This company's branding has already reached 8,079 peopleand his is followed by 3 Storybook users.On average, the company has been rated 5.0 points.but there is no comment.

Activity report 2022

The main activity of the company is retail trade, selling clothes and household goods. The clothing range is adjusted according to the season, so the only effect of seasonality is usually an increase in sales before Christmas. The main customers are families with small children.

In 2022, retail trade in Estonia grew along with the recovering economy, which also improved the company's results.

In the 2022 financial year, the company opened 1 new store, so by the end of the 2022 financial year, a total of 30 stores have been opened in Estonia. The source of assets for expansion is mainly the sales revenue of the stores. The company does not have registered branches outside Estonia.

The company is a member of environmental associations and submits its imported packaging data to the relevant organizations on time.

Effects of Covid-19

Despite the prevailing situation, the company has grown as planned. In the opinion of the management, COVID-19 does not have a significant impact on the company's financial situation in 2022 and beyond, as the low price level of the products sold gives a great advantage in such unstable times on the market.

Although it is not possible to assess the entire impact of COVID-19 on the company's future operations, the company's management believes that significant changes in the company's development plans do not need to be made. Despite this expectation, the management closely monitors the situation and takes all necessary measures to reduce any possible negative impact. The company has not identified any circumstances that would cast doubt on the continuity of the company's operations.

Effects of the Russian-Ukrainian war On February 24, 2022, Russia began military operations against Ukraine. This was responded to by Western countries with significant economic sanctions. Ongoing military operations affect not only Ukraine but also Russia, Europe, and the entire world economy.

The company has not had business activities with sanctioned individuals, and there have been no Russian or Ukrainian companies among the suppliers of goods.

The war has not affected the value of the company's assets, as the sales revenue of the stores in Estonia has not decreased.

The current situation in Ukraine is very volatile and uncertain. As military operations are changing and dynamic, it is not possible to reliably assess their possible impact on the company's operations and financial situation at this time.

Financial risk management

The company's most important financial instrument is cash in banks. The main purpose of these financial instruments is to finance the company's economic activities. The company also has several other financial assets and liabilities, such as debts to suppliers and employees, which result directly from economic activities. The company is exposed to market risk, liquidity risk, and cash flow risk, which affect its financial instruments.

Market risk is the risk where changes in market factors, such as exchange rates and commodity prices, affect the company's revenues or the value of its financial instruments. The company is exposed to currency risk, which arises from different currencies used, mainly because the company's accounting currency is the euro, but the products intended for sale are imported from Poland in Polish zlotys.

The company follows reasonable liquidity and cash flow risk management, ensuring the availability of sufficient credit resources to meet obligations on time. The company's management manages liquidity and cash flow risk by maintaining adequate cash reserves and ensuring adequate financing, continuously monitoring forecasted and actual cash flows, and coordinating the structure of financial asset and liability maturities.

Main ratios of Pepco Estonia OÜ: 2022 2021

Net profitability (%) 8 13

Short-term liabilities coverage ratio 2.04 1.36

Return on assets ROA (%) 20 30

Return on equity ROE (%) 31 53

Formulas used in the calculation of ratios: (cid:127) Net profitability (%) = net profit/ sales revenue * 100 (cid:127) Short-term liabilities coverage ratio (times) = current assets/short-term liabilities