RAKVERE LIHAKOMBINAAT

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO GROUP'S FINANCIAL RESULTS, 9M 2000



(AS Rakvere Lihakombinaat, AS Rigas Miesnieks, AS Ekseko, AS Linnulihatooted, 

Rakveres Mesos Produktai Vilnius).



In 9m 2000 AS Rakvere Lihakombinaat consolidated and unaudited turnover was 

EEK 642 mln (EEK 549 mln in 9m 1999) and net profit EEK 3.1 mln (EEK 15.1 

mln in 9m 1999)



In 9 months the parent company's (Rakvere Lihakombinaat) unconsolidated 

net sales were EEK 510 mln, which is EEK 109 mln (27.2%) more than during 

the same period last year. In 9m RLK's net profit stood at EEK 6.5 mln.



In September 2000 RLK’s Latvian subsidiaries (Rigas Miesnieks and Rigas 

Miesnieks Trading) merged and became one company, Rigas Miesnieks. In 

September 2000 RLK raised Rigas Miesnieks’ share capital by LVL 1.2 mln 

through conversion of trade claim (claim against Rigas Miesnieks and 

Rigas Miesnieks Trading) into share capital. After increase of share 

capital AS Rakvere Lihakombinaat owns 92.47% share in merged subsidiary 

Rigas Miesnieks.



RLK’s Latvian subsidiaries Rigas Miesnieks and Rigas Miesnieks Trading 

made net sales of EEK 175.6 mln (1 LVL = 27. 72724 EEK) in 9m 2000. 



AS Rakvere Lihakombinaat subsidiary Ekseko posted in 9 months an EEK 88.4 

net sales (EEK 68.7 mln in 9m 1999) and EEK 2.0 mln net profit (EEK 5.5 mln 

in 9m 1999).AS Ekseko (subsidiary of Rakvere Lihakombinaat) is the largest 

pig raising company in Estonia. 



Increased group’s and parent company’s net sales were mainly due to increase 

in parent company’s pork exports to Latvia and Lithuania. As at 30.09.2000 

the parent company’s market share stood at 36.3% (in money terms, based on 

data from Profindeks), which is 0.9% more than in last year.



Since the end of 1999 the price of pork has sharply risen. In H1 1999 the 

pries of pork were in the nadir on the world markets (average price 13 

EEK/kg). The net loss posted by the group, and lower profit of the parent 

company, are mainly due to sharp increase in prices of raw materials 

(especially pork) in year 2000. At the end of H1 2000 the situation 

stabilized and in Q3 the group posted an EEK 8.4 mln profit. Positive trends 

continued in Q4 2000.





Rita Ukkivi

Chief Accountant

+372 32 29 218