Baltika                       FINANCIAL RESULTS                 04/26/2002



BALTIKA'S RESULTS FOR Q1 2002



COMMENTS TO  BALTIKA'S RESULTS FOR Q1 2002



The unaudited consolidated net sales of Baltika in the

first quarter of 2002 were mEEK 124.3 (mEURO 7.94) and

the net profit was mEEK 7.8 (mEURO 0.5). Compared to the

same period of 2001, the net sales increased by 13.7%

(mEEK 15.0; mEURO 0.96) and the net profit by 17.5% (mEEK

1.2; mEURO 0.08). The net sales within the first three

months of 2001 were mEEK 109.3 and the net profit was

mEEK 6.64.



The share of retail sales of own shops in the total net

sales of Baltika Group increased to 40%, totalling mEEK

49.8 (mEURO 3.18). The wholesales comprised mEEK 61.2

(mEURO 3.91) and the sales of subcontracted products were

mEEK 12.1 (mEURO 0.77). Compared to the same period of

the previous year, the sales of our own products

increased by 31% up to mEEK 111.13 (mEURO 7.1), while the

sales of subcontracted products downsized by almost 50%.

The changes are related to the activities arising from

the strategy of the company — the transformation of

Baltika Group from a production company into a trade

organisation. As of the end of March, Baltika Group had

operable retail space in seven countries with a total

area of 6431 m2, of which the sales spaces of own shops

accounted for 4205 m2 (33 stores). In March a shop in

Viru Street was closed and the right of pre-emption in

respect of the immovable was sold. The sales transaction

yielded income in the amount of mEEK 4.9 (mEURO 0.3).



On 1 April a new sewing factory was launched in Ahtme,

investments in which totalled mEEK 22 (mEURO 1.41). The

factory has 2500 m2 of production area and it employs 250

people. Based on the needs of retail policy of Baltika

Group, the factory was built with the purpose of

increasing the output of own products and improving the

quality of products.



The main ratios of AS Baltika Group as of 31 March 2002

were as follows:



                                    31.03.2002 31.03.2001

- operating profitability           8.09 %     7.7%

(operating profit / net sales)

- net profitability (net profit /   6.3%       6.1%

net sales)

- return on owner’s equity          12.4%      13.3%

(net profit / owner’s equity – 12

months’ average)

- return on total assets            6.1%       7.3%

(net profit / average cost of

assets – 12 months’ average)

- solvency ratio                    0.91       0.85

(current assets - stocks / short-

term obligations)





AS BALTIKA

INCOME STATEMENT

consolidated, unaudited



                                 th  EEK             th EUR

                            Q1 2002   Q1 2001  Q1 2002  Q1 2001

Revenue

Net sales                    124 306   109 323   7 945    6 987

Other revenue                  5 030     1 530     321       98

Total revenue                129 336   110 853   8 266    7 085



Expenses

Materials                    (58 710)  (42 535) (3 752)  (2 718)

Change in inventories          5 315    (4 254)    340     (272)

Other operating expenses     (26 025)  (19 386) (1 663)  (1 239)

Personnel expenses           (35 210)  (32 234) (2 250)  (2 060)

Depreciation                  (4 336)   (3 312)   (277)    (212)

Other expenses                  (313)   (1 016)    (20)     (65)

Total expenses              (119 279) (102 737) (7 623)  (6 566)



Operating profit              10 057     8 116     643      519



Financial income                 118       459       8       29

Financial expenses            (2 168)   (1 539)   (139)     (98)

Profit before taxes            8 007     7 036     512      450

Net profit                     8 007     7 036     512      450

Minority interest                179       394      12       25

Net profit for the Group       7 828     6 642     500      425



Basic earnings per share        1,63      1,38    0,10     0,09

Diluted earnings per share      1,58      1,38    0,10     0,09





AS BALTIKA 

BALANCE SHEET

th EEK

consolidated, unaudited

                                                

                       31.03.2002 31.03.2001 31.12.2001



ASSETS

Current assets

Cash and bank             11850      3740     12626

Marketable securities       516       479       574

Customer receivables      70912     72405     56115

Other receivables         15518     10637     10802

Inventory                139508     94394    131145

Total current assets     238304    181655    211262

Non-current assets

Long-term fin. invest.     2570       980      2600

Tangible fixed assets     88549     60141     78390

Intangible fixed assets    5038      2231      5180

Total non-current assets  96157     63352     86170

TOTAL ASSETS             334461    245007    297432



LIABILITIES AND OWNERS’ EQUITY

Current liabilities

Debt obligations          53384     64733     34721

Customer prepayments        165       104       154

Supplier payables         40717     22762     40544

Other tax liabilities      4309      4200      5081

Accrued expenses          10015     10935      6641

Short-term provisions         0       120         0

Total current liab.      108590    102854     87141

Long-term liabilities

Long-term debt oblig.     71296      1344     63723

Total long-term liab.     71296      1344     63723

TOTAL LIABILITIES        179886    104198    150864

Minority interest          6811      6342      6632

OWNERS’ EQUITY           147764    134467    139936

Share capital             48000     48000     48000

Share premium             24910     24910     24910

Reserves                  22885     22885     22885

Retained earnings         44141     32030     28430

Net profit                 7828      6642     15711

TOTAL LIABILITIES AND    334461    245007    297432

OWNER'S EQUITY





AS BALTIKA

BALANCE SHEET

th. EUR

consolidated, unaudited

                           31.03.2002 31.03.2001 31.12.2001

ASSETS

Current assets                   757        239        807

Cash and bank                     33         31         37

Marketable securities          4 532      4 628      3 586

Customer receivables             992        680        690

Other receivables              8 916      6 033      8 382

Inventory                     15 230     11 610     13 502

Total current assets

Non-current assets               164         63        166

Long-term fin. investments     5 659      3 844      5 010

Tangible fixed assets            322        143        331

Intangible fixed assets        6 146      4 049      5 507

Total non-current assets      21 376     15 659     19 009

TOTAL ASSETS



LIABILITIES AND OWNERS’ EQUITY

Current liabilities

Debt obligations               3 412      4 137      2 219

Customer prepayments              11          7         10

Supplier payables              2 602      1 455      2 591

Other tax liabilities            275        268        325

Accrued expenses                 640        699        424

Short-term provisions            -            8        -

Total current liabilities      6 940      6 574      5 569

Long-term debt obligations     4 557         86      4 073

Total long-term liabilities    4 557         86      4 073

TOTAL LIABILITIES             11 497      6 659      9 642

Minority interest                435        405        424

OWNERS’ EQUITY                 9 444      8 594      8 944

Share capital                  3 068      3 068      3 068

Share premium                  1 592      1 592      1 592

Reserves                       1 463      1 463      1 463

Retained earnings              2 821      2 047      1 817

Net profit for the fin.year      500        425      1 004

TOTAL LIABILITIES AND OWNER'S 21 376     15 659     19 009

EQUITY





Ülle Järv

Member of the Management Board

+372 6302 741