20 May 2003
Quick Report for the First Quarter of 2003
Below is the consolidated and unaudited financial statements for the first
quarter of2003 which were prepared in accordance with the International
Accounting Standards (IAS).
We have briefly summarised the most important features and main events of our
financial management in the followings.
• Internal restructuring (making more transparent) of the Group has been
successfully completed and now the subsidiaries are held directly by the parent
company. Hussar Holding AG has been sold and is no longer included in the
consolidation. The financial settlement of the transaction has been realized.
• On March 12, 2003 ARAGO Befektetesi Holding Rt and ERAVIS
Ingatlanforgalmazo Rt sold their 26.03 % and 3.09 % stakes, respectively to
INTERGAZPROM-INVEST HOLDING RT (I.G.P.I. Rt).
• Following the change in owners the Shareholders Meeting held on March 21
decided on the appointment of new members of the Managing Board and Supervisory
• Primary target of Zalakeramia Rt's main owners is that the Company become
a leading regional manufacturer of ceramic tiles in Central and East Europe and
increase its domestic market share with a wide range of products and maintain
and increase, respectively its market shares on other European markets while it
wishes to continuously expand its export activities toward Russia.
Launching new designes and styles, Zalakeramia Group wishes to remain
competitive as against the importers on local markets and production of high
quality products is a key respect further on.
The most important short term duty is to optimize stocks and in order to do this
Zalakeramia Rt intends to improve connection of orders booked and production,
that is it makes production programming more efficient in order to minimize
• Syndicated credit facility is still of high importance with a view to
financial situation. On March 31, 2003 an extraordinary repayment was made in an
amount of EUR 10,104,918. In addition, the company made a scheduled repayment in
an amount of EUR 513,256 as well. With a view to all these the amount of the
syndicated credit facility reduced to EUR 19,218,593 (HUF 4,744,110 th).
• Zalakeramia sold Lakopark Kft which was owned in 100 % by the Company. 70
% of the purchase price was paid as of March 18 2003 which amounted to HUF
Such disposal made HUF 511.888 th financial results for the Company. The
expenses incurred in connection with disposal are shown in general expenses.
• During the first quarter of 2003 Jaszberenyi uti Kft separated thus were
established Jaszgold Kft and Moorea Beach Kft. The Company disposed of this
latter at face value on March 12, 2003.
Main data for Q1 2003 of Zalakeramia Rt parent company (based on the financial
statements of the parent company prepared in accordance with the International
• Sales revenue increased by 4.7 % as compared to the basis representing
a realization of HUF 1,722 million sales revenue.
• Production of tiles amounted to 1,419 th sq mts and that of stove tiles
it was 152 th tile units. In the case of tiles, volume growth was 6.0 % compared
to the basis period. B-I plant in Tofej was stopped in December 2002 and
production in the other plants runs at full capacity following a shutdawn at the
beginning of the year..
• 1,196 th sq mts were sold of own-produced tiles and 31 th sq mts of
purchased tiles. As a result, sales of tiles achieved 1,227 th sq mts
representing a 4.5 % growth compared to the basis. High quantities of pruchased
tiles were sold in the basis period and this was stopped in the second half of
2002 and replaced with the sales of own-made tiles, respectively. In the first
quarter of 2003 Zalakeramia Rt purchased border tiles and gres tiles because
current technology does not make production of such tiles possible. In
accordance with targets, volume of purchased tiles decreased by two-thirds as
compared to the corresponding period of basis year.
• Gross margin approximated HUF 514 million being 7.8 % higher than the
corresponding figure in 1Q 2002.
• In 1Q 2003 gross margin percentage was 29.9 %. (0.86 % point higher
than in1 Q 2002).
• The Company recorded HUF 294 million exchange rate loss on the
syndicated credit facility in 1Q 2003 due to weakening of Forint as against
Euro. The amount of the recognised interest expense was HUF 78 million as
against HUF 94 million in the basis period. Decrease in interest expenses was
caused by reduction of the credit facility and interest rates.
• The parent company's profit before tax was HUF 167 million and its
profit after tax was of HUF 81 million. The difference is caused by the
reinstatement of deferred tax in the amount of HUF 86 million which represents
corporation tax falling on the tax base computed in accordance with the
Hungarian tax laws.
Main data for 1Q 2003 of S.C. CESAROM S.A. subsidiary (based on the financial
statements of the subsidiary prepared in accordance with the International
• In 1Q 2003 the production of tiles exceeded 1,160 th sq mts being the
same as the quantity produced in the basis period. The production of sanitary
ware approximated 120 th pieces which is 12.0 % lower than the basis.
• 817 th sq mts of own-produced tiles, 7 th sq mts of the parent
company's tiles and 44 th sq mts of purchased tiles were sold by the Company.
The distribution of purchased tiles was needed to complete the assortment of
products mainly with gres tiles.
On drawing up the IAS statements of the Romanian subsidiary the figures have
been inflated also in 1Q 2003 due to the previous hyperinflation, the rate of
which was 3.2 % and the annualized rate was 16.6 %. When converting into Forint
the following exchange rates were used:
March 31, 2002 ROL 117.65 = HUF 1
March 31, 2003 ROL 147.06 = HUF 1
It means that the Romanian currency was depreciated by 25.0 % as against the
• Sales revenue, in terms of Romanina Lei, was below the basis level by
10.9 % and in terms of Forint by 28.7 % due to the strengthening of Forint as
• Gross margin was HUF 326 million in the period under review being 7.8 %
lower than the basis level figure. Gross margin percentage was 28.3 %.
• Net monetary position line includes a loss of HUF 48 million.
• Taking all the above into consideration, the profit/loss after tax of
our subsidiary in Romania is a loss of HUF 62 million.
Main data for 1Q 2003 of our Inker d.d. subsidiary (based on the financial
statements of the subsidiary prepared in accordance with the International
• In terms of Croatian Kuna sales revenue of the subsidiary remained on
the basis level, however in terms of Forint it was HUF 868 million being 2.7 %
lower than the Forint sales revenue in the basis period.
• In the sanitary ware business produced quantity decreased 2.7 %
compared to the basis period. Rate of growth was 11.6 % at the porcelain
tableware representing the production of nearly 2.9 million pcs of porcelain
• Inker d.d sold 74 th pcs of sanitary ware which is 3.4 % lower than the
quantity of the basis period. Appr. 2.7 million pcs were sold of porcelain
tableware being 2.8 % higher than the quantity sold in the basis period.
• Gross margin exceeds the figure of the basis period by 17.2 %
representing the realization of HUF 164 million gross margin.
Gross margin percentage was 18.9 % being 3.2 % points higher than the figure in
• Ratio of selling, general and administrative expenses to sales revenue
was 14.7 %.
• Profit after tax of the subsidiary in Croatia was HUF 50 million.
I. Analysis of the consolidated and unaudited profit and loss
Sales revenue of the Group is shown below:
in th HUF
Company 1Q 2003 1Q 2002
Domestic Export Total domestic Export Total
Zalakeramia Rt. 1 371 440 226 009 1 597 449 1 260 020 223 687 1 483 707
Inker d.d. 332 943 534 900 867 843 380 685 496 086 876 771
S.C.Cesarom S.A. 1 002 524 135 629 1 138 153 1 398 505 208 944 1 607 449
Inker Trgovina 31 132 31 132 16 422 16 422
Total: 2 738 039 896 538 3 634 577 3 055 632 928 717 3 984 349
Sales revenue on group level was 8.8 % lower than the sales revenue in 1Q 2002.
Growth of revenue was 7.7 % at the parent company and growth of revenue remained
on basis level at the Croatian subsidiary. The Romanian subsidiary's sales
revenue decrease dramatically by 29.2 %. Due to hard winter weather seasonality
was even stronger on the Romanian market. Consequently, sales were very low in
January and February. The market recovered only in late March and as a result of
it we could reduce shortfall at the beginning of the year. Thus, quantity of
sold tiles was 360 th sq mts below the basis level.
Export revenue decreased by 3.5 % on group level and within this the export
revenue of our Romanian subsidiary was significantly lower than the basis figure
due to stopping short of sanitary ware exports.
24.7 % of the Group's sales revenue originated from export sales.
In 1Q 2003 Zalakeramia Group sold total 2,014,153 sq mts of own-produced tiles
and 75,598 sq mts of purchased tiles. This constitutes a 12.7 % decrease as
against the basis period. The subsidiary in Romania sold 867,789 sq mts of tiles
as against the 1,231,195 sq mts in the basis period representing a 70.5 %
performance. Extra sales at the parent company could not compensate this
Foreign manufacturers (Italian, Spanish, Turkish) dominate the Hungarian tile
market with a 70 % market share while about 30 % of domestic production is sold
on export markets. Average prices of imported tiles reduced over 5 % in Hungary
in the past period having negative influence on the domestic market players
including Zalakeramia Rt. It means that competitiveness of import products
further improved as against Zalakeramia Rt's products.
Due to the lack of domestic capacities import has been increasing at a higher
rate year by year than growth of market. In late years, it was the first time
that domestic products achieved considerable share in the expansion of market.
This can be explained mainly by the increase in Zalakeramia Rt's domestic sales.
Plan for year 2003 includes:
• Launch 600 to 800 th sq mts of low-end products into international
department store chains in Hungary.
• Further improve retail trade activities.
• Increase market notoriety and sales of 25x40 size high-end tiles
produced in the new B-IV plant.
• Zalakeramia Rt to appeare in Romania and Coratia with an expanding
range of products.
• Market has opened up in Serbia and a quick development can be achieved
in the lower price segment.
• In Germany the target is to reobtain earlier market position.
• In the field of exports, Russian market is the area where Zalakeramia
Rt wishes to dynamically develop its market share.
• In the following period S.C. Cesarom S.A. intends to go on with its
well-founded marketing activities. Its key target is to expand the product range
and they would like to further improve the quality of services rendered to the
Poduction (pcs) Sales (ocs)
Inker d.d. 79,360 74,186
S.C. Cesarom S. A. 119,918 92,795
Volume of production at the Croatian subsidiary decreased by 2.7 % as compared
to the basis period. In the first quarter of the year some problem arose due to
inadequate operation of old moulds which increased wastes and the quantity of
goods to be repared. Because of this latter amount of work in progress increased
and as a result of it quantity of finished goods on stock became less.
Sales at the Croatian subsidiary decreased by 3.4 % while it reduced by 23.9 %
at S.C. Cesarom S.A. as compared to the basis.
At Inker d.d. sold quantity on the domestic market reduced by 15.1 % while the
rate of growth on the export market was 9.0 %. Domestic revenue decreased by 6.5
% only due to the increase in average prices. Sales revenue from sanitary ware
export increased by 25.1 % because the average prices also increased by 14.8 %
in addition to volume. This resulted in a 7.0 % increase in total sales revenue
in terms of Croatian Kuna.
Lag of domestic sales was due to the fall of Inker's market position,
cancellation of customs duties (due to this, inflow of import products at
dumping prices) and lack of certain products.
At the Romanian subsidiary decrease in production was caused by the fact that in
year 2003 production started on January 21 while in year 2002 on January 8.
The quantity of sanitary ware sold in the period under review was 92,795 pcs.
Also in this case - same as for tiles - reduction was the result of hard cold
Porcelain table ware
Total quantity of porcelain tableware produced in 1Q 2003 reached almost 2.9
million pcs being 11.6 % higher than the quantity of the corresponding period of
the previous year.
Raw, glazed and decorated wastes amounted to 12.0 % which declined by 1.9 %
compared to that of 1Q 2002. Average weight of products was 0.237 kg/pc in the
period under review being lower than the 0.259 kg/pc in the basis period. Ratio
of white products within total production was 42.4 % and ratio of decorated
products was 57.6 %. The production profile was mainly characterized by the fact
that the production of cups and saucers increased and the production of plates
slightly declined which was in line with the requirements of the market. Due to
an increasing market interest in exclusive forms triangular and quadrangular
plates and dishes have been developed.
Sold quantity amounted to 2.7 million pcs being 2.8 % higher than the quantity
of porcelain ware sold in 1Q 2002. Domestic revenue was 11.2 % behind the figure
of 1Q 2002. However, sales revenue exceeded the basis figure by 3.5 % due to a
16.4 % increase in average prices. Hotel porcelains have a higher share in the
composition of domestic sales while sales of household goods show constant
decrease due to the strong competition selling cheaper porcelain ware. The
orders of hotel industry can be expected in the following months therefore
increase in sales seems to be a reasonable expectation. Considering also the
sophisticated foreign markets, export sales show good results indicating a 3.3 %
growth of sales revenue in terms of Croatian currency. Sales revenue of total
porcelain products also increased by 3.3 %.
152,177 tile units were sold of stove tiles representing a 6.5 % lag compared to
the basis. HUF 71 million sales revenue originated from the sales of stove
tiles, same as the basis level.
Company 1Q 2003 1Q 2002 Index %
Zalakeramia Rt. 444 735 419 844 105.9
Inker d.d. 160 189 140 545 114.0
S.C. Cesarom S.A. 396 107 430 639 92.0
Inker Trgovina 6 681 (2 803)
Total: 1 007 712 988 225 102,0
Despite the shortfall of sales revenue gross margin of Zalakeramia Group - as a
result of a more economical cost management - exceeded the basis level by 2.0 %.
Gross margin at the parent company also increased as a result of its extra sales
in 1Q 2003. Gross margin of our subsidiary in Romania was only 8.0 % lower than
the basis figure despite the fact that decline was drastic from sales revenue
side due to facts detailed above. Its reason is that lower rates of discounts
and sales campaigns were applied to tiles sold this year than in the
corresponding period of last year and as a consequence of it average prices and
specific profit content increased.
Selling, general and administrative expenses
Company 1Q 2003 1Q 2002 Index %
Zalakeramia Rt. 501 111 494 075 101.4
Inker d.d. 123 417 145 900 84.6
S.C. Cesarom S.A. 221 067 150 148 147.2
Total: 845 595 790 123 107.0
Inker Trgovina 7 086 1 171 605.1
Jaszgold Kft* 5 434 1 328 409.2
Lakopark Kft 162 1 625 10.0
Keramialand Kft 1 681 395 425.6
Hussar Holding AG 13 823 0.0
Grand total: 859 958 808 465 106,4
*Previously Jaszberenyi uti Kft
On group level selling, general and administrative expenses increased 6.4 % in
total compared to the corresponding period of last year. Within this, indirect
costs of the parent company remained on basis level. In connection with the
disposal of Lakopark Kft HUF 53 million expenses occurred - in proportion to the
purchase price received - which is included in the general expenses for 1Q 2003
of the parent company.
Apparent increase occurred in the case of S.C. Cesarom S.A. and such increase
have two reasons: insurance premiums for the first half year, on one part and
marketing expenses incurred in connection with television advertisement campaign
and preparation of participation at the Bucharest Exhibition, on the other part,
were fully recognised. These two items increased general expenses by total HUF
63 million. In the case of Inker d.d, HUF 20 million local tax was included in
general expenses in 1Q 2002 while this year's tax is included in other expenses.
As a consequence of the disposal of Hussar Holding AG no expenses incurred this
Other operating income and other operating expenses
Other operating income increased by 78.5 %. Increase resulted from the fact that
HUF 17 million of the provisions made owing to the closing down of B-I plant in
2002, has been released on the one part and extra other income originated from
the disposal of tangible assets at the Romanian subsidiary amounted to HUF 10
million, on the other.
Other operating expenses doubled as compared to the basis period which was
caused by the following facts:
• In the case of Inker d.d, HUF 20 million local tax was included not in
this line in the basis period but in indirect expenses and local tax liability -
amounting to HUF 23 million - for the period under review is included in this
• The amount of discounts granted subsequently and recognised at the
parent company exceeds the expenses of the basis period by HUF 13 million.
• Also at the parent company, amount of local taxes increased by HUF 3
million and similarly, HUF 3 million expenses occurred for early retirement in
the period under review.
Exchange rate gains/exchange rate expenses
Exchange rate loss/exchange rate gains are shown in a separate line in a grossed
up manner the balance of which is a profit.
Exchange rate gains: HUF 706,084 th
Consolidated f/x rate gains on the disposal of Lakopark Kft HUF 561,805 th
F/x rate gains on the settlement of receivables from the
disposal of Hussar Holding AG HUF 85,387 th
Other f/x rate gains HUF 58,892 th
Exchange rate expenses: HUF 357,311 th
F/x losses on syndicated credit facility HUF 294,391 th
F/X losses on the settlement of liabilities
against Hussar Holding AG: HUF 13,651 th
Other f/x losses HUF 49,269 th
The undetailed exchange rate gains and exchange rate expenses resulted from the
exchange rate movements appearing continuously in receivables and liabilities.
Change in HUF/EUR rate may be further on a factor significantly influencing the
results of the Group due to the syndicated credit included in the books of the
Result of financial activities
Interest income, interest expense
Interest income amounted to only HUF 17 million representing 37.1 % of the
interest income in 1Q 2002. This was caused by the followings:
• During the quarter Zalakeramia Rt had minimum funds and liquid loan was
raised temporarily. Income from the disposal of Lakopark Kft was received in
late March therefore no interest income could be generated on this amount.
• Over 90 % of the Romanian subsidiary's funds, i.e. HUF 950 million, and
HUF 370 million of Inker d.d. is held in foreign currency and no interest income
was generated on these.
Decrease in the balance of interest expenses relates to the credit facility
reduced as a result of the scheduled repayments. Due to the syndicated credit
HUF 95 million interest expense arose in the basis period and HUF 78 million in
the period under review. Factoring interest expenses of the parent company
amounted to HUF 5 million.
Net monetary position
In the period under review the value of monetary assets exceeded that of the
monetary liabilities therefore the Company generated HUF 48 million loss on net
monetary position. This loss is only 28.4 % of the previous year's figure.
Decrease was caused by the fact that the amount of receivables held in foreign
currency significantly reduced - Hartberg investment was sold by S.C. Cesarom
S.A. - with an unchanged content of the liabilities side.
Corporate tax liability
This line includes the corporate tax liability on the profit originated at our
S.C. Cesarom S.A. subsidiary in 1Q 2003 (calculated in accordance with the
Romanian Accounting Standards) and payable in accordance with the Romanian tax
Deferred tax liabilities
Deferred tax in the profit and loss statement includes the balances of deferred
tax shown for S.C. Cesarom S.A. and Zalakeramia Rt.
In the basis period largest part of deferred tax includes deferred tax accounted
for S.C. Cesarom S.A. In the period under review the amount of the Romanian
subsidiary's deferred tax - HUF 46 million - remained on basis level. Increase
in deferred tax was caused by recognizing of HUF 86 million deferred tax
reinstated on the statutory profits of the parent company.
With all these items taken into consideration, the consolidated and unaudited
profit of the Group amounted to HUF 177,526 thousand in 1Q 2003.
II. Analysis of consolidated unaudited balance sheet
The balance sheet total of the Group has decreased by more than 17,4 %, which
was caused by the followings:
• Last year the Group carried out scheduled and extraordinary repayments
of credit in a total of EUR 18,081,408 or HUF 4.4 billion.
• The deferred tax formed earlier at Zalakeramia Rt has decreased by HUF
• Due to the changes in cross rates asset value has decreased by some HUF
Rate of decrease in current assets is 14.0 %.
Cash and cash equivalents have reduced by 10.3 %.
Main items resulting in this change:
• In the second half of March new credit facility was raised in order to
redeem syndicated and investment credit facilities. In the same period the
amount of syndicated credit facility managed by CSFB - EUR 33,282 tousand - has
been fully repaid. Investment credit was repaid only on April 2, 2002 therefore
EUR 4,047 th (HUF 997 million) is included both in our credit facility and cash
and cash equivalents.
• Government securities included in short term investments have been used
and a part of Jaszberenyi uti Kft has been disposed of, respectively and
together with this shares of HUF 350 million in Artemis Rt have also got out of
• In the past one year repayment of the syndicated credit facility has
been made in an amount of HUF 4.4 billion.
• Hussar Holding AG has been sold generating EUR 10,104 thousand cash.
• HUF 802 million has been received from the disposal of Lakopark Kft.
• S.C. Cesarom S.A. has sold its investment in Hartberg and its
countervalue was USD 6,360 thousand.
• During the previous year HUF 393 million interest was paid in
connection with the syndicated credit.
Accounts receivable have decreased by 3.8 %. Within this, HUF 161 million
decline occurred at the subsidiary in Romania which can be explained by the
The value of inventories has increased by 22.8 %. Main reason of increase is
that value of finished goods drastically increased as compared to the basis both
at the parent company and the subsidiary in Romania. In case of the former
finished goods inventory grew by HUF 600 million and in case of the latter by
HUF 400 million.
The short term investment line in the basis period has included the security
holdings of the parent company and shares in Artemis Rt in the amount of HUF 350
million held by Jaszberenyi uti Kft, respectively. These were sold in the
previous period and are no longer included in the figures of the period under
The 1Q 2002 figure of other current assets has included the receivables of
Hussar Holding AG towards Hartberg in the amount of HUF 1,941 th and the credit
facility of HUF 50 million granted to Amida Rt, respectively. These receivables
of the Group have been received therefore are not included in other current
assets in the period under review. The parent company has receivables of HUF 300
million from the disposal of Lakopark Kft and these receivables are included in
the figures of period under review.
Fixed assets and others
Fixed assets and others have decreased by 19.7 %.
The net value of tangible assets has decreased by 9.3 % and main causes of this
decrease are as follows:
• Owing to the disposal of Lakopark Kft a decline of HUF 550 million
• Value of tangible assets of S.C. Cesarom S.A. reduced by HUF 1,282
million of which HUF 637 million decline was caused by the inflating and change
in ROL/HUF excange rate. Recognised amortization caused further decline as
against which only minimum size investment and renovation has been realized (HUF
The net value of intangible assets was 56.7 % lower than in the basis period as
this type of investment has fallen behind the degree of amortization accounted
for in this line.
Deferred tax line includes deferred tax of Zalakeramia Rt. The amount of this
line reduced to its quarter owing to the reposting of deferred tax accounted on
the last year's statutory profit of the parent company.
Financial investments line includes the house building loans granted to
employees, long term receivables given for other purposes, as well as other
shares. In the basis period this line included the investment of S.C. Cesarom
S.A. in the amount of USD 6,360. This investment has been sold at book value
therefore has not been included in the figures of period under review.
Liabilities and shareholders' equity
Current liabilities have decreased by 14.3 %.
13.8 % increase in accounts payable and accrued expenses was caused by a lawsuit
pending at the parent company in connection with the mine in Sumeg and
provisions made for the closing down of B-I plant on the one part, and HUF 173
million increase in accounts payable of S.C. Cesarom S.A. on the other.
Short term liabilities have increased by 19.0 %. This change originated from the
liquid loan of HUF 200 million raised by the parent company in the first quarter
of 2003 and HUF 41 million decline in factoring portfolio. Liquidity loan will
be repaid in the second quarter of 2003.
Current portion of long term liabilities
Part of the syndicated loan due within one year is included in this line in an
amount of HUF 732 million. According to the syndicated loan agreement valid in
the basis period the amount due within one year was HUF 881 million and this
line included the investment credit of HUF 997 detailed earlier.
Long term liabilities
Long term liability
The total of long term liabilities has decreased more than 50 %.
During the previous year Zalakeramia Rt's credit facility of EUR 37.3 million
reduced to EUR 19.2 million owing to the extraordinary and scheduled repayments
amounting to EUR 18.1 million.
S.C. Cesarom S.A. indexes the value of tangible assets in IAS financial reports
according to rules regarding inflationary economy. The deferred tax payment
liability stated in the balance sheet covers the tax calculated according to IAS
on the difference between the revaluated and the Romanian book value forming the
taxation base. The decline is caused by the fact that at the end of the year
tangible assets were restated in the Romanian books with the annual inflation
rate. Following the restatement the difference between the tangible assets
values calculated in accordance with the two standards enabling reinstatement of
deferred tax accounted for earlier.
The change in value in environmental provisions covers the release of provisions
due to recultivation works carried out on the Pietra quarry area.
Minority interest has decreased by 4.1 % compared to the basis period. The
decrease was caused by the conversion to Forint.
Equity has decreased by 0.8 % compared to the basis period.
Issued capital and capital reserves remained unchanged compared to the basis
Retained earnings has increased with the profit of the previous year.
Translation adjustment is the balance of exchange rate differences generating on
translating into Forint during the consolidation. Difference here is caused by
the changes of the cross-rates of foreign currencies.
III. Cash Flow
In 1Q 2003 our funds decreased on the basis of those describe in the analysis of
IV. Financial ratios
1. Ratio of accounts payable within total liabilities 32.8 % 44.0 %
2. Efficiency of stocks 59.6 % 80.2 %
3. Stock turn ratio 0.68 0.83
4. Chronologic average of stocks 5,329,749 4,818,494
1. Rate of indebtedness 32.8 % 44.0 %
2. Liquidity ratio I. 2.86 2.85
3. Liquidity ratio (quick ratio) 1.40 1.83
Rate of profitability
1. Profitability to sales revenue 4.9 % 1.1 %
2. Ratio of sales revenue within total income 98.1 % 98.1%
Consolidated balance sheet, unaudited
All figures in HUF thousands
ASSETS 2003. 03. 31. 2002. 03. 31. Index
Cash and cash equivalents 2 316 276 2 582 828 89,7%
Trade accounts receivable 2 844 016 2 954 911 96,2%
Inventory 6 096 443 4 966 249 122,8%
Short term investments 699 770 981 0,1%
Other current assets 703 977 2 631 531 26,8%
Total current assets 11 961 411 13 906 500 86,0%
FIXED ASSETS AND OTHERS
Tangible assets, net 16 402 451 18 082 131 90,7%
Intangible assets, net 38 072 88 010 43,3%
Deferred tax 206 007 820 376 25,1%
Investments 39 930 1 796 931 2,2%
Total fixed assets and others 16 686 460 20 787 448 80,3%
TOTAL ASSATS 28 647 871 34 693 948 82,6%
LIABILITIES AND OWNERS' EQUITY
Accounts payable and accrued expenses 2 646 858 2 325 521 113,8%
Short term loans payable 768 474 645 973 119,0%
Current portion of long term debt 771 781 1 916 512 40,3%
Total current liabilities 4 187 113 4 888 006 85,7%
LONG TERM LIABILITIES
Long term loans 4 082 536 8 317 287 49,1%
Deferred tax 973 665 1 857 947 52,4%
Environmental provisions 139 214 189 214 73,6%
Total long term liabilities 5 195 415 10 364 448 50,1%
Minority interests 593 540 619 218 95,9%
Issued capital 5 354 463 5 354 463 100,0%
Treasury shares 0 -
Share Premium Reserve 9 420 101 9 420 101 100,0%
Retained earnings 3 369 481 2 873 524 117,3%
Translation adjustment 527 758 1 174 188 44,9%
Total owners' equity 18 671 803 18 822 276 99,2%
TOTAL LIABILITIES AND
OWNERS' EQUITY 28 647 871 34 693 948 82,6%
Consolidated statement of profit and loss, unaudited
All figures in HUF thousands
2003. 03. 31. 2002. 03. 31. Index
Sales revenue 3 634 577 3 984 349 91,2%
Cost of sales (2 626 865) (2 996 124) 87,7%
GROSS MARGIN 1 007 712 988 225 102,0%
Selling, general and administrative expenses (859 958) (808 465) 106,4%
Other operating income 54 245 30 394 178,5%
Other operating expenses (90 270) (45 231) 199,6%
OPERATING PROFIT 111 729 164 923 67,7%
Exchange difference expense/income,net 348 772 229 307 152,1%
Interest income 17 078 46 056 37,1%
Interest expense (91 928) (116 326) 79,0%
NMP (47 791) (168 411) -
NET PROFIT BEFORE TAX 337 860 155 549 217,2%
Corporate tax (25 765) (63 776) 40,4%
Deferred tax (132 269) (46 663) 283,5%
NET PROFIT AFTER TAX 179 826 45 110 398,6%
Result of interests in associated companies -
Minority interests (2 300) (1 052) 218,7%
NET PROFIT AFTER TAX & MINORITY 177 526 44 058 402,9%
Statement of Cash Flow
Opening cash and cash equivalents 2 238 594
Net profit 177 526
Depreciation 402 606
Depreciation of investments
Decrease/increase in inventory (486 448)
Decrease/increase in trade receivables 1 623 399
Short term investments 349 459
Decrease/increase in liabilities (340 042)
Decrease/increase in minority interest 10 250
Environmental provisions 0
Unrealized exchange rate differences 496 903
Decrease/increase in deferred tax 62 834
Cash flow provided by operations 2 296 487
Addition to/disposal of investments 106 568
Decrease/increase in financial investments 1 096
Cash flow provided by investing activities 107 664
Inker dividend 0
Decrease/increase in loans (2 326 469)
Cash flow generated by financial activities (2 326 469)
Free Cash flow (th HUF) 77 682
Closing cash and cash equivalents (th HUF) 2 316 276
There are no material off-balance sheet items.
Number of full time employees (persons)
End of basis period Beginning of year u/review End of period u/review
Zalakeramia Group 2,911 2,920 2,886
Data relating to share structure and shareholders
Owners structure, rate of shareholding and voting percentage
Description of shareholders Total share capital = Listed series
Beginning of period End of period
(on 1 January) (on 31 March)
%* Pcs %* Pcs
Hungarian institutional/corportaion 57.31 3,068,223 59.21 3,170,319
Foreign institutional/corporation 13.73 735,159 13.73 735,028
Hungarian individuals 0.14 7,728 0.39 21,032
Foreign individuals 0.03 1,521 0.03 1,521
Employees, senior officers 0.12 6,552 0.05 2,512
Treasury 0.00 0 0.00 0
Shareholders belonging to state finances 0.18 9,796 0.18 9,796
International Development Institutions 0.00 0 0.00 0
Other 28.49 1,525,484 26.41 1,414,255
T O T A L 100.00 5,354,463 100.00 5,354,463
* Ownership stake equals to voting percentage
Number of treasury shares (pcs) in the year under review
1 January 31 March 30 June 30 September 31 December
Shareholders having more than 5 % stake (Marc 31, 2003)
Shareholder Quantity (pcs) Share (%) Voting percentage (%)
Intergazprom- 1,644,285 30.7090 30.7090
Invest Holding Rt
Altalanos Ertekforgalmi Bank Rt. 1,175,659 21.9566 21.9566
Senior officers, strategic employees
Type Name Title Beginning of End/termination of Own shares
engagement engagement held (pcs)
BM Imre Takats * Chairman & CEO 2001.04.28. 2006.04.28. 50
BM Agnes Sasinszki* Board Member 2001.04.28. 2006.04.28. 6.500
BM Gyorgy Doleschall* Board Member 2001.04.28. 2006.04.28. -
BM dr. Laszlo Zala* Board Member 2001.04.28. 2006.04.28. -
BM Gyorgy Karikas* Board Member 2001.04.28. 2006.04.28. -
BM Agnes Albrecht * CEO 2002.04.25. 2007.04.25. 2.460
BM Istvan Toth * Deputy CEO for Trade and 2002.04.25. 2007.04.25. -
BM M.N.Rahimkulov** Chairman 2003.03.21. 2008.03.20.
BM Agnes Albrecht** CEO 2003.03.21. 2008.03.20. 2.460
BM Gabor Petre** Board Member 2003.03.21. 2008.03.20.
BM Andrei Dementiev** Board Member 2003.03.21. 2008.03.20.
BM Sandor Hegyi** Deputy Techn.&Prod. CEO 2003.03.21. 2008.03.20. -
SB Janos Granicz * Chairman 2002.04.25. 2005.04.25. -
SB Ilona Borsos Member 2000.06.01. 2003.05.31. 2
SB Dr. Ervin Toth * Member 2002.04.25. 2005.04.25. -
SB Sandor Egyed Member 2000.06.01. 2003.05.31. -
SB Dr. Laszlo Szoke* Member 2002.04.25. 2005.04.25. -
SB Dr. Miklos Havelda** Chairman 2003.03.21. 2006.03.20.
SB Eva Janzer** Member 2003.03.21. 2006.03.20
SP Imre Takats *** Chairman & CEO 1999.06.01. 2004.05.31 -
SP Agnes Albrecht Deputy CEO for Finance 1999.06.01. 2004.05.31. -
SP Istvan Toth Deputy CEO for Trade and 1999.09.01. 2004.05.31. -
SP Sandor Hegyi Deputy Techn.&Prod. CEO 2002.02.20. indefinite -
SP Istvan Hanzel CEO 2003.04.15. indefinite
SP Endre Bank Finance Director 2003.04.15. indefinite
* resigned from their positions at the AGM on March 21, 2003
** appointed at the AGM on March 21, 2003
*** employment terminated on April 15, 2003
In addition to the changes stated in the quick report no other material changes
occurred in the organization of the issuer and in senior officers.
Zalaegerszeg, May 13, 2003
The Board of Directors of
This information is provided by RNS
The company news service from the London Stock Exchange