AS Baltika

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This topic contains 6 replies, has 1 voice, and was last updated by  Nauris Treigys 1 month, 1 week ago.

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  • #312853 Reply

    Nauris Treigys
    Keymaster

    Baltika Group ended the fourth quarter with a net profit of 920 thousand euros, which exceeds the result of same period last year by 300 thousand euros. The result of fourth quarter in last year was a net profit of 620 thousand euros.

    In the fourth quarter Group’s revenue increased 2% compared to same period last year and was 12,969 thousand euros. Retail revenue in the fourth quarter was 11,626 thousand euros, increasing 2% and strong sales growth was continually shown by e‑store. Wholesale and franchise sales decreased 7% compared to the fourth quarter last year.

    Baltic region retail business recovered after the three quarter long period of decrease and resulted in 2% sales growth in the fourth quarter compared to the fourth quarter of last year. In November and December the offer of autumn-winter season collection brought visitors back to shopping centres, sales growth was supported by increase both in sales transactions and in average spend. Sales were recovering faster in Estonia and Latvia, showing increase 4% and 2% respectively in the fourth quarter. In year total retail sales amounted to 39,476 thousand euros, decreasing 1% compared to last year.

    Wholesale and franchise revenue decreased 7% in the fourth quarter and was 857 thousand euros. Wholesale and franchise revenue growth was supported by recently added market Serbia and Peek & Cloppenburg department stores chain in Germany and Austria. The fourth quarter sales revenue decreased mainly due to complicated economic situation of Eastern-European franchise partners and smaller demand for new orders. While franchise sales decreased in the fourth quarter, then the wholesale increased and one of the growth reason was successful sale of PyeongChang Olympic collection to the partners. The biggest brand in wholesale and franchise was Monton with 60% share of sales. At the end of the fourth quarter there were 33 franchise stores representing Baltika’s brands, forming 26% of the total stores portfolio. In year total the wholesale and franchise revenue increased 5% and was 6,300 thousand euros.

    Baltika Group’s e-store Andmorefashion.com revenue increased 38% in the fourth quarter and was 427 thousand euros. The most-selling brand in e-store was Monton, comprising of 37% from revenue. By country, most of the sales were in Estonia with share of 53%, followed by Latvia 17% and Lithuania 16%. Compared to same period last year, the largest growth was in Latvia (+54%). Total of 7,300 orders from 31 counties were received in the fourth quarter. In November, Click&Collect service that so far had been available in Estonia and Latvia, was also launched in Lithuania. E‑store processes of assembling orders and merchandising were simplified through new developments. In year total, the e-store Andmorefashion.com revenue increased 38% and was 1,468 thousand euros.

    Implementing the more conservative cost policy and efficient inventory management process together with more favourable input conditions in the second half-year, recovered the gross profit growth at the end of year and led to the highest gross profit margin earned in a quarter in last five years. The company’s gross profit margin in the fourth quarter was 54.9% increasing by 3.1 percentage points in the year. The gross profit for the quarter was 7,122 thousand euros, increasing by 547 thousand euros compared to last year’s comparable result. The year total gross profit amounted to 23,670 thousand euros (2016: 23,497 thousand euros).

    Group’s distribution and general expense increased 2% in the fourth quarter and 1% in a year. The distribution and general expense to revenue ratio in the fourth quarter was 46.2% remaining at the same level in comparable period. In year total, the ratio was 48.5% improving by 0.1 percentage points.

    In year total, Baltika’s revenue increased 1%. The e-store and wholesale and franchise revenue showed growth; with that one of the company’s objectives for 2017 – revenue growth in all of the sales channels – was partly met. In spite of the weak result of nine months, which was caused by poor sales and decreased gross profit related to deeper discounts in retail sector, with the contribution of strong fourth quarter company managed to end the year in profit. Company ended the 2017 in a profit of 58 thousand euros, last year profit was 177 thousand euros.

    Highlights of the period until the date of release of this quarterly report

    In September the biggest brand in Baltika’s portfolio Monton celebrated its 15th birthday. For the occasion, Monton designers created a special collection named “Freedom” as a tribute to all free spirits, to freedom of creation and expression and to free Estonia. Swallow campaign, created for the communication of Monton’s anniversary and special collection, won the prize of Digital Deed 2017 in branded content category.
    To Celebrate Estonia’s 100th and Canada’s 150th birthday, a premiere under the concept called Northern Spirit EstoSyle was held in Toronto in Canada in September. During this event, eight internationally most recognized Estonian fashion and design brands were showcased, including three Baltika’s brands: Monton, Baltman and Ivo Nikkolo.
    On 11 November 2017, Supervisory Board decided to recall the head of purchasing and supply chain Ingrid Uibukant from the Management Board starting from 18th of December 2017. Management Board of Baltika AS will continue with two members: Chief Executive Officer Meelis Milder and Chief Financial Officer Maigi Pärnik-Pernik.
    In November Monton and the Estonian Olympic Committee revealed the new Olympic collection dedicated to Estonia’s 100th birthday. Monton’s collection for the PyeongChang Winter Olympics is called 1918 after the year of birth of Estonian Republic. Many of the world media publications have named the outfit of Estonian Olympic Delegation as one of the best in PyeongChang.
    In December, Baltika started the new pilot project to support the e-store growth in Finland, within this project new pop-up store was opened in Iso Omena Shoppingcenter in Espoo. Initial duration for the Finnish project is planned for six months with the purpose to support the integration of e-store Andmorefashion.com and physical store to offer unified and better shopping experience to the customer.
    In the fourth quarter, Baltika opened Monton Andmore store in Estonia in Nautica shopping center and pop-up store with new concept was opened in Finland in Iso Omena shopping center. Franchise partner in Ukraine opened Monton store in Kiev in Gorodok shopping center
    In relation to unite marketing and communication areas in Baltika Group and bring their management under one unit, starting from December Mari-Liis Küppar works in Baltika as new Marketing and Communication Manager. She has previous working experience in Swedbank AS, Saku Õlletehase AS and AS Värska Vesi. The role of the marketing and communication department is to represent stronger customer view in the organisation to bring Group’s business strategy into life. Thereby, there is intention to make the brands’ marketing communication stronger in different channels.
    Starting from January 2018, Raivo Videvik is working in Baltika as new Export Director, for the purpose to put effort into the growth of export and to accelerate the increase of sales in franchise and wholesale. Previously, Raivo has been responsible for managing sales department and export area in Timbeco Woodhouse OÜ, being active in developing business and retail processes in Elektrum Eesti OÜ and also in Eesti Gaas AS.
    Attachments:
    Baltika_Interim report 4Q 2017.pdf

    #313147 Reply

    Nauris Treigys
    Keymaster

    On the 7th of March 2018, AS Baltika held an investor webinar where the Chairman of the Management Board Meelis Milder and the Member of the Management Board Maigi Pärnik-Pernik presented the results of the fourth quarter of 2017.

    Webinar recording is available here and the presentation is available here.

    AS Baltika would like to thank all participants.

    #313487 Reply

    Nauris Treigys
    Keymaster

    The Supervisory Board of AS Baltika approved on the meeting held on 22 March 2018 the Annual report and profit allocation proposal for the year 2017 of AS Baltika for presentation on the annual shareholders meeting. The financial results remain unchanged compared to unaudited results disclosed 27 February 2018.

    The audited 2017 Annual report of AS Baltika is available at the websites of NASDAQ Tallinn Stock Exchange http://www.nasdaqomxbaltic.com and Baltika Group http://www.baltikagroup.com.

    Attachments:
    Baltika_2017_ENG.pdf

    #313518 Reply

    Nauris Treigys
    Keymaster

    On 22th of March 2018 the Supervisory Board of AS Baltika decided to propose to the general Meeting of shareholders, to decrease the share capital. The share capital shall be decreased to cover prior period losses in a simplified way. Share capital will be reduced by 4,079,850 euros. Share capital is reduced by way of reduction of the nominal value of each share by 0.10 euros. The new amount of the capital of the Company after the reduction of share capital and reduction of nominal value of the shares will be 4,079,850 euros, which is divided into 40,794,850 shares with the nominal value of 0.10 euros.

    On 22th of March 2018 the Supervisory Board of AS Baltika decided to propose to the general meeting of shareholders to approve the managers share option program and conditional increase of the share capital by issuing additionally up to 1,000,000 shares. Share options can be exercised in years 2021-22.

    The draft resolutions and the procedure for their examination shall be published on 25th of April 2018 in the notice calling the ordinary general meeting of shareholders.

    #342047 Reply

    Nauris Treigys
    Keymaster

    AS Baltika (registry code 10144415, address Veerenni 24, Tallinn, Estonia) announced on July 15, 2019 public offering of 50 000 000 shares.

    The subscription period for shares started on July 16, 2019 at 10.00 and ended on August 7, 2019 at 14.00.

    During the subscription period 53,379,570 shares were subscribed in total amount of 5,337,957 euros. In total 138 subscription orders were submitted.

    The distribution of shares will be approved on or about August 12, 2019.

    #342838 Reply

    Nauris Treigys
    Keymaster

    On August 16, 2019, the Management Board of Nasdaq Tallinn decided to approve the additional listing application of AS Baltika and to list its 50 000 000 additional shares in Baltic Main List.

    Proceeding from the above, 50 000 000 additional shares of AS Baltika will be listed on Wednesday, August 21, 2019 or on a date close to it in case of unexpected circumstances.
    Thus, altogether 54,079,485 shares of Baltika (ISIN: EE3100145616) will be traded under the trading code BLT1T on or about August 21, 2019.

    #345826 Reply

    Nauris Treigys
    Keymaster

    KJK Fund SICAV-SIF, a major shareholder of AS Baltika (“Baltika”), announced in a stock exchange announcement on 3th of September 2019 a mandatory takeover offer for the acquisition of all Baltika shares. At the time of the takeover offer, KJK Fund SICAV-SIF holds 48,505,991 shares in Baltika, representing 89.69% of all Baltika shares. Baltika has issued a total of 54,079,485 registered common shares with the nominal value of 0.10 euros.

    The purchase price is EUR 0.1 EUR per share.

    The time period for accepting the offer commences on 3 September 2019 and ends at 14:00 (Eastern European Summer Time – Estonian time) on 2 October 2019. Payment of the purchase price and transfer of Baltika shares shall be executed on 11 October 2019. The exact terms and conditions of the takeover offer are set out in the prospectus of the takeover offer and in the announcement of takeover offer.

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