Despite a challenging economic environment, there are several areas where developments are moving in the right direction for the Group. Processes related to cost optimization, efficiency improvement, and profitability enhancement continue, and decisions made in previous periods are already having a positive impact on the Group's financial results.
The Group's total sales revenue for the first quarter across all channels was
In the first quarter of the year, we continued working on updating our network of stores:
- In January, we closed our Ivo Nikkolo store in Vilnius Akropolis shopping center in
Lithuania due to the end of the lease agreement. The new Ivo Nikkolo concept store opened inNovember 2022 in Vilnius Panorama shopping center inLithuania has been well-received by our former Vilnius Akropolis center customers. - In February, we reopened the Ivo Nikkolo brand store located at Suur-Karja 14 address. The store was closed in
November 2020 when the legendary location of the Suur-Karja street store became commercially challenging due to the absence of tourists during the COVID pandemic. - In March, we opened a new Ivo Nikkolo concept store in
Latvia . We replaced our old Ivo Nikkolo store in Galleria Riga shopping center with a new Ivo Nikkolo conept store.
In February, the Group began preparations for entering the Business-to-Business (B2B) market. In the B2B segment, the Group's focus is on finding business partners for wholesale and consignment sales both within and outside the Baltics. The goal of entering the B2B segment is to support the growth of Ivo Nikkolo product sales, increase brand awareness, and stabilize the Group's liquidity position.
The Group has continued its commitment to addressing environmental changes. At the beginning of January, we joined the packaging circular system called Tango for e-commerce platforms. The aim of joining the system is to reduce the amount of single-use packaging waste generated from shopping on our e-commerce platform. Our customers now have the option to order their products in reusable packaging called Low imPACK and receive a deposit refund upon returning the packaging. Among clothing retail companies, the Group is the first to have joined the e-commerce packaging circular system with its Ivo Nikkolo brand e-store.
The Group's marketing and general administrative expenses in the first quarter were
The Group's management evaluates the results of the first quarter as positive. The Group managed to increase the sales revenue of Ivo Nikkolo products and significantly improve the gross profitability of the Group. The consistent increase in efficiency and the closure of unprofitable stores have gradually improved the Group's financial indicators. Increasing efficiency will continue to be a focus for the Group going forward.
The Group remains committed to its chosen strategy and continues its implementation by:
- Developing modern and high-quality products in its women’s fashion brand, Ivo Nikkolo, which are available in
Estonia ,Latvia , andLithuania , as well as through the Group’s e-commerce platform in other European countries. - Continuing to enhance its omnichannel strategy and the functionality of its e-commerce platform.
- Opening new Ivo Nikkolo concept stores in the Baltics.
- Exploring and developing new business opportunities both within and outside the Baltics.
Ongoing quarter
The group's sales revenue for the period of
In April, Ivo Nikkolo presented a contemporary feminine clothing and accessory collection at two of the largest fashion events in the Baltics, namely Tallinn Fashion Week (
On
Consolidated statement of financial position
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 129 | 222 |
Trade and other receivables | 3,165 | 3,285 |
Inventories | 2,066 | 1,960 |
Total current assets | 5,359 | 5,467 |
Non-current assets | ||
Deferred income tax asset | 91 | 91 |
Trade and other receivables | 2,796 | 2,756 |
Other non-current assets | 111 | 107 |
Property, plant, and equipment | 1,364 | 1,269 |
Right-of-use assets | 4,066 | 4,596 |
Intangible assets | 567 | 586 |
Total non-current assets | 8,994 | 9,405 |
TOTAL ASSETS | 14,353 | 14,872 |
LIABILITIES AND EQUITY | ||
Current liabilities | ||
Borrowings | 3,275 | 3,096 |
Lease liabilities | 1,493 | 1,813 |
Trade and other payables | 2,405 | 1,741 |
Total current liabilities | 7,173 | 6,650 |
Non-current liabilities | ||
Borrowings | 1,061 | 1,070 |
Lease liabilities | 2,908 | 3,296 |
Trade and other payables | 143 | 147 |
Total non-current liabilities | 4,113 | 4,513 |
TOTAL LIABILITIES | 11,286 | 11,163 |
EQUITY | ||
Share capital at par value | 5,408 | 5,408 |
Reserves | 4,431 | 4,431 |
Retained earnings (-losses) | -6,772 | -6,130 |
TOTAL EQUITY | 3,067 | 3,709 |
TOTAL LIABILITIES AND EQUITY | 14,353 | 14,872 |
Consolidated statement of profit or loss and other comprehensive income
Q1 2023 | Q1 2022 | |
Revenue | 2,160 | 2,075 |
Cost of goods sold | -1,010 | -1,226 |
Gross profit | 1,150 | 849 |
Distribution costs | -1,602 | -1,831 |
Administrative and general expenses | -268 | -362 |
Other operating income (-expense) | 133 | 82 |
Operating profit (-loss) | -586 | -1,262 |
Interest income | 39 | 0 |
Interest expense | -94 | -83 |
Profit (-loss) before income tax | -641 | -1,345 |
Income tax expense | 0 | 0 |
Total comprehensive income (-loss) for the period | -641 | -1,345 |
Basic earnings per share from net profit (-loss) for the period, EUR | -0.01 | -0.02 |
Diluted earnings per share from net profit (-loss) for the period, EUR | -0.01 | -0.02 |
Brigitta Kippak
Chairman of The Management Board, CEO
brigitta.kippak@baltikagroup.com
Attachment
- Baltika Interim Report 1Q 2023
© OMX, source