AS KLEMENTI

ANNOUNCEMENT

03.08.99

 

COMMENTARY TO THE FINANCIAL RESULTS 06/99

 

The H1 1999 consolidated and unaudited net sales of AS Klementi 

amounted to 48.3 million EEK, which is 3.6 million EEK or 6.9 % 

less than during the respective period in 1998 (H1 1998 net sales were 

51.8 million EEK). Compared to the same period last year, the sale of 

goods produced decreased by 20.1% (from 37.4 million EEK to 29.9 million 

EEK).

 

Decrease in the sale of goods produced occurred due to the 

following factors:

 

   1. Reverberations of the retailing sector’s crisis; 

   2. Deliberate reduction of output volume in 1999

 

Sale of goods produced by markets (million EEK):

   

                       H1 1999          H1 1998              Change

  Estonia         	  20.6             26.0              -20.7%

  Latvia; Lithuania 	   7.1              8.3              -14.5%

  Finland; Sweden   	   1.8              2.5              -28.0%

  Other         	   0.4              0.6              -33.3%

 

Decline in the sales of goods produced was compensated by 33.3% 

increase in subcontracting works (12.9 million EEK in H1 1998; 17.2 

million EEK in H1 1999). 

 

Export of subcontracting works in H1 totaled 16.7 million EEK 

(exports to Finland 13.8 million EEK and Sweden 2.9 million EEK).

 

The H1 1999 consolidated and unaudited loss of AS Klementi amounted 

to 2.2 million EEK (net profit during the same period last year 2.4 

million EEK).

 

The loss occurred mainly due to: 

- Decreased sales of goods produced; 

- Realization of inventories (1.0 million EEK decrease from the 

same period last year);

- Additional provisions on receivables from Lithuanian customers by 

0.9 million EEK. 

 

Compared to the same period last year, the structure of AS Klementi 

group has remained the same. AS Klementi group includes: 

 

AS Profline (Estonia; 100% holding; production and sale of clothes)

OÜ Klementi Kinnisvara (Estonia; 100% holding; administration of 

real estate)

Klementi Trading OY (Finland; 100% holding; retail and wholesales)

AS Brendman (Estonia; 100% holding; trading)

 

In H1 1999, the company opened several new stores in Tallinn. In 

addition to the stores in Rocca al Mare Shopping Center (opened in 

Q1), the company also opened stores in Kristiine Shopping Center and 

Meka Shopping Center.

 

 

Madis Võõras 

Juhatuse esimees