Atnaujinta: 2024.11.28 16:23 (GMT+2)
Kalev FINANCIAL RESULTS 01.12.2004
COMMENTS ON FINANCIAL RESULTS, 3 MONTHS 2004/2005
Characteristic indicators for the 1st quarter of the financial year 2004/2005,
compared to the 1st quarter of the financial year 2003/2004:
. Increase in revenue: 2.5 times (104.5 million kroons - i.e. 6.7 million
euros);
. Increase in confectionery product revenue: 1.2 times (12.6 million kroons -
i.e. 0.8 million euros);
. Increase in export revenue: 7.1 times (68.3 million kroons - i.e. 4.4
million euros);
. Increase in revenue per employee: 1.9 times (0.12 million kroons - i.e. 7.7
thousand euros);
. Increase in confectionery products sold: 1.7 times (1,048 tons);
. Dairy products sold: 3,900 tons (79 million kroons - i.e. 5 million euros);
. Increase in net profit: 15.9 million kroons - i.e. 1 million euros;
. Changes in the group structure
Group structure
In this 3-month interim report, the financial indicators of Kalev Ltd and its
subsidiaries have been consolidated line by line.
The Kalev Group incorporates the parent company Kalev Ltd and six subsidiaries.
Name of subsidiary Location Share as of
30.09.2004
AS Kalev Paide Tootmine Estonia 100%
AS Kalev Jõhvi Tootmine Estonia 99.1%
AS Vilma Estonia 60.7%
AS Kalev Real Estate Company (AS Kalev Estonia 59.3%
REC)
OÜ Maiasmokk Estonia 81.3%
Kalev Merchant Services Ltd USA 100%
On 1 July 2004, Kalev Ltd acquired 60.6746% of the shares (i.e. 436,857 shares)
of Viljandi bakery AS Vilma, which currently manufactures baked goods and
confectionery products as well as semi-manufactured flour products under the
Vilma trademark. The objective of the purchase of the shares of AS Vilma was to
expand the activities of Kalev Ltd in the flour confectionery sector in
accordance with the company's long-term development strategy. The majority
interest acquired in AS Kalev Jõhvi Tootmine (formerly known as AS Järle) at the
end of 2003 was Kalev Ltd's first step towards this objective.
Product sales
In the first three months of the financial year 2004/2005, the main focus of the
marketing and sales activities of KALEV Ltd lay in the preparation of Christmas
sales.
New products launched by Kalev Ltd in the given period include chocolate-coated
cocoa-flavoured pralines, boxed chocolate Athena and biscuits Tähekesed. Kalev
Ltd also brought the biscuit series manufactured by AS Kalev Jõhvi Tootmine under
the Kalev trademark, and modernised several dark bread and white bread packages
of AS Kalev Jõhvi Tootmine. In co-operation with AS EMT, the company launched a
new product - POP-biscuits - for young sweet tooths.
According to the retail survey conducted by AC Nielsen Eesti, Kalev Ltd's market
share was 44.7% in August and September 2004, as regards chocolate confectionery
and sugar confectionery products. In the biscuit sector, the company's market
share was 20.1% in the same period.
Kalev Ltd sold a total of nearly 2,650 tons of confectionery products in the
first three months of the financial year 2004/2005-an increase of 66%, compared
to the same period last year. This increase was due to the deficit of goods at
the end of the summer of 2003, conditioned by the company's relocation, as well
as the addition of flour confectionery products in the company's product
portfolio.
The home market constituted 86% of the total sales of chocolate confectionery and
sugar confectionery products; 14% of the sales were exported. In the given
period, the Baltic States remained the company's main export targets. In addition
to the above countries, Kalev Ltd also exported its products to the Scandinavian
countries, Russia and the United States. Virtually no flour confectionery
products were exported in the given period.
In the first three months of the financial year 2004/2005, Kalev Ltd's subsidiary
AS Kalev Paide Tootmine sold a total of nearly 3,900 tons of dairy products,
including skim milk and milk powder, highly pasteurised milk and butter. 40% of
the above products were sold at the home market, and 60% were exported. The main
export targets for dairy products mostly included EU member states.
Economic activities and financial results
The consolidated net sales of Kalev Ltd for the financial year 2004/2005 amounted
to 174.9 million kroons (i.e. 11.2 million euros)-a 2.5-time increase, compared
to the same period last year. In the given period, the company earned 52 thousand
kroons (3.3 thousand euros) in consolidated net profit, compared to the 15.9-
million-kroon (i.e. 1.0-million-euro) net loss in the first three months of the
financial year 2003/2004.
Increase in the consolidated net sales of Kalev Ltd was facilitated by the
incorporation of two new subsidiaries - AS Kalev Jõhvi Tootmine (formerly known
as AS Järle) and AS Vilma - in the Kalev Group at the beginning of 2004 and in
July 2004, respectively, as well as the turnover increase of the subsidiaries AS
Kalev Paide Tootmine and AS Kalev Real Estate Company (AS Kalev REC) in the given
period.
The turnover increase in the first three months of the financial year 2004/2005,
compared to the same period last year can also be explained by the deficit of
chocolate confectionery goods at the end of the summer of 2003, conditioned by
the company's relocation to a new production complex.
The consolidated net profit of Kalev Ltd in the first three months of the
financial year 2004/2005 corresponded to the estimations. This period is the most
modest period of the year, businesswise. The net loss for the first three months
of the previous financial year was generated by single expenses related to the
relocation and assembly of the company's production equipment, as well as launch
of production.
The 71% increase in the company's marketing expenses in the given period,
compared to the same period last year, was due to incorporation of new
subsidiaries in the Kalev Group. The 24% decrease in general and administrative
expenses is conditioned by the company's relocation to a new production complex
this year-the administrative and general expenses in the first three months of
the financial year 2003/2004 included single relocation expenses.
In the first three months of the financial year 2004/2005, Kalev Group employed
an average of 827 people-a 66% increase, compared to the same period last year.
This increase was mainly due to incorporation of the employees of the
subsidiaries AS Kalev Jõhvi Tootmine, AS Vilma and OÜ Maiasmokk among the group
staff.
BALANCE SHEET (consolidated, unaudited)
ASSETS 30.09.2004 30.06.2004 30.09.2004 30.06.2004
Consolid. Consolid. Consolid. Consolid.
CURRENT ASSETS EEK EEK EUR EUR
CASH AND BANK 6 157 229 2 780 382 393 519 177 699
CUSTOMER RECEIVABLES 96 691 501 206 221 734 6 179 713 13 179 971
PREPAID EXPENSES 8 115 598 3 024 730 518 681 193 315
INVENTORIES 130 563 662 85 073 277 8 344 539 5 437 173
TOTAL CURRENT ASSETS 241 527 990 297 100 123 15 436 452 18 988 159
NON-CURRENT ASSETS
LONG-TERM FINANCIAL 330 180 330 180 21 102 21 102
INVESTMENTS
MISCELLANEOUS LONG-TERM 330 180 330 180 21 102 21 102
RECEIVABLES
TANGIBLE ASSETS 379 842 193 351 168 558 24 276 341 22 443 761
REAL ESTATE INVESTMENTS 62 214 132 58 054 766 3 976 208 3 710 376
INTANGIBLE ASSETS 6 485 441 -9 017 055 414 495 -576 295
TOTAL NON-CURRENT ASSETS 448 871 946 400 536 449 28 688 146 25 598 945
TOTAL ASSETS 690 399 936 697 636 572 44 124 598 44 587 103
LIABILITIES AND OWNER'
EQUITY
LIABILITIES
CURRENT LIABILITIES 64 083 647 109 628 402 4 095 692 7 006 532
PREPAYMENTS FROM 6 980 784 3 416 983 446 153 218 385
CUSTOMERS
SUPPLIER PAYABLES 169 357 272 165 615 804 10 823 902 10 584 779
TAXES PAYABLE 0 527 594 0 33 719
OTHER PAYABLES 34 896 887 37 145 927 2 230 318 2 374 057
TOTAL CURRENT 275 318 590 316 334 710 17 596 065 20 217 473
LIABILITIES
NON-CURRENT LIABILITIES 143 286 653 123 323 114 9 157 686 7 881 784
TOTAL NON-CURRENT 143 286 653 123 323 114 9 157 686 7 881 784
LIABILITIES
TOTAL LIABILITIES 418 605 243 439 657 824 26 753 751 28 099 256
OWNER'S EQUITY
SHARE CAPITAL 78 775 000 78 775 000 5 034 640 5 034 640
REVALUATION RESERVE 17 159 388 17 159 388 1 096 685 1 096 685
STATUTORY LEGAL RESERVE 3 160 971 3 160 971 202 023 202 023
RETAINED EARNINGS 168 640 869 141 514 656 10 778 116 9 044 435
NET PROFIT FOR THE 52 006 17 184 663 3 324 1 098 300
FINANCIAL YEAR
MINORITY INTEREST 4 006 459 184 070 256 059 11 764
TOTAL OWNER'S EQUITY 267 788 234 257 794 678 17 114 787 16 476 083
TOTAL LIABILITIES AND 690 399 936 697 636 572 44 124 598 44 587 103
EQUITY
INCOME STATEMENT (consolidated, unaudited)
01.07.2004 01.07.2003 - 01.07.2004- 01.07.2003-
30.09.2004 30.09.2003 30.09.2004 30.09.2003
Consolid. Consolid. Consolid. Consolid.
EEK EEK EUR EUR
NET SALES 174 907 870 70 319 933 11 178 650 4 494 263
COST OF GOODS SOLD 133 267 510 49 483 080 8 517 346 3 162 545
GROSS PROFIT 41 640 360 20 836 853 2 661 304 1 331 718
MARKETING EXPENSES 18 515 689 10 831 890 1 183 368 692 284
ADMINISTRATIVE AND 18 311 201 24 101 438 1 170 299 1 540 363
GENERAL EXPENSES
OTHER OPERATING 1 538 850 1 128 826 98 350 72 145
INCOME
OTHER OPERATING 2 618 328 1 074 764 167 342 68 690
EXPENSES
OPERATING PROFIT 3 733 992 -14 042 413 238 646 -897 474
FINANCIAL INCOME 176 261 274 905 11 265 17 570
FINANCIAL EXPENSES 3 540 856 2 112 414 226 302 135 008
PROFIT BEFORE 369 396 -15 879 922 23 609 -1 014 912
INCOME TAX
MINORITY INTEREST -317 390 0 -20 285 0
NET PROFIT 52 006 -15 879 922 3 324 -1 014 912
EARNINGS PER SHARE 0,01 -2,02 0,00 -0,13
Ruth Roht
PR manager
+372 6 077 858
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