AS BALTIKA

ANNOUNCEMENT

21.05.99

 

COMMENTARY TO THE 4 MONTHS FINANCIAL RESULTS

 

The 4 months 1999 unconsolidated and unaudited net sales of AS 

Baltika amounted to 83.0 million EEK, which is 7.7 million EEK less 

that during the same period last year (net sales 90.7 million EEK). 

Compared to the same period last year, the sales volumes decreased on 

Russian and Ukrainian markets by 12.8 million EEK (the respective 

sales figures were 4.1 million EEK in 1999 and 16.9 million EEK in 

1998), whereas the Latvian and Lithuanian sales figures increased by 

7.1 million EEK (the respective sales figures were 17.9 million EEK 

in 1999 and 10.8 million EEK in 1998) and by 5.0 million EEK in 

Finland and Sweden (the respective sales figures were 20.7 million 

EEK in 1999 and 25.7 million EEK in 1998). 

 

The 4 months 1999 export volume amounted to 54.4 million EEK (66% of 

net turnover); the respective figure in 1998 was 61.8 million EEK 

(68% of net turnover). Compared to the same period last year, the 

revenues decreased by 19.3 million EEK, whereas the change in 

inventories accounted for 12.2 million EEK. Compared to the beginning 

of 1999, the volume of goods produced in inventory has decreased by 

7.7 million EEK and inventory of work-in-process by 4.5 million EEK. 

One of the priorities of AS Baltika in 1999 is to improve its 

liquidity, which will be achieved also via optimization of 

inventories. The realization of inventories, which were left in stock 

due to the financial crisis in Russia in H2 1998, also influenced the 

4 months 1999 results.

 

Compared to the respective period last year, the expenses of AS 

Baltika have decreased by 17.7% (14.2 million EEK), incl. decrease in 

operating expenses by 18.3% (2.0 million EEK). The 4 months 1999 

unconsolidated and unaudited net profit of AS Baltika amounted to 1.0 

million EEK (6.8 million EEK during the same period 1998), which also 

reflects the volume of the group’s net profit, since the results of 

the subsidiaries are reflected on the account of financial revenue 

and expenses based on equity method.

 

The following factors influenced the net sales of the company:

- The group’s common policy of decreasing the volume of inventories 

to improve liquidity and spring discount campaigns in subsidiaries

- Decrease in the volume of sale of goods produced 

-  Reserves for hedging the potential risks

 

 

Avo Reiska

Financial director

+372 630 2717