RAKVERE LIHAKOMBINAAT

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO CONSOLIDATED RESULTS, Q1 2000



In Q1 2000 the consolidated net sales of AS Rakvere Lihakombinaat 

amounted to EEK 186.7 mln, and net profit was EEK 6.9 mln. The net 

turnover volume increased by EEK 14.2 mln (8.2%) on annual basis. 

Growth in turnover was due to RLK's higher sales volumes, mainly from 

increased market share and growth in export sales.



In Q1 2000 export sales accounted for 29% of RLK's total sales. The 

largest export partners were Latvia (54.5%), Lithuania (39.0%), 

others (6.5%)



In February 2000 HK Ruokatalo OY, the parent company of AS Rakvere 

Lihakombinaat, made a take-over bid to the company's small

shareholders with an aim to acquire 95% holding in AS Rakvere 

Lihakombinaat. The offering became effective on 01.02.2000 and ended 

on 14.03.2000. The price of the offering was EEK 4.70 per share. 

During this period HK Ruokatalo OY acquired an additional 11.501% 

holding in AS Rakvere Lihakombinaat share capital, thus increasing 

its shareholding in the company from 79.929% to 91.43%.





As of 31.03.2000 AS Rakvere Lihakombinaat owned the following subsidiaries:

1) AS Rigas Miesnieks: 87.95% holding;

2) AS Rigas Miesnieks Trading: 100% holding;

3) AS Ekseko: 97.3% holding;

4) AS Linnulihatooted: 76% holding;

5) AS Rakveres Mesos Produktai Vilnius: 100% holding.





Andrit Heidov

Information Manager

+372 32 29 211