2000.05.10, Tallinna Farmaatsiatehas, TLN

TALLINNA FARMAATSIATEHAS

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO FINANCIAL RESULTS Q1 2000



Comments to the Profit Statement



In Q1 of 2000 the production was realised for 26,804 th. EEK.  Compared 

to the same period of previous year the sales were increased by 

10,085 th EEK i.e. 60.3% (net turnover in 1999 – 16,719 th. EEK).

The business profit total increased by 12,132 th. EEK (69.6%).



Compared to the same period of previous year the operational expenses

increased by 10,664 th. EEK, from which the increase of expenses for

materials 8,273 th. EEK was related to increase of production volume for

3 times.  In other operational expenses were shown commissions with 

the sum of 2,042 th. EEK and write-off of the uncollectible accounts

with the amount of 1,081 th. EEK.  There has been regarded the conclusions,

made in audited Annual Report for 1999, related to expired receivables.

Possible income from abovementioned debtors in future will be shown

under other business income.



Commercial profit increased in Q1 of 2000 compared to the same period

of 1999 by 1,468 th. EEK (44.5%), financial expenses decreased by

334 th. EEK (16.5%) and net profit increased by 2,070 th. EEK (204.5%).



COMMENTS TO BALANCE SHEET



By state of March 31, 2000 the Balance capacity was 98,103 th. EEK,

from which increase in Q1 was 1,175 th. EEK.  Compared to the net balance,

the most increase was in assets – demands to parent company with the

sum 3,778 th. EEK, related to increased sales volume. Trading assets

increased totally by 2,395 th. EEK (4.1%).  Fixed assets increased

by 1,220 th. EEK (3.1 %).



In the liabilities the short-term obligations decreased 1,906 th. EEK (7.3%).

The capital and reserves increased 3,082 th. EEK (25.6%) in the account

of Q1 net profit.



FINANCE INDICATORS



Comparison of finance indicators between Q1 of 1999 and Q1 of 2000:



							1999		2000

Rentability of turnover				        19.7		17.8

Rentability of profit	 		 	         6.1		11.5

Rentability of capital and reserves (ROE)		13.9		20.4

Net profit margin of gross estate (ROA)		         0.9		 3.1

Proportion of capital and reserves and all assets	 6.6		15.4

Income of accounts receivable (by days)                152.0		98.0

Net profit per share (EEK)			  	 0.3		 2.5





Raivo Unt

Financial Director

+372 6120201