Baltic, Estonia, Markets and Companies, Textile

The net loss in fourth quarter of 2011 amounted to 1.88 million euros making the 2011 total net loss 5.860 million euros compared to 6.332 million euros in 2010, writes LETA.

Revenue increased in the fourth quarter of 2011 by 401,000 euros (3%) compared to fourth quarter of 2010 with the increase coming mainly from retail. The fourth quarter revenue was 15.5 million euros and the whole of 29011 revenues amounted to 53.4 million euros, a growth of 2.3%.

The restructuring of the group’s retail network is now complete, and other initiatives designed to improve operating and financial results will continue in 2012. Baltika management target for the full year of 2012 is 5% sales growth, sales efficiency growth of 10% and positive EBITDA of ca. 3 million euros.

Group plans for 2012 include exiting the real-estate business, further developing the multi-channel strategy, including the development of e-store, gradual implementation of store concept upgrades for two largest brands Monton and Mosaic and development of multi-brand strategy, including starting with concessions, to continue the improvement of retail sales efficiency.

In 2012 AS Baltika is planning to exit real estate business and sell office property and land in Tallinn, located at Veerenni Street 24. The company has finished the development process started in 2007, whereby the former factory building has been transformed into complete Baltika Quarter. The Quarter is mainly occupied by external tenants, and Baltika occupies for head office and store “Moetänav” 37% of the total rentable space and plans to continue renting after possible sale of the scheme. With the sale of property the company will focus on its main activity – fashion retailing, AS Baltika has chosen as the property transaction advisor Catella Corporate Finance. With the proceeds from sale the company will reduce leverage and improve its investing capability.