Andmed seisuga: 22.07.2024 21:11 (GMT+3)
Kalev FINANCIAL RESULTS 05/28/2003
FINANCIAL RESULTS 9 MONTHS 2002/2003
COMMENTS ON FINANCIAL RESULTS
The consolidated net sales of Kalev Ltd in the first 9 months
of the financial year totalled 265.9 million kroons (nearly
17 million euros), which exceeds the net sales of the same
period last financial year* by 27.3 million kroons or 11.5%
(in 2001/2002 - 238,6 million kroons or 15.2 million euros).
The consolidated net profit of the company in the first
9 months amounted to 17.9 million kroons (1.1 million euros),
which constitutes a decrease of nearly 7 million kroons (or
nearly 27%), compared to the same period last financial year.
Decrease in net profit was conditioned by the employment of
additional sales staff in August as well as the sudden
increase of raw material costs. Increase of raw material
costs resulted from the price increase of an important raw
material - cocoa beans - at the world market. In the first
9 months of the financial year, the costs of Kalev Ltd on
cocoa beans increased by approximately 13 million kroons,
compared to the same period last financial year.
The sales of Kalev Ltd on the home market were rejuvenated by
active marketing activities, employment of additional sales
staff, as well as growth in the number of customers in
connection with the application of the direct distribution
system.
In the given period, the company launched several new products
to the market (including the Valik handmade chocolates in
metal boxes, which are mainly targeted to the tourist segment,
and the Vana Tallinn gift box). In October, Kalev Ltd launched
the 2002 Christmas collection, which converged traditional
Christmas products (different chocolates and boxed chocolate),
the "Päkapikutajad" collection targeted to children, and new
products launched in Christmas (e.g. Zürii candies). In
co-operation with the Estonian Puppet Theatre, the children’s
Christmas play "Päkapikutajad" was performed in December on
the premises of Kalev Ltd. Nearly 23,000 people came to see
the show. According to the research conducted by AS Emor,
seven out of ten Estonians bought a Christmas product of
Kalev Ltd at Christmas 2002 or at the turn of the year.
Chocolates of different sizes proved to be the most popular
product.
In the beginning of 2003, Kalev Ltd introduced three new
candies: Banaani, Moonike and Marja. In February, the company
launched a selection of Valentine’s Day products, which
included, among other products, the Flirt boxed chocolate,
which was very well received by the customers. The sales of
Valentine’s Day products of Kalev Ltd increased by 84% in 2003,
compared to the Valentine’s Day sales in 2002.
According to the Retail Sales Inventory Survey conducted by
the market research company AC Nielsen, Kalev Ltd’s share in
the Estonian retail trade was 54.5% as at the end of January
2003. This constitutes an increase of 6.2%, compared to last
financial year, Kalev’s share in the chocolate confectionery
group increased by 2.8% to 58.4%.
Sales of confectionery products of Kalev Ltd totalled 5,471
tons in the first 9 months of the financial year, and increase
by approximately 5%, compared to the same period last financial
year. Home market constituted 80% of the total sales; 20% of
the sales were exported. In the given period, Latvia and the
Ukraine remained the main export countries of the company. In
addition to the above countries, Kalev Ltd also exported its
products to Russia, Scandinavian countries and the United
States.
Chocolate confectionery products (chocolate candies, chocolate
bars and boxed chocolate) constituted 68% of the total sales of
confectionery products of Kalev Ltd in the first 9 months of
the financial year.
In the given period, the company actively continued the
construction of the new plant building in Põrguvälja, Rae Parish,
Harjumaa. The warehouse for finished goods was completed in the
new plant building of Kalev Ltd in February 2003. The company
plans to move its operations to the new location between May
and July and put the new plant into operation sometime between
July and September 2003.
The company’s marketing expenses increased by 13 million kroons
(nearly 40%), compared to the same period last financial year.
This was caused, first and foremost, by the increase in the
number of employees of the Sales Department.
In 2001, the management of the company deemed it necessary to
increase, during the year, the provisions for write-off of
inventories as well as provisions for doubtful debts in the
total amount of 16.8 million kroons (11.8 million kroons in
the 1st half-year and 5 million kroons in the second half-year).
General administrative expenses increased by the establishment
of the above reserves. In the end of the financial year (in
December 2001), the management decided to account for the
reserves as operating expenses in the income statement.
Therefore, the general administrative expenses in 2001/2002
and 2002/2003 cannot be compared.
The consolidated gross profitability of Kalev Ltd in the first
9 months of the financial year was 32.2%, which constitutes a
decrease of 4.7%, compared to the same period last financial year.
The main reason for the decrease of gross profitability was the
43% price increase of an important raw material (cocoa beans),
compared to the same period last financial year.
In the first 9 months of the financial year, the average number
of employees of Kalev Ltd amounted to 592, which constitutes an
increase of nearly 10%, compared to the same period last
financial year. In October 2002, employer’s obligations arising
from employment contracts concluded with the employees of AS Paide
Piimakombinaat were transferred to Kalev Ltd. At the same time,
the number of Kalev Ltd’s employees was also influenced by the
increase in the staff of the Sales Department by 49 employees.
_______________________________
* From 1 July 2001 to 31 March 2002
BALANCE SHEET (consolidated, unaudited)
In kroons
ASSETS 31.03.2003 30.06.2002
CURRENT ASSETS
CASH AND BANK ACCOUNTS 1 138 053 3 476 327
CUSTOMER RECEIVABLES 39 630 988 32 244 225
OTHER RECEIVABLES 91 666 709 9 692 416
PREPAID EXPENSES 11 917 363 3 333 224
INVENTORIES 57 695 522 48 968 656
TOTAL CURRENT ASSETS 202 048 634 97 714 848
NON-CURRENT ASSETS
OTHER LONG-TERM RECEIVABLES 887 180 887 180
LONG-TERM FINANCIAL 0 2 764 416
INVESTMENTS
TANGIBLE ASSETS 225 000 168 166 533 651
REAL ESTATE INVESTMENTS 18 063 950 69 266 253
INTANGIBLE ASSETS 242 357 290 378
TOTAL NON-CURRENT ASSETS 244 193 654 239 741 878
TOTAL ASSETS 446 242 289 337 456 726
LIABILITIES AND EQUITY
LIABILITIES
PAYABLES 3 059 520 33 891 332
CUSTOMER PREPAYMENTS 93 347 53 274
PAYABLES TO SUPPLIERS 72 211 471 35 565 238
TAX LIABILITIES 14 441 582 3 997 352
OTHER LIABILITIES 11 030 542 33 826 371
TOTAL CURRENT LIABILITIES 100 836 463 107 333 567
LONG-TERM LIABILITIES 98 132 951 21 000 000
OTHER LONG-TERM PAYABLES 25 805 783 5 120 672
TOTAL LONG-TERM LIABILITIES 123 938 734 26 120 672
EQUITY
SHARE CAPITAL 78 775 000 78 775 000
REVALUATION RESERVE 112 812 302 112 812 302
RETAINED EARNINGS -18 341 560
LEGAL RESERVE 1 537 837
PROFIT FOR THE YEAR-ENDED 10 392 119
PROFIT FOR THE FINANCIAL 17 949 834 30 756 745
YEAR
TOTAL EQUITY 221 467 092 204 002 487
TOTAL LIABILITIES AND EQUITY 446 242 289 337 456 726
BALANCE SHEET (consolidated, unaudited)
In euros
ASSETS 31.03.2003 30.06.2002
CURRENT ASSETS
CASH AND BANK ACCOUNTS 72 735 222 177
CUSTOMER RECEIVABLES 2 532 875 2 060 776
OTHER RECEIVABLES 5 858 556 619 457
PREPAID EXPENSES 761 656 213 031
INVENTORIES 3 687 406 3 129 660
TOTAL CURRENT ASSETS 12 913 228 6 245 101
NON-CURRENT ASSETS
OTHER LONG-TERM RECEIVABLES 56 701 56 701
LONG-TERM FINANCIAL 0 176 678
INVESTMENTS
TANGIBLE ASSETS 14 380 095 10 643 413
REAL ESTATE INVESTMENTS 1 154 494 4 426 909
INTANGIBLE ASSETS 15 489 18 558
TOTAL NON-CURRENT ASSETS 15 606 779 15 322 259
TOTAL ASSETS 28 520 007 21 567 361
LIABILITIES AND EQUITY
LIABILITIES
PAYABLES 195 538 2 166 045
CUSTOMER PREPAYMENTS 5 966 3 405
PAYABLES TO SUPPLIERS 4 615 142 2 273 027
TAX LIABILITIES 922 983 255 477
OTHER LIABILITIES 704 978 2 161 894
TOTAL CURRENT LIABILITIES 6 444 608 6 859 848
LONG-TERM LIABILITIES 6 271 823 1 342 141
OTHER LONG-TERM PAYABLES 1 649 286 327 270
TOTAL LONG-TERM LIABILITIES 7 921 109 1 669 411
EQUITY
SHARE CAPITAL 5 034 627 5 034 627
REVALUATION RESERVE 7 210 002 7 210 002
RETAINED EARNINGS 0 -1 172 236
LEGAL RESERVE 98 285
PROFIT FOR THE YEAR-ENDED 664 176
PROFIT FOR THE FINANCIAL 1 147 201 1 965 709
YEAR
TOTAL EQUITY 14 154 291 13 038 102
TOTAL LIABILITIES AND EQUITY 28 520 007 21 567 361
INCOME STATEMENT (consolidated, unaudited)
In kroons
01.07.2002- 01.07.2001-
31.03.2003 31.03.2002
NET SALES 265 907 721 238 566 086
COST OF GOODS SOLD 180 403 200 150 709 071
GROSS PROFIT 85 504 522 87 857 015
MARKETING EXPENSES 44 978 076 32 024 734
ADMINISTRATION EXPENSES 24 708 830 14 889 109
OTHER INCOME 22 070 888 606 380
OTHER EXPENSES 12 326 698 12 851 088
OPERATING PROFIT 25 561 805 28 698 466
FINANCIAL INCOME 576 992 112 286
FINCANCIAL EXPENSES 8 188 963 4 067 314
NET PROFIT 17 949 835 24 743 437
EARNINGS PER SHARE 2.28 3.14
INCOME STATEMENT (consolidated, unaudited)
In euros
01.07.2002- 01.07.2001-
31.03.2003 31.03.2002
NET SALES 16 994 557 15 247 113
COST OF GOODS SOLD 11 529 836 9 632 041
GROSS PROFIT 5 464 721 5 615 072
MARKETING EXPENSES 2 874 616 2 046 748
ADMINISTRATION EXPENSES 1 579 178 951 585
OTHER INCOME 1 410 583 38 755
OTHER EXPENSES 787 818 821 332
OPERATING PROFIT 1 633 693 1 834 162
FINANCIAL INCOME 36 876 7 176
FINANCIAL EXPENSES 523 369 259 948
NET PROFIT 1 147 201 1 581 390
EARNINGS PER SHARE 0.15 0.20
Ruth Roht
PR manager
+372 6 28 38 58
Sisukaart