Atnaujinta: 2024.07.20 01:03 (GMT+3)
Kalev FINANCIAL RESULTS 16.02.2005
FINANCIAL REPORT 6 MONTHS 2004/2005
COMMENTS ON FINANCIAL RESULTS
Characteristic indicators for the first 6 months of the financial year 2004/2005,
compared to the same period in the financial year 2003/2004:
. Increase in revenue: 2.4 times (254 million kroons - i.e. 16,2 million
euros);
. Increase in confectionery product revenue: 1.1 times (11 million kroons -
i.e. 0.7 million euros);
. Increase in export revenue: 5.6 times (135 million kroons - i.e. 8.6 million
euros);
. Increase in revenue per employee: 1.8 times (0.3 million kroons - i.e. 18
thousand euros);
. Increase in confectionery products sold (chocolate and sugar confectionery
products, baked goods, biscuits): 2.2 times (4,035 tons);
. Dairy products sold: 7,728 tons (179 million kroons - i.e. 11.4 million
euros);
. Increase in net profit: 14 million kroons - i.e. 0.9 million euros;
. Changes in the group structure.
Group structure
The financial indicators of Kalev Ltd and its subsidiaries have been consolidated
line by line in this 6-month interim report.
The Kalev Group incorporates the parent company Kalev Ltd and six subsidiaries.
Name of subsidiary Location Share as of
31.12.2004
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.
On 7 December 2004, AS Kalev REC and United Real Estate OÜ (URE OÜ) concluded a
contract on the free-of-charge transfer of a share in the private limited company
Sõbra Korterid OÜ. Pursuant to the contract, URE OÜ transferred to AS Kalev REC a
20-thousand-kroon share-i.e. 50% of the share capital-of the private limited
company.
Sõbra Korterid OÜ's main field of activity is real estate development and
administration.
AS Kalev REC acquired the share in Sõbra Korterid OÜ with the aim of pursuing
real estate development on the housing market. The private limited company plans
to construct two new apartment buildings on the real estate located at Kastani
183a and 183b in Tartu.
In the given period, Kalev Ltd prematurely repaid to Skanska EMV AS the balance
due for the acquisition of 40.7% of the shares of AS Kalev Real Estate Company
(AS Kalev REC) - i.e. 16,950,000 kroons.
Pursuant to the shareholder's agreement concluded between Skanska EMV AS and
Kalev Ltd on 3 May 2002, Kalev Ltd had the right to acquire the 40.7% of the
shares of AS Kalev REC held by Skanska EMV AS. Kalev Ltd paid a total of 25.2
million kroons for the acquired shares.
On 6 January 2005, Skanska EMV AS transferred 40.7% of the shares of AS Kalev REC
to the securities account of Kalev Ltd, thus making Kalev Ltd the full owner of
the company.
Product sales
In the first six months of the financial year 2004/2005, the main focus of the
marketing and sales activities of Kalev Ltd lay in the preparation and launch of
Christmas sales.
This year's Christmas collection consisted of 50 products. New Christmas products
launched by the company included a collection of classics-various pralines and
handmade boxed chocolate-as well as chocolate bars. For the first time in the
company's history, Kalev Ltd launched a series of products designed especially
for young customers. The assortment of gingerbread was significantly enhanced,
compared to the last financial year.
Other new products launched by Kalev Ltd in the given period included chocolate-
coated cocoa-flavoured pralines, boxed chocolate Athena and Toompea 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% in October and November 2004, as regards chocolate confectionery
and sugar confectionery products. In the biscuit sector, the company's market
share was 17% in the same period.
Kalev Group's total confectionery and dairy product sales amounted to over 15,300
tons in the first six months of the financial year 2004/2005. 67% was sold at the
home market; 33% was exported.
Kalev Group sold a total of over 3,500 tons of confectionery products (incl.
chocolate and sugar confectionery products) in the given period-an increase of
7%, compared to the same period last year. The home market constituted 86% of the
total sales of confectionery products; 14% of the sales were exported. In the
given period, the Baltic States remained the main export targets. In addition to
the above countries, the company also exported its products to the Scandinavian
countries, Russia and the United States.
Kalev Group's total flour baked goods (incl. bakery products and biscuits) sales
amounted to over 4,000 tons in the first six months of the financial year
2004/2005. Most of the production was sold at the home market. In the comparative
period, the company was not actively involved in the baked goods sector.
Kalev Group sold over 7,700 tons of dairy products (incl. skim milk and milk
powder, highly pasteurised milk and butter) in the given period. No dairy
products were sold in the comparative period. Over half (i.e. 60%) of the sales
volume was exported to various EU countries.
Economic activities and financial results
The consolidated net sales of Kalev Ltd for the first six months of the financial
year 2004/2005 amounted to 440 million kroons (i.e. 28.1 million euros)-a 2.4-
time increase, compared to the same period last year. In the given period, the
company earned 7.2 million kroons (458 thousand euros) in consolidated net
profit, compared to the 6.9-million-kroon (i.e. 441-thousand-euro) net loss in
the first six 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 six 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 six months of the financial
year 2004/2005 corresponded to the estimations. The net loss for the first six
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 54.3% increase in marketing expenses, 16.7% increase in general and
administrative expenses and 52.8% increase in financial expenses in the given
period, compared to the same period last year, was, above all, due to
incorporation of new subsidiaries in the Kalev Group.
The 3.6-fold increase in revenue in the given period includes proceeds from sales
of non-current assets-i.e. the parts of real estate located at Pärnu mnt 139.
In the first six months of the financial year 2004/2005, Kalev Group employed an
average of 816 people-a 57.8% 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 (in kroons and euros)
Consolidated, unaudited
ASSETS 31.12.2004 31.12.2003 31.12.2004 31.12.2003
CURRENT ASSETS EEK EEK
EUR EUR
CASH AND BANK 7 112 506 2 302 417 454 572 147 151
CUSTOMER RECEIVABLES 108 844 653 48 691 971 6 956 441 3 111 976
PREPAID EXPENSES 6 294 830 5 985 730 402 313 382 557
INVENTORIES 117 858 692 51 693 973 7 532 543 3 303 839
TOTAL CURRENT ASSETS 240 110 681 108 674 091 15 345 869 6 945 523
NON-CURRENT ASSETS
LONG-TERM FINANCIAL 330 180 330 180 21 102 21 102
INVESTMENTS
MISCELLANEOUS 330 180 330 180 21 102 21 102
LONG-TERM RECEIVABLES
TANGIBLE ASSETS 362 505 799 351 011 366 23 168 343 22 433 658
REAL ESTATE 47 123 848 111 529 095 3 011 763 7 127 990
INVESTMENTS
INTANGIBLE ASSETS 6 599 903 -11 566 965 421 811 -739 262
TOTAL NON-CURRENT 416 559 730 451 303 676 26 623 019 28 843 488
ASSETS
TOTAL ASSETS 656 670 411 559 977 767 41 968 889 35 789 011
LIABILITIES AND
OWNER' EQUITY
LIABILITIES
CURRENT LIABILITIES 77 351 460 30 540 625 4 943 659 1 951 897
PREPAYMENTS FROM 2 236 883 12 571 538 142 963 803 466
CUSTOMERS
SUPPLIER PAYABLES 141 637 360 75 737 808 9 052 277 4 840 516
TAXES PAYABLE 8 715 089 7 901 996 556 996 505 028
OTHER PAYABLES 9 983 872 10 712 720 638 086 684 666
TOTAL CURRENT 239 924 664 137 464 687 15 333 981 8 785 572
LIABILITIES
NON-CURRENT 137 036 126 188 793 399 8 758 206 12 066 067
LIABILITIES
TOTAL NON-CURRENT 137 036 126 188 793 399 8 756 206 12 066 067
LIABILITIES
TOTAL LIABILITIES 376 960 790 326 258 086 24 092 186 20 851 639
OWNER'S EQUITY
SHARE CAPITAL 236 325 000 78 775 000 15 103 920 5 034 627
REVALUATION RESERVE 17 159 388 17 159 388 1 096 685 1 096 682
STATUTORY LEGAL 4 020 204 1 537 837 635 381 98 285
RESERVE
RETAINED EARNINGS 10 231 636 143 137 790 275 478 9 148 149
NET PROFIT FOR THE 7 165 977 -6 899 334 457 989 -440 947
FINANCIAL YEAR
MINORITY INTEREST 4 807 416 9 000 307 250 575
TOTAL OWNER'S EQUITY 279 709 621 233 719 681 17 876 703 14 937 371
TOTAL LIABILITIES AND 656 670 411 559 977 767 41 968 889 35 789 011
EQUITY
INCOME STATEMENT (in kroons and euros)
Consolidated, unaudited
01.07.2004- 01.07.2003- 01.07.2004- 01.07.2003-
31.12.004 31.12.2003 31.12.004 31.12.2003
EEK EUR
EEK EUR
NET SALES 440 058 966 186 163 185 28 124 894 11 897 996
COST OF GOODS SOLD 341 163 185 122 223 762 21 804 302 7 811 522
GROSS PROFIT 98 895 781 63 939 423 6 320 592 4 086 474
MARKETING EXPENSES 44 566 496 28 921 107 2 848 318 1 848 396
ADMINISTRATIVE AND 41 226 101 35 339 804 2 634 828 2 258 625
GENERAL EXPENSES
OTHER OPERATING 6 058 287 1 689 521 387 195 107 980
INCOME
OTHER OPERATING 3 510 571 3 567 809 224 366 228 025
EXPENSES
OPERATING PROFIT 15 650 900 -2 199 776 1 000 275 -140 591
FINANCIAL INCOME 434 403 585 377 27 763 37 412
FINANCIAL EXPENSES 8 091 332 5 284 935 517 130 337 769
PROFIT BEFORE 7 993 971 -6 899 334 510 908 -440 948
INCOME TAX
MINORITY INTEREST -827 994 -52 918
NET PROFIT 7 165 977 -6 899 334 457 989 -440 948
EARNINGS PER SHARE 0,3 -0,88 0,02 -0,06
01.10.2004- 01.10.2003- 01.10.2004- 01.10.2003-
31.12.2004 31.12.2003 31.12.2004 31.12.2003
EEK EUR
EEK EUR
NET SALES 265 151 096 115 843 252 16 946 244 7 403 733
COST OF GOODS SOLD 207 895 675 72 740 682 13 286 955 4 648 977
GROSS PROFIT 57 255 421 43 102 570 3 659 288 2 754 756
MARKETING EXPENSES 26 050 807 18 089 217 1 664 950 1 156 112
ADMINISTRATIVE AND 22 914 900 11 238 366 1 464 529 718 262
GENERAL EXPENSES
OTHER OPERATING 4 519 437 560 695 288 845 35 835
INCOME
OTHER OPERATING 892 243 2 493 045 57 025 159 335
EXPENSES
OPERATING PROFIT 11 916 908 11 842 637 761 629 756 882
FINANCIAL INCOME 258 142 310 472 16 498 19 843
FINANCIAL EXPENSES 4 550 476 3 172 521 290 828 202 761
PROFIT BEFORE 7 624 575 8 980 588 487 299 573 964
INCOME TAX
MINORITY INTEREST -510 604 -32 634
NET PROFIT 7 113 971 8 980 588 454 666 573 964
EARNINGS PER SHARE 0,45 1,14 0,03 0,07
Ruth Roht
PR manager
+372 6 077 858
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