Last update: 21.07.2024 20:54 (GMT+3)
Estiko FINANCIAL RESULTS 03/10/2004
FINANCIAL RESULTS, Q4 2003
Commentary to the Group’s financial results of the 4th quarter of the year
2003
The consolidated unaudited net sales of AS Estiko in 2003 was 200.1 mln EEK
(12.8 mln EUR) and the net profit 15.1 mln EEK (964 thous. EUR). The net
sales of the year 2002 was 176.2 mln EEK (11.3 mln EUR) and loss 6.1 mln
EEK (390 thous. EUR). The growth of net sales in comparison with the same
period of the previous year was 23.9 mln EEK (1.5 mln EUR) or 13.5% and the
profit was gained 21.2 mln EEK (1,4 mln EUR) more.
The consolidated unaudited net sales of AS Estiko of the 4th quarter of
2003 was 50.4 mln EEK (3.2 mln EUR) and loss 0.4 mln EEK (25 thous. EUR).
The consolidated net sales of the 4th quarter of the year 2002 was 45.8 mln
EEK (2.9 mln EUR) and loss 1.7 mln EEK (0.1 mln EUR). Net sales increased
in comparison with the same period of the previous year by 4.7 mln EEK (0.3
mln EUR) or 10%.
Financial ratios characteristics to the financial activities of AS Estiko:
2003 2002
General profitability (gross profit/net sales) 21,5% 14,7%
Operating profitability(operating profit/net sales) 10,8% 1,6%
Return on sales (net profit/net sales) 7,5% -3,5%
Return on equity 15,1% -6,4%
(net profit/average equity)
Return on assets 6,7% -2,6%
(net profit / average assets)
Coverage coefficient of short-term liabilities 88,5% 69,5%
(current assets/ short-term liabilities)
Owners’ equity rate (owners’ equity/assets) 47% 41,5%
The Group deals mostly with the two following areas of activity:
manufacturing and real estate operations.
MANUFACTURING
The net sales of the manufacturing sector in 2003 was 167.6 mln EEK (10.7
mln EUR) and the sales of the same period of the year 2002 was 145.8 mln EEK
(9.3 mln EUR). Therefore, the net sales have been increased by 21.8 mln EEK
(1.4 mln EUR) or 15%. The loss of the manufacturing sector in 2002 was 10.5
mln EEK (0.7 mln EUR). In the year 2003 the profit gained was gained 8.2
mln EEK (0.52 mln EUR), which means the increase of profit by 18.7 mln
EEK (1.2 mln EUR).
The nets sales of the manufacturing sector of the 4th quarter of the year
2003 was 41.9 mln EEK (2.7 mln EUR) and the net sales of the same period of
the year 2002 was 37.3 mln EEK (2,4 mln EUR). Therefore, the net sales have
been increased by 4.6 mln EEK (0.3 mln EUR) or 12,3%. The loss of the
manufacturing sector of the 4th quarter of the year 2002 was 4 mln EEK
(0.26 mln EUR) and the loss of the same period of the year 2003 was 0.1 mln
EEK (0.01 mln EUR).
REAL ESTATE
As of 31.12.2003, the real estate sector of the Group of Estiko includes the
following enterprises:
Estiko Investeeringute AS participation 100%
AS Emajõe Ärikeskus participation 100%
AS Emajõe Kaubahall participation 100%
The net sales of the real estate sector of the Estiko Group in the year 2003
was 32.5 mln EEK (2.08 mln EUR) and the net profit was 7.3 mln EEK (0.47
mln EUR). The net sales of the same period of the year 2002 was 30.5 mln
EEK (1.95 mln EUR) and the net profit 4.4 mln EEK (0.28 mln EUR). In
comparison with the same period of the previous year the net sales increased
by 2 mln EEK (0.13 mln EUR) and the net profit increased by 2.9 mln EEK (0.2
mln EUR).
The net sales of the real estate sector of the 4th quarter of the year 2003
was 8.4 mln EEK (0.54 mln EUR) and the net profit 0.3 mln EEK (0.02 mln
EUR). The net sales of the 4th quarter of the year 2002 was 8.6 mln EEK
(0.55 mln EUR) and the net profit 2.4 mln EEK (0.15 mln EUR).
Assessment of Property Investment Value
As of December 31st, 2003, a value appraisement test was passed for the real
property investments of the Estiko Group and the possible coverable value of
the objects was calculated. Proceeding from the principle of conservatism,
the Management Board discounted a legal share of the real property at Tehase
16 (sisustus E Kaubamaja) in the amount of 1 MEEK (63.9 thous. EUR).
An action has been filed against Estiko Investeeringute AS with a claim in
the amount of 36 mln.EEK (2.3 mln EUR), the legislative proceeding of which
is pending as of balance day. Within the frames of ensuring the claim the
bank accounts of Estiko Investeeringute AS were arrested and prohibitions of
disposition were set on the real property of Estiko Investeeringute AS.
As of today, the accounts are exempted, however the property still has
prohibitory disposition signs on it. A relevant application concerning the
prohibitory disposition sign has been submitted to the court, which has no
judical decision yet. Up to now, several preliminary hearings have taken
place that have been limited to submitting complementary evidences and to
the specification of standpoints. Charging by the former running of the
judical proceedings, no county court judgement can be expected earlier than
next year. Considering the complicatedness of the proceeding, the final
result is unpredictable at the moment. Relying on the lawyers’ estimation,
the Management Board of Estiko Investeeringute AS decided to reflect the
information related to the legal procedure in the Appendices to the Annual
Report as contingent liability. The Management Board did not consider it
necessary to form an appropriation in the balance sheet concerning the court
action, basing on a prerequisite that the contingent liability as a possible
existing liability is less plausibly realised than not realised.
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BALANCE SHEET
(in thousands of kroons) Group Parent company
31.12.03 31.12.02 31.12.03 31.12.02
ASSETS
Current assets
Cash and bank 283 50 1 493 163
Customer receivables 20 636 17 576 1 0
Other receivables 3 069 58 14 397 12 587
Accrued income 0 176 0 161
Prepaid expenses 120 256 61 74
Inventories 25 554 19 736 79 68
Total current assets 49 662 37 852 16 031 13 053
Noncurrent assets
Long-term financial assets 1 073 1 049 68 544 57 003
Real estate investments 127 367 122 828 21 431 22 413
Noncurrent physical assets 53 300 60 260 3 089 482
Intangible assets 9 12 9 12
Total noncurrent assets 181 749 184 149 93 073 79 910
TOTAL ASSETS 231 411 222 001 109 104 92 963
LIABILITIES AND OWNERS' EQUITY
Liabilities
Current liabilities
Debt obligations 28 999 28 246 70 0
Customer prepayments 172 616 0 0
Supplier payables 20 449 19 912 149 72
Other short-term payables 5 224 0 0
Tax liabilities 1 281 1 608 46 31
Accrued expenses 4 704 3 359 734 412
Other prepaid revenue 500 483 0 0
Total current liabilities 56 110 54 448 999 515
Noncurrent liabilities
Total noncurrent liabilities 67 213 74 289 136 260
Loans, debentures, financial lease
liabilities 59 148 74 289 136 260
Convertible debt 8 065 0
TOTAL 67 213 74 289 136 260
Other long-term liabilities 120 1 076 1 0
TOTAL 120 1 076 1 0
Total noncurrent liabilities 67 333 75 365 137 260
Total liabilities 123 443 129 813 1 136 775
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
Reatined earnings 24 649 30 643 24 649 30 643
Net profit (loss) for the financial
year) 15 091 -6 095 15 091 -6 095
Profit for the period 15 091 -6 095 15 091 -6 095
Treasury stock (minus) -57 -645 -57 -645
Total owners' equity 107 968 92 188 107 968 92 188
TOTAL LIABILITIES AND OWNERS' EQUITY 231 411 222 001 109 104 92 963
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BALANCE SHEET
(in thousands of euros) Group Parent company
31.12.03 31.12.02 31.12.03 31.12.02
ASSETS
Current assets
Cash and bank 18 3 95 10
Customer receivables 1 319 1 123 0 0
Other receivables 196 4 920 804
Accrued income 0 11 0 10
Prepaid expenses 8 16 4 5
Inventories 1 633 1 261 5 4
Total current assets 3 174 2 419 1 025 834
Noncurrent assets
Long-term financial assets 69 67 4 381 3 643
Real estate investments 8 140 7 850 1 370 1 432
Noncurrent physical assets 3 406 3 851 197 31
Intangible assets 1 1 1 1
Total noncurrent assets 11 616 11 769 5 948 5 107
TOTAL ASSETS 14 790 14 188 6 973 5 941
LIABILITIES AND OWNERS' EQUITY
Liabilities
Current liabilities
Debt obligations 1 853 1 805 4 0
Customer prepayments 11 39 0 0
Supplier payables 1 307 1 273 10 5
Other short-term payables 0 14 0 0
Tax liabilities 82 103 3 2
Accrued expenses 301 215 47 26
Other prepaid revenue 32 31 0 0
Total current liabilities 3 586 3 480 64 33
Noncurrent liabilities
Total noncurrent liabilities 4 296 4 748 9 17
Loans, debentures, financial lease
liabilities 3 780 4 748 9 17
Convertible debt 515 0 0 0
TOTAL 4 296 4 748 9 17
Other long-term liabilities 8 69 0 0
TOTAL 8 69 0 0
Total noncurrent liabilities 4 303 4 817 9 17
Total liabilities 7 889 8 297 73 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
Net profit (loss) for the financial year 964 -390 964 -390
Profit for the period 964 -390 964 -390
Treasury stock (minus) -4 -41 -4 -41
Total owners' equity 6 900 5 892 6 900 5 892
TOTAL LIABILITIES AND OWNERS' EQUITY 14 790 14 188 6 973 5 941
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INCOME STATEMENT (format 2)
(unaudited)
(in thousands of kroons) Group Parent company
2003 2002 2003 2002
Net sales 200 118 176 234 7 084 9 287
Cost of goods sold (cost of sales) 157 165 150 379 1 366 1 420
Gross profit (loss) 42 953 25 855 5 718 7 867
Marketing expenses 8 810 8 747 109 165
Administration and general expenses 12 236 13 517 6 382 7 192
Other income 2 144 1 520 194 80
Other expenses 2 393 2 350 1 2 131
Operating profit (loss) 21 658 2 761 -580 -1 541
Financial income and expenses
financial income and expenses from
affiliated enterprises 0 15 424 -5 000
interest expense -5 566 -8 535 -422 -334
foreign exchange gain (loss) -322 -205 -13 -1
Other financial income and expenses -679 -116 682 781
Total financial income and expenses -6 567 -8 856 15 671 -4 554
NET PROFIT FOR THE FINANCIAL PERIOD 15 091 -6 095 15 091 -6 095
Earnings per share 2,52 kr -1,03 kr 2,52 kr -1,03 kr
(unaudited)
(in thousands of kroons) Group Parent company
2003 4th 2002 4th 2003 4th 2002 4th
quarter quarter quarter quarter
Net sales 50 380 45 811 1 633 2 523
Cost of goods sold (cost of sales) 42 253 40 345 321 329
Gross profit (loss) 8 127 5 466 1 312 2 194
Marketing costs 3 001 2 565 45 89
Administration and general expenses 4 319 3 006 2 144 1 506
Other income 922 686 0 1
Other expense 1 029 115 0 1
Operating profit (loss) 700 466 -877 599
Financial income and expenses
financial income and expenses from
affiliated enterprises 0 0 314 -2 431
interest expense -1 066 -2 110 -72 -101
foreign exchange gain (loss) -102 -60 0 -1
Other financial income and expenses 79 26 246 256
Total financial income and expenses -1 089 -2 144 488 -2 277
NET PROFIT FOR THE FINANCIAL PERIOD -389 -1 678 -389 -1 678
Net profit (loss) from normal
operations -389 -1 678 -389 -1 678
Earnings per share -0,06 kr 1,00 kr -0,06 kr 1,00 kr
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INCOME STATEMENT (format 2)
(unaudited)
(in thousands of euros) Group Parent company
2003 2002 2003 2002
Net sales 12 790 11 263 453 594
Cost of goods sold (cost of sales) 10 045 9 611 87 91
Gross profit (loss) 2 745 1 652 365 503
Marketing expenses 563 559 7 11
Administration and general expenses 782 864 408 460
Other income 137 97 12 5
Other expenses 153 150 0 136
Operating profit (loss) 1 384 176 -37 -98
Financial income and expenses
financial income and expenses from
affiliated enterprises 0 0 986 -320
interest expense -356 -545 -27 -21
foreign exchange gain (loss) -21 -13 -1 0
Other financial income and expenses -43 -7 44 50
Total financial income and expenses -420 -566 1 002 -291
NET PROFIT FOR THE FINANCIAL PERIOD 964 -390 965 -390
Earnings per share 0,16 EUR -0,07 EUR 0,16 EUR -0,07 EUR
Diluted earnings per share 2,52 kr -1,03 kr 2,52 kr -1,03 kr
(in thousands of euros) Group Parent company
2003 4th 2002 4th 2003 4th 2002 4th
quarter quarter quarter quarter
Net sales 3 220 2 928 104 161
Cost of goods sold (cost of sales) 2 700 2 579 21 21
Net profit (loss) 519 349 84 140
Marketing expenses 192 164 3 6
Administration and general expenses 276 192 137 96
Other income 59 44 0 0
Other expenses 66 7 0 0
Operating profit (loss) 45 30 -56 38
Financial income and expenses
financial income and interest from
affiliated enterprises 0 0 20 -155
interest expense -68 -135 -5 -6
foreign exchange gain (loss) -7 -4 0 0
Other financial income and expenses 5 2 16 16
Total financial income and expenses -70 -137 31 -146
NET PROFIT FOR THE FINANCIAL PERIOD -25 -107 -25 -107
Earnings per share 0,00 EUR 0,06 EUR 0,00 EUR 0,06 EUR
Ellen Tohvri
Member of the Board
+372 7 308 300
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