AS BALTIKA

ANNOUNCEMENT

13.11.98

 

COMMENTARY TO THE 1998 10 MONTHS RESULTS

 

AS Baltika 10 months unaudited and unconsolidated net sales were 200.3 million

EEK, which is 13% more than during the same period in 1997. Compared with the 

last year's first 10 months, the sale of goods increased by 13.6% in Estonia 

(the sales in 1998 were 67.5 million EEK and in 1997 59.4 million EEK), 48.6% 

in Baltic countries (the sales in 1998 31.8 million EEK and in 1997 21.4 million EEK),

11.4% in the EEC states (the sales in 1998 70,0 million EEK and in 1997 63,0 million EEK),

and decreased by 1.7% in the CIS states (the sales in 1998 28.5 million EEK and in 

1997 29 million EEK).

 

The share of exports in the net sales was 65.2% (130.5 million EEK), whereas compared

with the same period last year, the exports increased by 15.0%. The export of the goods 

produced increased by 32.8% (exports in 1998 were 86.3 million EEK and 65.0 million EEK in

1997).

 

AS Baltika's 1998 unaudited and unconsolidated net profit was 8.2 million EEK 

(same period 1997 it was 9.7 million EEK), which is 15% less than during the same 

period last year. Due to the economic crisis in Russia, AS Baltika has written off 

doubtful accounts from this market in the amount of 4.7 million EEK.

 

Other revenues decreased by 5.3 million EEK compared with the same period last year. 

The reason for this change was a 4.7 million EEK profit received from the sale of 

a real estate, which is reflected in the 1997 income.

 

Compared with the beginning of this year, Baltika's balance sheet volume has increased

by 12,4% (22,9 million EEK), and compared with the 1997 10 first months 16,1% 

(28,9 million EEK). Compared with the first 10 months of 1997, the inventory 

increased by 26% (9,3 million EEK), including the 7.6 million EEK increase in 

the stock of the finished goods. The reason behind it was a temporary suspension 

of sending the products to the Russian clients, increase in the realisation and change 

in the purchase-order lead times.

 

Long-term investments increased by 23%. At the end of October, AS Baltika acquired 

54.7% of the AS Virulane shares for 4.9 million EEK.

 

 

Meelis Milder

Chairman of the Management Board