BALTIKA

ANNOUNCEMENT

 

COMMENTARY TO CONSOLIDATED FINANCIAL RESULTS 1999

 

The 1999 consolidated financial statements reflect the results of 

the following subsidiaries and affiliated companies:

 

		                   holding (%) as of 31.12.1999

AS Baltika (parent)

AS Virulane (Estonia)		             55.15%

AS Baltman (Estonia)                           100%

 SIA Baltman (Latvia)		               100%

Baltmano Prekiba (Lithuania)		        90%

Baltika Sweden (Sweden)		               100%

AS Elina STC (Estonia)		              37.5%

 

The results of AS Virulane are consolidated into 1998 income 

statements in amount of 1/6 (2 months, acquisition was acquired in 

October 1998), and in full amount to 1999 statement.

AS Baltika 1999 unaudited and consolidated net turnover was 288.9 

million EEK, providing 8.6 million EEK (3%) increase on annual 

basis. Net turnover from sale of goods produced was 209.6 million 

EEK (1.6 million EEK drop since 1998), and the share of 

subcontracting works was 73.3 million EEK (11.4 million EEK 

increase since 1998). 

 

Export sales accounted for 64.5% (186.4 million EEK) of net 

turnover; sales of goods produced accounted for 72.5% of net 

turnover. 

Sale of good produced and subcontracting works by markets (thousand 

EEK):

 

(EEK million)             1999		 1998

Eesti                     99.9		 87.7

Latvia, Lithuania         61.8		 64.3

Russia, Ukraine            9.4		 27.6

Finland, Sweden           88.0		 61.7

UK, Germany               24.1		 24.6

 

Baltika continues to lead conservative sales policy with Russia, as 

a result of which the sales volume in the Russian region dropped on 

y-o-y basis by 18.2 million EEK. However, the company's sales on 

Estonian market increased by 12.2 million EEK, with sales of goods 

produced increasing 11.4 million EEK (73.7 million EEK in 1999 and 

62.3 million EEK in 1998), accounting for 25.5% of net turnover.

 

 

AS Baltika consolidated net profit was 1,812 thousand EEK, incl. 

1,193 thousand EEK of group's profit. Compared to 1998 the group's 

profit net profit increased by 427.4 thousand EEK, with 

consolidated profit decreasing by 752.3 thousand EEK.

 

The net profit figure was affected by the following factors:

- gains from sale of real estate in Lithuanian subsidiary 

                                                  EEK 3.0 million

- gains related to amended income tax law         EEK 0.7 million

- loss from sale of inventories                   EEK -6.4 million

(Baltika: EEK 4.9 million; subsidiaries: EEK 1.5 million) 

- increase in allowance for doubtful accounts     EEK -1.5 million

- Entrance costs to Polish market                 EEK 1.5 million

 

As of 31.12.1999 retained earnings of Baltika group amounted to EEK 

20,344,339. AS Baltika Management Board will make a proposal to 

shareholders' annual general meeting to pay dividends EEK 0.50 per 

share, totaling EEK 2,400,000.

 

 

Meelis Milder

Chairman of the Management Board 

+372 63 02 731