AS KLEMENTI

COMMENTARY TO THE FINANICAL RESULTS

04.11.99

 

COMMENTARY TO THE FINANICAL RESULTS 09/99

 

The 9-months 1999 consolidated and unaudited net sales of AS Klementi 

amounted to 76.2 million EEK, which is 14.2 million EEK or 15.7 % 

less than during the respective period in 1998 (9-months 1998 net 

sales were 90.4 million EEK). Compared to the same period last year, 

the sale of goods produced decreased by 24.4% (from 64.7 million EEK 

to 48.9 million EEK).

 

Decline in sales of goods produced was mainly due to lower demand on 

AS Klementi's main markets in Estonia, Latvia and Lithuania, and also 

due to reduction in professional apparel orders by state-financed 

institutions due to budget cuts.

 

Sale of goods produced by markets (million EEK):

 

        9-months 1999  9-months 1998            Change

Estonia                    32.3          39.3			-17.8%

Latvia; Lithuania           7.7          16.5      		-53.3%

Finland; Sweden             8.0           7.6           	  5.2%

Other                       0.9           1.3       		-30.8%

 

 

Decline in sales of goods produced was compensated by 18.4% 

increase in subcontracting works (20.1 million EEK in 9 months 1998; 

23.8 million EEK in 9 months 1999). The share of subcontracting 

works in total turnover increased by 9% (from 22% to 31%).

 

The company's inventories have declined by 8.7 million EEK due to 

lower output volumes (from 37.9 million EEK to 29.2 million EEK).

 

The 9-months 1999 consolidated and unaudited loss of AS Klementi 

Stood at 2.3 million EEK (net profit during the same period last year 

4.9 million EEK).

 

AS Klementi 30.09.1999 balance sheet includes the following provisions:

-    Allowance for doubtful accounts 682 thousand EEK.

-    Reserve for revaluation and write-off of inventories 703 thousand 

     EEK.

 

Compared to the same period last year and H1 1999, the structure of 

AS Klementi group has remained unchanged.

 

 

Madis Võõras

Chairman of the Management Board