Last update: 29.11.2024 17:19 (GMT+2)
Baltika FINANCIAL RESULTS 10/31/2002
BALTIKA'S RESULTS FOR 3Q 2002
The unaudited consolidated net sales of Baltika in the
first nine months of 2002 were EEK 361.4m (EUR 23.1m) and
the net profit was EEK 5.72m (EUR 0.37m). Compared to the
same period of 2001, the net sales increased by 19.3%
(EEK 58.56m; EUR 3.74m) while the net profit was smaller
by 37.8% (EEK 3.47m; EUR 0.22m). The net sales within the
first nine months of 2001 were EEK 302.8m and the net
profit was EEK 9.19m. The sales of the third quarter of
2002 amounted to EEK 129.78m, i.e. by 9.36% higher than
in the third quarter of the previous year (EEK 11.11m).
The net loss for the third quarter was EEK 3.86m, however
the company managed a profit of EEK 0.36m in the third
quarter of 2001.
Sales
In September, Baltika launched a new international
clothes trademark, MONTON, which is marketed in 30 retail
outlets of the Baltika Group in a total of five
countries. The first month of marketing demonstrated the
excellent sales potential of the new trademark: in
September, Monton’s turnover was EEK 21.1m, accounting
for 77% of the retail sales of the Baltika Group.
However, in July and August the sales were less than
normally. The long warm summer in the whole of Europe
curbed customer flows in shops as well as the average
purchase level per buyer. The sales enlivened only in
September. The net sales for September were 45.22% (EEK
58.69m, EUR 3.57m) of the sales turnover of the entire
third quarter. The retail sales of Baltika’s own stores
were EEK 27.5m (EUR 1.76m) in September, representing a
43% growth compared to the same period last year.
The share of Baltika’s own shops (brand and factory
shops) in the nine months net sales of the Baltika Group
was 47%, totalling EEK 171.17m (EUR 10.94m). The
wholesales comprised EEK 145.19m (EUR 9.28m) and the
sales of subcontracted products were EEK 41.31m (EUR
2.64m). Compared to the same period of the previous year,
the sales of our own products and goods increased by
31.5% up to EEK 318.8m (EUR 20.37m), while the sales of
subcontracted products downsized by 29.6%. The total
export sales for the nine months were EEK 267.05m (EUR
17.07m), accounting for 74% of the total net sales.
As of the end of September, Baltika Group had operable
retail space in seven countries with a total area of
8361m2, of which the sales space of own shops accounted
for 6603m2 (a total of 48 shops).
The sales efficiency has also increased in line with the
increment of new retail outlets (sales/m2). Average sales
per m2 have increased by 12% compared to the nine months
of the previous year.
Profit
The net profit of Baltika Group for the nine months was
EEK 5.72m (EUR 0.37m) while the loss for the 3rd quarter
constituted EEK 3.86m (EUR 0.25m). The operating profit
for the nine months was EEK 14.4m (EUR 0.92m), remaining
at the level of the previous year (EEK 14.6m, EUR 0.94).
In connection with the introduction of the new trademark,
all the costs of launching the trademark and
restructuring the stores were borne in the third quarter.
These costs totalled EEK 8.3m (EUR 0.53m) on all five
markets, however they were one-time costs which affected
the results of just one quarter. Another factor that had
a considerable impact on the profit was the longer-than-
usual discount period during the summer applied in the
retail chain in order to reduce the stock of goods at the
end of the season. The effect of the sales below margin
on the profit is estimated by the management to be about
EEK 2.5m (EUR 0.16m). The increased loan burden in 2002
for the purpose of financing the investments necessary
for the implementation of the Baltika Group Strategy is
also reflected in financial expenses where the interest
expenses have increased by EEK 2.68m (EUR 0.17m) compared
to the same period of the previous year totalling EEK
6.45m (EUR 0.41m).
Additional share issue
In order to provide additional financing to the strategic
growth plans of the group and to increase the personal
interest of the top executives in the company, the
special meeting of shareholders of AS Baltika, held on 17
September, decided to increase the share capital by EEK
6,444,500 (EUR 411.88m) and to issue for that purpose
additional 644,450 shares with a nominal value of EEK 10
each and priced EEK 36 each; the total issue amount was
EEK 23,200,200 (EUR 1.48m). The entire issue was
subscribed for and paid by the investment company OÜ BMIG
founded by the management board and chairman of the
supervisory board of AS Baltika. The post-issue share
capital of AS Baltika is EEK 54,444,500 (EUR 3.48m) and
its major shareholders are Baltic Republics Fund (BRF)
and OÜ BMIG with 35.68% and 20.26%, respectively. The
issue was organised by AS Hansapank.
Balance sheet
The consolidated balance sheet total of Baltika was EEK
390.4m (EUR 24.95m) as of 30.09.2002; the growth compared
to the beginning of the year was EEK 93.0m (EUR 5.94m),
i.e. +31.26%. The inventories of goods, semi-finished
goods and basic materials increased, compared to the
beginning of the year, by EEK 43.54m (EUR 2.78m) up to
EEK 174.69m (EUR 11.16m). The introduction of the new
trademark Monton necessitated preproduction and build-up
of stocks in order to guarantee that in the beginning of
September the Monton outlets on five markets are filled
with goods. In addition, the increase of the stock of
goods can also be attributed to the growth of retail
sales premises (+19 new stores within nine months) and
the preparation for the autumn season.
During the six months, investments into noncurrent
physical assets amounted to EEK 33.7m (EUR 2.2m).
{0>Investeeringute ja jaepindade kasvuga seotud varude
sisseostu finantseerimine on suurendanud Baltika Grupi
laenukoormust aasta algusega võrreldes 42,0 mln krooni
võrra.<}79{>»The financing of the purchase of stocks
necessitated by investments and expansion of retail
premises has increased the loan burden of Baltika Group
by EEK 42m compared with the beginning of the year.
The following methods of financing have been used:
overdraft facilities, proceeds from the issue of bonds, a
new bank loan for the completion of the Ahtme sewing
factory and the sale and lease-back of equipment.«<0}
The main ratios of AS Baltika Group as of 30.09.02 were:
30.09.2002 30.09.2001
- operating profitability 4,0% 4,8%
(operating profit / net sales)
- net profitability 1,6% 3,0%
(net profit for the group /net sales)
return on owners’ equity ROE 8,5% 9,8 %
(net profit/owners’ equity*)
- return on total assets 3,7% 5,3%
(operating profit / net sales)
average cost*)
- solvency ratio
(current assets - stocks/ 0,69 1,2
short-term obligations)
*average of 12 months
AS BALTIKA
Income statement
consolidated, unaudited
th EEK Q3 2002 Q3 2001 9m 2002 9m 2001
Revenue
Net sales 129 779 118 673 361 381 302 805
Other revenue 50 -405 5 952 1 458
Total revenue 129 829 118 268 367 333 304 263
Expenses
Materials -34 510 -42 320-136 452 -121 328
Change in inventories -16 386 -11 344 -733 -2 032
Other operating expenses -35 332 -23 220 -88 695 -60 571
Personnel expenses -37 237 -33 637-110 394 -92 921
Depreciation -5 448 -3 587 -14 587 -10 487
Other expenses -725 -1 012 -2 095 -2 280
Total expenses -129 638 -115 120-352 956 -289 619
Operating profit 191 3 148 14 377 14 644
Financial income 54 76 285 649
Financial expenses -2 535 -1 696 -7 110 -4 588
Profit before taxes -2 290 1 528 7 552 10 705
Declared income tax -3 -184 -268 -184
Net profit for the finan -2 293 1 344 7 284 10 521
Minority interest 1 571 980 1 568 1 331
Net profit for the Group -3 864 364 5 716 9 190
Basic earnings per share -0,71 0,08 1,05 1,91
Diluted earnings per share -0,79 0,08 1,04 1,89
BALTIKA
Income statement
consolidated, unaudited
th EUR Q3 2002 Q3 2001 9m 2002 9m 2001
Revenue
Net sales 8 294 7 585 23 096 19 353
Other revenue 3 -26 380 93
Total revenue 8 298 7 559 23 477 19 446
Expenses
Materials -2 206 -2 705 -8 721 -7 754
Change in inventories -1 047 -725 -47 -130
Other operating expenses -2 258 -1 484 -5 669 -3 871
Personnel expenses -2 380 -2 150 -7 055 -5 939
Depreciation -348 -229 -932 -670
Other expenses -46 -65 -134 -146
Total expenses -8 285 -7 357 -22 558 -18 510
Operating profit 12 201 919 936
Financial income 3 5 18 41
Financial expenses -162 -108 -454 -293
Profit before taxes -146 98 483 684
Declared income tax 0 -12 -17 -12
Net profit for the financial -147 86 466 672
Minority interest 100 63 100 85
Net profit for the Group -247 23 365 587
Basic earnings per share -0,05 0,00 0,08 0,12
Diluted earnings per share -0,05 0,01 0,07 0,12
Balance sheet
consolidated,unaudited
th EEK 30.09.2002 30.09.2001 31.12.2001
ASSETS
Current assets
Cash and bank 16 269 4 879 12 626
Marketable securities 476 477 574
Customer receivables 71 851 78 286 56 115
Other receivables 18 534 12 242 10 802
Inventory 174 687 115 931 131 145
Total current assets 281 817 211 815 211 262
Non-current assets
Long-term fin. investments 2 566 2 205 2 600
Tangible fixed assets 101 784 70 995 78 390
Intangible fixed assets 4 258 2 205 5 180
Total non-current assets 108 608 75 405 86 170
TOTAL ASSETS 390 425 287 220 297 432
LIABILITIES AND OWNERS’ EQUITY
Current liabilities
Debt obligations 68 435 24 358 34 721
Customer prepayments 126 142 154
Supplier payables 53 337 39 827 40 544
Other tax liabilities 4 966 5 604 5 081
Accrued expenses 11 809 9 732 6 641
Short-term provisions - 120 -
Total current liabilities 138 673 79 783 87 141
Long-term liabilities
Long-term debt obligations 74 199 67 009 63 723
Total long-term liabilities 74 199 67 009 63 723
TOTAL LIABILITIES 212 872 146 792 150 864
Minority interest 8 701 7 013 6 632
OWNERS’ EQUITY 168 852 133 415 139 936
Share capital at nominal value 48 000 48 000 48 000
Unregistered share capital 23 200 - -
Share premium 24 910 24 910 24 910
Reserves 22 885 22 885 22 885
Retained earnings 44 141 28 430 28 430
Net profit for the fin.year 5 716 9 190 15 711
TOTAL LIABILITIES AND OWNERś 390 425 287 220 297 432
EQUITY
Balance sheet
consolidated,unaudited
th EUR 30.09.2002 30.09.2001 31.12.2001
ASSETS
Current assets
Cash and bank 1 040 312 807
Marketable securities 30 30 37
Customer receivables 4 592 5 003 3 586
Other receivables 1 185 782 690
Inventory 11 165 7 409 8 382
Total current assets 18 011 13 537 13 502
Non-current assets
Long-term fin. investments 164 141 166
Tangible fixed assets 6 505 4 537 5 010
Intangible fixed assets 272 141 331
Total non-current assets 6 941 4 819 5 507
TOTAL ASSETS 24 953 18 357 19 009
LIABILITIES AND OWNERS’ EQUITY
Current liabilities
Debt obligations 4 374 1 557 2 219
Customer prepayments 8 9 10
Supplier payables 3 409 2 545 2 591
Other tax liabilities 317 358 325
Accrued expenses 755 622 424
Short-term provisions - 8 -
Total current liabilities 8 863 5 099 5 569
Long-term liabilities
Long-term debt obligations 4 742 4 283 4 073
Total long-term liabilities 4 742 4 283 4 073
TOTAL LIABILITIES 13 605 9 382 9 642
Minority interest 556 448 424
OWNERS’ EQUITY 10 792 8 527 8 944
Share capital at nominal value 3 068 3 068 3 068
Unregistered share capital 1 483 - -
Share premium 1 592 1 592 1 592
Reserves 1 463 1 463 1 463
Retained earnings 2 821 1 817 1 817
Net profit for the fin.year 365 587 1 004
TOTAL LIABILITIES AND OWNERS’ 24 953 18 357 19 009
EQUITY
Ülle Järv
Management Board member
+372 6302 741
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