Management Report
The types of activities performed by the JSC “Brivais vilnis” (“the Company”) are processing and canning of fish and fish products, wholesale of food products, including fish, shellfish and mollusc, and other commercial activities classified nowhere else.
Year 2014 was the 23rd year of operation since the Company was transformed into a Joint Stock Company.
In 2014 the JSC „Brivais vilnis” continued modernization of production process, obtained a number of new equipment for production of canned fish products.
We are a leader in product quality, we do not use genetically modified raw materials and synthetic food additives in the production.
In the reporting year the Company carried out the reregistration of the share capital from the Lats to the Euro.
In 2014 we started production of canned fish in multilayer plastic cans, any other producer of canned fish has such type of product. Canned fish in plastic can is tastier and well seen visually.
In 2014 the Company produced a total of 22.5 million cans of various types (157) of canned fish products, including 10.0 million cans of sprat. 22.4 million cans were sold for EUR 12.8 million. Gross profit in 2014 is EUR 1,5 million.
The financial result of the year 2014 is profit of EUR 257 010.
Profit or loss statement
| 2014 | 2013 | |||
| EUR | EUR | |||
| Net turnover | 12 769 143 | 14 098 155 | ||
| Cost of sales | (11 269 545) | (12 271 518) | ||
| Gross profit | 1 499 598 | 1 826 637 | ||
| Distribution costs | (228 694) | (208 205) | ||
| Administrative expenses | (932 432) | (829 443) | ||
| Other operating income | 326 662 | 293 590 | ||
| Other operating expenses | (234 335) | (147 326) | ||
| Interest receivable and similar income | 65 149 | 39 539 | ||
| Interest payable and similar expenses | (168 474) | (219 872) | ||
| Profit before taxes | 327 474 | 754 920 | ||
| Corporate income tax for the reporting year | (29 246) | (104 684) | ||
| Deferred corporate income tax | (20 979) | (8 559) | ||
| Other taxes | (20 239) | (19 740) | ||
| Profit of the reporting year | 257 010 | 621 937 | ||
| Earnings per share | 0,083 | 0,201 |
Balance Sheet
| ASSETS | ||||
| 31.12.2014 | 31.12.2013 | |||
| NON-CURRENT ASSETS | EUR | EUR | ||
| Intangible assets | ||||
| Concessions, patents, licences, trademarks and similar expenses | 685 | 5 236 | ||
| TOTAL | 685 | 5 236 | ||
| Fixed assets | ||||
| Land, buildings and constructions | 3 539 111 | 3 492 571 | ||
| Equipment and machinery | 343 855 | 315 353 | ||
| Other fixed assets and inventory | 148 007 | 135 565 | ||
| Tangible costs | 165 | - | ||
| Advance payments for fixed assets | - | 90 949 | ||
| TOTAL | 4 031 138 | 4 034 438 | ||
| TOTAL NON-CURRENT ASSETS | 4 031 823 | 4 039 674 | ||
| CURRENT ASSETS | ||||
| Stock | ||||
| Raw materials | 677 112 | 649 312 | ||
| Finished goods and goods for sale | 603 777 | 512 129 | ||
| TOTAL | 1 280 889 | 1 161 441 | ||
| Receivables | ||||
| Trade receivables | 2 966 973 | 2 779 395 | ||
| Other receivables | 184 383 | 203 501 | ||
| Prepaid expenses | 105 395 | 6 268 | ||
| TOTAL | 3 256 751 | 2 989 164 | ||
| Cash | 88 016 | 275 777 | ||
| TOTAL CURRENT ASSETS | 4 625 656 | 4 426 382 | ||
| Total assets | 8 657 479 | 8 466 056 | ||
| Balance Sheet | ||||
| LIABILITIES | ||||
| 31.12.2014 | 31.12.2013 | |||
| EQUITY | EUR | EUR | ||
| Share capital | 4 339 230 | 4 410 120 | ||
| Non-current assets revaluation reserve | 2 130 791 | 2 161 448 | ||
| Reserves: | 70 890 | - | ||
| Retained earnings: | ||||
| retained earnings of previous years / (outstanding losses) | (2 676 389) | (3 298 326) | ||
| retained earnings of reporting year | 257 010 | 621 937 | ||
| TOTAL EQUITY | 4 121 532 | 3 895 179 | ||
| PROVISIONS | ||||
| Provisions for vacations | 141 095 | 130 682 | ||
| TOTAL PROVISIONS | 141 095 | 130 682 | ||
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Loans from credit institutions | 1 576 780 | 1 712 948 | ||
| Other loans | 185 329 | 246 437 | ||
| Deferred income | 58 857 | - | ||
| Deferred tax liabilities | 122 196 | 101 217 | ||
| TOTAL | 1 943 162 | 2 060 602 | ||
| Current liabilities | ||||
| Loans from credit institutions | 408 000 | 505 942 | ||
| Other loans | 106 633 | 219 438 | ||
| Customer advances | 342 455 | 305 115 | ||
| Accounts payable to suppliers and contractors | 1 266 206 | 918 792 | ||
| Taxes and social insurance contributions | 134 041 | 179 746 | ||
| Other liabilities | 169 340 | 243 730 | ||
| Deferred income | 18 215 | - | ||
| Accrued liabilities | 6 800 | 6 830 | ||
| TOTAL | 2 451 690 | 2 379 593 | ||
| TOTAL LIABILITIES | 4 394 852 | 4 440 195 | ||
| Total equity and liabilities | 8 657 479 | 8 466 056 | ||
Impact on the operating results of the JSC “Brivais vilnis” left depreciation of the Russian ruble and devaluation of the Ukrainian hryvnia. To sell products, the Company had to reduce the selling prices. As well as due to depreciation of the Russian ruble, there was the fall of demand in Russia.
The management of the Company recommends covering of previous years losses with the profit of reporting year.
The Company`s goal is to continue work on introduction of new types of packaging and looking for additional markets in Mexico, China and France in 2014. We are planning intensive visiting of international exhibitions.
As from May 18, 2015 the JSC “Brivais vilnis” will temporarily stop the production to carry annual repairs out. The Company plans to restart the production in the beginning of August, 2015. To ensure fulfilment of orders in summer, the Company has produced the products in required quantity and assortment. All relieved employees will re-start the work in the Company in August.
On behalf of the Board:
Arnolds Babris
Chairman of the Board
May 14, 2015
