OREANDA-NEWS. Baltika's consolidated sales revenue for September totalled 4,747 thousand euros and decreased by 8% compared to the same period in previous year.

Baltika's consolidated retail sales revenue for September totalled 4,301 thousand euros, which is a decrease of 10% compared to the same period in previous year. Wholesale and e-com sales increased by 19% compared to September in previous year.

Sales in September

EUR thousand

2013

2012

Change

Retail

4,301

4,771

-10%

Wholesale and e-com

443

372

19%

Other

3

11

-73%

Total

4,747

5,154

-8%

Retail sales decreased in Baltic states by 9%, thereof in Estonia -8%, Lithuania -14% and Latvia -3%. In East-Europe region (Ukraine and Russia) retail sales decreased 12% compared to same period previous year.

At the end of September Baltika Group had 119 stores with a total sales area of 23,192 square metres, month average sales area increased by 7% compared to the same period last year.

Consolidated sales revenue for the 9 months totalled 41,651 thousand euros (+4% yoy), including retail revenues of 38,832 thousand euros (+5% yoy, thereof Baltics +9%) and wholesale and e-com revenues of 2,725 thousand euros (+12% yoy).

Information on fulfilling financial targets set for year 2013

On 28th of February 2013 AS Baltika announced that the Management targets for 2013 were to increase total sales by 10% and to double the net profit. While the financial results of the first half of 2013 followed the plan, the effects of the third quarter make it necessary for the Management of AS Baltika to adjust the financial targets for the full year 2013.

The company lowered its sales growth estimate from 10% to 7% and predicts the 2013 net profit to stay around that of last years, that is approximately 800,000 EUR (without possible currency effect). The reason the Company has adjusted its expectations relates to the lower than anticipated sales results in August and September. When the summer clothing sales campaigns results were as planned, then warmer than usual weather in August and September reduced consumer demand for autumnal garments in all of five Baltika's retail markets, thus decreasing the commercial margin and gross profit for the Group.

The colder weather, which arrived in the end of September, has helped autumnal garments sales to return to a more normal pattern. In preparing adjusted estimate, Management has assumed normal seasonal increase in sales of autumn-winter clothing in the fourth quarter and that main trading currency exchange rates will remain at current levels.