28.04.1999, Tallinna Farmaatsiatehas, TLN

TALLINNA FARMAATSIATEHASE AS

ANNOUNCEMENT

28.04.99

 

COMMENTARY TO THE UNAUDITED FINANCIAL RESULTS OF Q1 1999

 

The Q1 1999 net sales of Tallinna Farmaatsiatehase AS amounted to 16.7 

million EEK. Compared to the respective figure of the last year, it is 

approximately two times lower, accounting for 52.7% of the last year’s 

turnover. The main factor behind the decreased turnover figure is the 

same as for many other Estonian companies – the main emphasis was 

placed on the Eastern market, which are currently undergoing the 

financial crisis.

 

When TFT exported finished goods in 1998 for 26.7 million EEK, then the 

same figure in Q1 1999 was 11.6 million EEK. At the same time, the 

company’s sales in Estonia increased, accounting in Q1 1999 for 34% or 

5.2 million EEK of net sales (in Q1 1998, the respective figure was 

only 14.5%, or 4.6 million EEK).

 

As a result of active sales policies and effective cost management, TFT 

AS ended Q1 with a profit of 1 million EEK. The respective result of Q1 

1998 was a profit of 2.1 million EEK.

 

In order to manage the company profitably, TFT works in two ways. 

First, it stimulates sales support activities in the Baltic countries 

in cooperation with Grindex. Secondly, TFT continues to conform the 

management and operating expenses to lower production volumes. Compared 

to Q1 1998, TFT has managed to cut costs mainly on the account of 

operating expenses (by ca  ~2.0 million EEK). The personnel expenses 

were decreased from the last year by 27%.

 

The company currently employs 202 people.

 

In May 1999, Tallinna Farmaatsiatehase AS will celebrate its 85th 

anniversary.

 

 

Arno Kaseniit

Member of the Management Board 

Tel: +372 61 20 201