This company's branding has already reached 4,523 peopleand his is followed by 36 Storybook users.On average, the company has been rated 4.6 points.and commented 300 times.

's activity report 2022

Main activities and their results

AS Pihlaka is a company that started its economic activity in 1993. The main activity of the company is the production of confectionery and culinary products and their wholesale and retail sale.

The company's sales revenue in 2022 was 4,961,539 euros (2021: 4,169,644), which is 18.9% higher compared to the previous financial year.

New product items have been introduced to the market during product development. The company's sales revenue consisted of 99.85% sales in the Republic of Estonia and 0.15% sales in other European

Union member states (Republic of Finland).

Significant events during the reporting year

The main objectives of the company's economic activity in 2022 were to increase the awareness of its products among potential consumers, increase the number of buyers and product development.

In developed countries, including Estonia, the impact of the coronavirus on the economy decreased significantly. As a result, the restrictions imposed on the economy in 2022 were absent and the demand for goods and services increased. In the second half of the year, the economic development was hampered by accelerated inflation, which was mainly driven by the continued rise in energy and raw material prices. As a result, AS Pihlaka's sales turnover increased significantly compared to the previous period.

In February 2022, Russia started a war in Ukraine. In connection with this, most countries imposed sanctions, which have a negative impact on the economy in Russia and elsewhere in the world. Due to the imposed restrictions, the effects of second-round realization may gradually appear over time, increasing the likelihood of realizing market risk, refinancing and interest risk, and liquidity risk.

The number of contract partners involved in the resale of AS Pihlaka's products remained stable in the 2022 financial year. The largest sales volume contract partner was

AS Selver. The sales of AS Pihlaka's cafe-stores accounted for 75.4% of the turnover and the sale of production to contract partners 24.6%

AS Pihlaka opened a new store-cafe in Viljandi in the summer of 2022, expanding our area of operation in Estonia. The Viljandi store-cafe is AS Pihlaka's eighth sales point.

More and more people are adopting e-commerce, which is increasingly pushing aside traditional retail. As a result, AS Pihlaka developed the company's e-commerce software in 2022.

year, providing customers with a more convenient option to place e-orders.

Significant investments made during the reporting year

Investments in fixed assets during the reporting year totaled 116,227 euros (2021: 65,721 euros), including machinery and equipment totaling 91,783 euros and other investments 24,444 euros. The largest investment objects in 2022 were the Viljandi cafe interior for a total of 48,875 euros and the installation of solar panels on the Rakvere production building for 48,624 euros.

As of 31.12.2022, the company had short-term tradable shares and bonds worth 2,327,907 euros (2021: 2,474,034 euros). New shares and bonds were acquired for 677,856 euros and redeemed for 823,983 euros.

Financial reporting and auditing

AS Pihlaka prepares financial statements in accordance with the Estonian financial reporting standard (EFS), in addition, the Accounting Act of the Republic of Estonia,

Guidelines issued by the Accounting Standards Board and the Company's internal accounting rules are followed.

The 2022 financial year report approved by the Management Board is audited by an independent auditor.

General macroeconomic development of the company's field of activity and its impact on financial results

The general operating environment was not favorable for AS Pihlaka in 2022. Despite the energy crisis and the subsequent record high inflation, the economy cooled down in the III quarter slower than previously forecasted and in the IV quarter, the EU economy managed to replace the expected 0.5% decline in the fall with stagnation. Although uncertainty related to the forecast is still high, growth risks are generally balanced.

Estonia's GDP was estimated to have decreased by 0.3% in 2022. The sharp rise in energy prices hit the Estonian economy and quickly spread to other areas affecting inflation. Therefore, private consumption slowed down significantly in 2022. Industrial production fell sharply in the last months of 2022. However, the labor market remained strong at the end of 2022 and the beginning of 2023, and unemployment only increased slightly. The pre-crisis economic volume was essentially achieved, i.e., recovery from the crisis has been rapid. The rapid rise in interest rates significantly affects both consumption and construction activity. However, GDP is expected to return to growth in 2023, as the current unfavorable conditions, especially inflation, weak external demand and high uncertainty, should gradually recede and the package of measures planned in the state budget should support economic growth. Due to the negative results of the previous year, GDP growth in 2023.

should only show marginally positive results. However, significantly stronger growth is forecasted for the next year, which should reach 2.8%, supporting the revival of export demand and private consumption, and flexibility in the labor market.