Baltika Group ended the third quarter with a web lack of 516 thousand euros. The loss for a similar interval final 12 months was 1,241 thousand euros. The quarter outcomes have improved 725 thousand euros 12 months over-year resulting from Baltika Group heavy concentrate on mounted prices discount that noticed working expense lowering by 2,243 thousand euros.
The Group’s gross sales income for the third quarter was 5,658 thousand euros, lowering by 42% in comparison with the identical interval final 12 months. Retail gross sales income within the third quarter decreased by 41% and e-com decreased by 23%. Fundamental impactor for the lower in gross sales in these channels is the strategic determination to exit manufacturers – Mosaic and Bastion. Largest model Monton retail gross sales decreased by 7% in the identical interval. Gross sales to enterprise prospects decreased by 84%, which is said to the strategic determination to exit this gross sales channel.
The gross revenue for the quarter was 2,884 thousand euros, lowering by 36% i.e. 1,600 thousand euros in comparison with the identical interval of the earlier 12 months (Q3 2019: 4,484 thousand euros). The corporate’s gross revenue margin was 51.0% within the third quarter, which is 5.1 proportion factors greater than the margin of the third quarter of the earlier 12 months (Q3 2019: 45.9%). The lower in gross revenue quantity is because of lower in gross sales. Enhance in gross revenue margin is because of Baltika Group promoting extra full-price new inventory and fewer discounted objects.
The Group’s distribution and administrative bills within the third quarter have been 3,088 thousand euros, lowering by 42% i.e. 2,243 thousand euros in comparison with the identical interval final 12 months. Over 60% of the lower in expense pertains to discount in retail prices. These are decreased not solely by discount of shops but in addition with discount of per retailer and market workplace bills. Constant and important reductions in distribution and administrative bills is part of Baltika Group’s ongoing restructuring plan that has seen the head-office distribution and administrative expense lower by 829 thousand euros. According to restructuring plan Baltika Group head-office workers has been decreased through the quarter by 19 individuals.
9 months complete gross revenue quantities to 7,454 thousand euros, in comparison with prior 12 months 14,665 (lowering 49%) with greatest decline coming from second quarter the place majority of shops have been closed for a interval resulting from COVID-19. Working bills within the 9 months amounted to 11,604, lowering by 31% that’s 5,267 thousand euros with 45% of the quantity coming from second quarter when shops have been closed for a time frame resulting from COVID-19 and 43% coming from third quarter the place it is because of price financial savings according to restructuring plan. Different working earnings of three quarters within the quantity of 5,760 thousand euros is principally resulting from 4,585 thousand euros linked with restructuring of collectors’ claims in accordance to the restructuring plan permitted on 19 June 2020 and the reversal of the impairment of the precise to make use of the property arising from the lease agreements for the manufacturing buildings within the quantity of 1,320 thousand euros. With web monetary expense of 635 thousand euros the online revenue of 9 months 2020 is 975 thousand euros (prior 12 months comparative 3,300 web loss).
As at 30 September 2020 owing to acquired mortgage 2,550 thousand euros from KJK Fund SICAV-SIF through its holding firm and all the prices financial savings achieved, Baltika Group has achieved the monetary stability with 1,085 thousand money and money equivalents and no use of financial institution overdraft (with 3,000 thousand euros restrict) that permits to plan ahead with the change in technique. Baltika will transfer ahead with just one womenswear model from second half-year 2021. Baltika has began cooperation with worldwide company to construct up a brand-new retail idea. First retailer of the brand new idea will likely be examined within the second half-year of 2021 in Tallinn.
Consolidated assertion of monetary place
| 30 September 2020 | 31 Dec 2019 | |
| ASSETS | ||
| Present property | ||
| Money and money equivalents | 1,085 | 264 |
| Commerce and different receivables | 180 | 621 |
| Inventories | 5,355 | 7,644 |
| Belongings categorised as held on the market | 0 | 28 |
| Complete present property | 6,620 | 8,557 |
| Non-current property | ||
| Deferred earnings tax asset | 281 | 281 |
| Different non-current property | 264 | 222 |
| Property, plant and gear | 1,291 | 1,683 |
| Proper-of-use property | 10,391 | 16,040 |
| Intangible property | 548 | 536 |
| Complete non-current property | 12,775 | 18,762 |
| TOTAL ASSETS | 19,395 | 27,319 |
| LIABILITIES AND EQUITY | ||
| Present liabilities | ||
| Borrowings | 148 | 1,731 |
| Lease liabilities | 3,371 | 5,383 |
| Commerce and different payables | 3,383 | 4,118 |
| Complete present liabilities | 6,902 | 11,232 |
| Non-current liabilities | ||
| Borrowings | 4,052 | 488 |
| Lease liabilities | 7,488 | 12,396 |
| Complete non-current liabilities | 11,540 | 12,884 |
| TOTAL LIABILITIES | 18,442 | 24,116 |
| EQUITY | ||
| Share capital at par worth | 5,408 | 5,408 |
| Reserves | 820 | 4,045 |
| Retained earnings | -6,250 | -341 |
| Internet revenue (loss) for the interval | 975 | -5,909 |
| TOTAL EQUITY | 953 | 3,203 |
| TOTAL LIABILITIES AND EQUITY | 19,395 | 27,319 |
Consolidated assertion of revenue and loss and complete earnings
| 3Q 2020 | 3Q 2019 | 9m 2020 | 9m 2019 | |
| Income | 5,658 | 9,758 | 15,502 | 29,491 |
| Value of products offered | -2,774 | -5,274 | -8,048 | -14,826 |
| Gross revenue | 2,884 | 4,484 | 7,454 | 14,665 |
| Distribution prices | -2,653 | -4,788 | -9,659 | -14,843 |
| Administrative and normal bills | – 435 | -543 | -1,945 | -2,028 |
| Different working earnings (-expense) | -118 | -73 | 5,760 | -24 |
| Working revenue (loss) | -322 | -920 | 1,610 | -2,230 |
| Finance prices | -194 | -321 | -635 | -1,070 |
| Revenue (loss) earlier than earnings tax | -516 | -1,241 | 975 | -3,300 |
| Revenue tax expense | 0 | 0 | 0 | 0 |
| Internet revenue (loss) for the interval | -516 | -1,241 | 975 | -3,300 |
| Complete complete earnings (loss) for the interval |
-516 | -1,241 | 975 | -3,300 |
| Fundamental earnings per share from web revenue (loss) for the interval, EUR |
-0.01 | -0,04 | 0,02 | -0,11 |
| Diluted earnings per share from web revenue (loss) for the interval, EUR |
-0,01 | -0,04 | 0,02 | -0,11 |
Flavio Perini
Member of the Administration Board, CEO
flavio.perini@baltikagroup.com
