Pēd. atjaunots: 20.07.2024 15:10 (GMT+3)
Kalev FINANCIAL RESULTS 12.11.2004
ANNUAL REPORT 2003/2004
MANAGEMENT REPORT
1. Economic environment and its impacts
The following factors had a significant impact on the economic activities of AS
Kalev during the 2003/2004 financial year.
1.1.Accession to the European Union
At 1 May of the current year, Estonia became a full member of the European Union
(EU). The EU membership presents an opportunity for Estonia to develop its
enterprise. The most important task for the improvement of the economies and the
welfare of the citizens of the EU member states is to increase the
competitiveness and economic growth of the EU.
Estonia supports the improvement of its domestic market with the help of
attaining greater openness of its economic environment, continuing liberalisation
of markets and reduction of excessive regulation. In 2003, the anticipation of
joining the European Union magnified the tendencies that had already been evident
earlier. There were no expected price increases and the preparations for joining
the EU accelerated the process of making significant investments into Estonia and
the implementation of support projects.
The lowering of interest rates helped propel the economic activities of Estonian
enterprises and stimulate the borrowing by individuals. Low lending rates
stimulating economic growth led to an increase of loan-based consumption in
Estonia. In the future, the most important issue will be the international
competitiveness of the Estonian economy.
The importance of the labour market continues to grow, incl. the impact of salary
agreements to the whole economy. The four freedoms of the EU single market: free
movements of people, goods, capital and services have presented new challenges to
the entrepreneurs.
A characteristic of the economic environment is that the main trading partners of
Estonia are the member states of the European Union. After the expansion of the
EU, the EU already contributes to over 80% of the trade in goods of Estonia. Most
of foreign investments to Estonia have been made by the EU member states.
Due to the differences in the income levels of Estonia and the European Union,
the local prices have stayed somewhat lower. If the economic growth of Estonia
remains higher than that of the EU, then it will lead to faster inflation. In
principle, this means that with the harmonisation of the income levels, the
harmonisation of price levels between Estonia and the EU will take place in the
following decades.
The accession of Estonia to the European Union impacted AS Kalev via the price
increase of its main raw material, sugar. The European Commission does not
consider the current EU sugar sector sustainable and has proposed to reform the
EU sugar regime. According to the proposal, the sugar reform would start in
2005/2006 and would last for three years. During the reform, the reference prices
of white sugar would fall in two stages by 33%. The current sugar regime is being
criticised for the lack of competition, market distortions, high prices and their
impact in the world market (especially in the context of developing countries).
1.2. Changes in legislation
Compliance with the obligation of recycling packages and packaging waste
AS Kalev has decided to join a recycling organisation managed and owned by
Estonian packaging companies. The main objective of the recycling organisation is
to free the packaging company from the recycling obligation. In our activities,
we shall consider the following:
. the EU environmental principles and requirements for the promotion of
preventing, reducing and recycling of packages and packaging waste;
. the obligations accompanying the entry into force of a new packaging law for
the collection and recycling of packages brought to the market, carrying out
necessary reporting and supervision;
. the interest to preserve and promote the industry's competitiveness within
the framework of environmentally sound activities;
. the experience of other European countries in implementing the producer's
liability principle with regard to recycling of packages and packaging
waste.
Other market regulations concerning the confectionery industry
In conjunction with the accession to the European Union, its market regulations
became effective also in Estonia:
1. The export subsidy system depending on target markets, which allows selling
goods originating in the European single market in the world market at a
more favourable price.
2. Subsidy rates apply to the following raw materials used by us: sugar, syrup,
dairy products, and egg products.
3. Usage subsidy of dairy products with the goal to promote the consumption of
butter and cream in the European Union member states. The target group of
the subsidy are food businesses that use these products in making final
products.
4. The recipient of the subsidy is the milk industry that processes the raw
material in compliance with the requirements. The subsidy to the producer of
a final product lies in the opportunity to obtain raw material at more
favourable terms in accordance with previous agreements with the milk
industry.
The Alcohol Excise Duty Act does not impact the economic activities of the
company, as the Tallinn Customs House of the Tax and Customs Board issued at
23.01.2004 excise suspension permits for exemption from excise duty on alcohol
necessary for the production of chocolate for the next 12 calendar months.
2. Group structure and its changes
As at 30.06.2004 AS Kalev had significant participation in the following
entities:
Name of subsidiary Location As at As at
30.06.2004 30.06.2003
AS Kalev Paide Tootmine Estonia 100% 100 %
AS Kalev Jõhvi Tootmine Estonia 99,1% 0%
AS Kalev Real Estate Estonia 59,3% 59,3 %
Company (AS Kalev REC)
OÜ Maiasmokk Estonia 81,26% 0%
AS Kalev Merchant USA 100% 100 %
Services
In the current annual report, the financial information of AS Kalev and its
subsidiaries have been consolidated line-by-line.
2.1. Parent of consolidation group AS Kalev
The parent company of the consolidation group, AS Kalev is the oldest and largest
confectionery company in Estonia whose main activities are the production and
sales of sugar and chocolate confectionery products.
2.2. Subsidiary AS Kalev Paide Tootmine
The subsidiary makes dairy-based confectionery products; in addition to
confectionery products, AS Kalev Paide Tootmine makes other dairy products -
mostly butter, skimmed milk and milk and to a lesser degree, high-temperature
pasteurised milk.
2.3. Subsidiary AS Kalev Jõhvi Tootmine
AS Kalev acquired 991 shares with the nominal value of 1 000 kroons (64 Euros),
i.e. 99,1% of the share capital of AS Kalev Jõhvi Tootmine (previous business
name AS Järle) with the contract entered into at 24.12.2004. For this stake, a
total of 11 388 350 kroons (727 848 Euros) had to be paid.
The subsidiary makes flour confectionery and pastry products.
The objective of the acquisition of the shares of AS Kalev Jõhvi Tootmine
(previous business name AS Järle) was a forceful entry into the local biscuit
market and starting of its activities in the bread sector in line with AS Kalev's
long-term development strategy. AS Kalev Jõhvi Tootmine has a strong position in
the Estonian biscuit market, which gave AS Kalev a competitive advantage when
acquiring the market share. An advantage for entry into the bread sector was the
well-functioning production activities of the acquired entity and the existence
of skilled labour.
2.4. Subsidiary AS Kalev Real Estate Company (AS Kalev REC)
According to the shareholders' agreement entered into by AS Kalev and Skanska EMV
AS at 03.05.2002, AS Kalev has the right to purchase 40,7% of AS Kalev REC shares
belonging Skanska EMV depending on the time of the purchase either for the price
of 23,4 million kroons (1,5 million Euros) or 27,8 million kroons (1,8 million
Euros) by 15.02.2005.
While changing the shareholders' agreement, AS Kalev and Skanska EMV AS agreed
that AS Kalev would pay a total of 25,2 million kroons (1,6 million Euros) for
the acquired shares. The amount of the first payment was 2,6 million kroons (0,2
million Euros), the remaining purchase amount needs to be paid in equal parts as
quarterly payments between 01.07.2004 and 30.06.2005. The respective payment
shall be paid at the last day of the quarter at the latest. Beginning with
01.11.2004, Kalev is required to pay interest of EURIBOR + 2% annually on the
amount of the two last payments (a total of 11,3 million kroons) (0,7 million
Euros).
AS Kalev will become the owner of the shares after paying in full for the shares.
After the acquisition of the shares, AS Kalev will own 100% of the sharers of AS
Kalev REC.
Since the entity started its operations, the financial results of AS Kalev REC
have been presented in the consolidated financial statements of AS Kalev.
The core activities of the subsidiary are the development, management,
assessment, expert analyses, analyses, services, leasing, purchases and sales of
real estate as well as real estate consulting.
2.5. Subsidiary OÜ Maiasmokk
With the agreement entered into at 20.02.2004, AS Kalev acquired a unit of OÜ
Maiasmokk with the nominal value of 51 700 kroons (3 304 Euros), i.e. 59,52% of
its share capital. With the agreement entered into at 13.05.2004, AS Kalev
acquired an additional unit with the nominal value of 19 000 kroons (1 214
Euros), i.e. 21,84% of the share capital of OÜ Maiasmokk. For the 81,26% stake,
a payment of 70 700 kroons (4 519 Euros) needed to be paid, this is also the
nominal value of the unit belonging to AS Kalev.
OÜ Maiasmokk has a long-term experience of making and selling baked goods both in
its own café as well as in other retail enterprises. With this subsidiary, AS
Kalev is planning to open an exclusive café-store based on the current café that
would sell in addition to baked goods also high quality sweets. Estonian Sweets
Museum that has been open at Pärnu Road 139 for three years will be moved to this
building. A collection of several thousand exhibits provides an overview of the
approximately two hundred year old history of the local sweets industry that
started at the location of the present day café of Maiasmokk.
Under the lease agreement, OÜ Maiasmokk uses the building with cultural value
located at Pikk Street 16, Tallinn where the direct predecessor of AS Kalev,
Lorenz Caviezel laid the foundation to the Estonian confectionery industry in
1806. In 1894, Georg Stude bought the building and opened a confectionery store
under his own name there, offering among other things, exclusive hand-made
marzipan figures and candies. AS Kalev still uses the marzipan moulds as well as
several recipes used for making handmade sweets of its predecessor, the Stude
business. OÜ Maiasmokk continues the tradition of making Stude's cakes and pies.
2.6. Subsidiary Kalev Merchant Services Ltd
Kalev Merchant Services Ltd is a subsidiary of AS Kalev located in the USA, whose
core activities are the introduction and sales of AS Kalev's products in the USA.
3. Market and sales of confectionery products
3.1. Chocolate and sugar confectionery products
According to the research conducted by the research company AC Nielsen Eesti, the
market share of AS Kalev by volume reached 46,1% in the chocolate and sugar
confectionery product segment during the period of June and July of 2004.
In the first half of the 2003/2004 financial year, the main emphasis of the
marketing and sales activities of AS Kalev was mostly directed at the preparation
and successful implementation of Christmas sales. In October, AS Kalev introduced
its largest ever collection of Christmas products, consisting of more than 50
items. The company expanded its product range with new products - gingerbread
cookies and alcohol-free mulled wine.
In the first half of the current financial year, the company also introduced
another product, Mõnus Maius made of toffee and corn puffs which was named the
Best Confectionery Product of Estonia at the competition of Estonian Food
Industry Association in 2003. In addition, new Bitter chocolate with new
additives was introduced for sale at the export markets and the chocolates The
Sealords and Mermaid for sale in the tax-free system.
In the third quarter of the 2003/2004 financial year, the company laid emphasis
on the introduction and sales of a product portfolio for St. Valentine's Day and
Easter. The new products introduced at the market were candy boxes Coco, hazelnut
Maiuspala, Magus Mäng, Kuldne Kalev and vanilla Souffle. In addition, the
expansion of the product family Ooops! banana and peppermint Ooops!. In the
fourth quarter, new chocolate boxes Tallinna Raekoda and Kooreliköör were
introduced in the chocolate box sector.
3.2. Flour confectionery products
In line with the long-term development strategy of AS Kalev, the company expanded
its product portfolio with flour confectionery products, by acquiring a majority
stake in AS Kalev Jõhvi Tootmine at the end of 2003. The company considers
biscuits its most important product, but regionally bread products and cakes,
etc. are also important.
AS Kalev became more active in the flour confectionery sector in the second half
of the current financial year, introducing a new squirt cookied group and
renewing several packages of the moulded cookies earlier belonging to the product
portfolio of AS Kalev Jõhvi Tootmine. According to the retail research of AC
Nielsen, AS Kalev's market share in the biscuit sector was 19,4% by volume in
June-July 2004.
In the first half of the fiscal year, AS Kalev also continued the production and
marketing of other pastry products in the local market. The modernisation of
bread packaging was started.
3.3. Other products
During this period, in addition to dairy-based products AS Kalev Paide Tootmine
also gradually increased the production of dairy products, such as butter, skim
milk and milk powder, and to a lesser degree high-temperature pasteurised milk.
The dairy products of the subsidiary are divided into subcontracting and semi-
finished products.
3.4.Total sales of confectionery products
During the 2003/2004 financial year, the total sales of AS Kalev's confectionery
products reached 7300 tonnes, increasing by almost 9% as compared to the same
period last year. The increase of total sales was mostly caused by the addition
of cookies and pastry products to the product portfolio of the company at the
beginning of 2004. In the financial year, the sales of chocolate confectionery
products were more modest than normally as a result of a production stoppage due
to the moving to a new location and the resulting shortages of certain products.
Of the total sales volume, 76% of the confectionery products were sold in the
domestic market and 24% were exported. In the previous financial year, the
domestic sales were 80% and exports 20%. A slight increase of the exports can be
attributed to the peculiarity of the exported product portfolio - the major part
of export products are made at the caramel department of AS Kalev, whose
production was not shut down in conjunction with the start-up of the new
production facility.
In the financial year under review, the main export target country continued to
be Latvia and also Ukraine until 1.05.2004. After the accession to the European
Union, AS Kalev ended its exports to Ukraine as the company's products are no
longer competitive there due to the price increase. In addition to these
countries, Kalev exported its products to Russia, the Scandinavian countries and
the United States.
4. Operating activities and financial results
In the 2003/2004 financial year, the consolidated net sales of AS Kalev were
624,2 million kroons (39,9 million Euros), increasing by 79% as compared to the
previous financial year (2002/2003 - 347,7 million kroons, 22,2 million Euros).
In the 2003/2004 financial year, the company's consolidated net profit was 17,2
million kroons (1,1 million Euros) which is 48% less than in the previous
financial year (2002/2003 - 32,5 million kroons) (2,1 million Euros).
The consolidated net sales of AS Kalev were also helped by the acquisition of a
new subsidiary, AS Kalev Jõhvi Tootmine (with the previous business name AS
Järle) at the beginning of 2004. Also, the sales growth of two other subsidiaries
- AS Kalev Paide Tootmine and AS Kalev Real Estate Company (AS Kalev REC) in the
period under review.
The consolidated net profit of AS Kalev during the 2003/2004 financial year was
impacted by other operating income. The core activity, i.e. the production and
sales of confectionery products has stabilised since the company moved into the
new production facility at Põrguvälja in the first quarter of the financial year
and resolved the problems related to the launching of operations. The company
continues a targeted and consistent work to increase its profitability.
At the same time, the price of the main raw material of AS Kalev - sugar -
increased in connection with Estonia's becoming a member of the European Union by
approximately 9 kroons per kilogramme, which will lead to an estimated 37 million
kroons (2,4 million Euros) additional annual cost to the company.
The increase of the administrative expenses was also impacted by the relocation
of AS Kalev to the new production facility. The administrative expenses include
one-time expenses for the moving and assembly of the production equipment of the
chocolate unit and the launching of production in the amount of 15,2 million
kroons (0,97 million Euros). In addition, the moving expenses of the caramel unit
in the amount of 2,5 million kroons (160 thousand Euros) were incurred in the
last quarter of the financial year.
In the period under review, a 16 percent increase in the distribution costs was
mostly caused by the addition of a new subsidiary, AS Kalev Jõhvi Tootmine to the
AS Kalev group.
AS Kalev's other operating expenses include a 10,06 million kroon (643 thousand
Euro) loss on the sale of an investment property.
5. Organisation and personnel
5.1. ISO 9001:2000 quality control system
A review of control systems started in the 2002/2003 financial year and their
compliance with ISO 9001:2000 quality control system ended this financial year
when the international certification body, BVQI (Bureau Veritas Quality
International) issued two quality certificates that confirm the compliance of AS
Kalev and AS Kalev Paide Tootmine, respectively, with ISO 9001:2000 standard.
AS Kalev was granted the certificate of quality for the sugar and chocolate
confectionery products in the areas of product development, production and sales.
The quality control standard is first and foremost aimed at the expansion of the
client centre.
AS Kalev Paide Tootmine was granted a certificate for the production of dairy and
dairy-based products as well as the production of confectionery products.
The certificate of quality is a proof of the company's success in the quality
control of its products in addition to ensuring product quality, leading to the
business partners' trust in the company.
5.2. Recruitment of employees - Contest of Stars
In conjunction with the expansion of its activities, AS Kalev conducted a
recruiting contest at the beginning of 2004 with the goal of finding employees,
mostly managers and specialists in 18 areas. The company received 652
applications. The most popular position was that of Events' Coordinator with 132
applications, followed by Client Service Manager with 66, Administrative Manager
with 54 and Advertising Manager with 53 applications.
On the basis of these applications, 128 candidates or a fifth of all candidates
were invited to participate in group projects. Of them, 34 candidates were
invited for an interview in addition to those 30 who were directly invited. AS
Kalev found 18 new employees through the recruiting contest, most of whom started
to work at the company in the spring and summer of 2004.
5.3. Number of employees and their average salaries
In the 2003/2004 financial year, the average number of employees at AS Kalev was
712 people, a 28% increase when compared with the same period a year ago. This
change was caused mostly by the addition of the employees of AS Kalev Jõhvi
Tootmine to the group's staff.
Employees were paid wages and salaries in the total amount of 50 305 182 kroons
(3 215 087 Euros). During the year, the members of the Management and Supervisory
Boards were paid remuneration of 496 160 kroons (31 710 Euros).
During the reporting period, neither the letters of guarantee have been issued to
nor the potential liabilities related to the company have been assumed by the
members of the Management and Supervisory Boards.
6. Key events
6.1. AS Kalev - Estonia's most reputable company
According to the traditional research on reputation, conducted by the market
research company TNS Emor in April 2004, the people of Estonia rated AS Kalev as
the most reputable company.
The basis for the ranking of companies according to their reputation is the
research conducted by TNS Emor on the recognition and reputation of companies
which measures recognition, reputation strength and likeability of companies. The
parameters mapped out in the study provide an overview of how residents of
Estonia perceive the companies operating in the local market: which companies are
known, which ones appear stronger to the residents and which ones are the most
likeable.
According to TNS Emor, AS Kalev as well as other companies that have made it to
the top of the reputation study are characterised by stability and relative
independence of current media coverage. In its turn, the company's strong and
established image helps it to continue with its stable development.
6.2. Construction of new production facility and relocation
AS Kalev started to construct it new production facility in May 2002. The
facility was completed in September 2003, being the largest food processing
production facility completed mostly in one step since Estonia's regaining its
independence. The total area of Kalev's new production facility is 26 500 m², of
which production and technical space is 16 500 m², warehouses are 6000 m²,
employee dressing rooms, the canteen and the laundry room are 2000 m² and the
office is 2000 m².
The main advantage of Kalev's new production facility is the production in one
facility on one floor instead of the previous eight production floors located in
two separate buildings. At the same time, the warehouse space expanded and
warehouse logistics improved at the new factory.
Most of the daily production activities were launched in the new production
facility at 15.09.2003, after receiving the permit for a specified term in cocoa,
and cocoa products, chocolate products and marzipan groups of the food processing
area from the Veterinary and Food Board. As the last production unit, the
company's caramel unit operated at the old location at Pärnu Road 139, Tallinn
until May 2004. Most of the unit was moved to the production facility at
Põrguvälja in June 2004.
6.3. Expansion of AS Kalev's areas of operation
In line with its long-term strategic development plan, AS Kalev successfully
expanded its operations into a new area, i.e. flour confectionery sector in the
2003/2004 financial year. To attain the goals specified in the strategic
development plan, AS Kalev acquired a majority holding in AS Kalev Jõhvi Tootmine
(with the previous business name AS Järle).
6.4. Development of Kalevite Kodud (Kalev's Homes)
During the financial year of the current management report, the company stopped
the development of its chain of shop-cafés Kalevite Kodud in conjunction with
moving into the new production facility and launching of its operations there. As
Kalevite Kodud are an important project for AS Kalev, its development will
continue in the next financial year. In the future, Kalevite Kodud will be opened
in all county centres of Estonia.
6.5. Conducting special audit and results
A special audit at AS Kalev was conducted at the request of the company's
shareholder AS Milestone. At 04.03.2004, an Extraordinary General Meeting of
Shareholders decided to conduct a special audit with regard to questions related
to the management and financial situation of AS Kalev. AS PricewaterhouseCoopers
was appointed to conduct the special audit, whereas the shareholder AS Milestone
that had requested the conducting of a special audit at the General Meeting of
Shareholders, voted against it.
The special audit covered the following topics:
a) Facts related to the entry into lease agreements regarding the equipment and
the immovable property of AS Paide Piimakombinaat;
b) The settling of obligations arising from the contracts of suretyship entered
into to guarantee the loans taken by AS ETFC Group;
c) AS Kalev's transactions with Rein Kaseleht, Tiit Kõuhkna and Toomas Kõuhkna;
d) AS Kalev's transactions with Tööstuse Teenindamise AS;
e) AS Kalev's transactions with the Estonian Olympic Committee, Estonian Handball
Association and OÜ Gunnar Klettenberg based on their cooperation and/or sponsor
agreements;
f) Transactions related to the acquisition of horse trailers by AS Kalev.
The special audit did not identify any damages caused to the company by the
management of AS Kalev or any mistakes in the management of the company.
6.6. Real estate transactions
6.6.1. Transactions regarding the legal share of Pärnu Road 139 registered
immovable
At 2.06.2004, AS Kalev entered into an agreement with OÜ Raldon to amend and
supplement the sales contract with the repurchase right under the law of
obligation with regard to the 18070/52410 legal share of the registered immovable
property located at Pärnu Road 139. According to the agreement, AS Kalev sold
this particular registered immovable property with its essential parts and
accessories to OÜ Raldon for the price of 117 million kroons (7,5 million Euros),
of which the sales price is 87 million kroons (5,6 million Euros) and the fee for
foregoing the repurchase right of 30 million kroons (1,9 million Euros).
The reason for foregoing the repurchase right for the legal share of this
particular registered immovable property is the decision by AS Kalev to lay the
main emphasis on the marketing activities of confectionery products in strategic
markets, growing the company through new product groups and investing more into
product development. Taking this into consideration, the Management Board of the
company did not deem it necessary to use the repurchase right for this registered
immovable in the future and decided to transfer it.
6.6.2. Transaction of subsidiary
The Finance Ministry of the Republic of Estonia and the subsidiary of AS Kalev,
AS Kalev Real Estate Company (Kalev REC) entered into a sale and real rights
contract at 16.09.2003, according to which the Ministry sold and Kalev REC
purchased the registered immovables I and III of Keila-Joa recreation area.
The seller sold the items in the contract to the buyer for the price of fifty two
million seven hundred thousand (52 700 000) kroons (3 368 144 Euros) which was
the winning bid at an auction.
Kalev REC also concluded a sales contract under the law of obligation for these
registered immovables with AS Hansa Liising Eesti according to which the latter
financed the purchase transaction of these registered immovables in the amount of
30 million kroons (1.9 million Euros). The interest on the lease agreement is a 6-
month EURIBOR + 2,75% annually, which was 4,94% at the time of the contract. The
last payment according to the payment schedule will be at 15.09.2004.
The parties have agreed that during the validity of the contract, the obligation
to make payments under the lease agreements of Kalev REC will be reduced by 100%
from the payments received under preliminary contracts entered into regarding the
partial transfer of the registered immovables.
According to the estimate of Kalev REC's management, the determining factor for
the purchase of the above-mentioned registered immovables was their promising and
high potential nature, and this with regard to real estate development. Kalev REC
will prepare a detailed plan of these registered immovables which divides the
acquired registered immovables into residential lots.
7. Main activities for the 2004/2005 financial year
In accordance with the development trends as defined in the strategy of AS Kalev,
one of the goals of the company for the 2004/2005 financial year is the
development of its activities in the flour confectionery sector. Also, the
integration of the acquired subsidiary AS Kalev Jõhvi Tootmine and after the
closing of the 2003/2004 financial year, the acquired subsidiary AS Vilma into
the Kalev Group will be one of the most significant activities in the current
financial year.
In the financial year under review, AS Kalev will continue consistent work on
increasing the profitability of its core activity - the production and sales of
confectionery products.
In the product development area, the product portfolio will be expanded both for
domestic as well as export markets. An important goal is the fulfilment of
consumer expectations considering their wishes.
As to the sales activities, the chain of the shop-cafes Kalevite Kodud will be
further developed. At the beginning of 2005, Kalevite Kodud will be opened in
Paide and Rakvere.
The priority of the economic activities is the increasing of the proportion of
export markets and the strengthening of its position in existing markets. For
this purpose, targeted development will continue in high priority target markets
as defined in the development strategy of the company. Also, attention will be
paid the analysis and usage of opportunities arising from the expansion of the
European Union.
BALANCE SHEET (consolidated, audited)
In kroons
EEK Group Group Parent Parent
ASSETS 30.06.2004 30.06.2003 30.06.2004 30.06.2003
CURRENT ASSETS
CASH AND BANK 2 780 382 8 591 080 1 963 174 8 477 782
TRADE RECEIVABLES 206 221 734 90 024 044 261 433 679 117 990 220
INCL. FROM OTHER 0 0 90 373 724 28 331 995
GROUP COMPANIES
PREPAYMENTS 3 024 730 5 308 235 1 435 264 1 987 499
INVENTORIES 85 073 277 40 726 937 69 105 000 40 589 583
TOTAL CURRENT 297 100 122 144 650 296 333 937 118 169 045 084
ASSETS
NON-CURRENT ASSETS
LONG-TERM FINANCIAL 330 180 330 180 83 707 499 41 353 037
INVESTMENTS
MISCELLANEOUS 330 180 330 180 330 180 330 180
LONG-TERM
RECEIVABLES
INVESTMENTS IN 0 0 83 377 319 41 022 857
SUBSIDIARIES
PROPERTY, PLANT AND 351 168 558 255 038 885 81 891 482 105 607 242
EQUIPMENT
INVESTMENT PROPERTY 58 054 766 75 573 095 8 063 950 38 123 950
INTANGIBLE ASSETS -9 017 055 217 715 153 126 217 715
TOTAL NON-CURRENT 400 536 450 331 159 875 173 816 056 185 301 944
ASSETS
TOTAL ASSETS 697 636 571 475 810 171 507 753 174 354 347 028
LIABILITIES AND
EQUITY
LIABILITIES
BORROWINGS 109 628 402 27 346 235 85 853 061 21 211 712
CUSTOMER 3 416 983 497 042 416 920 497 042
PREPAYMENTS
SUPPLIER PAYABLES 165 615 804 76 162 122 109 102 402 37 871 434
INCL. TO OTHER 0 0 9 673 463 36 458
GROUP
COMPANIES
TAX LIABILITIES 527 594 4 537 792 9 504 801 10 074 299
OTHER LIABILITIES 37 145 927 10 275 440 31 195 064 7 783 915
TOTAL CURRENT 316 334 709 118 818 631 236 072 247 77 438 402
LIABILITIES
LONG-TERM 123 323 114 116 381 525 13 886 249 36 298 611
BORROWINGS
TOTAL LONG-TERM 123 323 114 116 381 525 13 886 249 36 298 611
LIABILITIES
TOTAL LIABILITIES 439 657 823 235 200 156 249 958 496 113 737 013
MINORITY SHARE 184 070 0 0 0
EQUITY
SHARE CAPITAL 78 775 000 78 775 000 78 775 000 78 775 000
REVALUATION RESERVE 17 159 388 17 159 388 17 159 388 17 159 388
STATUTORY LEGAL 3 160 971 1 537 837 3 160 971 1 537 837
RESERVE
RETAINED EARNINGS 141 514 656 110 675 117 141 514 656 110 675 117
PROFIT FOR THE 17 184 663 32 462 673 17 184 663 32 462 673
FINANCIAL
YEAR
TOTAL EQUITY 257 794 678 240 610 015 257 794 678 240 610 015
TOTAL LIABILITIES 697 636 571 475 810 171 507 753 174 354 347 028
AND
EQUITY
BALANCE SHEET (consolidated, audited)
In euros
EUR Group Group Parent Parent
ASSETS 30.06.2004.a 30.06.2003.a. 30.06.2004.a. 30.06.2003.a.
.
CURRENT ASSETS
CASH AND BANK 177 699 549 070 125 470 541 829
TRADE RECEIVABLES 13 179 971 5 753 585 16 708 675 7 540 949
INCL. FROM OTHER 0 0 5 775 934 1 810 745
GROUP COMPANIES
PREPAYMENTS 193 315 339 258 91 730 127 024
INVENTORIES 5 437 173 2 602 926 4 416 614 2 594 147
TOTAL CURRENT 18 988 159 9 244 839 21 342 472 10 803 950
ASSETS
NON-CURRENT ASSETS
LONG-TERM FINANCIAL 21 102 21 102 5 349 884 2 642 941
INVESTMENTS
MISCELLANEOUS 21 102 21 102 21 102 21 102
LONG-TERM
RECEIVABLES
INVESTMENTS IN 0 0 5 328 782 2 621 838
SUBSIDIARIES
PROPERTY, PLANT AND 22 443 761 16 299 956 5 233 820 6 749 533
EQUIPMENT
INVESTMENT PROPERTY 3 710 376 4 830 001 515 380 2 436 564
INTANGIBLE ASSETS -576 295 13 915 9 787 13 915
TOTAL NON-CURRENT 25 598 945 21 164 974 11 108 871 11 842 953
ASSETS
TOTAL ASSETS 44 587 103 30 409 812 32 451 342 22 646 903
LIABILITIES AND
EQUITY
LIABILITIES
BORROWINGS 7 006 532 1 747 743 5 487 011 1 355 675
CUSTOMER 218 385 31 767 26 646 31 767
PREPAYMENTS
SUPPLIER PAYABLES 10 584 779 4 867 647 6 972 914 2 420 426
INCL. TO OTHER 0 0 618 247 2 330
GROUP
COMPANIES
TAX LIABILITIES 33 719 290 018 607 467 643 865
OTHER LIABILITIES 2 374 057 656 720 1 993 728 497 483
TOTAL SHORT-TERM 20 217 473 7 593 895 15 087 766 4 949 216
LIABILITIES
LONG-TERM 7 881 784 7 438 135 887 493 2 319 904
BORROWINGS
TOTAL LONG-TERM 7 881 784 7 438 135 887 493 2 319 904
LIABILITIES
TOTAL LIABILITIES 28 099 256 15 032 030 15 975 260 7 269 120
MINORITY SHARE 11 764 0 0 0
EQUITY
SHARE CAPITAL 5 034 640 5 034 640 5 034 640 5 034 640
REVALUATION RESERVE 1 096 685 1 096 685 1 096 685 1 096 685
STATUTORY LEGAL 202 023 98 286 202 023 98 286
RESERVE
RETAINED EARNINGS 9 044 453 7 073 429 9 044 453 7 073 429
PROFIT FOR THE 1 098 300 2 074 743 1 098 300 2 074 743
FINANCIAL
YEAR
TOTAL EQUITY 16 476 083 15 377 783 16 476 083 15 377 783
TOTAL LIABILITIES 44 587 103 30 409 812 32 451 342 22 646 903
AND
EQUITY
INCOME STATEMENT (consolidated, audited)
In kroons
Group Group Parent Parent
01.07.2003-30.0 01.07.2002- 01.07.2003- 01.07.2002-30.
6.2004 30.06.2003 30.06.2004 06.2003
EEK
NET SALES 624 212 816 347 665 766 436 046 952 346 026 742
COST OF GOODS SOLD 486 836 727 240 414 863 315 736 225 242 782 780
GROSS PROFIT 137 376 089 107 250 903 120 310 727 103 243 962
DISTRIBUTION COSTS 71 422 289 61 017 665 67 874 875 59 802 613
ADMINISTRATIVE 68 942 074 45 426 410 62 937 240 44 092 107
EXPENSES
OTHER OPERATING 47 075 080 49 668 441 46 716 052 36 814 295
INCOME
OTHER OPERATING 14 226 567 8 466 942 25 613 733 6 736 887
EXPENSES
OPERATING PROFIT 29 860 239 42 008 327 10 600 932 29 426 650
FINANCIAL INCOME 2 166 626 3 355 717 2 210 970 1 523 117
FINANCIAL EXPENSES 14 865 495 12 901 371 7 035 989 8 600 680
FINANCIAL INCOME 0 0 11 408 751 10 113 586
FROM SUBSIDIARIES
PROFIT BEFORE TAX 17 161 371 32 462 673 17 184 663 32 462 673
MINORITY SHARE 23 292 0 0 0
NET PROFIT 17 184 663 32 462 673 17 184 663 32 462 673
EARNINGS PER SHARE 2,18 4,12 2,18 4,12
INCOME STATEMENT (consolidated, audited)
In euros
Group Group Parent Parent
01.07.2003-30.0 01.07.2002- 01.07.2003- 01.07.2002-30.
6.2004 30.06.2003 30.06.2004 06.2003
EUR
NET SALES 39 894 470 22 219 892 27 868 480 22 115 140
COST OF GOODS SOLD 31 114 538 15 365 310 20 179 223 15 516 648
GROSS PROFIT 8 779 932 6 854 582 7 689 257 6 598 492
DISTRIBUTION COSTS 4 564 716 3 899 740 4 337 995 3 822 084
ADMINISTRATIVE 4 406 202 2 903 277 4 022 423 2 817 999
EXPENSES
OTHER OPERATING 3 008 646 3 174 392 2 985 700 2 352 862
INCOME
OTHER OPERATING 909 243 541 136 1 637 016 430 566
EXPENSES
OPERATING PROFIT 1 908 417 2 684 821 677 523 1 880 706
FINANCIAL INCOME 138 473 214 469 141 307 97 345
FINANCIAL EXPENSES 950 078 824 548 449 682 549 684
FINANCIAL INCOME 0 0 729 152 646 376
FROM SUBSIDIARIES
PROFIT BEFORE TAX 1 096 811 2 074 743 1 098 300 2 074 743
MINORITY SHARE 1 489 0 0 0
NET PROFIT 1 098 300 2 074 743 1 098 300 2 074 743
EARNINGS PER SHARE 0,14 0,26 0,14 0,26
Ruth Roht
PR manager
+ 372 6 077 858
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