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's activity report 2022

Introduction

AS Linnamäe Lihatööstus is a meat processing plant established in 1992 in Läänemaa. The company focuses on the production of meat products and the procurement and sale of game and beef. The products are mainly marketed in the Estonian and other European retail markets and in the HoReCa sector. The company's operations are significantly affected by seasonality, which results from the increase in meat and meat product consumption during the summer period and at Christmas.

At the beginning of the financial year, AS Linnamäe Lihatööstus acquired 100% of the shares of OÜ Liivimaa Lihasaaduste Wabrik and subsequently, the two companies merged, during which the company acquired a 50% right

to the Liivimaa Lihaveis trademark.

Revenues, expenses and profit

During the period 01.05.2022 a. - 30.04.2023 a. AS Linnamäe Lihatööstus had sales revenue of 9.2 million euros.

The company sold 0.9 million euros worth of production outside Estonia. Sales outside

Estonia did decrease due to a reduction in rumba sales, but more beef was processed within the company, which increased the sales of beef products, resulting in a higher gross margin.

The net profit of AS Linnamäe Lihatööstus for the period 01.05.2022 a.-30.04.2023 a. was 401 thousand euros.

The gross margin of the main activity for the period 01.05.2022 a.- 30.04.2023 a. was 19% (for the period 01.05.2021 a.- 30.04.2022 a. 15%).

The total volume of sold production for the period 01.05.2022 a.- 30.04.2023 a. was 1 291 thousand kg (for the period 01.05.2021 a.- 30.04.2022 a. 1 692 thousand kg).

Investments

The company invested 309 thousand euros in tangible fixed assets during the period 01.05.2022 a.- 30.04.2023 a. (during the period 01.05.2021 a.- 30.04.2022 a.1 372 thousand euros). The largest investment was made in energy - a new solar park with a capacity of 220 kw was completed.

Personnel

The average number of employees at AS Linnamäe Lihatööstus during the period 01.05.2022 a.- 30.04.2023 a. was 56 employees (during the period 01.05.2021 a.- 30.04.2022 a.57 employees). The number of contractual employees decreased due to an increase in the use of rented labor.

We are one of the largest employers in Lääne-Nigula municipality.

Goals for the next financial year

The main goal of AS Linnamäe Lihatööstus for the next financial year is to continue to increase retail, export and HoReCa sales. We are focusing on improving production efficiency and developing products from game and beef. We are also investing in process management development in the company.