On Friday, clothing company Baltika announced it will end the first half of 2020 with a net income of €1.5 million following cuts on fixed costs, increased operating income and a refusal of discounts on production building rental contracts.
Compared to last year, the company has cut more than €3 million of fixed costs in the first six months of 2020.
Flavio Perini, CEO of Baltika Grupp, said consistent cuts on the company's marketing and general management budgets is part of Baltika Grupp's ongoing restructuring and the company has taken major steps during the coronavirus pandemic to decrease fixed costs at an accelerated but proportionate pace.
Perini said: "Baltika's focus is to cut fixed costs and to raise revenue in both physical stores and also the e-store. We will also assess our network of physical locations and will change the strategy with a key point on integrating all sales channels, which have to be supported by well-functioning IT and logistics. In all this, it is important that our clients are still interested in our product. We are actively working on our product selection and preparing for the next seasons.
"With all these changes we will improve the company's financial situation by the end of the year and it will also be an important push for the financial sustainability of the business model, allowing us to grow internationally in the future."
Baltika Grupp's revenue for the first half of 2020 was €9.8 milliond, 50 percent less when compared to the first six months of 2019.
Editor: Kristjan Kallaste