FINANCIAL HIGHLIGHTS, 6 months 2007
- Net sales 536 million kroons, up 37% yoy
- Retail sales 41% growth yoy
- Comparable store sales 7% growth yoy
- Gross margin 55.2%
- Operating profit 40.3 million kroons, up 2.4% yoy
- Operating margin 7.5%
- Net margin 5.7%
- Store openings 16
- Sales area 59% growth yoy
Chairman of the Management Board, Meelis Milder: “We are halfway toward
implementing our current three-year strategy. A three-year cycle is applied as
follows: in year one we create conditions for growth and launch the main
projects, in year two we focus on managing change and growth efficiency and in
year three we achieve the targeted results. The year 2006 was the first in the
cycle. The Group expanded vigorously, increasing its sales area by more than a
half and paving way for further growth. The year 2007 will be one of adjustment
and 2008 should deliver the results of the expansion. In the above context, the
Group's performance in the first half of 2007 corresponded to expectations.
Achievement of better results was impeded by unusually cold weather in the
middle of the season (April), which hampered sales of summer collections.
Half-year results were also impacted by slower than average start-up of stores
opened in Russia and Ukraine in the preceding 12 months. In view of the
developments, we have decided that in the second half-year we will slow down the
opening of new stores in order to focus on reinforcing the efficiency of our
existing retail system. Despite this we are going to continue surprising our
customers with new product groups and will penetrate the Czech market. The new
production facility, which will be completed in October, will take the
production of men's and women's suits to a completely new level. Moreover, it
will allow us to develop Baltika's city centre property into the capital's
fashion and design centre.”
Baltika Group ended the first six months of 2007 with net sales of 536.0 million
kroons (34.3 million euros), a 37.4% improvement on a year ago. Retail and
wholesale revenues increased by 41.5% and 12.9% yoy respectively. The period's
gross margin was 55.2% and operating margin 7.5% (6m 2006: 55.9% and 10.1%).
Profit before income tax decreased by 6.8% and net profit by 16.3% compared to
the same period in 2006. Net profit for the first half of 2007 amounted to 30.4
million kroons (1.9 million euros) and the period's net margin was 5.7% (6m
2006: 9.3%). In the first half of 2007 Baltika opened 16 stores in five markets,
increasing its sales area by 59% yoy.
In the second quarter, the Group's net sales amounted to 269.7 million kroons
(17.2 million euros), up 31.6% yoy with retail and wholesale revenues expanding
by 32.0% and 7.8% yoy respectively. 2Q gross margin was 57.9% (2Q 2006: 57.7%)
and operating margin 6.0% (2Q 2006: 12.1%). 2Q net profit was 8.7 million kroons
(0.6 million euros) and net margin 3.2% (2Q 2006: 10.8%).
SALES
Sales by segment
--------------------------------------------------------------------------------
| EEK million | 2Q 2007 | 2Q 2006 | +/- | 6m 2007 | 6m 2006 | +/- |
--------------------------------------------------------------------------------
| Retail sales | 233.2 | 176.6 | 32.0% | 446.8 | 315.9 | 41.5% |
--------------------------------------------------------------------------------
| Wholesale | 27.2 | 25.3 | 7.8% | 76.9 | 68.1 | 12.9% |
--------------------------------------------------------------------------------
| Subcontracting | 8.5 | 0 | n/a | 8.5 | 0 | n/a |
--------------------------------------------------------------------------------
| Other sales | 0.8 | 3.1 | -74.4% | 3.9 | 6.3 | -37.3% |
--------------------------------------------------------------------------------
| Total | 269.7 | 205.0 | 31.6% | 536.0 | 390.2 | 37.4% |
--------------------------------------------------------------------------------
EUR 1 = EEK 15.6466
RETAIL SALES
Compared with the prior year, retail sales for the first half-year grew by 41.5%
amounting to 446.8 million kroons (28.6 million euros). Primarily on account of
cold weather in April, 2Q sales fell short of expectations despite a 32.0% yoy
increase.
Over the past 12 months Baltika Group has opened 39 new stores, increasing its
sales area by almost 60%. Generally new stores are larger and in the start-up
period their sales efficiency (sales per square metre) is lower. Outside
Baltika's home market, the Baltic countries, the start-up periods of stores are
longer. More than half of the new sales space opened in the past 12 months is
located in Russia and Ukraine. The proportion of such stores in the overall
store portfolio affects the Group's average sales efficiency - in the first
half-year the figure decreased by 10%. At the same time, comparable store sales
grew by 7%.
In the first half of 2007 the Group launched a new product group - Mosaic
childrenswear. The collection includes “Lotte by Mosaic” - a range of children's
clothes and accessories named after a highly popular Estonian cartoon character.
In the second half of the year the Monton collection will be supplemented with
footwear and a new jeans collection.
Fast fashion brand Monton accounted for 54%, i.e., 243 million kroons (15.5
million euros) of the Group's retail sales for the first six months of 2007, 52%
up on the same period in 2006. Retail sales of Mosaic increased by 31% yoy to
141 million kroons (9.0 million euros) contributing 31% to the Group's retail
revenue for the six-month period. Retail sales of Baltman grew by 31% yoy to 45
million kroons (2.9 million euros) and sales of the Ivo Nikkolo brand, which was
acquired in September 2006, totalled 10 million kroons (0.7 million euros).
In the first half of 2007, the Group's largest retail market was Estonia and the
second largest Lithuania. The Latvian market is smaller, being an inherently
one-city market because most business and trading activities are concentrated in
the capital city Riga. The third-largest retail market was Russia, the region
where the Group's sales area expanded the most during the past 12 months and
retail sales experienced the fastest growth. Despite a 31% increase, Ukrainian
sales remained below target. For the past couple of seasons the Ukrainian market
has seen low activity and persisting insecurity of consumers which has affected
not only the clothing business but the overall retail business. The situation
may be attributed to long-term political instability. On the other hand,
developments in the Polish market are positive. After the closure of inefficient
stores total sales have decreased but comparable store sales have improved by 8%
yoy.
Retail sales by market
--------------------------------------------------------------------------------
| EEK million | 6m 2007 | 6m 2006 | +/- | Percentage, 6m |
| | | | | 2007 |
--------------------------------------------------------------------------------
| Estonia | 113.7 | 88.6 | 28% | 25% |
--------------------------------------------------------------------------------
| Latvia | 64.7 | 44.0 | 47% | 15% |
--------------------------------------------------------------------------------
| Lithuania | 103.3 | 76.8 | 35% | 23% |
--------------------------------------------------------------------------------
| Ukraine | 72.0 | 55.0 | 31% | 16% |
--------------------------------------------------------------------------------
| Russia | 79.4 | 33.4 | 138% | 18% |
--------------------------------------------------------------------------------
| Poland | 13.7 | 18.2 | -25% | 3% |
--------------------------------------------------------------------------------
| Total | 446.8 | 316.0 | 41% | 100% |
--------------------------------------------------------------------------------
SHOPS AND SALES AREA
At the end of June 2007 the Group had 124 stores with a total sales area of
23,011 square metres. Compared with June 2006, the net growth of the retail
system was 30 stores and ca 8,500 square metres as a result of which the sales
area operated by the Group increased by 59% yoy.
Number of shops by country
--------------------------------------------------------------------------------
| | 30.06.2007 | 30.06.2006 |
--------------------------------------------------------------------------------
| Estonia | 29 | 24 |
--------------------------------------------------------------------------------
| Latvia | 14 | 11 |
--------------------------------------------------------------------------------
| Lithuania | 30 | 23 |
--------------------------------------------------------------------------------
| Ukraine | 21 | 17 |
--------------------------------------------------------------------------------
| Russia | 25 | 12 |
--------------------------------------------------------------------------------
| Poland | 5 | 7 |
--------------------------------------------------------------------------------
| Total shops | 124 | 94 |
--------------------------------------------------------------------------------
| Total sales area, m2 | 23,011 | 14,517 |
--------------------------------------------------------------------------------
In the first half of 2007, the Group opened 16 stores including two which were
relocated to larger premises. The largest number of stores - eight - was opened
in Lithuania. Three stores were opened in Russia and Latvia each and one was
opened in both Estonia and Ukraine. Two stores were closed.
During the first half, Baltika began expanding the Ivo Nikkolo brand to other
Baltic countries. In addition to Estonia, two stores have been opened in
Lithuania to date. According to plan, the Latvian market will be penetrated in
2008.
In the second half of the year the Group plans to open 5-8 stores taking the
total number of stores to 129-132 by the end of the year. In addition, the Czech
Republic will become a new market for Baltika in 2H 2007. A contract has been
signed for opening a store in Palladium Centre in Prague.
WHOLESALE
Wholesale revenue for the first six months of 2007 amounted to 76.9 million
kroons (4.9 million euros) accounting for 14% of the Group's consolidated net
sales and posting a growth of 12.9% yoy. The bulk of wholesale revenue was
earned in the first quarter. The second quarter is traditionally weaker in the
wholesale business.
EARNINGS AND MARGINS
The Group's half-year results were influenced by the past 12 months' rapid
expansion. On the one hand, a 59% enlargement of the sales area increases direct
operating expenses. On the other hand, it requires additional staff at the head
office. Sustainable growth assumes funding of new projects and larger purchases
need better stock management.
Profitability was impacted by developments in the Russian market - major growth
in the sales space and longer than expected start-up periods of new stores when
sales efficiency has not achieved the targeted level. At the same time store
operating expenses in Russia surpass those incurred in the Baltics. At 30 June
2007 Baltika had 25 stores in Russia including 15 opened in the past 12 months.
The start-up periods of the stores are proving longer than expected - up to
18-24 months according to current estimates. However, comparable store sales in
Russia followed a positive trend, yielding a 5% growth rate for the first
half-year. A store is comparable if it has been open and has had an unchanged
sales area both in the reporting and comparative periods.
Consequently, the Group is not going to undertake any major expansion in Russia
in the second half of the year. Three to four stores were to be opened in Russia
in 2007 and three of them have already been opened. The opening of a fourth
store depends on the completion of a shopping centre.
The Group's results were also affected by sluggish consumer activity in the
Ukrainian market. Baltic countries, on the other hand, sustained strong growth.
The results in Lithuania were exceptional and established stores in Poland also
performed well.
The Group's gross margin for the first half of 2007 was 55.2% (6m 2006: 55.9%).
2Q gross margin rose to 57.9% (2Q 2006: 57.7%). Gross profit for the first
half-year amounted to 296.0 million kroons (18.9 million euros), a 35.8%
improvement on a year ago. Gross margin was affected by larger than planned
discounts provided for the disposal of inventories accumulated, above all, due
to slower than expected start-up of new stores in Russia and delayed store
openings. Delays occur when related shopping centres are not opened on time.
Distribution costs increased (6m growth 62.2%) in proportion to sales area while
administrative expenses rose by 5.2% yoy. Operating profit for the first half of
2007 amounted to 40.3 million kroons (2.6 million euros), 2.4% up on a year ago.
Operating margin for the first half-year was 7.5% (6m 2006: 10.1%). 2Q operating
margin was 6.0% (2Q 2006: 12.1%). The period's operating profit includes one-off
income of 16.2 million kroons (1.0 million euros) earned in the first quarter in
connection with the divestment of building rights and a logistics centre.
Financial expenses for the first half of 2007 totalled 4.3 million kroons (275
thousand euros). The largest share of financial expenses is made up of interest
expenses which amounted to 4.2 million kroons (266 thousand euros), 85.2% up on
the same period in 2006. Interest expenses have increased on account of growth
in the borrowings and a rise in Euribor.
Consolidated profit before income tax amounted to 36.0 million kroons (2.3
million euros), a 6.8% decrease from a year ago. 2Q net profit was influenced by
income tax paid on dividends. In 2007 dividend tax amounted to 3,359 thousand
kroons (215 thousand euros). In 2006 the figure was half smaller, amounting to
1,679 thousand kroons (107 thousand euros).
Net profit for the first six months of 2007 (after tax and minority interest)
amounted to 30.4 million kroons (1.9 million euros). Compared with a year ago,
net profit was 16.3% smaller. Net margin for the first half of 2007 was 5.7% (6m
2006: 9.3%).
BALANCE SHEET
At 30 June 2007, the Group's consolidated balance sheet total was 636 million
kroons (40.7 million euros), a 32% increase yoy. Both assets and liabilities
have increased in connection with expansion.
At the end of June inventories stood at 230 million kroons (14.7 million euros),
up 34% yoy. Inventory turnover ratio (net sales/average inventories) remained
stable at 5.34 compared with a year ago.
Trade receivables totalled 84 million kroons (5.4 million euros), posting a 40%
growth on a year ago. Supplier payables grew also by 40%, amounting to 86
million kroons (5.5 million euros) at 30 June 2007. Compared with the end of
2006, both trade receivables and supplier payables have decreased.
At 30 June 2007, the Group's borrowings totalled 175 million kroons (11.2
million euros), including bank loans of 138 million kroons (8.8 million euros).
The remainder of borrowings was made up of bonds of 29 million kroons (1.9
million euros) and finance lease liabilities of 8 million kroons (0.5 million
euros). The borrowings have increased by 34 million kroons (2.2 million euros)
over the year. The Group's borrowings have increased in connection with
investments made for the expansion of the retail system.
At the end of June 2007, the Group's net debt (interest-bearing liabilities less
cash and bank balances) to equity ratio was 48.0% against 49.1% a year ago.
STOCK DIVIDEND ISSUE
In June 2007, the share capital of AS Baltika was increased by issuing stock
dividend of two shares for each existing share and the number of shares
outstanding increased from 6,214,950 to 18,644,850.
The stock dividend issue was performed using retained earnings and share premium
of 124,299,000 kroons (7,944,154 euros) in aggregate. The company issued
12,429,900 new ordinary shares with a nominal value of 10 kroons (0.64 euros)
each. After the stock dividend issue, share capital amounts to 186,448,500
kroons (11,916,231 euros). The new shares entitle the holder to dividends
distributed for the financial year started on 1 January 2007.
INVESTMENTS
The Group's investments for the first half of 2007 totalled 53.9 million kroons
(3.5 million euros). Investments in the retail business and information
technology amounted to 36.0 million kroons (2.3 million euros) and 5.1 million
kroons (0.3 million euros) respectively. Investments in production activities
totalled 7.2 million kroons (0.5 million euros). In addition, the repurchase of
a 50% stake in joint venture OÜ Baltika Tailor cost 5.6 million kroons (0.4
million euros).
PERSONNEL
At the end of June 2007, Baltika Group employed 2,011 (30 June 2006: 1,758)
people including 989 (711) in the retail business, 817 (882) in production
operations and 205 (165) in the head office. The number of people employed
outside Estonia was 788 (551), i.e., 39% of all employees. The six months'
average number of employees was 1,978 (6m 2006: 1,717).
The Group's employee remuneration expenses for the first six months of 2007
totalled 91.4 million kroons (5.8 million euros). Payments made to members of
the supervisory council and management board totalled 3.5 million kroons (224
thousand euros).
ESTABLISHMENT OF A SUBSIDIARY IN THE CZECH REPUBLIC
Continuing its expansion in Central and Eastern Europe, Baltika is going to
enter the Czech market in 2007. For this, a wholly-owned subsidiary, Baltika
Retail Czech Republic s.r.o., was registered in the Czech Republic on 7 May
2007. In addition, a contract has been signed for opening a store in Prague, the
capital of the Czech Republic. A Monton store will be opened in the new,
centrally-located Palladium shopping centre which should be launched in the
fourth quarter of 2007.
MERGER OF SUBSIDIARIES
According to an agreement concluded on 28 May 2007, AS Baltika's wholly-owned
subsidiaries OÜ Baltika Tailor and AS Elina STC will merge. The acquirer will be
OÜ Baltika Tailor. Both entities are engaged in apparel manufacturing. The
purpose of the transaction is to transfer the Group's production operations in
Tallinn to a single company. The merger is an intra-group transaction which will
not have a significant impact on the Group's operations or financial results.
ANNUAL GENERAL MEETING
The annual general meeting of the shareholders of AS Baltika which convened on
21 May 2007 approved the company's annual report for 2006, the distribution of
profits and an increase in share capital through a stock dividend issue. Further
information on the stock dividend issue is provided in the section “Stock
dividend issue”.
It was resolved that shareholders should be distributed a dividend of 2.40
kroons (0.15 euros) per share, i.e., 14.9 million kroons (953 thousand euros) in
aggregate, from retained earnings. The stock dividend issue which increased the
number of shares reduced the dividend to 0.80 kroons (0.05 euros) per share. The
list of shareholders entitled to a dividend was determined on 3 June 2007 at
23:59. Dividends were paid out on 12 June 2007.
The general meeting appointed AS PricewaterhouseCoopers as the company's auditor
for the 2007 financial year, made amendments to the company's Articles of
Association and adopted a new wording of the Articles of Association.
In addition, the general meeting approved a convertible bonds issue. The issue
is part of Baltika's incentives program, which is aimed at motivating the team
implementing the strategic goals for 2007-2008 to increase the value of the
company, and a measure for raising additional funds for financing the
development of the company.
KEY FIGURES OF THE GROUP (6 months 2007)
--------------------------------------------------------------------------------
| | 30.06.2007 | 30.06.2006 | +/- |
--------------------------------------------------------------------------------
| Net sales (EEK million) | 536.0 | 390.2 | 37.4% |
--------------------------------------------------------------------------------
| Retail sales (EEK million) | 446.8 | 315.9 | 41.5% |
--------------------------------------------------------------------------------
| Share of retail sales in net sales | 83% | 81% | |
--------------------------------------------------------------------------------
| Number of directly managed stores | 124 | 94 | 31.9% |
--------------------------------------------------------------------------------
| Sales area (m2) | 23,011 | 14,517 | 58.5% |
--------------------------------------------------------------------------------
| Number of employees (end of | 2,011 | 1,758 | 14.4% |
| period) | | | |
--------------------------------------------------------------------------------
| Gross margin | 55.2% | 55.9% | |
--------------------------------------------------------------------------------
| Operating margin | 7.5% | 10.1% | |
--------------------------------------------------------------------------------
| EBT margin | 6.7% | 9.9% | |
--------------------------------------------------------------------------------
| Net margin | 5.7% | 9.3% | |
--------------------------------------------------------------------------------
| Current ratio | 1.8 | 1.8 | 0% |
--------------------------------------------------------------------------------
| Inventory turnover | 5.34 | 5.34 | 0% |
--------------------------------------------------------------------------------
| Debt to equity ratio | 54.6% | 56.9% | |
--------------------------------------------------------------------------------
| Return on equity | 28.5% | 39.7% | |
--------------------------------------------------------------------------------
| Return on assets | 14.1% | 21.4% | |
--------------------------------------------------------------------------------
EUR 1 = EEK 15.6466
Definitions of key ratios
Gross margin = (Net sales-COGS)/Net sales
Operating margin = Operating profit/Net sales
EBT margin = Profit before corporate income tax/Net sales
Net margin = Net profit (attributable to parent)/Net sales
Current ratio = Current assets/Current liabilities
Inventory turnover = Net sales/Average inventories*
Debt to equity ratio = Interest-bearing liabilities/Equity
Return on equity (ROE) = Net profit (attributable to parent)/Average equity*
Return on assets (ROA) = Net profit (attributable to parent)/Average total
assets*
*Based on 12-month average
CONSOLIDATED INCOME STATEMENT
(unaudited, in EEK thousand)
--------------------------------------------------------------------------------
| | 2Q 2007 | 2Q 2006 | 6m 2007 | 6m 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 269,714 | 205,006 | 536,043 | 390,204 |
--------------------------------------------------------------------------------
| Cost of goods sold | -113,570 | -86,736 | -239,999 | -172,138 |
--------------------------------------------------------------------------------
| Gross profit | 156,144 | 118,270 | 296,044 | 218,066 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution costs | -127,223 | -78,054 | -245,011 | -151,020 |
--------------------------------------------------------------------------------
| Administrative and general | -12,465 | -12,781 | -25,352 | -24,091 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Other operating income | 303 | 811 | 16,580 | 851 |
--------------------------------------------------------------------------------
| Other operating expenses | -550 | -3,354 | -1,980 | -4,467 |
--------------------------------------------------------------------------------
| Operating profit | 16,209 | 24,892 | 40,281 | 39,339 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income (expenses) | -2,465 | 621 | -4,301 | -728 |
--------------------------------------------------------------------------------
| Share of joint venture results | 0 | 0 | 0 | -234 |
--------------------------------------------------------------------------------
| Gains from other investments, | 0 | 1,586 | 0 | 1,586 |
| net | | | | |
--------------------------------------------------------------------------------
| Interest expenses, net | -2,321 | -1,255 | -4,166 | -2,249 |
--------------------------------------------------------------------------------
| Foreign exchange gains, net | -76 | 57 | -63 | 287 |
--------------------------------------------------------------------------------
| Other financial expenses, net | -68 | 233 | -72 | -118 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before income tax | 13,744 | 25,513 | 35,980 | 38,611 |
--------------------------------------------------------------------------------
| Income tax | -4,471 | -2,122 | -4,893 | -2,583 |
--------------------------------------------------------------------------------
| Net profit | 9,273 | 23,391 | 31,087 | 36,028 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit attributable to | 8,704 | 22,061 | 30,367 | 36,269 |
| equity holders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Net profit (loss) attributable | 569 | 1,330 | 720 | -241 |
| to minority shareholders | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per share, EEK | 0.47 | 1.22 | 1.63 | 2.04 |
--------------------------------------------------------------------------------
| Diluted earnings per share, | 0.47 | 1.21 | 1.63 | 2.03 |
| EEK | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT
(unaudited, in EUR thousand)
--------------------------------------------------------------------------------
| | 2Q 2007 | 2Q 2006 | 6m 2007 | 6m 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 17,238 | 13,102 | 34,259 | 24,939 |
--------------------------------------------------------------------------------
| Cost of goods sold | -7,258 | -5,543 | -15,339 | -11,002 |
--------------------------------------------------------------------------------
| Gross profit | 9,979 | 7,559 | 18,921 | 13,937 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution costs | -8,131 | -4,989 | -15,659 | -9,652 |
--------------------------------------------------------------------------------
| Administrative and general | -797 | -817 | -1,620 | -1,540 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Other operating income | 19 | 52 | 1,060 | 54 |
--------------------------------------------------------------------------------
| Other operating expenses | -35 | -214 | -127 | -285 |
--------------------------------------------------------------------------------
| Operating profit | 1,036 | 1,591 | 2,574 | 2,514 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income (expenses) | -158 | 40 | -275 | -47 |
--------------------------------------------------------------------------------
| Share of joint venture results | 0 | 0 | 0 | -15 |
--------------------------------------------------------------------------------
| Gains from other investments, | 0 | 101 | 0 | 101 |
| net | | | | |
--------------------------------------------------------------------------------
| Interest expenses, net | -148 | -80 | -266 | -144 |
--------------------------------------------------------------------------------
| Foreign exchange gains, net | -5 | 4 | -4 | 18 |
--------------------------------------------------------------------------------
| Other financial expenses, net | -4 | 15 | -5 | -8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before income tax | 878 | 1,631 | 2,300 | 2,468 |
--------------------------------------------------------------------------------
| Income tax | -286 | -136 | -313 | -165 |
--------------------------------------------------------------------------------
| Net profit | 593 | 1,495 | 1,987 | 2,303 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit attributable to | 556 | 1,411 | 1,941 | 2,319 |
| equity holders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Net profit (loss) attributable | 36 | 84 | 46 | -16 |
| to minority shareholders | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0.03 | 0.08 | 0.10 | 0.13 |
--------------------------------------------------------------------------------
| Diluted earnings per share, | 0.03 | 0.08 | 0.10 | 0.13 |
| EUR | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(unaudited, in EEK thousand)
--------------------------------------------------------------------------------
| | 30.06.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Cash and bank | 21,336 | 12,584 |
--------------------------------------------------------------------------------
| Trade receivables | 84,072 | 86,402 |
--------------------------------------------------------------------------------
| Other receivables and prepaid expenses | 46,165 | 42,069 |
--------------------------------------------------------------------------------
| Inventories | 230,166 | 200,702 |
--------------------------------------------------------------------------------
| Total current assets | 381,739 | 341,757 |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Investment property | 23,572 | 23,572 |
--------------------------------------------------------------------------------
| Deferred income tax asset | 4,462 | 4,462 |
--------------------------------------------------------------------------------
| Other non-current assets | 11,341 | 11,077 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 160,388 | 166,448 |
--------------------------------------------------------------------------------
| Intangible assets | 54,757 | 49,074 |
--------------------------------------------------------------------------------
| Total non-current assets | 254,520 | 254,633 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 636,259 | 596,390 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES AND EQUITY | | |
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Borrowings | 75,209 | 88,179 |
--------------------------------------------------------------------------------
| Supplier payables | 86,368 | 96,535 |
--------------------------------------------------------------------------------
| Tax liabilities | 27,407 | 23,006 |
--------------------------------------------------------------------------------
| Accrued expenses | 23,056 | 18,174 |
--------------------------------------------------------------------------------
| Other short-term liabilities | 5,339 | 7,022 |
--------------------------------------------------------------------------------
| Total current liabilities | 217,379 | 232,916 |
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Long-term borrowings | 99,380 | 59,234 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 99,380 | 59,234 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 316,759 | 292,150 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY | | |
--------------------------------------------------------------------------------
| Share capital at par value | 186,449 | 62,150 |
--------------------------------------------------------------------------------
| Share premium | 0 | 59,088 |
--------------------------------------------------------------------------------
| Reserves | 22,543 | 9,721 |
--------------------------------------------------------------------------------
| Retained earnings | 67,949 | 73,521 |
--------------------------------------------------------------------------------
| Net profit for the period | 30,367 | 87,376 |
--------------------------------------------------------------------------------
| Currency translation reserve | 4,639 | 4,319 |
--------------------------------------------------------------------------------
| Total equity attributable to equity | 311,947 | 296,175 |
| holders of the parent | | |
--------------------------------------------------------------------------------
| Minority interest | 7,553 | 8,065 |
--------------------------------------------------------------------------------
| TOTAL EQUITY | 319,500 | 304,240 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY | 636,259 | 596,390 |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(unaudited, in EUR thousand)
--------------------------------------------------------------------------------
| | 30.06.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Cash and bank | 1,364 | 804 |
--------------------------------------------------------------------------------
| Trade receivables | 5,373 | 5,522 |
--------------------------------------------------------------------------------
| Other receivables and prepaid expenses | 2,950 | 2,689 |
--------------------------------------------------------------------------------
| Inventories | 14,710 | 12,827 |
--------------------------------------------------------------------------------
| Total current assets | 24,398 | 21,843 |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Investment property | 1,507 | 1,507 |
--------------------------------------------------------------------------------
| Deferred income tax asset | 285 | 285 |
--------------------------------------------------------------------------------
| Other non-current assets | 725 | 708 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 10,251 | 10,638 |
--------------------------------------------------------------------------------
| Intangible assets | 3,500 | 3,136 |
--------------------------------------------------------------------------------
| Total non-current assets | 16,267 | 16,274 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 40,664 | 38,117 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES AND EQUITY | | |
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Borrowings | 4,807 | 5,636 |
--------------------------------------------------------------------------------
| Supplier payables | 5,520 | 6,170 |
--------------------------------------------------------------------------------
| Tax liabilities | 1,752 | 1,470 |
--------------------------------------------------------------------------------
| Accrued expenses | 1,474 | 1,162 |
--------------------------------------------------------------------------------
| Other short-term liabilities | 341 | 449 |
--------------------------------------------------------------------------------
| Total current liabilities | 13,893 | 14,886 |
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Long-term borrowings | 6,352 | 3,786 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 6,352 | 3,786 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 20,245 | 18,672 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY | | |
--------------------------------------------------------------------------------
| Share capital at par value | 11,916 | 3,972 |
--------------------------------------------------------------------------------
| Share premium | 0 | 3,776 |
--------------------------------------------------------------------------------
| Reserves | 1,441 | 621 |
--------------------------------------------------------------------------------
| Retained earnings | 4,343 | 4,699 |
--------------------------------------------------------------------------------
| Net profit for the period | 1,941 | 5,584 |
--------------------------------------------------------------------------------
| Currency translation reserve | 296 | 276 |
--------------------------------------------------------------------------------
| Total equity attributable to equity | 19,937 | 18,930 |
| holders of the parent | | |
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| Minority interest | 483 | 515 |
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| TOTAL EQUITY | 20,420 | 19,445 |
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| TOTAL LIABILITIES AND EQUITY | 40,664 | 38,117 |
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Ülle Järv
CFO, Member of the Management Board
+372 630 2741
Further information:
Triin Palge
Head of investor relations
+372 630 2886
triin.palge@baltikagroup.com
