Atnaujinta: 2024.07.21 11:14 (GMT+3)
Baltika FINANCIAL RESULTS 04/23/2004
2004 1Q RESULTS
AS Baltika comments on financial results for 1st quarter 2004
General results
The unaudited consolidated net sales of AS Baltika in March 2004 were EEK
46m (EUR 2.94m) and the net profit was EEK 5.1m (EUR 0.33m). Compared to
March 2003, the net sales increased by 17.5% (net sales EEK 39.15m, EUR
2.5m, respectively). The net loss in March 2003 was EEK 0.59m (EUR 0.04m).
The unaudited consolidated net sales of AS Baltika in the first quarter of
2004 were EEK 130,62m (EUR 8,35m) and the net profit was EEK 0,59m (EUR
0,04m). Compared to the same period of 2003, the net sales increased by
14.76% (net sales EEK 113.8m, EUR 7.27m, respectively). The first quarter
of 2003 was ended with a loss of EEK 19.97m (EUR 1.28m); the result for the
first quarter of 2004 was better by EEK 20.56m (EUR 1.31m).
Sales
Retail sales
Based on the sales of its three retail brands, the retail sales result of
Baltika for the first quarter was EEK 79.26m (EUR 5.07m), which exceeds the
result of the same period of the previous year by 18% (retail sales EEK
67.39m, EUR 4.31m, respectively). Sales on like-for-like spaces (comparable
shops in a comparable period) increased by 12.5%. Retail sales formed
60.68% of the total sales in the first quarter, compared to 59.2% in the
same period of the previous year.
Baltika continues to develop the brands it has launched on the market. The
volumes increased the most in the Baltman and CHR/Evermen retail chains,
where the sales exceeded the sales of the same period of the previous year
by EEK 14,58m (EUR 0.93m), totalling EEK 25,68m (EUR 1.64m). The results
were the best on the Estonian, Latvia, Lithuanian, and Ukrainian markets.
Monton accounted for 63% of the volume in the company’s retail system (78%
in the previous year); sales amounted to EEK 50m (EUR 3.20m) in the first
quarter. Monton sales have increased by over 5% in the Baltic countries. In
Poland, where 27.5% of the Monton selling spaces of the entire system are
located, the Monton brand accounted for only 16.8% of the Monton sales of
the entire system.
Baltika Group had 71,800 regular customers at the end of the quarter
(growth during the quarter 11.9%), including 50,700 members of the Monton
customer programme (growth 9.2%), 17,000 CHR/Evermen regular customers
(growth 19.3%), and 4,100 Baltman customers (growth 14.5%).
Baltika Group had 10,000 m2 of its own shop selling space (67 shops) in
Estonia, Latvia, Lithuania, the Ukraine, Poland, and Sweden at the end of
March, and a total of
10,916 m2 (76 shops) including controlled retail spaces. Four inefficient
shops were closed in the system during the first quarter (two in Estonia,
one in Lithuania and Poland each), and five new shops were opened (three in
Lithuania and two in the Ukraine).
Wholesale
The wholesale sales of own products in the first quarter, of which the
CHR/Evermen and Baltman brands accounted for 71.6%, totalled EEK 39.53m
(EUR 2.53m), which is EEK 10.33m (EUR 0.66m) more than in the same period
of the previous year (sales EEK 29.2m, EUR 1.87m, respectively).
Sales of subcontracted production
The sales volumes of subcontracted production decreased by 28% in the first
quarter. Subcontracting sales of the quarter totalled EEK 11.53m (EUR
0.74m);
sales in the same period of the previous year amounted to EEK 16,05m (EUR
1,03m). The decrease in the sales of subcontracted production is caused by
a reduction in vacant capacities because of a continuous growth of own
production volumes.
Financial results
The consolidated net profit of Baltika in the first quarter of 2004 was EEK
0.59m (EUR 0.04m). The net loss for the same period of the previous year
was EEK 19.97m (EUR 1.28m).
The first quarter’s result was mainly influenced by more successful
discount periods in the retail system in January and February, which is why
the spring season sales could begin earlier than in the previous year. This
had a positive impact on the retail margin and yielded a higher retail
income in the entire system. Higher retail margins were further supported
by a 18% retail sales growth and a 35% wholesale growth.
In connection with the continuous growth of the retail system, operating
expenses increased in the compared period on the account of lease and
labour expenses. The cost reduction programme launched in 2003 continued at
the same time. As a result, the operating and labour expenses of the
markets and the centre decreased by EEK 3.48m (EUR 0.22m) in the first
quarter of 2004, compared to the fourth quarter of 2003.
The quarter’s result was also influenced by the strong dollar; foreign
exchange gains totalled EEK 1,8m (EUR 0.12m).
Balance sheet
The consolidated balance sheet total of Baltika was EEK 339.3m (EUR 21.69m)
as of 31 March 2004; the decreased compared to the beginning of the year
was EEK 9,94m (EUR 0,63m).
Accounts receivable increased by EEK 12m (EUR 0.77m) since the beginning of
the year, caused by the increased wholesale.
The inventories of goods in the system totalled EEK 148.4m (EUR 9.48m),
having decreased by EEK 2,0m (EUR 0,13m) compared to the beginning of the
year and by EEK 17,1m (EUR 1,1m) compared to the first quarter of the
previous year.
Compared to the beginning of the year, debts have decreased by EEK 1.37m
(EUR 0.09m) and accounts payable have increased by EEK 3.4m (EUR 0.22m).
Cash flow
The cash flow from operating activities was EEK +2,1m (EUR +0.13m) in the
first quarter, compared to EEK +5.64m (EUR +0.36m) in the same period of
the previous year.
Change in accounting methodology
In December 2003, the International Accounting Standards Board adopted
amendments to 14 IFRS standards, effective from 1 January 2005, but earlier
implementation was recommended. As the assets of foreign subsidiaries have
a large share in the Baltika group and exchange rate changes have made a
material impact on the group’s results, the IAS 21 (The Effects of Changes
in Foreign Exchange Rates) amendments were implemented from 1 January 2004.
The content of the amendment is that the exchange rates of the balance
sheet date (for the balance sheet) and the period’s average rates (for the
income statement) are used when recalculating the reports of foreign
subsidiaries into Estonian kroons, and exchange rate differences are shown
on a separate line in the equity capital. According to earlier methodology,
monetary assets and liabilities were accounted for according to the
exchange rate of the balance sheet date, other assets and liabilities were
based on the acquisition date rate, and the differences were indicated in
the income statement. The changes in the balance sheet mainly concern the
value of fixed assets and goods; the inclusion of foreign exchange
differences in operating expenses instead of the cost of goods is the
greatest change in the income statement. The reports for 2003 have also
been re-done according to the new methodology. The impact of the adjusted
results of the first quarter of 2003 on the group’s results was an
additional net loss of EEK 5.8m (EUR 0.37m), whereas operating expenses
increased by EEK 7.5m (EUR 0.48m) due to foreign exchange impacts. In the
balance sheet, the adjustment resulted in a decrease of EEK 4.59m (EUR
0.29m) in the balance sheet total, whereas inventories and fixed assets
decreased by EEK 2.5m (EUR 0.16m) and EEK 2.1m (EUR 0.13m), respectively.
As of 31 March 2004, Baltika Group employed 1693 people, including 1050 in
production and 485 in retail sale; 340 people worked outside Estonia.
Compared to the beginning of the year, the number of employees has
decreased by 21 people.
The main ratios of the group as of 31 March 2004 were:
31 March 2004 31 March 2003
Sales growth % 14.76 -8.4
in the quarter
Percentage of retail sales 60.68 59.5
in net sales
Number of shops 76 68
Retail selling area (m2) 10,966 10,101
Markets managed via 6 6
Operating income / net sales, % 1.94 -15.5
Net profit / net sales, % 0.4 -17.5
Net sales / 12 months’
average inventories 3,25 2,83
Return on equity -36,1 -13,4
(12 months’ net profit / 12
months’ average equity), %
Return on assets (12 months’ -13,7 -5,7
net profit /12 months’
average assets)
Income Statement
Consolidated,unaudited
th. EEK
1Q 2004 1Q 2003 IQ 2003
proforma
Revenue
Net sales 130618 113814 112563
Other revenue 2335 112 112
Total revenue 132953 113926 112675
Expenses
Materials,mat.,services -40821 -40960 -41365
Change in inventories -5814 -3823 -3823
Other operating expenses -35520 -32560 -32532
Personnel expenses -42406 -40140 -40141
Depr. of fixed assets -5500 -6041 -6144
Other expenses -359 -8018 -469
Total expenses -130420 -131542 -124474
Operating profit (loss) 2533 -17616 -11799
Financial income 194 142 594
Financial expenses -1840 -2524 -2520
Profit/loss before taxes 887 -19998 -13725
Income tax expense 0 0 0
Profit/loss bef.min.int. 887 -19998 -13725
Minority interest 301 -24 427
Net profit (loss) 586 -19974 -14152
Income Statement
consolidated, unaudited
th. EUR
1Q 2004 1Q 2003 IQ 2003
proforma
Revenue
Net sales 8348 7274 7194
Other revenue 149 7 7
Total revenue 8497 7281 7201
Expenses
Materials,mat.,services -2609 -2618 -2644
Change in inventories -372 -244 -244
Other operating expenses -2270 -2081 -2079
Personnel expenses -2710 -2565 -2565
Depr. of fixed assets -352 -386 -393
Other expenses -23 -512 -30
Total expenses -8335 -8407 -7955
Operating profit (loss) 162 -1126 -754
Financial income 12 9 38
Financial expenses -118 -161 -161
Profit/loss before taxes 57 -1278 -877
Income tax expense 0 0 0
Profit/loss before min.int. 57 -1278 -877
Minority interest 19 -2 27
Net profit (loss) 37 -1277 -904
Balance sheet
Consolidated, unaudited
th.EEK
31.03.04 31.03.03 31.03.03 31.12.03 31.12.03
proforma proforma
Assets
Current assets
Cash and bank 9012 9099 9099 12836 12836
Shares,securities 545 542 542 377 377
Customer receivables 57727 55338 55338 45727 45727
Other receivables 16253 17360 17360 13822 13822
Inventories 148396 165532 168028 150424 147846
Total current assets 231933 247871 250367 223186 220608
Non-current assets
Long-term investments 8172 6043 6043 5394 5394
Tangible fixed assets 85871 96446 98491 87017 89741
Intan. fixed assets 13337 12189 12241 13779 13851
Total non-current assets 107380 114678 116775 106190 108986
Total Assets 339313 362549 367142 329376 329594
Liab. and Owner`s equity
Current liabilities
Debt obligations 67969 88249 88249 69336 69336
Customer prepayments 118 119 119 260 260
Accounts payable 57354 40765 40765 53939 53939
Other tax liabilities 13374 7775 7775 10634 10634
Accrued expenses 13337 11164 11164 10515 10515
Total current liab. 152152 148072 148072 144684 144684
Non-current liabilities
Long-term debt 69482 55737 55737 69482 69482
Provisions 45 139 141 45 32
Total non-current liab. 69527 55876 55878 69527 69514
Total liabilities 221679 203948 203950 214211 214198
Minority interest 7420 7024 7024 7119 7119
Owner`s equity 110214 151577 156168 108046 108277
Share capital 54994 54599 54599 54994 54994
Share premium 42491 41898 41898 42490 42490
Other restricted equity 22884 22885 22885 22885 22885
Retained profit -16508 50938 50938 50939 50939
Profit for the acc. per. 586 -19974 -14152 -67447 -63031
Exchange rate diff. 5767 1231 0 4185 0
Liab.and owner`s equity 339313 362549 367142 329376 329594
Balance sheet
Consolidated, unaudited
th.EUR
31.03.04 31.03.03 31.03.03 31.12.03 31.12.03
proforma proforma
Assets
Current assets
Cash and bank 576 582 582 820 820
Shares and other securities 35 35 35 24 24
Customer receivables 3689 3537 3537 2922 2922
Other receivables 1039 1110 1110 883 883
Inventories 9484 10579 10739 9614 9449
Total current assets 14823 15842 16001 14264 14099
Non-current assets
Long-term investments 522 386 386 345 345
Tangible fixed assets 5488 6164 6295 5561 5735
Intan. fixed assets 852 779 782 881 885
Total non-current assets 6863 7329 7463 6787 6965
Total Assets 21686 23171 23465 21051 21065
Liab.and Owner`s equity
Current liabilities
Debt obligations 4344 5640 5640 4431 4431
Customer prepayments 8 8 8 17 17
Accounts payable 3666 2605 2605 3447 3447
Other tax liabilities 855 497 497 680 680
Accrued expenses 852 714 714 672 672
Total current liab. 9724 9464 9464 9247 9247
Non-current liabilities
Long-term debt 4441 3562 3562 4441 4441
Provisions 3 9 9 3 2
Total non-current liab. 4444 3571 3571 4444 4443
Total liabilities 14168 13035 13035 13691 13690
Minority interest 474 449 449 455 455
Owner`s equity 7044 9688 9981 6905 6920
Share capital 3515 3490 3490 3515 3515
Share premium 2716 2678 2678 2716 2716
Other restricted equity 1463 1463 1463 1463 1463
Retained profit -1055 3256 3256 3256 3256
Profit for the acc. per. 37 -1277 -904 -4311 -4028
Exchange rate diff. 369 79 0 267 0
Liab.and owner`s equity 21686 23171 23465 21051 21065
Ülle Järv
Financial Director
+372 6302 731
Schema