TALLINN - The current economic situation isn't bitter for everybody. AS Kalev announced profits of 188 million kroons largely as the result of a windfall in the form of a successful compensation claim from Alta Capital an investment company who had agreed to buy the company then pulled out.
Alta Capital has already paid AS Kalev 94 million kroon and will pay another 47 million kroon by the end of 2008.
The net turnover of AS Kalev in the financial year ending in June was 113.2 million kroons; in the previous period, the profit was 30.5 million kroons.
AS Kalev, announced increased revenues of 44 percent in 2008 with total revenues of 1.34 billion kroons (85.6 million euros).
AS Kalev Meedia, the media arm of the company, reported a loss of 58 million kroons in 2008. The company is also heavily invested in real estate, an industry that is facing a significant downturn at the moment.
The results were helped by strong sales from its range of chocolates and confectioneries.
Kalev Chocolate Factory is the market leader, with a share of 36.5 percent of market value and 4 percent of volume, according to ACNielsen market research.
Kati Kusmin, chairman of the board at the chocolate factory, said that although it's a small player internationally, it is the big boy in the region.
"We can compete with the international companies very well. In the Baltics' total market, we are competing for the first position, [and] there are both international and regional producers among our competitors," she said.
"We have high-quality products and a strong production development. Last year we launched 36 new products in the sugar and chocolate confectionary category and consumers have approved of them very well," Kusmin said.
The company attributed its good sales to a shrewd marketing strategy and an aggressive investment strategy, instead of to the urge to cheer oneself up with chocolate during hard times.
"We don't agree that chocolate candy or chocolate bar is a luxury item. It is true that last year food prices have increased. We are trying to compensate for the growth by more effective production and by investing in the production machinery," Kusmin said.
AS Kalev is one of the few brands household name companies that is still Estonian. The company celebrated its 200th anniversary in 2006 and was one of the first to be listed on the Tallinn stock exchange. It is based in Porguvalja.
Kalev survived the occupation, making sweets for the whole Soviet Union. It was privatized in 1995 and became a public limited company.
The company moved from Tallinn to a new factory complex in Harju County in 2003.
As well as manufacturing confections and retailing through cafes and candy shops, the group now also has interests in flour and bakery products, milk products and real estate development and management. The group earns stable profits, owns 12 retail outlets and now employs about 1,000 people.
AS Kalev Chocolate Factory serves the whole Kalev group with marketing, product development, purchase, logistics and different support services. That company was established in September 2006, and AS Kalev holds 100 percent of its shares.
AS Kalev Chocolate Factory is a member of the Estonian Traders' Association. To this day, AS Kalev manufactures marzipan figures and handmade choice chocolates using old recipes and methods.
