to 31.0
million EEK, of which 29.9 million EEK or 99.7% was income from sale
of medicines, and 1.1 million EEK (0.3%) other income.
Compared to H1 1998, the company’s sales have dropped by 26.5 million
EEK or 46.1%. Volume of exports decreased by 26.0 million EEK or
57.6%, whereas the volume of domestic sales increased by 1.7 million
EEK or 22.1%. The main factor behind decreased sales volumes is again
financial crises on eastern market.
Net sales by product groups:
Tablets 48.8%
Ointments 36.5%
Ampoules 14.7%
As of result of decreased sales volumes and also strict saving
policy, the company had in the first half year a 1.7 million EEK
loss.
The most substantial decrease (76.7%) occurred on the account of
operating expenses – from 18.9 million EEK in H1 1998 to 4.4 million
EEK in H1 1999. The company failed to sell its shareholding in
Magnum-Medical, of which the company expected to earn approximately 3
million EEK of financial income. As of H1 1998, the company was in
loss with 0.25 million EEK.
The company has also increased the effectiveness of use of raw
materials inventories. When the volume of inventories as of 01.01.99
was 19.2 million EEK, then the respective figure on 30.06.99 was 11.1
million EEK. At the same time, however, the company has decreased its
supplier payables from 17.4 million EEK to 10.5 million EEK.
Based on the resolution of the general shareholders’ meeting
(18.05.99), the company’s share capital size was decreased on the
account of retained earnings from the level of 37 700 340 EEK to 12
500 000 EEK.
In order to yield a profit, the company continues to bring the
management and operation expenses in line with lower output volumes,
and restructure and activate the sales networks.
Raivo Unt
Financial Director
+372 61 20 201
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