Persistent in Change: Baltika’s 2024 Reflections and Future
The only fair way to begin this annual overview is to express my immense pride in our company and the exceptional team behind it. 2024 presented its share of economic challenges – marked by uncertainty, inflation, and shifting consumer behaviour – but through resilience, agility, and disciplined execution, we continued to move forward. Success cannot be measured solely by financial performance; it’s defined by how we serve our customers, strengthen our brand, and position ourselves for long-term growth. At Baltika, we remain strong in our commitment to delivering high-quality designs, exceptional service, and sustainable choices, ensuring we empower and inspire women in everything we do.
In last year’s overview, I described how important expansion outside the Baltics is for our company. During 2024, we made significant progress in expanding Ivo Nikkolo’s international presence. Our partnership with Boozt opened new doors, allowing us to introduce the brand to a broader Nordic audience. The strong reception from customers in the region reaffirms the lasting appeal of our designs and the growing strength of our brand. But we’re not standing still – by mid-2025, we plan to launch on new marketplaces, securing a presence in Europe’s largest markets. At the same time, we continue to scale our wholesale business, forging new partnerships in Scandinavia, Eastern Europe and even in North America to secure physical presence of Ivo Nikkolo. This expansion strengthens our global footprint and introduces Estonian womenswear design to fresh audiences.
In addition to international partnerships, we launched our new loyalty program, IN Circle, offering members exclusive content, special offers, and a behind-the-scenes look at the world of Ivo Nikkolo. IN Circle is more than a loyalty program though – it’s a community aimed at building deeper, more personal connections with our customers. As a local fashion house, we take immense pride in our ability to engage directly with our brand community – listening to their needs and involving them in the creative journey, from design inspiration to product development and exclusive events. This relationship is a competitive advantage that sets us apart from larger, more impersonal mass brands.
Our revenues for 2024 reached EUR 8,583 thousand, reflecting an 8% decline from 2023. The decline was largely driven by the retail segment, while our online and wholesale segments saw growth. The drop in retail performance was anticipated due to two factors: ongoing economic challenges in our largest market, Estonia, where the retail sector has faced declines for over two years; and a reduction in the number of stores we operated in 2024 compared to the previous year. Because of the overall decline in sales, we acted decisively – streamlining operations and improving efficiency – which allowed us to reduce operating expenses by 10%, outpacing the drop in revenue and strengthening our financial position yet again. These strategic moves have laid a solid foundation for growth, once the economic downturn subsides, positioning us to capitalise on opportunities as market conditions improve.
Finally, I want to extend my deepest gratitude to the people of Baltika. I hope this overview helps our shareholders, business partners, and all readers gain an appreciation for the incredible character and capabilities of our team. Their dedication, passion, and hard work are the driving force behind everything we do, and I couldn’t be prouder of them.
Margus Olesk
CFO, Member of the Board
