Home / Knowledge / News / Fashion / Baltika's Q2 net profit drops 36.8% to €405,000
Baltika's Q2 net profit drops 36.8% to €405,000
21
Jul '14
Baltika’s second-quarter net profit from continuing operations totalled 405 thousand euros, comparative figure in prior year was 641 thousand euros profit.
 
Group second-quarter net profit including discontinued operations was 648 thousand euros that is 24 thousand euros better result compared to same period in previous year.
 
In connection with Baltika’s exit from the Ukrainian retail business, which represented a major line of business of the Group, the 2014 results of the Ukrainian entity are presented as discontinued operation. Therefore the results of the discontinued operation are reported separately from continuing operations to allow better assessment of the performance of continuing operations. For comparability, the figures for 2013 have been adjusted accordingly.
 
The Group’s second-quarter revenue grew by 257 thousand euros, amounting to 12,970 thousand euros. In line with the strategic objective of placing greater focus on the development of other sales channels and increase sales in e-store and though wholesale and franchise, the proportion of other channels from total revenues has increased. Wholesale and franchise revenues quarterly increase was 41% and e-store sales growth 18%. Second quarter retail revenue remained on the same level as prior year amounting to 12,064 thousand euros.  Baltic countries sales grew by 353 thousand euros (+4%) and Russia sales decreased by 338 thousand euros (-15%).
 
Baltika’s second-quarter gross margin was 56.5%, 2.3 percentage points lower compared to the same period in prior year. In addition to heightening of competition in retail and in Russia it is due to weakening of the exchange rate of rouble, the margin is impacted by the increase of other sales channels proportion from revenues.
 
While the results from Baltics are satisfactory then Group total results were still negatively impacted by results of Russia. Retail sales in Russia decreased in the second quarter by 15% compared to prior year, which were somewhat compensated by cost savings from weakening rouble. Baltika envisages focusing going forward own retail network operating stores in St. Petersburg and Kaliningrad region. New wholesale and franchise partners are sought to operate existing stores or open new stores in other regions. 
 
Half-year result with discontinued operations was a net loss of 1,834 thousand euros, which includes the loss from allowance for assets in Ukraine of 1,095 thousand euros. Half-year result of continued operations was a net loss of 505 thousand euros. 
 
Click here to view full results.
 

Baltika


Must ReadView All

'Requirement of polyester filament yarn is increasing'

Textiles | On 19th Jun 2018

'Requirement of polyester filament yarn is increasing'

The requirement of polyester filament yarn (PFY) is increasing as it...

Courtesy: SAC

Textiles | On 19th Jun 2018

SAC to release pilot of Higg Facility Social Labour Module

The Sustainable Apparel Coalition (SAC) will release this year a...

Courtesy: Tim Savage from Pexels

Textiles | On 19th Jun 2018

Da Lat begins construction of $50mn wool yarn factory

Da Lat Worsted Spinning Limited Company has begun construction of a...

Interviews View All

Top executives
Textile industry

GST has levelled the playing field to an extent

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search