KALEV

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO CONSOLIDATED RESULTS, H1 2000



In H1 2000 AS Kalev net sales grew 5.4% y-o-y, and amounted to EEK 

158.2 million.



In H1 Kalev's consolidated net profit grew by EEK 5.8 million on 

annual basis, and amounted to EEK 5.9 million. The company's gross 

profit grew by EEK 9.9 million, mainly on the account of lower 

production costs. The profit figure is lower than budgeted since the 

company carried expenses due to lay-off of employees in relation to 

structural changes (total of EEK 5.4 million in H1).



In accordance with the newly prepared AS Kalev strategic development 

plan, the company has today applied team-based, MBO (management by 

objectives) oriented corporate structure.



Compared with H1 1999, AS Kalev balance sheet size on 30.06.2000 was 

lower by EEK 25.7 million. Decreased balance sheet size proceeded 

from provisions made on short-term and long-term receivables at the 

end of last year, due to revaluation of subsidiaries' assets to real 

value. Another important factor was partial repayment of long-term 

syndicate loan and refinancing of syndicate loan in Q1 2000. 

Balance sheet size gained from revaluation of the company's land and 

buildings up to market value in September 1999. 

Balance sheet volume decreased by EEK 29.9 million from the beginning 

of the year, which is partly due to refinancing of the aforementioned 

syndicate loan.





Kristina Seimann

PR manager

+372 628 3858