Earnings of listed and soon to be listed companies

Estonia
‰ The confectionery maker AS Kalev earned a net profit of 7.07 million kroons ($505,000) in the first quarter of 1998, a drop of 5.94 million kroons from the same period a year ago. But since much of the first-quarter profit in 1997 came from the sale of real estate, the profit for the first three months of this year less the real estate revenue is still 4.56 million kroons bigger than last year's profit, finance manager Andrus Koha said. Operating profit in the first quarter decreased by 3.04 million kroons from the same time last year to 11.76 million kroons. Consolidated first-quarter net sales amounted to 124.15 million kroons, of which realized products made up 96.56 million kroons. The respective figures for the first three months last year were 89.07 million kroons and 75.84 million kroons. Profit raised the company's equity capital 5 percent during the first quarter to 147.64 million kroons. Equity capital made up 46.6 percent of Kalev's total assets.

‰ The board of the computer maker Pennu Computer Technology (PCT) ruled July 1 to cut the profit estimate for the financial year ending June 30 due to a delay in receiving extraordinary revenue. The official profit estimate was cut back from 14 million kroons to 8 million kroons. Kalle Uibo, adviser to the company's board, said the revision of the profit target was partly caused by the effects of the financial crisis on Pennu's clients.

‰ Rakvere Lihakombinaat (Rakvere Meatpacking Factory) has posted a net loss of 3.59 million kroons for the first five months of the year, on net sales of 314.17 million kroons. May brought the company a loss of 2.5 million kroons on net sales of 60.69 million. The negative outcome in May was largely due to a bigger than planned price rise of some kinds of raw products compared with the price rise of output, a spokesperson for the company said. A 17 percent rise in the sales turnover from May 1997 was mostly due to an increase exports, the spokesperson said. The company exported 13.9 million kroons' worth of products in May, which accounts for 23.7 percent of the net sales that month. Export in May 1997 amounted to 3.746 million kroons. The biggest increase occurred in export to Ukraine and Latvia.

‰ Tallinna Kulmhoone (Tallinn Cold Storage Co.) has posted a non-audited consolidated net profit of 5.04 million kroons for the first five months of 1998, compared with 2.99 million kroons netted during the same period last year. Finance Director Evald Karu said Kulmhoone's consolidated net sales during the first five months amounted to 123.8 million kroons, up from 26.7 million kroons in the same period last year. The rise in sales was largely due to the consolidation of the wholesale companies AS Jaalill and Piimar with Tallinna Kulmhoone, and acquisition of shares in Tartu Jaalill, a Tartu-based wholesaler, Karu said. Also adding to sales was an increase in the sales of ice cream. Kulmhoone reported that ice cream sales during the January-May period were up 41.1 percent, or 330.5 tons, from the same months a year ago. Ice cream export to Latvia during the first five months totaled 118.8 tons.

‰ The fish processing company AS Viru Rand plans to set its profit target for this year higher because of a consolidation it has launched with AS Laatsa, another fish company. The current profit estimate of 16.3 million kroons will be revised at the beginning of August at the latest, Viru Rand's PR manager Lilian Niitsoo said. Niitsoo said the company was awaiting a court ruling after which it will become clear how big a share it obtains in Laatsa. Then a proportional share of Laatsa's profit will be added to Viru Rand's revised budget plan. Specializaton of the two companies' plants, which separately have exhausted their capacity, is estimated to give them a combined 15 to 20 percent of additional capacity, the spokeswoman said.

Latvia
‰ The Ave Lat Grupa food concern plans to turn over 100 million lats ($159 million) this year, Deputy Director Janis Gulbis said at a news conference July 3. According to audited results for 1997, Ave Lat Grupa earned a net profit of 3.28 million lats on a turnover of 56.67 million lats. Gulbis attributed the notable rise in profit to extraordinary revenues. Compared to indicators for 1996, the concern's turnover increased by 45 percent and the net profit by 88 percent, according to the concern's management. Ave Lat Grupa's confectionery producers generated a turnover of 27.87 million lats, the turnover of fish processing companies was 17.72 million lats, egg producers turned over 8.37 million lats, while the other enterprises of the group turned over 2.71 million lats. From the total turnover, 31.74 million lats were made up by domestic sales, while exports accounted for 24.94 million lats. The concern's management has decided to transform it into a public company in three years. Ave Lat Grupa holds the controlling interest or a substantial stake in several food processing enterprises, including the Laima confectionery, Latvijas Balzams strong drinks producer, Rigas Vini winery, Balticovo eggs company, Riga Dairy Factory and the fish canneries Kaija and Salacgriva '95.

‰ Kaija fish cannery's profit was 36,346 lats after the taxes in the first five months of 1998, the Riga Stock Exchange (RSE) told BNS. The company's profit in May was 9018 lats. Kaija's net turnover was 6.8 million lats as of May 31 while its gross profit was 1.1 million lats and profit before the extraordinary positions and taxes was 247,211 lats. The company's assets amounted to 14.2 million lats lats, including fixed assets in amount of 8.9 million lats, stores, 2.1 million lats, debtors, 2.5 million lats, securities and interest in capitals, 615,182 lats and financial resources, 27,490 lats. Kaija's share capital was 4.8 million lats on May 31, reserves for re-evaluation of long term investment – 5.4 million lats, reserves, 75,647 lats, savings, 658,941 lats, long term debts, 352,183 lats and short terms debts, 3.5 million lats. Shares in Kaija are quoted on the official list of the Riga Stock Exchange.

‰ Rigas Farmaceitiska Fabrika (Riga Pharmaceuticals Factory) will increase sales by 30 percent this year over 1997, shareholders predicted Saturday. The company's shares will appear on the Riga Stock Exchange this fall. Riga Pharmaceuticals Factory intends to sell goods worth 1.3 million lats this year and 1.7 million lats in 1999. This year's profit target has been set at 115,000 lats, while in 1999, the company hopes to earn 160,000 lats. In the first five months of this year, Riga Pharmaceuticals Factory netted 50,360 lats and produced goods worth 474,825 lats, up from 428,371 lats in the same period of 1997.

‰ Valmieras Stikla Skiedras Rupnica (Valmiera Glass Fiber) announced last week that it will invest as much as 10 million lats into the construction of a new fiberglass production facility by 1999. The company's press office told BNS that last spring the company assessed results of its first year of operation which indicate that the company's products have a well-established circle of customers in over 20 countries of the world, which allows the company to earn profit and plan for new investment into updating of production facilities. Valmiera Glass Fiber was turned into a stock company late in 1996. The company's net profit in 1997 was 740,661 lats on a net turnover of 10.3 million lats. The company saw its production and sales volumes expanding over the past year and it exported over 97 percent of its output. The controlling block of shares in Valmiera Glass Fiber is held by Germany's Glasseiden GmbH Oschatz company.