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Q2 gross margin up at Baltika Group
01 Aug '11
5 min read
The ongoing share issue is designed to support implementation of Baltika's adopted strategy:
- Sales will be increased, mainly by improving the efficiency of existing stores, opening new stores and making more active use of additional sales channels. For this, the company will complete a refresh of the visual identities and retail concepts of the Monton and Mosaic brands, a project undertaken in partnership with the creative agency Dan Pearlman, and will begin gradual refurbishment of the stores. The new retail concepts will be applied in at least one new store in Ukraine and one in Latvia and three stores that will be taken over from a Russian wholesale partner in the Siberia region in Russia. In addition, the company will continue preparations for launching the Monton e-shop (testing has been scheduled for the fourth quarter of this year) and making new wholesale and franchise offers (the first contracts should be signed in the first half of 2012).Baltika will exit the Polish market in the third quarter of 2011 and associated sales will be discontinued in august.
- To improve management efficiency and product development and better utilize the sales resources, a new and more effective brand and sales management structure will be implemented in the third quarter of 2011. Baltika will continue to operate with four brands but will centralise a number of activities that used to be brand-based and will streamline its matrix management structure by reducing management levels and specifying responsibilities.
- To raise the efficiency of its manufacturing operations, the Group will develop a strategic development plan for its factories. This will be done in the third quarter. Options include complete integration of the product development and manufacturing operations and transformation of the factories into an independent profit centre freely competing in the market. The purpose of both options is to continue lowering the cost of conversion. The Group anticipates current growth to continue in the following quarters and management's target is to achieve a positive net result for the second half-year.
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- Sales will be increased, mainly by improving the efficiency of existing stores, opening new stores and making more active use of additional sales channels. For this, the company will complete a refresh of the visual identities and retail concepts of the Monton and Mosaic brands, a project undertaken in partnership with the creative agency Dan Pearlman, and will begin gradual refurbishment of the stores. The new retail concepts will be applied in at least one new store in Ukraine and one in Latvia and three stores that will be taken over from a Russian wholesale partner in the Siberia region in Russia. In addition, the company will continue preparations for launching the Monton e-shop (testing has been scheduled for the fourth quarter of this year) and making new wholesale and franchise offers (the first contracts should be signed in the first half of 2012).Baltika will exit the Polish market in the third quarter of 2011 and associated sales will be discontinued in august.
- To improve management efficiency and product development and better utilize the sales resources, a new and more effective brand and sales management structure will be implemented in the third quarter of 2011. Baltika will continue to operate with four brands but will centralise a number of activities that used to be brand-based and will streamline its matrix management structure by reducing management levels and specifying responsibilities.
- To raise the efficiency of its manufacturing operations, the Group will develop a strategic development plan for its factories. This will be done in the third quarter. Options include complete integration of the product development and manufacturing operations and transformation of the factories into an independent profit centre freely competing in the market. The purpose of both options is to continue lowering the cost of conversion. The Group anticipates current growth to continue in the following quarters and management's target is to achieve a positive net result for the second half-year.
Click here to view more details:
Baltika Group
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