Kalev                         FINANCIAL RESULTS                 05/29/2002



FINANCIAL RESULTS, Q1/2002



COMMENT ON THE ECONOMIC RESULTS OF THE FIRST QUATRER OF 2002



The net profit of AS Kalev of the first quarter of this year 

reached 6.3 million kroons (400 000 euros), and exceeded the 

net profit of the same period of last year by 5 per cent.



The net turnover of the company were 68.5 million kroons 

(4.4 million euros), which is 5 per cent less than during the 

first three months of 2001 (in 2001 – 72.2 million kroons, 

i.e 4.6 million euros). The turnover of the company in the 

domestic market increased by 4 per cent, the decrease of the 

total turnover was mainly caused by the decrease of the export 

volume. The turnover of AS Kalev in the domestic market was 

enlivened due to the active marketing activities, the 

implementation of direct distribution system in the sales 

activities and the increasing number of clients caused 

by the latter, etc.



The total sales of the products of AS Kalev reached up to 

more than 1200 tons during the first three months of the year. 

80 per cent of it was sold in the domestic market and 

20 per cent exported. The most important destination countries 

of export during the period were Latvia and the Ukraine. 

In addition to the countries referred to, AS Kalev has exported 

its production to Russia, Scandinavian countries and elsewhere.





The total sales of the first quarter of the year consisted 

of more than 60 per cent of chocolate confectionery products: 

chocolate candy, bars and boxes. As to the sugar confectionery, 

the sales of chewing candy “Draakonö (“Dragonö), toffees and 

caramel candy went well.



In comparison with the corresponding period of last year, 

the business and finance expenses of the company decreased 

during the first three months of the year. The comparatively 

big decrease of other business expenses was caused by the 

suspension of establishment of the reserve of claims, as the 

reserves established in the previous year covered the need for 

that. The financial expenses of the company decreased due to 

the decreased interest costs, which was caused by the scheduled 

repayment of the long-term loan.



At the same time the distribution and marketing costs of 

the company increased, in particularly the costs in connection 

with the marketing activities. During the period several new 

products were placed on the market (“Egoö chocolate, small 

packages of the candies “Draakonö, etc), and according to 

the strategy of the company, the assortment of the products in 

connection with certain holidaysand events was enlarged. The 

increase of the distribution and marketing costs was also partly 

caused by the increase of salary costs in connection with the 

planned enlargement of the staff of the sales and logistics 

department and the marketing department.



According to the decision of the supervisory board of the company, 

the establishment of the new production plant was started in Rae 

municipality in Harju County. The decision was above all caused by 

the necessity to comply with the European requirements.











BALANCE SHEET (in kroons)                   

                                            

ASSETS                                      

                                31.03.2002  31.12.2001

CURRENT ASSETS                  

CASH AND BANK                    2 077 789  14 026 165

CUSTOMER RECEIVABLES            36 726 551  29 638 468

OTHER RECEIVABLES                2 594 928   1 062 142

PREPAID EXPENSES                 2 548 448   3 030 730

INVENTORIES                     32 030 801  27 571 871

TOTAL CURRENT ASSETS            75 978 517  75 329 376

                                            

NON-CURRENT ASSETS                          

MISCELLANEOUS LONG-TERM            887 180     887 180

RECEIVABLES

PROPERTY, PLANT AND EQUIPMENT  106 615 925  93 220 174

INVESTMENT PROPERTY             39 439 381  37 337 778

INTANGIBLE ASSETS                  308 545     275 000

TOTAL NON-CURRENT ASSETS       147 251 031 131 720 132

                                            

TOTAL ASSETS                   223 229 548 207 049 508

                                            

LIABILITIES AND OWNERS’ EQUITY              

                                            

LIABILITIES                                 

DEBT LIABILITIES                17 520 405  12 104 886

CUSTOMER PREPAYMENTS               298 750     207 977

TRADE PAYABLES                 36 166 576   28 228 155

TAX LIABILITIES                 4 506 868    8 531 521

OTHER LIABILITIES               5 352 834    4 850 260

TOTAL CURRENT LIABILITIES       63 845 433  53 922 799

                                            

LONG-TERM DEBT LIABILITIES      27 000 000  27 000 000

OTHER LONG-TERM PAYABLES            58 076      58 076

TOTAL NON-CURRENT LIABILITIES   27 058 076  27 058 076

                                            

OWNERS’ EQUITY                              

SHARE CAPITAL                   78 775 000  78 775 000

REVALUATION RESERVE             42 213 802  42 776 334

RETAINED LOSS                  -24 873 316 -25 435 847

PROFIT FOR THE YEAR ENDED       29 953 146           0

PROFIT FOR THE FINANCIAL YEAR   6 257 407   29 953 146

TOTAL OWNERS’ EQUITY           132 326 039 126 068 633

                                            

TOTAL LIABILITIES AND OWNERS’  223 229 548 207 049 508

EQUITY









BALANCE SHEET (in euros)                    

                                            

ASSETS                                      

                               31.03.2002   31.12.2001

CURRENT ASSETS                 

CASH AND BANK                    132 795      896 433

CUSTOMER RECEIVABLES           2 347 248    1 894 239

OTHER RECEIVABLES                165 846       67 883

PREPAID EXPENSES                 162 875      193 698

INVENTORIES                    2 047 136    1 762 159

TOTAL CURRENT ASSETS           4 855 900    4 814 412

                                            

NON-CURRENT ASSETS                          

MISCELLANEOUS LONG-TERM           56 701       56 701

RECEIVABLES

PROPERTY, PLANT AND EQUIPMENT  6 813 982    5 957 840

INVESTMENT PROPERTY            2 520 629    2 386 313

INTANGIBLE ASSETS                 19 720       17 576

TOTAL NON-CURRENT ASSETS       9 411 032    8 418 429

                                            

TOTAL ASSETS                  14 266 932   13 232 842

                                            

LIABILITIES AND OWNERS’ EQUITY              

                                            

LIABILITIES                                 

DEBT LIABILITIES               1 119 755      773 641

CUSTOMER PREPAYMENTS              19 094       13 292

TRADE PAYABLES                 2 311 460    1 804 103

TAX LIABILITIES                  288 041      545 262

OTHER LIABILITIES                342 108      309 987

TOTAL CURRENT LIABILITIES      4 080 456    3 446 286

                                            

LONG-TERM DEBT LIABILITIES     1 725 610    1 725 610

OTHER LONG-TERM PAYABLES           3 712        3 712

TOTAL NON-CURRENT LIABILITIES  1 729 322    1 729 322

                                            

OWNERS’ EQUITY                              

SHARE CAPITAL                  5 034 627    5 034 627

REVALUATION RESERVE            2 697 947    2 733 899

RETAINED LOSS                 -1 589 691   -1 625 643

PROFIT FOR THE YEAR ENDED      1 914 350            0

PROFIT FOR THE FINANCIAL YEAR    399 920    1 914 350

TOTAL OWNERS’ EQUITY           8 457 154    8 057 234

                                            

TOTAL LIABILITIES AND OWNERS’ 14 266 932   13 232 842

EQUITY







INCOME STATEMENT                         

(in kroons)

                           I quarter     I quater

                           2002          2001

                           

NET SALES                  68 479 683    72 235 434

                                         

COST OF GOODS SOLD         44 678 346    46 155 709

                                         

GROSS PROFIT               23 801 337    26 079 725

                                         

MARKETING EXPENSES         9 797 336      7 359 663

ADMINISTRATION AND GENERAL 6 348 199      6 949 272

EXPENSES

OTHER INCOME                  54 598        681 785

OTHER EXPENSES               357 870      5 099 794

                                         

OPERATING PROFIT           7 352 530      7 352 781

                                         

FINANCIAL INCOME              37 064        344 022

FINANCIAL EXPENSES         1 132 187      1 742 403

                                         

NET PROFIT                  6 257 407     5 954 400

                                         

EARNINGS PER SHARE               0,79          0,76

                                         





INCOME STATEMENT (in euros)                     



                           I quarter     I quater

                           2002          2001

                          

NET SALES                  4 376 638     4 616 674

                                         

COST OF GOODS SOLD         2 855 459     2 949 880

                                         

GROSS PROFIT               1 521 179     1 666 794

                                         

MARKETING EXPENSES           626 162       470 367

ADMINISTRATION AND GENERAL   405 723       444 138

EXPENSES

OTHER INCOME                   3 489        43 574

OTHER EXPENSES                22 872       325 935

                                         

OPERATING PROFIT             469 911       469 927

                                         

FINANCIAL INCOME               2 369        21 987

FINANCIAL EXPENSES            72 360       111 360

                                         

NET PROFIT                   399 920       380 555

                                         

EARNINGS PER SHARE              0,05          0,05

6 28 38 58





Ruth Roht

PR manager

+372 6283 858