Enterprise Estonia announces procurement for start-up accelerator

Enterprise Estonia has opened an international public procurement process for the launch of a new start-up accelerator in Estonia. The aim of the procurement is to launch up to two start-up accelerators that would operate similarly to other globally well-known start-up accelerators. The programme is funded by Enterprise Estonia using financing from the European Regional Development Fund, Enterprise Estonia said.

The start-up accelerator should provide a programme specific to its vertical, which includes providing training and mentoring to start-ups so that they could develop their business models, products or services and validate such models, products or services on the market.

The start-up accelerator should help start-ups expand their international network and provide them with financial investment. The accelerator must also have a broader impact on Estonia’s start-up ecosystem, increasing Estonian start-ups’ visibility in the global start-up ecosystem and drawing international mentors’ knowledge to the Estonian start-up ecosystem.

Enterprise Estonia will cover the accelerator’s operating costs during two years. Thereafter the accelerator must be able to continue independently. The accelerator must raise funds from private investors to invest into start-ups. The accelerator team or their partners must have executed at least one similar international accelerator programme.

In the summer of 2012, Enterprise Estonia provided financial support to launch the first gaming accelerator in Europe, Gamefounders. Positive results of the first batch of start-ups completing the Gamefouders programme have proven the suitability of the vertical accelerator format.

Source: BNS via Estonian Review

Estonian producer of building foams had a successful year

Sales of Wolf Group, an Estonian producer and exporter of building foams, sealants and breathing facade solutions, increased last year nearly 12% year-on-year to 91 million euros and operating profit grew to 8.3 million euros from the year-earlier five million euros. “The economic results were positively influenced by the growth of production efficiency, expansion of export to new countries, and the strengthening of positions on existing export markets,” the company said.

“The group’s result is highly satisfactory as it was in line with our expectations, plans and visions,” CEO Jaan Puusaag said. Sales increased the most last year on the Russian market, which remains the largest export market for the company, he said.

In addition to Russia, solid growth was recorded in Poland and the Baltic states as well as by the group’s Bulgarian and Romanian subsidiaries. In Latvia and Lithuania, for instance, sales grew by nearly 20%. In Puusaag’s words, clear signs of post-crisis recovery were observed on those markets last year.

Wolf Group continued strengthening its positions on the South American market, expanding in Argentina, Chile, Columbia and Peru. Other new countries in the group’s export portfolio are Macedonia, Kosovo and Belgium. The company sees great potential in Turkey.

Wolf Group brings together the sales and production enterprises of the manufacturer of construction chemicals and materials Krimelte both in Estonia and abroad. Factories of Wolf Group are located in Estonia and Russia, and sales units in Estonia, Latvia, Lithuania, Ukraine, Romania, Bulgaria, Denmark and Kazakhstan. The company exports its products to nearly 50 countries.

Source: Estonian Review

Apteek1 will be renamed as Benu Apteek

Finnish wholesale trader of medicines Tamro has renamed 87 pharmacies that belonged in its Apteek1 chain  as Benu Apteek.

Benu is an international brand for pharmacies that belongs to Phoenix Group, parent company of Tamro.

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Fits.me gets in 5.5 MEUR from investors

The provider of virtual fitting room solutions Fits.me has closed a new round of investment by which it involved additional capital in the amount of 5.5 million euros. It said the Series A investment has been subscribed by existing investor SmartCap, with new participation from Conor Venture Partners , Fostergate Holdings Limited and The Entrepreneur’s Fund.

Fits.me develops, markets and operates virtual fitting room solutions on a software-as-a-service (SaaS) basis for online clothing retailers, helping them to overcome the problems of low online conversion rates and high garment returns rates caused by doubt over fit and poor fit respectively.

Fits.me will use the new funding to support accelerated sales and marketing programs – including international expansion into the France, Germany, other EU countries and the USA – and to continue to scale up its operations to meet predicted demand.

“While large swathes of retailing already takes place online, there are sectors for which the real online growth has yet to come. Apparel is chief among those sectors, primarily because buying clothes is such a subjective process – most obviously when it comes to ‘fit’,” said Manu Mäkelä of Conor Venture Partners.

Mäkelä said Fits.me has a sophisticated solution that works, delivers provable results, is easy for retailers to deploy and has been signed up by a growing band of respected retailers and brands, on an international basis. “From an investor’s point of view, there is tremendous growth potential,” he added.

Fits.me counts many well-known retailers among its clients, including Adidas, Avenue32, Barbour By Mail, Boden, Ermenegildo Zegna, Hawes & Curtis, Henri Lloyd, Hugo Boss, John Smedley, L.K.Bennett, Mexx, Nicole Farhi, Otto, Pretty Green, Superdry and Thomas Pink.

Previously, in May 2009 and August 2010, Fits.me received total seed and early-stage investment in the total amount of 2.5 million euros.

Source: Estonian Review. Original source: BNS

Finnish alcohol maker moves production to Estonia

Finnish-owned alcohol maker Altia will relocate the production of alcoholic beverages from its Latvian distillery to its Tabasalu plant, reports Äripäev.

The decision to combine the production of the Estonian and Latvian brands beginning from September 2013 is in line with Altia’s overall strategy to achieve cost efficiency, the company said.

Board member of Altia’s Estonian operation Kristel Mets said the Tabasalu plant that went into operation in 1993 is one of the largest alcohol producers in Estonia that produces brands for both the domestic and export markets.

Altia Eesti posted revenues of 30.7 million euros in 2012 of which it paid out 17.6 million euros in excise duties. Its operating profit was 1.1 million euros. The company sold 5.3 million liters of alcohol during the year.

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Latvian lingerie producer acquires Estonian competitor Linette

Latvian-based New Rosme that produces corsetry, lingerie and swimwear has acquired Estonian lingerie producer Linette, which owns a chain of eight stores in Estonia, reported the Baltic Course.

New Rosme CEO Edgars Stelmahers said in comment that New Rosme plans a 25% increase in turnover after the acquisition.

By purchasing Linette, New Rosme will be able to expand its sales opportunities, becoming the leading lingerie producer in the Baltic region. The opening of a new Linette store, renovation at those already existing and Rosme collections leads one to predict a 20% increase in Linette turnover this year. Last year, Linette turned over EUR 865,000, said Stelmahers.

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Põltsamaa Felix posts 1.1 MEUR profit

The South Estonia-based food industry company Põltsamaa Felix increased turnover by 5.6% to 21.3 million euros and made a profit of 1.1 million euros last year.

Põltsamaa Felix exported 38% of its output, with Finland, Latvia, Sweden and Lithuania as the main destinations, the company said. Export declined by 2.9% in annual comparison, but the drop was offset by strong growth of domestic sales. The turnover generated on the domestic market jumped 13% year-on-year.

The major investments were extension of the mayonnaise and dressings plant and relocation of the mustard production into a new, modern facility. Põltsamaa Felix gave work to an average 184 people, including seasonal workers, last year. Põltsamaa Felix is a holding of the international Orkla group.

The company’s goals this year are to continue growing on the domestic market and restore export growth, CEO Anti Orav said.

Source: Estonian Review

Profit of Estonian postal company doubles in 2012

The Estonian state-held postal company Eesti Post earned a net profit of 2.5 million euros in 2012, compared with a profit of 1.2 million euros posted for 2011.

Operating income grew 9% year on year to 52.7 million euros and operating costs were up 7% at 50.3 million euros, Eesti Post said on Monday. The net profit margin in 2012 was 4.8% compared with 1.5% in the year before, Eesti Post CEO Aavo Karmas said at a press conference on Monday.

“The supervisory board has reason to be satisfied with the result,” chairman of the supervisory board of Eesti Post Meelis Atonen said at a press conference. He pointed out that almost all the profit originated from core operations, whereas in 2011 profit from core operations totalled 600,000 euros.

The number of parcels sent during the year was 2.1 million compared with 1.8 million in 2011.

Letter volumes dropped 8% year on year in 2012 and 10% in the first quarter of 2013. The number of letters sent during 2012 was 31.1 million compared with 33.8 million in the year earlier and letter delivery now accounts for almost 40% of sales by Eesti Post. Sending of letter mail peaked in 2006, when 60 million letters were sent.

The number of simple letters sent has been declining at an annual rate of approximately 10% for the past five or six years. “It will stop at some natural resistance level perhaps, but apparently we’re not there yet,” Eesti Post board member Mait Sooaru told BNS.

Source: Estonian Review

2012 was a successful year for the businesses

According to the preliminary data of Statistics Estonia, in 2012 the total profit of the business sector was 2.9 billion euros, which was 7% more than a year earlier. The increase of enterprise sector’s net sales, productivity and total profit continued for the third year in a row.

Compared to 2011, the total profit increased in almost all economic activities. The biggest contribution to the increase in the total profit was made by activities mainly relying on domestic consumption – construction, real estate, administrative and support services and retail trade. The growth in the profit of the business sector was negatively influenced mostly by the energy and manufacturing activities. The profit of manufacturing, which holds the biggest share in the total profit of the business sector, decreased 6% compared to 2011, first of all due to the decrease of profits in the manufacture of electronics, wood and metal products.

In 2012, enterprises sold goods and services for 46.3 billion euros, which was 10% more than a year earlier. The net sales of wholesale and retail trade and manufacturing, which have the biggest share in the gross net sales of the total business sector, increased 10% and 4%, respectively.

Compared to 2011, enterprises’ total costs increased 10%. Personnel expenses increased 11%. The number of persons employed as well as the number of hours worked increased 4%. Labour productivity on the basis of value added of the business sector increased 5%, amounting on an average to 20,000 euros per person employed in a year.

The growth in enterprises’ investments continued for the second year in a row. In 2012, enterprises invested 2.7 billion euros, which is 12% more than in 2011. As in 2011, the biggest investments were made in equipment and machinery and in the construction and alteration of buildings. The biggest investors were energy, manufacturing and transportation and storage enterprises with a half of the total investments of enterprises. Compared to 2011, only investments in vehicles and computers decreased. Other investments increased, investments in land increased the most (37%).

In the 4th quarter of 2012, enterprises’ net sales of goods and services totalled 12.1 billion euros, which at current prices was 8% more than in the same period of 2011. In the 4th quarter of 2012, enterprises invested 874 million euros, i.e. 18% more than in the 4th quarter of 2011.

Read more from Statistics Estonia

Tere Dairy group posts 4.5 MEUR profit

AS Tere, the dairy group belonging to Estonian businessman Oliver Kruuda, earned a net profit of 4.51 million euros last year compared with a loss of 2.44 million euros sustained in 2011. Sales in 2012 dropped to 80.3 million euros from 109.9 million euros in 2011.

Operating profit totalled 3.92 million euros in 2012, whereas the operating result for 2011 was a loss of 5.49 million euros. Net financial expenses declined to 2.35 million euros last year from 2.66 million euros the year before.

Tere’s pre-tax profit was 1.57 million euros last year and 8.15 million euros in 2011.

The average number of workers last year was 512 compared with an average workforce of 648 employed in 2011. As at the end of 2012 the number of workers was 464, compared with 598 at the same time a year earlier.

Labour costs totalled 8.17 million euros in 2012 and 9.63 million euros in 2011. Remuneration paid to members of the management board and the supervisory board totalled 128 000 euros in 2012 and 101 000 euros in 2011.

Source: BNS news in weekly Estonian Review