RAKVERE LIHAKOMBINAAT

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO UNAUDITED AND CONSOLIDATED RESULTS 2000



In year 2000 Rakvere Lihakombinaat successfully met one of its top 

goals – increase of sales. In 2000 the group’s turnover was EEK 892 

mln, having grown 21% on annual basis. When expressed in tons, the 

sales figures grew approximately 7%. One of the major factors behind 

the growth is successful product development. The whole group 

introduced several new products to the market. From the user-

friendliness aspect the company continued to pay special attention 

to development of packing materials.



In 2000 the group earned EEK 1.2 mln net profit, which is less than 

during the previous year. The less than expected result was mostly 

due to sharp rise in the prices of raw materials in year 2000. In 

the beginning of 2000 the prices of pork and poultry began to 

increase rapidly, and at the end of the year also the prices of beef 

started to rise. Initially the company failed to reflect the 

increased raw materials costs in the prices of final products, 

thus also the results of H1 were lower than expected. In H2 the 

aforementioned problems were solved.



Results of companies of Rakvere Lihakombinaat group: 



RLK GRUPP (EEK mln)

                   2000	  1999	Difference

Net sales          892	   738     154

Net profit         1.2    21.1   -19.9



The average number of employees in year 2000 was 1,223 (1,235 in 1999). 



Last year major changes occurred in Riga. On 01.09.2000 the Latvian 

subsidiaries of Rakvere Lihakombinaat, Rigas Miesnieks Trading and 

Rigas Miesnieks, merged. After merger of these companies the share 

capital of Rigas Miesnieks was increased by LVL 1,200,000 by Rakvere 

Lihakombinaat. The share capital increase was done through conversion 

of trade claim in the amount of EEK 34.35 mln into share capital. 

Before merger AS Rakvere Lihakombinaat owned 100% of Rigas Miesnieks 

Trading and 87.95% of Rigas Miesnieks. After merger and increase of 

share capital AS Rakvere Lihakombinaat owns 92.47% share in merged 

subsidiary Rigas Miesnieks.





Olle Horm

Chairman of the Management Board

+372 32 29 221





Siim Kallast

CFO

+372 32 29 231