Baltika sets target to grow 5% in 2012

03 Apr '12

4 min read

With the year-end accounting procedures and company's conservative approach, the quarter resulted in significant net loss – 1,880 thousand euros, but as the one-off items discussed below, were non-cash, no changes are made to future financial plans due to it. The Group's cash position and net debt position improved significantly during the final quarter of the year.

The main one-off non-cash items in other operating expense in fourth quarter are changing prior year inventory accounting principle, allowance for third party receivables, fixed asset write-down and change to investment property fair value.

Baltika management target for the full year of 2012 is 5% sales growth, sales efficiency growth of 10% and positive EBITDA of ca. 3 million euros. The targets are in accordance with the budget approved by Supervisory Council on February 15 2012, which does not include possible impact from exiting real estate business.

Group plans for 2012 include exiting the real-estate business, further developing our multi-channel strategy, including the development of e-store, gradual implementation of store concept upgrades for two largest brands Monton and Mosaic and development of multi-brand strategy, including starting with concessions, to continue the improvement of retail sales efficiency.

Batika Group is a fashion retailer operating four retail concepts: Monton, Mosaic, Baltman and Ivo Nikkolo.

Batika Group

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