Baltika Group 2014
Baltika expects moderate sales growth in the Baltics. Largest efficiency growth is expected from Lithuania, which retail recovery has lagged behind its neighbouring countries. Baltika expects no sales growth from Eastern-Europe.
Baltic retail is core to the company’s economic stability and ground for growth. To maintain the position in the Baltic market amidst tight competition – renovation and opening of new stores is needed.
One of the main targets for 2014 is to carry out the plan to minimise the risks of Ukraine and Russia impacting group total results. One of the possible lines of action is to change the operating model in these markets.
Work is continued to expand franchise network and preparation has been started to launch the sale of all brands, in addition to Monton, through international e-shop, by the end of 2014.
Achieving the targets for 2014 requires investments and sufficient financing of working capital. In accordance with the investment plan disclosed in the second half of year 2012, the retail network requires investments. Also stronger working capital position would allow for better possibilities for decision making and increasing profitability.
Taking into account the long-term strategy, the targets for the Management of Baltika Group for year 2014 are:
- Strengthen the position on the Baltic market and increase revenue;
- Decrease direct risks related to Eastern-European segment;
- Prioritise other channels and vigorously grow sales revenue through both current and new wholesale- and franchise agreements;
- Develop E-com – making all Baltika brands available through e-store;
- Strengthen financial position.
Financial target for the company’s Management is to sustainably increase sales and profit.