LTD Baltic Dairy Board annual report for the year
Post# of 301275
"Baltic Dairy Board" factory was put into operation on December 22, 2016, production launch on January 15, 2016. Baltic Dairy Board, Ltd main type of activity is raw milk and other dairy side product processing. Manufactured raw materials are then being used for end products like butter, milk protein powder and yeast products. Main goal is to establish own drying facility by 2018 with capability to dry own liquids and offer drying services to other dairy companies.
In annual report Net turnover was 18 603 949 EUR, which is 105% more than it was in 2015. This drop was according to price drop for all dairy products and downfall in dairy industry itself.
The book value of year 2016 is 10 753 428 EUR which is 7% more than 2015.
In annual report Net loses are 372 597 EUR. The losses were incurred in the first four months of production. This can be explained by several reasons which are logical at the beginning of production:
1. Starting milk processing in the Latvian market as a new market player requires purchase of additional ingredients in this stage. The process was successful; however, the Company had to pay a higher price for milk than other processors paid on average.
2. This is closely connected to the first aspect. The lower processing capacity is, the higher expenses for each processed ton are. Every month, with the amount of milk increasing the expenses for each processed ton decreased significantly, thereby notably increasing the efficiency.
3. Product quality. In the first four months all issues regarding product quality were eliminated that allowed to sell high quality products for more favourable prices further on.
Starting production in January 2016, the goal was to achieve higher quality indicators for the manufactured products and the highest possible processing efficiency as quickly as possible - it has been done.
| NOTES | 2016 | 2016 | |
| EUR | EUR | ||
| Net sales | (1) | 18 603 949 | 9 067 905 |
| Cost of sales | (2) | (17 561 090) | (8 433 005) |
| Gross profit | 1 042 859 | 634 900 | |
| Distribution expenses | (3) | (503 924) | (590 995) |
| Administrative expenses | (4) | (493 069) | (484 639) |
| Other income | (5) | 291 896 | 63 410 |
| Other expenses | (6) | (336 720) | (166 622) |
| Finance expenses | (8) | (582 770) | (87 876) |
| Profit (loss) before tax | (581 728) | (631 822) | |
| Corporate income tax | (9) | 209 131 | 79 995 |
| Net profit | (372 597) | (551 827) | |
| NOTES | 31.12.2016. | 31.12.2016. | |
| ASSETS | EUR | EUR | |
| Non-current assets | |||
| Intangible assets | (10) | 113 | 178 |
| Property, plant and equipment | (11) | 9 111 507 | 9 031 798 |
| Deferred tax assets | (9) | 279096 | 69965 |
| Participation in the capital of another company | 200 | ||
| 9 390 916 | 9 101 941 | ||
| Current assets | |||
| Inventories | (12) | 187 810 | 7 164 |
| Trade receivables | (13) | 814 808 | 362 365 |
| Corporate income tax receivable | 24 428 | 132 132 | |
| Other current assets | (14) | 334 607 | 355 753 |
| Cash and cash equivalents | (15) | 859 | 101 354 |
| Total current assets: | 1 362 512 | 958 768 | |
| Total assets | 10 753 428 | 10 060 709 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | (17) | 777 778 | 777 778 |
| Share issue premium | 421 557 | 421 557 | |
| Retained earnings: | |||
| Retained earnings or losses | 126 994 | 678 521 | |
| Profit or loss of the year | (372 597) | (551 827) | |
| Total equity: | 953 732 | 1 326 029 | |
| Liabilities | |||
| Non-current liabilities | |||
| Debenture loans | (17) | 1 035 500 | 950 000 |
| Deferred revenue | (18) | 1 540 688 | 1 154 049 |
| Loans from credit institutions | (21) | 2 743 571 | 3 351 733 |
| Other borrowings | (21) | 626 146 | 500 665 |
| Finance lease liabilities | (19) | 41 817 | 69 592 |
| Total non-current liabilities: | 5 987 722 | 6 026 039 | |
| Current liabilities | |||
| Deferred revenue | (18) | 85594 | 107 855 |
| Finance lease liabilities | (19) | 26 403 | 28 310 |
| Factoring liabilities | (20) | 402 024 | |
| Loans from credit institutions | (21) | 1 022 642 | 712 850 |
| Trade payables | (22) | 1 809 480 | 1 559 346 |
| Current income tax payables | (23) | 11 067 | |
| Advances from customers | (24) | 455 064 | 300 280 |
| Other liabilities | 3812274 | 2 708 641 | |
| Total current liabilities: | 9 799 996 | 8 734 680 | |
| Total liabilities: | 10 753 728 | 10 060 709 | |
Family owned company founded in 2008. From year 2008 until 2015 main business connected with raw milk logistics and other dairy product purchase and distribution. In 2015 company opened new added value product factory located in Bauska, Latvia. Factory is one of the larges Milk protein and Whey protein manufacturer in northern Europe with approx. 8 000MT of protein powder produced every year.
Additional information: Ilona Kazaka Member of the Board Phone +371 28344991 e-mail: ilona@bdb.lv
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