Last update: 22.07.2024 01:00 (GMT+3)
Estiko FINANCIAL RESULTS 02/05/2004
FINANCIAL RESULTS, Q3 2003
COMMENTS ON THE ECONOMIC RESULTS OF THE GROUP III QUARTER 2003
The consolidated non-audited turnover of AS Estiko for the first 9 months of
2003 was 149.7 m EEK (€ 9.6 m) and net profit 15.4 m EEK (€ 989 000). The 9-
month turnover in 2002 was 130.4 m EEK (€ 8.3 m) and net loss 4.4 m EEK (€
282 000). The turnover increased by 19.3 m EEK (€ 1.2 m), i.e. 15 per cent
and the profit was bigger by 19.3 m EEK (€ 1.3 m).
The consolidated non-audited turnover of AS Estiko in the 3rd quarter of 2003
was 49.8 m EEK (€ 3.2 m) and net profit 3.9 m EEK (€ 248 000). The turnover
in the 3rd quarter of 2002 was 47.7 m EEK (€ 3.0 m) and net loss 0.2 m EEK (€
0.013 m). The turnover grew by 2.1 m EEK (€ 0.132 m), i.e. 4.3 per cent and
the profit was bigger by 4.0 m EEK (€ 0.26 m), compared to previous year.
Proportional figures characterising the operation of AS Estiko:
2003 9 months 2002 9 months
Gross profitability 23% 16%
(gross profit / net turnover)
Operational profitability 14% 2%
(operational profit / net turnover)
Net profitability 10% -3%
(net profit / net turnover)
Equity profitability 4% -2%
(net profit / average annual equity)
Asset profitability 7% -1%
(net profit / average annual assets)
Cover coefficient of short-term liabilities 1,05 0,83
(current assets / short-term liabilities)
Equity ratio (equity/assets) 47% 39%
The group operates on two fields of action: production and property
management.
PRODUCTION
The turnover in the production sector for the 9 months in 2003 was 125.6 m
EEK (€ 8.0 m); it was 108.5 m EEK (€ 6.9 m) in 2002. Thus, the grow achieved
is 17.1 m EEK (€ 1.1 m), i.e. 16 per cent. The loss in the production sector
for 9 months in 2002 was 6.4 m EEK (€ 0.41 m), but in 2003, the profit was
8.3 m EEK (€ 0.53 m), which shows the growth of profit by 14.7 m EEK (€ 0.94
m).
The turnover in the 3rd quarter of 2003 was 42 m EEK (€ 2.7 m) for the
production sector; it was 40.3 m EEK (€ 2.6 m) in 2002. Thus, the turnover
has grown by 1.5 m EEK (€ 0.1 m), i.e. 4 per cent. The loss in the 3rd
quarter of 2002 was 1.2 m EEK (€ 0.09 m) for the production sector; the
profit in the 3rd quarter of 2003 was 2.0 m EEK (€ 0.13 m), the profit thus
growing by 3.2 m EEK (€ 0.2 m).
Profitability indicators for the production sector:
2003 9 months 2002 9 months
Gross profitability 17% 7%
(gross profit / net turnover)
Operational profitability 8% -4%
(operational profit / net turnover)
Net profitability 7% -8%
(net profit / net turnover)
Significant events that influenced the economic results of the production
sector for the 3rd quarter:
Minimising expenses, both variable and fixed, and improving production
planning has had a significant effect on profitability compared with the
same period last year.
With an aim to improve employee efficiency, 53 employees were laid-off
collectively in the 3rd quarter and it created one-time expenses in the
amount of 1.5 m EEK (€ 0.1 m).
PROPERTY
The following companies belong to the property sector of Estiko Group as of
30 Sept. 2003:
Estiko Investeeringute AS share 100%
AS Emajõe Ärikeskus share 100%
AS Emajõe Kaubahall share 100%
The turnover of the property sector was 24.1 m EEK (€ 1.54 m) for the 9
months of 2003 with the profit being 7.0 m EEK (€ 0.45 m). The turnover of
the same period in 2002 was 21.9 m EEK (€ 1.4 m) and profit 2.0 m EEK (€
0.13 m). The turnover has increased by 2.2 m EEK (€ 0.14 m) and profit by
5.0 m EEK (€ 0.32 m) compared to the same period of the previous year.
The turnover of the property sector was 8.0 m EEK (€ 0.51 m) for the 3rd
quarter of 2003 with the profit being 1.8 m EEK (€ 0.12 m). The turnover of
the same period in 2002 was 7.4 m EEK (€ 0.47 m) and profit 1.0 m EEK (€
0.06 m). The turnover has increased by 0.6 m EEK (€ 0.04 m) and profit by
0.8 m EEK (€ 0.05 m) compared to the same period of the previous year.
Profitability indicators of the property sector:
2003 9 months 2002 9 months
Gross profitability 55% 56%
(gross profit / net turnover)
Operational profitability 43% 28%
(operational profit / net turnover)
Net profitability 29% 9%
(net profit / net turnover)
Significant events that influenced the economic results of the property
sector for the 3rd quarter:
The main objective of property development and management is maximising
profitability by minimising vacancies in the buildings and raising the
efficiency of public administration. Site management has become much more
efficient as a result of restructuring of responsibilities and property
management structure.
The profitability of net profit has increased by 20 per cent during the 9
months of 2003, as compared to the same period of 2002. The average vacancy
of the property is 19 per cent. Toughening competition on property market
makes our team keep actively our profit base and create conditions of
additional value to our renters, which all means a permanent need for
investments also into operating facilities.
The new bus terminal was built to Tartu in September 2003. We have concluded
a contract with AS Tarbus to operate the terminal.
The priorities for the property development during the following years shall
be building the 3rd stage buildings of Emajõe Business Centre, which should
satisfy all the needs of the area and the bus terminal for supporting
services, and developing a detailed plan for the property in Tehase street.
The investments into these buildings are planned to reach a total of 100 m
EEK (€ 6.4 m).
Assessment of the value of the investment into property that is involved in
a lawsuit
A suit with a 36-m-EEK-claim (€ 2.3 m) has been filed against Estiko
Investeeringute AS and the proceedings are still in progress at the balance
date. In connection with the lawsuit between Estiko Investeeringute AS
and Milleenia Valduse AS (bankrupt), the board has to assess the outcome
of the lawsuit before annual report. The likely allocation must be stated in
the report. Its allocation must be in the amount necessary for cover all
related liabilities or expenses on giving it to a third party. If they the
we the case, the purchase price for the assets should be increased by the
sum that has to be paid. Then, the value of the property should be testes
and if the fair value is lower than the residual value in the balance sheet,
the property must be discounted and it would significantly affect the profit
report for 2003. The board of Estiko Investeeringute AS shall carry out a
risk analysis at the end of the year and based on this, a decision shall be
made on the amount of the claim entered into the annual report of 2003.
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BALANCE SHEET
(in thousands of kroons) Group Parent company
30.09.03 31.12.02 30.09.03 31.12.02
ASSETS
Current assets
Cash and bank 318 50 2 164 163
Customer receivables 22 143 17 576 1 0
Other receivables 3 013 58 12 427 12 587
Accrued income 161 176 161 161
Prepaid expenses 214 256 96 74
Inventories 22 117 19 736 80 68
Total current assets 47 966 37 852 14 929 13 053
Noncurrent assets
Long-term financial assets 1 049 1 049 72 115 57 003
Real estate investments 128 863 122 828 21 660 22 413
Noncurrent physical assets 52 911 60 260 376 482
Intangible assets 9 12 9 12
Total noncurrent assets 182 832 184 149 94 160 79 910
TOTAL ASSETS 230 798 222 001 109 089 92 963
LIABILITIES AND OWNERS' EQUITY
Liabilities
Current liabilities
Debt obligations 25 371 28 246 70 0
Customer prepayments 125 616 0 0
Supplier payables 15 466 19 912 350 72
Other short-term payables 0 224 -59 0
Tax liabilities 719 1 608 14 31
Accrued expenses 3 464 3 359 220 412
Other prepaid revenue 585 483 0 0
Total current liabilities 45 730 54 448 595 515
Noncurrent liabilities
Long-term liabilities 76 471 74 289 136 260
Other long-term liabilities 240 1 076 1 0
Total noncurrent liabilities 76 711 75 365 137 260
Total liabilities 122 441 129 813 732 775
Owners' equity (public and private
limited liability companies)
Capital stock (par value) 59 851 59 851 59 851 59 851
Paid-in capital over/under par 4 727 4 727 4 727 4 727
Mandatory legal reserve 3 707 3 707 3 707 3 707
Retained earnings 24 649 30 643 24 649 30 643
Profit for the period 15 480 -6 095 15 480 -6 095
Treasury stock (minus) -57 -645 -57 -645
Total owners' equity 108 357 92 188 108 357 92 188
TOTAL LIABILITIES AND OWNERS' EQUITY 230 798 222 001 109 089 92 963
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BALANCE SHEET
(In thousands of euros) Group Parent company
30.06.03 31.12.02 30.06.03 31.12.02
ASSETS
Current assets
Cash and bank 20 3 138 10
Customer receivables 1 415 1 123 0 0
Other receivables 193 4 794 804
Accrued income 10 11 10 10
Prepaid expenses 14 16 6 5
Inventories 1 414 1 261 5 4
Total current assets 3 066 2 419 954 834
Noncurrent assets
Long-term financial assets 67 67 4 609 3 643
Real estate investments 8 236 7 850 1 384 1 432
Noncurrent physical assets 3 382 3 851 24 31
Intangible assets 1 1 1 1
Total noncurrent assets 11 685 11 769 6 018 5 107
TOTAL ASSETS 14 751 14 188 6 972 5 941
LIABILITIES AND OWNERS' EQUITY
Liabilities
Current liabilities
Debt obligations 1 621 1 805 4 0
Customer prepayments 8 39 0 0
Supplier payables 988 1 273 22 5
Other short term payables 0 14 -4 0
Tax liabilities 46 103 1 2
Accrued expenses 221 215 14 26
Other prepaid revenue 37 31 0 0
Total current liabilities 2 923 3 480 38 33
Noncurrent liabilities
Long-term liabilities 4 887 4 748 9 17
Other long-term liabilities 15 69 0 0
Total noncurrent liabilities 4 903 4 817 9 17
Total liabilities 7 825 8 297 47 50
Owners' equity (public and private
limited liability companies)
Capital stock (par value) 3 825 3 825 3 825 3 825
Paid-in capital over/under par 302 302 302 302
Mandatory legal reserve 237 237 237 237
Retained earnings 1 575 1 958 1 575 1 958
989 -390 989 -390
Treasury stock (minus) -4 -41 -4 -41
Total owners' equity 6 925 5 892 6 925 5 892
TOTAL LIABILITIES AND OWNERS' EQUITY 14 751 14 188 6 972 5 941
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INCOME STATEMENT (format 2)
(unaudited)
(in thousands of kroons) Group Parent company
2003 2002 2003 2002
9 months 9 months 9 months 9 months
Net sales 149 738 130 423 5 451 6 764
Cost of goods sold (cost of sales) 114 912 110 034 1 045 1 091
Gross profit (loss) 34 826 20 389 4 406 5 673
Marketing expenses 5 809 6 182 64 76
Administration and general expenses 7 917 10 511 4 238 5 686
Other income 1 222 834 194 79
Other expenses 1 364 2 235 1 2 130
Operating profit (loss) 20 958 2 295 297 -2 140
Financial income
financial income and expenses from
affiliated enterprises 0 15 110 -2 569
interest expense -4 500 -6 425 -350 -233
foreign exchange gain (loss) -220 -145 -13 0
Other financial income and expenses -758 -142 436 525
Total financial income and expenses -5 478 -6 712 15 183 -2 277
NET PROFIT FOR THE FINANCIAL PERIOD 15 480 -4 417 15 480 -4 417
Earnings per share 2,59 kr -0,75 kr 2,59 kr -0,75 kr
(unaudited)
(in thousands of kroons) Group Parent company
2003 3rd 2002 3rd 2003 3rd 2002 3rd
quarter quarter quarter quarter
Net sales 49 786 47 714 1 641 572
Cost of goods sold (cost of sales) 37 766 41 204 355 328
Gross profit (loss) 12 020 6 510 1 286 244
Marketing expenses 2 046 1 841 11 14
Administration and general expenses 3 583 2 950 1 586 1 832
Other income 332 466 0 0
Other expense 1 209 49 0 18
Operating profit (loss) 5 514 2 136 -311 -1 620
Financial income and expenses
financial income and expenses from
affiliated enterprises 0 0 4 232 1 282
interest expense -1 424 -2 191 -81 -60
foreign exchange gain (loss) -80 -61 -7 0
Other financial income and expenses -125 -82 52 200
Total financial income and expenses -1 629 -2 334 4 196 1 422
NET PROFIT FOR THE FINANCIAL PERIOD 3 885 -198 3 885 -198
Earnings per share 0,65 kr -0,03 kr 0,65 kr -0,03 kr
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INCOME STATEMENT (format 2)
(unaudited)
(in thousands of euros) Group Parent company
2003 2002 2003 2002
9 months 9 months 9 months 9 months
Net sales 9 570 8 336 348 432
Cost of goods sold (cost of sales) 7 344 7 032 67
Gross profit (loss) 2 226 1 303 282 432
Marketing expenses 371 395 4 5
Administration and general expenses 506 672 271 363
Other income 78 53 12 5
Other expense 87 143 0 136
Operating profit (loss) 1 339 147 19 -67
Financial income and expenses
financial income and expenses from
affiliated enterprises 0 0 966 -164
interest expense -288 -411 -22 -15
foreign exchange gain (loss) -14 -9 -1 0
Other financial income and expenses -48 -9 28 34
Total financial income and expenses -350 -429 970 -146
NET PROFIT FOR THE FINANCIAL PERIOD 989 -282 989 -213
Earnings per share 0,17 EUR -0,05 EUR 0,17 EUR -0,05 EUR
(in thousands of euros) Group Parent company
2003 3rd 2002 3rd 2003 3rd 2002 3rd
quarter quarter quarter quarter
Net sales 3 182 3 049 105 37
Cost of goods sold (cost of sales) 2 414 2 633 23 21
Gross profit (loss) 768 416 82 16
Marketing expenses 131 118 1 1
Administration and general expenses 229 189 101 117
Other income 21 30 0 0
Other expense 77 3 0 1
Operating profit (loss) 352 137 -20 -104
Financial income and expenses
financial income and expenses from
affiliated enterprises 0 0 270 82
interest expense -91 -140 -5 -4
foreign exchange gain (loss) -5 -4 0 0
Other financial income and expenses -8 -5 3 13
Total financial income and expenses -104 -149 268 91
NET PROFIT FOR THE FINANCIAL PERIOD 248 -13 248 -13
Earnings per share 0,04 EUR 0,00 EUR 0,04 EUR 0,00 EUR
Ellen Tohvri
Member of the Board
+372 7 308 300
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