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's activity report 2022

In the financial year 2021/2022, MATKaSPORT's sales revenue increased by 24.9%. Retail sales grew by 25.8% and wholesale and project sales grew by 13.6%. The financial year ended with a profit of €407,153, which increased by 5.7% compared to the previous year.

Sales results were significantly influenced by the sales of the 2021/2022 winter season and the extraordinary demand for outdoor equipment due to the war in Ukraine that emerged at the end of February 2022. This affected selected product groups until the end of the financial year and beyond. Also, innovations related to stores, organic sales growth, and price increases had a positive impact.

At the beginning of the summer season, in May, we opened a new store in Pärnu Kaubamajakas and in September we closed the store in Pärnu Keskus. The total area of the stores decreased somewhat and was about 1800 m2 at the end of the financial year. The change of location significantly increased sales in Pärnu during the summer period and the regular cash sales in the new location are higher than in the previous location.

E-store sales fell by an average of 10% during the financial year, but the decline was caused by 2 months, March-April, when COVID restrictions applied to physical stores a year earlier. In all other months, e-store sales exceeded the previous year.

Sales seasonality decreased and the difference between the month with the highest and lowest turnover fell from 2.9 to 1.9.

Supply of goods somewhat improved. There were still long delays in shoe deliveries and hiking shoes ordered for spring-summer arrived at the end of summer and in autumn, which increased the stock of goods at the end of the financial year. Delays and partial arrivals also occurred in other product groups. Temporary supply problems also arose in goods that were bought in large quantities for crisis prevention and assistance to Ukraine at the end of February.

The average growth of goods in stock during the financial year was 57%. Of the stock growth, 59% were goods sold all year round, whose commercial value remains stable, 21% were autumn-winter and 19% were spring-summer main season goods. Considering the needs of our clientele, we constantly sell, although in smaller quantities, off-season goods.

The growth of stocks was also influenced by certain goods delays but also preparation for the expansion of retail space, which, however, did not materialize in the past financial year.

The stock status at the change of the financial year can fluctuate significantly due to the fact that goods ordered for the winter season usually arrive close to the end of the financial year, in the period September – October and a shift of just a few weeks can significantly affect the value of stocks at the end of one financial year and the beginning of another. Given the ongoing supply problems during the financial year and the increase in purchase prices, we continued to maintain high levels of stock during the financial year.

In the reporting year, we changed our warehouse service partner due to the growth in goods volumes. The new partner has a greater capacity for storage and the technological level allowed us to partially digitize the main processes of storage and distribution logistics. It also opens the way for the use of new logistics services, so that we can focus more on our main activities.

After the reporting period, the company's sales activity has been successful and has grown for 4 months