JSC "Brivais vilnis" Unaudited Interim Report for 9 months of 2016

In 9 months of 2016, the JSC "Brivais vilnis" has been working with a loss of 255 537 EUR. In 9 months of the previous year the loss was 165 141 EUR. Earnings of reporting period are 3 904 t. EUR, while the gross profit 334,9 t. EUR. Losses of 9 months of 2016 are related to the low marketing activity and marketing activities carried out.

| Source: Brivais vilnis Brivais vilnis

Salacgriva, Latvia, 2016-11-30 15:11 CET (GLOBE NEWSWIRE) --  

                                                                             

MANAGEMENT REPORT

November 30, 2016

The types of activities performed by the JSC “Brivais vilnis” are processing and canning of fish and fish products, wholesale of food products and other commercial activities classified nowhere else. On May 14, 2002 the company was registered in the Common commercial register of the Republic of Latvia.

Year 2016 is the 25th year of operation since the Company was transformed into a Joint Stock Company. In 9 months of 2016 the Company produced a total of 6.9 million cans of various types (139) of fish products, including 2.8 million cans of sprat. In 9 months of 2016 there were sold 7.2 million cans for EUR 3.9 million. The financial result of 9 months of 2016 is a loss of EUR 255 537. These losses are from economic activities of the Company.

Net turnover for 9 months of 2016 is EUR 3 904 thousand.

Result for 9 months of 2016:                  

Gross profit (EUR)                                                                  335 thousand

Gross profit (%)                                                                      8.6

Operating results of the JSC “Brivais vilnis” compared to the previous year are less successful, because the total sales volume has significantly decreased as a result of the Russian embargo. The Company has not stopped the operation, it is working with pauses, according to orders received, mainly by using the fresh local raw materials. Due to the existing market situation, we believe that the most important is to keep existing customers and work on adoption of new markets. We are visiting and participating in food fairs in Western Europe and other world. The Company is looking for versions to optimize costs.

The Company continues development of new products and new packaging and works on improvement of quality of the current assortment also in this year. We are the leader in development of innovative packaging types. The main thing that ensures our products to be special on the market of food products is that it does not contain genetically modified additives, chemical flavour enhancers and colouring agents. Canned fish products are handmade and therefore have a good quality. The world`s increasing demand is for natural food, produced without artificial additives.

The Company has the IFS certificate – an international food safety standard. We have gained the Kosher certificate of the Orthodox Union.

The Company has expectations to return to the market of Russia and Kazakhstan in 2017 that would enable us to increase sales volumes and achieve better financial results.

 

Arnolds Babris

Chairman of the Board

 

Attachments

Finanšu pārskats - 2016.g. 9 mēn. (EN).pdf