AS BALTIKA

ANNOUNCEMENT

19.04.99

 

COMMENTARY CONSOLIDATED FINANCIAL RESULTS 03/99

 

The 1999 and 1998 quarterly financial reports reflect the results of 

the following subsidiaries and affiliated companies:

 

	31.03.1999	     holding %		31.03.1998          	  	holding %

AS Baltika (parent)				AS Baltika (parent)

 

Production companies: 				Production companies:

AS Virulane                   55.15 %		AS Villero	             	  75 %

AS Elina STC                     50 %

	

Retailers:					Retailers:

AS Baltman		        100 %		AS Baltman			 100 %

Baltmano Prekiba(Lithuania)      90 %		Baltmano Prekiba(Lithuania)	  90 %

Baltika Sweden AB(Sweden)    	100 %		Baltika Sweden(Sweden)     	 100 %

Sia Baltman(Latvia)	    	100 %		AS Sander		         68.3 %

						Lviv-Baltman(Latvia)    	 100 %

 

The merger of AS Virulane and the group have brought along several 

significant changes on both balance sheet and income statement. As of 

31.03.1999, the balance sheet volume amounted to 222.4 million EEK, 

which is 27.4 million EEK more than on 31.03.1998.

		

Three months audited and consolidated net sales of AS Baltika in 1999 

amounted to 80.6 million EEK, which is 9.9 million EEK (14%) more than 

during the same period last year (net sales respectively 70.7 million 

EEK). The sale of goods produced accounted for 73.2% of Q1 net sales 

(59 million EEK) and 76.8% in 1998 (54.4 million EEK), whereas the 

share of subcontracting works in 1999 was 24% (19.4 million EEK) and 

22.4% in 1998 (15.9 million EEK). In Q1 1999 the export volume amounted 

to 56.2 million EEK, and the respective figure during the same period 

1998 was 53.8 million EEK.

 

Sales of goods produced and subcontracting works by markets:

(thousand EEK)

			1999/3		1998/3		 Increase

Estonia			23717		16515		 43.6 %

Latvia, Lithuania	21401		13351		 60.3 %

Russia, Ukraine		 2115		13257		(84.0 %)

Finland, Sweden		26991		16731		 61.3 %

England, Germany	 4178		10410		(59.7 %)

 

AS Baltika continues to lead conservative sales policy with Russia and 

Ukraine, decreasing the sales volumes on these markets in Q1 1999 by 

11.1 million EEK, compared to the same period in 1998. The share of AS 

Baltika’s subsidiary AS Baltman in the consolidated turnover was 17.3% 

(14 million EEK) and AS Virulane 16% (12.9 million EEK).	

 

The Q1 1999 unaudited and consolidated gross profit of AS Baltika 

amounted to 2990 thousand EEK, of which the share of AS Baltika 

(parent) was 2692 thousand EEK and minority interest 298 thousand EEK. 

The Q1 1998 consolidated gross profit totaled 3822 thousand EEK, of 

which the share of AS Baltika (parent) was 3778 thousand EEK and 

minority interest 44 thousand EEK. 1086 thousand EEK decrease in gross 

profit figure in comparison with the same period last year occurred 

mainly due to realization of previous period inventories, which is 

reflected on the income statement account of “change in inventories”. 

The aforementioned result is not unplanned, and it has been accounted 

for on projection of the company’s activities in 1999.

 

 

Avo Reiska

Member of the Management Board