Baltika’s unaudited monetary outcomes, fourth quarter and 12 months 2022

The Group’s fourth quarter gross sales income throughout all channels totalled 2,803 thousand euros, growing by 7% in comparison with the identical interval final 12 months (This autumn 2021: 2,614 thousand euros). Gross sales income for 12 months reached 9,613 thousand euros, reducing by 18% in comparison with the earlier 12 months (2021: 11,770 thousand euros). In 2022, the gross sales income of the e-store accounted for 10% (2021: 17%) of the Group’s complete income.

The 12 months 2022 introduced with it robust development in gross sales of Ivo Nikkolo merchandise. The gross sales income of Ivo Nikkolo merchandise elevated by 38% to 9,482 thousand euros in 2022. In 2022, gross sales of Ivo Nikkolo merchandise accounted for 98% of the Group’s complete gross sales income. From the second half of 2021, the Group operated with just one model – Ivo Nikkolo. In 2021, the gross sales income of the discontinued manufacturers Monton, Mosaic, Baltman and Bastion made up 42%, the remaining 58% of the gross sales income was made up by the sale of Ivo Nikkolo merchandise.

Within the fourth quarter, the Group confirmed robust gross sales income development in each retail and e-store gross sales. Fourth quarter retail gross sales had been 2,530 thousand euros, growing by 6% in comparison with the identical interval final 12 months (This autumn 2021: 2,395 thousand euros). The gross sales income of the e-store within the fourth quarter was 235 thousand euros, which is 13% greater in comparison with the identical interval final 12 months (This autumn 2021: 209 thousand euros).

Within the final quarter of the 12 months, we continued to replace our retailer community. On the finish of November, we opened the primary new Ivo Nikkolo idea retailer in Lithuania – we changed the outdated Ivo Nikkolo retailer within the Vilnius Panorama procuring centre with a brand new Ivo Nikkolo idea retailer. Panorama procuring centre is situated in Žverynas, one of many oldest and most prestigious enterprise and residential districts within the centre of Vilnius. Panorama procuring centre is very valued amongst guests for its vibrant inside design, comfy procuring setting and high-quality service. Within the fourth quarter, Ivo Nikkolo’s predominant focus was on advertising and marketing actions. In October, we began an in depth model consciousness marketing campaign in Latvia and Lithuania, which lasted for 3 months. Along with the above, Ivo Nikkolo introduced a contemporary female clothes and accent assortment on the two greatest trend occasions within the Baltics, which had been Riga Vogue Week (11.10.2022) and Tallinn Vogue Week (20.10.2022).

Story continues

The gross revenue of the fourth quarter was 1,579 thousand euros, reducing by 5% in comparison with the identical interval final 12 months (This autumn 2021: 1,671 thousand euros). Gross revenue for 12 months was 4,938 thousand euros, reducing by 19% in comparison with the identical interval final 12 months (12 months 2021: 6,120 thousand euros). The lower in gross revenue is because of the truth that the Group operates with just one model (Ivo Nikkolo) in 2022, however within the comparable interval, a big a part of the Group’s gross sales income was the gross sales outcomes of the discontinued manufacturers Monton, Mosaic, Baltman and Bastion. The Group’s gross revenue margin was 56% within the fourth quarter, whereas the comparable interval’s gross revenue margin was 64%. The lower within the gross revenue margin by 8 proportion factors is because of the enhance in uncooked materials and transportation costs within the second half of 2022 and the strengthening of the US greenback, which led to a big enhance in prices within the buy value and supply of products. The Group has solely partially handed on the value enhance to clients, which explains the lower within the gross revenue margin in comparison with the comparability interval. The Group’s 12-month gross revenue margin was 51%, remaining at an analogous stage in comparison with the identical interval final 12 months (12M 2021: 52%).

The online loss for the fourth quarter was 561 thousand euros, the results of the comparable interval was a internet lack of 890 thousand euros. The Group’s 12-month internet revenue was 3,493 thousand euros. The 12-month result’s considerably affected by the conclusion of the contract for the sale of the Ivo Nikkolo logos and the contract for the unique use of the Ivo Nikkolo logos in August. The end result for 12 months with out contemplating the sale transaction of Ivo Nikkolo logos was a internet lack of 3,943 thousand euros. Within the comparable interval, there was a internet lack of 2,900 thousand euros.

The Group’s distribution and administrative bills had been 2,084 thousand euros within the fourth quarter, reducing by 9% in comparison with the identical interval final 12 months (This autumn 2021: 2,289 thousand euros). Regardless of excessive inflation and the vitality disaster, the Group has been capable of scale back distribution and administrative bills by constant price discount, elevated effectivity and closure of unprofitable shops.

The Administration Board of the Group assesses the outcomes of 12 months as optimistic. The Group was capable of strongly enhance the gross sales income of Ivo Nikkolo merchandise and keep good gross profitability regardless of the unsure financial setting, elevated uncooked materials and transport costs and the volatility of the US greenback. Constantly growing effectivity and shutting unprofitable shops has step by step improved the Group’s monetary indicators. Growing effectivity will proceed to be the Group’s focus. The Group stays dedicated to its chosen technique and continues to implement it:

1. By creating fashionable, high-quality merchandise in our ladies’s trend model Ivo Nikkolo, which is obtainable in Estonia, Latvia and Lithuania and in different European international locations by our e-store.

2. By persevering with the event of our omnichannel technique and e-store functionalities.

3. By persevering with to open new Ivo Nikkolo idea shops within the Baltics.

Ongoing quarter

The Group’s gross sales income within the interval 01.01.2023 – 26.02.2023 was 1,365 thousand euros, reducing by 6% in comparison with the identical interval final 12 months. The lower in gross sales income in comparison with the earlier interval is because of the following circumstances:

1. Within the first quarter of 2022, deeply discounted merchandise had been bought, which led to a really excessive demand for merchandise. The influence of the low cost will be seen within the Group’s gross revenue margins: the gross revenue margin for the interval 01.01.2023 – 26.02.2023 was 56%, the gross-profit margin for the comparable interval was 43%. Properly-managed low cost campaigns within the present quarter have considerably improved the Group’s gross profitability in comparison with the comparable interval; and

2. Closure of unprofitable shops has decreased gross sales income. In January 2022, the Group had 8 shops greater than this 12 months, and in February 2022, 5 shops greater than this 12 months.

Retail gross sales effectivity in the course of the interval 01.01.2023 – 26.02.2023 (gross sales per m2 per thirty days, EUR) was 119 EUR, growing by 27% in comparison with the identical interval final 12 months.

Firstly of January, we joined the Tango e-shop packaging recycling system. The purpose of becoming a member of the system is to scale back the quantity of disposable packaging waste generated when procuring in our e-store. Any further, our clients have the chance to order their items in Low imPACK reusable packaging and get the deposit a refund after returning the packaging. Among the many clothes commerce corporations, Baltika is the primary to have joined the e-shop’s packaging circulation system with its Ivo Nikkolo model e-shop.

Firstly of January, we closed our Ivo Nikkolo retailer in Vilnius Akropolis procuring centre in Lithuania because of the expiration of the lease. The brand new Ivo Nikkolo idea retailer opened in Lithuania in November 2022 within the Vilnius Panorama procuring centre has been properly obtained by our former Vilnius Akropolis centre clients.

Firstly of February, we reopened the model retailer at Ivo Nikkolo Suur-Karja 14. The shop was closed in November 2020, when in the course of the COVID pandemic, the legendary location of the Suur-Karja road retailer turned commercially problematic because of the lack of vacationers. In right this moment’s market state of affairs, the Group once more believes within the potential of this area. Along with the above, within the present quarter we’ll end the renovation of the Ivo Nikkolo retailer within the Galleria Riga procuring centre in Latvia, on account of which we’ll open a brand new Ivo Nikkolo idea retailer in Latvia on the begging of March.

Consolidated assertion of monetary place

Consolidated assertion of revenue or loss and different complete revenue

Brigitta Kippak
Chairman of The Administration Board, CEO
[email protected]

Attachment