RAKVERE LIHAKOMBINAAT

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO CONSOLIDATED FINANCIAL RESULTS, 9M 2001



Rakvere Lihakombinaat group consists of the following companies

(holding %)-  AS Rakvere Lihakombinaat- parent, AS Rigas Miesnieks 

(92.47%), AS Ekseko (97.80%), AS Linnulihatooted (76%), Rakveres 

Mesos Produktai Vilnius (100%). As at 30.09.2001 the number of 

employees of Rakvere Lihakombinaat group was 1,200 

(1,171 employees as at 30.09.2000).



9m 2001 has been successful for Rakvere Lihakombinaat. Continuous 

growth in sales volumes in all the markets is based on successful 

sales of summer products as well as the positive economic development 

in the whole region.



Growth in output capacity of Ekseko, member of the Rakvere group, 

has been stable. Pig raising on a contractual basis or "the pig project" 

is continuously developing and supplies the company with quality 

domestic pork. The raw material has become almost fully domestic due 

to more active storage of livestock. Increase in the number of slaughters

enhances more efficient usage of the company's technical resources.



In 9 months the group turnover totaled EEK 778.6 mln (EEK 642.0 mln 

during the same period last year), which is 21% more than during the 

same period last year. In 9m the group earned EEK 61.8 mln net profit 

(EEK 3.1 mln during the same period last year).



Based on sales of Christmas products the company's economic 

activities in Q4 will continue as planned.

  

Rakvere Lihakombinaat financial ratios (in EEK million):



		  	   9m 2001   	 9m 2000  	12m 2000

Net sales		     778.6	642.0		 891.6

Expenses		     706.4	639.8		 886.6

Operating profit	      72.2	  2.2		   5.0

Net profit		      61.8	  3.1		   1.2

Investments		      46.2	 41.0 		  49.7





Olle Horm

Management Board chairman

+372 32 29 211