AS RAKVERE LIHAKOMBINAAT

ANNOUNCEMENT

23.12.1998

 

 

COMMENTARY TO THE FINANCIAL RESULTS

 

AS Rakvere Lihakombinaat Group 1998 9 months consolidated 

financial results (AS Rigas Miesnieks, AS Ekseko, AS 

Linnulihatooted, AS Rigas Miesnieks Trading, Rakveres Mesos 

Produkati Vilnius UAB)

 

The 1998 9 months gross loss of AS Rakvere Lihakombinaat Group 

was 89.4 million EEK, and the net sales amounted to 728.4 

million EEK.

 

 

As of 30.09.98, mln.EEK

 

Company				Turnover	Profit/loss

AS Rakvere Lihakombinaat	572.3		- 62.8

AS Rigas Miesnieks		187.5		- 37.7

 

 

The loss occurred mainly due to the write-off of goodwill 

of Rigas Miesnieks (in the amount of 58. million EEK), 

proceeding from the principle of conservatism and from the 

probability of Rigas Miesnieks’ negative cash flows development 

during the coming periods.

 

The 37.7 million EEK loss of Rigas Miesnieks occurred mainly 

due to the loss from normal operations (22.5 million EEK) and 

from the reevaluation of the company’s owners’ equity (15.2 

million EEK).

 

In addition to the above-mentioned, the company was also 

influenced by significant changes in the export markets (Russia 

and Ukraine), which were negative for the company.

 

In 9 months of 1998, AS Ekseko and Linnulihatooted earned 

profit and AS Rigas Miesnieks Trading and Rakveres Mesos 

Produktai Vilnius had a small loss.

 

Proceeding from that, the Supervisory Board of the company 

annulled the 1998 budgetary profit forecast. AS Rakvere 

Lihakombinaat Group plans to end the year 1998 at the same 

level with the 9 months consolidated financial results.

 

 

 

Andrit Heidov

Information manager

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