English Estonian
Published: 2021-04-16 08:00:00 CEST
Quarterly report

Baltika’s Unaudited Financial Results, First Quarter of 2021

Baltika Group ended the first quarter with a net loss of 1,655 thousand euros. The loss for the same period last year was 2,603 thousand euros. This signifies an improvement of 958 thousand euros despite the fact that 2020 first quarter was impacted from COVID-19 pandemia for less than one month opposed to current year.

The Group's sales revenue for the first quarter was 2,132 thousand euros, decreasing by 65% compared to the same period last year. Retail sales revenue in the first quarter decreased by 78%. The main reason for the decrease in retail sales was the second wave of COVID-19 and the restrictions in place in Latvia and Lithuania for full period and in Estonia fully from 11th March. Meanwhile e-com performance was very strong, and sales increased 89%.

The gross profit for the quarter was 873 thousand euros, decreasing by 1,874 thousand euros compared to the same period of the previous year (Q1 2020: 2,747 thousand euros) in line with the sales decrease. The company's gross profit margin was 40.9% in the first quarter, which is 3.9 percentage points lower than the margin of the first quarter of the previous year (Q1 2020: 44.8%). The decrease in gross profit margin is mainly because Estonian market was open and sales higher in January and February, which is sales period for all retails and the target set was to reduce prior year collections related inventory and increase Group´s cashflow with higher sales discounts. 

The Group's distribution and administrative expenses in the first quarter were 2,636 thousand euros, decreasing by 47% i.e., 2,356 thousand euros compared to the same period last year. Over 70% of the decrease in expense relates to reduction in retail costs. The head-office distribution and administrative expense decreased a further 396 thousand euros compared to same period last year as all the changes in head-office took place after first quarter 2020.

Last year pandemic that saw the closing of stores for only a few weeks in the first quarter seems now nothing compared to what happened this year when half of market (Latvia and Lithuania) have been closed since mid of December 2020. Additionally, all our Estonian offline store were completely closed from 11th of March while different restrictions were already in place earlier. However, despite this unpredictability and difficult business scenario, Baltika managed to reach financial stability just in time and be proactive with stock management to remain in good financial position (only 66 thousand euros withdrawn from 3 000 thousand euros limit) to look forward for opening of offline stores to show the Ivo Nikkolo clothing collection and accessories.

Consolidated statement of financial position

 31 March 202131 Dec 2020
Current assets  
Cash and cash equivalents3561,427
Trade and other receivables205318
Total current assets4,2125,212
Non-current assets  
Deferred income tax asset140140
Other non-current assets124111
Property, plant and equipment1,0821,218
Right-of-use assets8,0799,199
Intangible assets609597
Total non-current assets10,03411,255
TOTAL ASSETS14,24616,477
Current liabilities  
Lease liabilities 3,1393,127
Trade and other payables3,4793,019
Total current liabilities6,9596,398
Non-current liabilities  
Lease liabilities5,3416,493
Total non-current liabilities6,2247,367
TOTAL LIABILITIES             13,18913,765
Share capital at par value5,4085,408
Retained earnings-6,627-6,250
Net profit (loss) for the period-1,655ˇ-377
TOTAL EQUITY1,0572,712

Consolidated statement of profit and loss and comprehensive income

 1Q 20211Q 2020
Cost of goods sold        -1,259        -3,390
Gross profit8732,747
Distribution costs-2,141-4,200
Administrative and general expenses-495-792
Other operating income (-expense)            234              37
Operating profit (loss)-1,529-2,474
Finance costs           -126           -266
Profit (loss) before income tax-1,655-2,603
Income tax expense00
Net profit (loss) for the period-1,655-2,603
Basic earnings per share from net profit (loss)
 for the period, EUR
Diluted earnings per share from net profit (loss)
 for the period, EUR

Flavio Perini
Chairman of Management Board, CEO


Baltika IQ 2021.pdf