Baltic, Estonia, Markets and Companies, Textile

Baltika informed the Tallinn Stock Exchange that its sales increased by 211 thousand euros that is 2% compared to the same period last year and were 13.181 million euros. The largest sales growth figures came from e-commerce with 246% and wholesale and franchise revenue with 39%. Sales in these channels increased by 474 thousand euros compared to the same period last year. Retail sales decreased by 2% compared to last year second quarter.

The half-year total sales revenue amounted to 25.506 million euros that is 1% more than comparative figure in prior year. Baltika continues the planned development of other (in addition to own retail channel) sales channels. Thus the half-year proportion of sales to wholesale and franchise partners has increased from 7% to 11% and e-store proportion of sales respectively from 0.6% to 2%.

Retail sales in Baltics (91% from retail sales) in the second quarter were 10.692 million euros, that is 591 thousand euros i.e. 6% more than in same period last year. Largest sales growth by countries came from Estonia and Lithuania. To reduce the risks related to Russian business loss making stores have been closed and Russian proportion from retail sales has decreased to 9% in the second quarter compared to 16% in prior year.

Baltika’s second quarter resulted in net profit in the amount of 67 thousand euros. The result of last year same period continued operations was a profit of 405 thousand euros and with discontinued operations result was net profit of 648 thousand euros.

The half-year net loss was 1.069 million euros. Continued operations comparative period figure was a loss of 505 thousand euros and with discontinued operations net loss of 1.834 million euros.

Baltika said it acts to adjust to the negative external factors impacting 2015 results: unfavourably strong dollar exchange rate to euro that impacts purchase cost, reduction of retail area due to economic situation in Russia, reduced Finnish and Eastern-European tourist flow and spending in Baltics.