AS ESTIKO

ANNOUNCEMEMNT

21.04.99

 

COMMENTARY TO THE CONSOLIDATED FINANCIAL RESULTS OF AS ESTIKO 03/99 

 

The Q1 1999 consolidated and unaudited net sales of AS Estiko amounted to 

35.8 million EEK, and net profit 0.9 million EEK.

 

During the same period last year, the turnover totaled 109.5 million EEK. 

However, these two figures are not comparable since the current year’s 

turnover does not include the turnover of the group’s commercial sector, 

AS Eesti Spar. For the purpose of data comparability, we eliminated the 

results of the commercial sector, and thus compare only the results of 

industrial and real estate sectors. The comparable net sales figures 

during Q1 of the current year were 33.8 million EEK and Q1 of 1998 32.7 

million EEK, increasing by 3.4% during the year. The comparable net profit 

figures are 2.0 million EEK (in 1998) and 1.1 million EEK (in 1999), hence 

this year’s profit accounts for 55% of the last year’s respective figure.

 

The 1999 consolidated profit forecast for AS Estiko was 7 million EEK, 

whereas the company did not anticipate to earn profit during the first 

three months.  

 

One of the most significant factors on comparing the 1999 results of 

Estiko group with the results of the last year’s respective period is the 

fact that AS Estiko’s shareholding in AS Eesti Spar and its subsidiaries 

is not reflected on the account of AS Estiko non-current assets as long-

term financial investment, but as current assets (balance sheet row 

“marketable securities”). The basis for using such accounting principle is 

the fact that the Supervisory Board of AS Estiko has decided to dispose 

the company’s holding in AS Eesti Spar, hence the aforementioned shares 

are currently on sale. Proceeding from the aforementioned, Q1 1999 

consolidated financial results of AS Estiko group also account for the 

results of AS Eesti Spar and its subsidiaries. The results proceeding from 

the disposal of the commercial sector will be reflected after the sale of 

shareholding in AS Eesti Spar as a difference between the balance sheet 

value and sales value.

 

The Q1 1999 consolidated turnover of the industrial sector of Estiko group 

was 26.9 million EEK and net profit 1.2 million EEK. The Q1 1998 

consolidated turnover of the industrial sector amounted to 29.1 million 

EEK and net profit 0.9 million EEK. The Q1 1999 consolidated turnover of 

the industrial sector of Estiko group accounted for 92.4% of the 

respective result of the last year. The industrial sector’s net profit 

figure increased by 33.3% from the last year.

 

The Q1 1999 consolidated turnover of the real estate sector of Estiko 

group was 6.9 million EEK and loss 0.04 million EEK. The Q1 1998 

consolidated turnover of the real estate sector was 3.7 million EEK and 

net profit 1.1 million EEK. The Q1 1999 consolidated turnover of the 

industrial sector of Estiko group accounted for 86.9% of the respective 

result of the last year. 

 

 

Igor Sada

Financial Director of the Group

Tel. +372 747 6916