AS KLEMENTI

ANNOUNCEMENT

04.05.99

 

COMMENTARY TO Q1 1999 FINANCIAL RESULTS

 

The Q1 1999 consolidated and unaudited net sales of AS Klementi 

amounted to 23.0 million EEK, which is 6.0 million EEK or 20.7% less 

than during the respective period in 1998 (Q1 1998 net sales were 

29.0 million EEK). Compared to the same period last year, the sale of 

goods produced decreased by 44.5% (from 21.8 million EEK to 12.1 

million EEK).

 

Decrease in the sale of goods produced occurred due to the following 

factors:

1) Reverberations of the retailing sector’s crisis;

2) Need to reduce accounts receivable due to problematic financial 

environment (compared to the beginning of the year, customer 

receivables decreased by 6.3 million EEK). 

 

Sale of goods produced by markets (million EEK):

 

			    Q1 1999		     Q1 1998		 Change

Estonia				7.8			13.7		- 43.1%

Latvia; Lithuania		2.2			 5.4		- 59.3%

Finland				1.8			 2.1		- 14.3%

Russia				0.2			 0.6		- 66.7%

 

Decline in the sales of goods produced were compensated by increase 

in the subcontracting works by 54.0% in comparison with the same 

period last year (from 6.3 million EEK to 9.7 million EEK). 

 

The Q1 1999 consolidated and unaudited loss of AS Klementi amounted 

to 1.6 million EEK (net profit during the same period last year was 

2.0 million EEK).

The loss occurred mainly due to under-realization of Q1 sales plans 

of goods produced, which is also reflected in increasing inventories 

(19.7 million EEK, last year 10.8 million EEK).

 

Currently, wholesales of goods produced have increased; the company 

also opened a new shop in Rocca al Mare shopping center. This all 

gives a solid ground to anticipate improvement in the financial 

results in Q2.  

 

Madis Võõras 

Chairman of the Management Board