AS NORMA

ANNOUNCEMENT

29.07.99

 

COMMENTARY TO H1 1999 FINANCIAL RESULTS OF AS NORMA GROUP

 

Sales and revenue

 

The H1 1999 net sales of AS Norma group totaled 260.4 million EEK, 

incl. parent company with 238.8 million EEK. Consolidated sales 

figure increased by 3.4 million EEK from the same period last year. 

Income earned by AS Norma accounted for 92%, AS Metaprint 4%, AS 

Norma Maja 2.3% and AS Tööriistavabrik 1.7% of the group’s total 

income. The parent company’s sales in June amounted to 41.3 million 

EEK (last year 18.5 million EEK). The group’s main fields of 

activity 

include production and sales of safety belts, car supplies, sheet 

iron lithography and real estate administration. 

Sales structure by regions has remained unchanged from previous 

periods. Exports accounted for 99% of sales revenue, whereas 89% of 

production was exported to the Eastern markets and 10% to the West. 

The remaining share of sales were made to Estonia and the Baltic 

region.

 

Profit

 

The company’s pre-tax profit was 90.3 million EEK; net profit 

totaled 

67.1 million EEK, which is 16.9 million EEK more than during the 

same 

period last year. Foreign exchange gain totaled 14.7 million EEK, 

of 

which 12.9 million EEK was earned in Q1. For purposes of hedging 

the 

currency risks, DEM is used as a base currency in transactions 

between AS Norma and its main customer the company AVTOVAZ as of 

Q2. 

To achieve high profit margin, AS Norma has also decreased 

operating 

expenses and changed output structure. 

 

Use of capital

 

Volume of accounts receivable at the end of the period totals 145.2 

million EEK (8.5 million EEK increase), of which 86% is receivables 

from the Eastern markets. Compared to the standings of 30.06.98, 

the 

volume of accounts receivable has decreased by 97.1 million EEK. 

The 

share of accounts in arrears of total receivables is 62%.

As of the end of H1, the group’s balance sheet size amounted to 

472.2 

million EEK (18.2 million EEK growth), increasing mainly due to the 

increase in current assets (30.7 million EEK). 

The company has reduced the level of inventories. Compared to the 

beginning of the year, the volume of inventories is 7.9 million EEK 

lower; liabilities have decreased by 8.6 million EEK. 

The group’s owners’ equity has increased by 26.9 million EEK, 

amounting to 344.8 million EEK (73% of balance sheet volume). The 

group invested in H1 6.4 million EEK to secure output capacity and 

3.2 million EEK into product development.

 

 

R. Harand

Controller

+372 6 500 482