KALEV

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO UNCONSOLIDATED RESULTS, Q1 2000



In Q1 2000 AS Kalev net sales amounted to EEK 75.8 mln, having increased 

0.5% or EEK 0.4 mln y-o-y. Sales of confectionery products increased on 

annual basis by 0.2% or EEK 0.1 mln on the account of domestic market. 

Exports of confectionery products dropped by 16.9% or EEK 3.5 mln. 

Compared with the budget forecasts, the net sales were lower by EEK 7.8 

mln, incl. EEK 9.0 mln lower sales of AS Kalev confectionery products. In 

Q1 the company sold a total of 1985 tons, of which the exports accounted 

for 29.9%.



In Q1 2000 the company posted EEK 5.5 mln profit, or EEK 1.9 mln more than 

planned in the budget.



In Q1 the company's gross profit stood at EEK 22.0 mln, which is EEK 9.1 

mln less than planned.



In accordance with the company's savings policy, AS Kalev saved in Q1 EEK 

2.0 mln on the account of marketing expenses and EEK 0.5 mln on the account 

of general administrative expenses.



Compared with the standings on 31.03.1999, AS Kalev balance sheet volume 

declined by EEK 107 mln. The balance sheet size is lower mainly due to 

provisions made on short-term and long-term receivables at the end of 

1999.



The second substantial factor was partial repayment of long-term syndicate 

loan in 1999 and refinancing of syndicate loan in the beginning of year 

2000.



Changes in owners equity are due to covering of the loss posted in 1998 

from the capital surplus and reserve capital accounts in 1999.





Kristina Seimann

Public relations manager

+372 628 3858