KALEV

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO AUDITED AND CONSOLIDATED RESULTS, 2000



In year 2000 AS Kalev consolidated net profit stood at EEK 20.3 mln, 

growing annually by EEK 63.5 mln.



AS Kalev consolidated net sales were EEK 339.6 mln, which is 3.9% 

less than in 1999. The sales volume was 8,415 tons, of which 28% was 

exported.



Sales of Kalev’s confectionery products increased mainly on the 

domestic market; among export markets the sales grew in Latvia and 

Lithuania. The turnover dropped slightly on Russian and Ukrainian 

markets. According the company’s three year development plan, 

approved in 2000, the priority target markets of AS Kalev are 

Estonia, Latvia and Lithuania.



Compared with the last year, Kalev’s profit margin grew an annual 

5.9%. Higher profit margin is connected with application of modern 

management principles in the company during the year, to set a 

foundation more effective and efficient management of resources. 

Compared with the previous year the general administrative and also 

production costs are lower. However, the marketing, especially direct 

marketing expenses have increased.



One of the goals of AS Kalev in year 2000 was to find possibilities 

to dispose holdings in its Russian and Ukrainian subsidiaries and 

affiliated companies, and to invest the proceeds to successfully 

operating domestic companies. Due to sale of subsidiaries and 

affiliated companies AS Kalev wrote off from the balance sheet the 

claims against these companies that have been provisioned in the 

past. All expenses and income during the reporting period until the 

end of sale of the companies are consolidated to the income statement 

of AS Kalev. The assets and liabilities of subsidiaries are not 

consolidated since the holdings in the companies were sold.





Rutt Panga

Supervisory Board Assistant

+372 628 3853