Listed Estonian garment manufacturer and seller Baltika saw a net profit of €975,000 in the first nine months 2020 compared to a net loss of €3.3 million in the same period the year before.
Baltika Group ended the third quarter with a net loss of €516,000. The loss for the same period last year was €1.2 million, Baltika told the stock exchange.
The quarterly results have improved €725,000 year-on-year due to Baltika Group’s heavy focus on the reduction of fixed costs that saw operating expense decrease by €2.2 million.
The group’s sales revenue for the third quarter was €5.7 million, decreasing by 42 percent compared to the same period last year. Retail sales revenue in the third quarter decreased by 41 percent and e-commerce decreased by 23 percent.
The main impactor for the decrease in sales was the decision to end activities with brands Mosaic and Bastion. The retail sales of the biggest brand, Monton, decreased by 7 percent in the same period. Sales to business customers decreased by 84 percent.
Gross profit for the third quarter was €2.9 million, decreasing by 36 percent or €1.6 million compared to the same period in the previous year. The company’s gross profit margin was 51 percent in the third quarter, which is 5.1 percentage points higher than the margin of the third quarter of the previous year.
Read more: ERR.EE