07.11.2000, Tallinna Farmaatsiatehas, TLN

TALLINNA FARMAATSIATEHAS

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO UNAUDITED FINANCIAL RESULTS, 9 MONTHS 2000



Net sales of Tallinna Farmaatsiatehase AS of 9 months of year 2000 

amounted to 66,091 th.EEK. Compared to the same period of previous 

year the sales increased by 20,058 th. EEK, up by 43.6% (net turnover 

in 9 months 1999 was 46,034 th. EEK). The total operating income 

increased by 31,080 th. EEK (66.4%).



Compared to the same period last year, the operating expenses 

increased by 20,770 th. EEK (operating expenses in 9 months 1999 were 

44,999 th. EEK and in 9 months 2000 65,769 th. EEK), from which the 

increase in expenses for materials 15,482 th. EEK was related to the 

increase in production volume by 2 times. In other operating expenses 

were shown commissions in the amount of 4,681 th. EEK and write-off 

of the uncollectible accounts in the amount of 1,362 th.EEK.



Possible income from above-mentioned debtors in the future will be 

shown under other operating income. By September 30, 2000 income from 

above-mentioned debtors amounted to 381,0 th. EEK.



Compared to the same period last year, the operating profit increased 

by 10,331 th. EEK, (operating profit in 9 months 1999 was 1,768 th. 

EEK and in 9 months 2000 12,079 th. EEK), and net profit increased by 

7,187 th. EEK (-112 th. EEK loss in 9 months 1999, and net profit in 

9 months 2000 was 7,076 th. EEK).





COMMENTARY TO BALANCE SHEET



As of September 30, 2000 the balance sheet size stood at 97,773 th. 

EEK. Compared to the net balance at the beginning of year 2000, 

assets have increased the most - finished goods inventories increased 

in the amount of 3,667 th. EEK, since the ointment department 

increased its output due to upcoming reconstruction of the 

department. Current assets in total increased by 1,667 th. EEK 

(2.8%).



Current liabilities decreased by 7,673 th. EEK (29.7%). Shareholders' 

equity increased by 7,076 th. EEK (58.8%) on the account of 9 month 

2000 net profit.



FINANCIAL INDICATORS



Financial indicators, 9m 1999 vs. 9m 2000:



					 1999		2000

Gross profit margin			  3.8		 18.3

Net profit margin	 	 	 -0.2		 10.7

Return on equity (ROE)		         -1.8		 43.5

Return on assets (ROA)	                 -0.1		  7.2

Equity-to assets ratio		          6.8		 16.4

Days sales outstanding			140.0		120.5

Earnings per share (EEK)		    0		  5.7





Raivo Unt

Financial Director

+372 61 20 201