31.08.1999, Tallinna Farmaatsiatehas, TLN

TALLINNA  FARMAATSIATEHASE  AS 

ANNOUNCEMENT

31.08.1999

 

COMMENTARY TO H1 1999 UNAUDITED FINANCIAL RESULTS

 

The H1 1999 net sales of Tallinna Farmaatsiatehas amounted to 31.0 

million EEK, of which 29.9 million EEK or 99.7% was income from sale 

of medicines, and 1.1 million EEK (0.3%) other income.

 

Compared to H1 1998, the company’s sales have dropped by 26.5 million 

EEK or 46.1%. Volume of exports decreased by 26.0 million EEK or 

57.6%, whereas the volume of domestic sales increased by 1.7 million 

EEK or 22.1%. The main factor behind decreased sales volumes is again 

financial crises on eastern market.

 

Net sales by product groups:

Tablets 48.8%

Ointments       36.5%

Ampoules        14.7%

 

As of result of decreased sales volumes and also strict saving 

policy, the company had in the first half year a 1.7 million EEK 

loss. 

 

The most substantial decrease (76.7%) occurred on the account of 

operating expenses – from 18.9 million EEK in H1 1998 to 4.4 million 

EEK in H1 1999. The company failed to sell its shareholding in 

Magnum-Medical, of which the company expected to earn approximately 3 

million EEK of financial income. As of H1 1998, the company was in 

loss with 0.25 million EEK. 

 

The company has also increased the effectiveness of use of raw 

materials inventories. When the volume of inventories as of 01.01.99 

was 19.2 million EEK, then the respective figure on 30.06.99 was 11.1 

million EEK. At the same time, however, the company has decreased its 

supplier payables from 17.4 million EEK to 10.5 million EEK.

 

Based on the resolution of the general shareholders’ meeting 

(18.05.99), the company’s share capital size was decreased on the 

account of retained earnings from the level of 37 700 340 EEK to 12 

500 000 EEK. 

 

In order to yield a profit, the company continues to bring the 

management and operation expenses in line with lower output volumes, 

and restructure and activate the sales networks.

 

 

Raivo Unt

Financial Director

+372 61 20 201