2023 9 months and III quarter consolidated unaudited interim report
02 Novembre 2023 - 7:00AM
2023 9 months and III quarter consolidated unaudited interim report
COMMENTARY FROM MANAGEMENT
Q3 2023 revenue for Merko Ehitus was EUR 122
million and for the nine months was EUR 340 million. Net profit in
Q3 was EUR 12.7 million and net profit for the nine months
increased to EUR 32.1 million. Merko delivered 665 apartments and
22 commercial units to customers in the first nine months of
2023.
According to the management of Merko Ehitus, the
Q3 and nine-month results were supported by delivery of presold
apartments to customers in newly completed apartment developments.
The Merko group has inventory of apartments that are under
construction and presold is significantly smaller than in the past
few years due to the recession and the slump in the real estate
market and this will exert a negative impact on the group’s results
in coming years. The poor macroeconomic picture and general
uncertainty did not improve in Q3 and investments into new
development projects are still being curtailed. The outlook in this
regard is also very weak, the economic outlook has deteriorated and
the recovery has been deferred to the more distant future due to
central bank interest rate policy, continuing inflation, unstable
energy and tax policies and, above all, the geopolitical situation.
Over nine months of 2023 the group has invested a total of EUR 73
million into ongoing development projects and acquisitions of new
properties.
In the first nine months of 2023, the group
companies signed new construction contracts worth EUR 379 million,
which was 31% more than in the comparison period, and the balance
of secured order-book grew by approximately 30% to EUR 449 million.
The group’s secured order-book continued growth in Q3 and is
currently strong, which does partially counterbalance the impacts
of the slumping apartment market on the group’s construction
volumes. Yet profitability of construction service is under
constant strain and the risks are high, since in the medium to long
term, cautious positions are predominant in markets and supply
chains, and there is an extreme amount of uncertainty about the
impacts of governments’ economic and foreign policy measures.
Therefore, the group’s companies will have to devote great
attention to managing the risks.
In the first nine months of the year, Merko
delivered 665 apartments and 22 business premises. As of the end of
Q3, the group’s companies had 825 apartments on its balance sheet.
About 40% of the apartments in the construction phase were covered
by preliminary sale contracts. The largest apartment developments
were Uus-Veerenni, Noblessner and Lahekalda in Tallinn, Erminurme
in Tartu, Viesturdarzs, Mežpilseta and Magnolijas in Riga, and
Vilneles Skverai in Vilnius.
In Q3 of 2023, the largest sites under
construction in Estonia were the Rae and Pelgulinna state
gymnasiums, Hampton by Hilton and Hyatt hotel buildings, Arter
Quarter, the logistics centre for Tallinn Kaubamaja Group, the
infrastructure along the south-eastern border of the Republic of
Estonia, the renovation of Vana-Kalamaja Street, a tram line
between Old City Harbour and Rail Baltica Ülemiste passenger
terminal, and the first phase of Ülemiste terminal. In Latvia, the
Elemental Business Centre office buildings were in progress.
Projects in Lithuania were wind farm infrastructure works in Kelme
and Pagėgiai regions, and various buildings and infrastructure for
NATO training centres.
OVERVIEW OF THE III QUARTER AND 9 MONTHS
RESULTS
PROFITABILITY2023 9 months’
pre-tax profit was EUR 33.8 million and Q3 2023 was EUR 13.6
million (9M 2022: EUR 18.7 million and Q3 2022 was EUR 10.3
million), which brought the pre-tax profit margin to 10.0% (9M
2022: 7.0%).Net profit attributable to shareholders for 9 months
2023 was EUR 32.1 million (9M 2022: EUR 17.0 million) and for Q3
2023 net profit attributable to shareholders was EUR 12.7 million
(Q3 2022: EUR 9.8 million). 9 months net profit margin was 9.5% (9M
2022: 6.4%).
REVENUE Q3 2023 revenue was EUR
122.5 million (Q3 2022: EUR 110.0 million) and 9 months’ revenue
was EUR 339.8 million (9M 2022: EUR 266.2 million). 9 months’
revenue increased by 27.7% compared to same period last year. The
share of revenue earned outside Estonia in 9 months 2023 was 34.5%
(9M 2022: 53.4%).
SECURED ORDER BOOKAs of 30
September 2023, the group’s secured order book was EUR 448.6
million (30 September 2022: EUR 341.0 million). In 9 months 2023,
group companies signed contracts in the amount of EUR 379.4 million
(9M 2022: EUR 290.4 million). In Q3 2023, new contracts were signed
in the amount of EUR 124.7 million (Q3 2022: EUR 97.1 million).
REAL ESTATE DEVELOPMENTIn 9
months 2023, the group sold a total of 665 apartments; in 9 months
2022, the group sold 456 apartments. The group earned a revenue of
EUR 106.1 million from sale of own developed apartments in 9 months
2023 and EUR 56.9 million in 9 months 2022. In Q3 of 2023 a total
of 153 apartments were sold, compared to 242 apartments in Q3 2022,
and earned a revenue of EUR 25.5 million from sale of own developed
apartments (Q3 2022: EUR 29.8 million).
CASH POSITIONAt the end of the
reporting period, the group had EUR 31.3 million in cash and cash
equivalents, and equity of EUR 198.4 million (49.7% of total
assets). Comparable figures as of 30 September 2022 were EUR 22.2
million and EUR 166.6 million (40.9% of total assets),
respectively. As of 30 September 2023, the group’s net debt was EUR
28.4 million (30 September 2022: EUR 88.3 million).
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOMEunauditedin thousand euros
|
20239 months |
20229 months |
2023 III quarter |
2022 III quarter |
202212 months |
Revenue |
339,838 |
266,206 |
122,491 |
110,008 |
409,633 |
Cost
of goods sold |
(296,642) |
(235,123) |
(105,114) |
(96,206) |
(355,975) |
Gross profit |
43,196 |
31,083 |
17,377 |
13,802 |
53,658 |
|
|
|
|
|
|
Marketing expenses |
(3,013) |
(2,945) |
(918) |
(776) |
(4,077) |
General and administrative expenses |
(12,896) |
(11,411) |
(4,635) |
(3,889) |
(15,860) |
Other
operating income |
3,399 |
2,426 |
621 |
1,004 |
3,144 |
Other
operating expenses |
(614) |
(647) |
(467) |
(192) |
(1,834) |
Operating profit |
30,072 |
18,506 |
11,978 |
9,949 |
35,031 |
|
|
|
|
|
|
Finance income/costs |
3,765 |
168 |
1,639 |
361 |
2,067 |
incl. finance income/costs from joint ventures |
6,061 |
1,093 |
2,242 |
765 |
3,516 |
interest expense |
(2,011) |
(670) |
(674) |
(296) |
(1,180) |
foreign exchange gain (loss) |
(192) |
(152) |
98 |
(85) |
(138) |
other financial income (expenses) |
(93) |
(103) |
(27) |
(23) |
(131) |
Profit before tax |
33,837 |
18,674 |
13,617 |
10,310 |
37,098 |
|
|
|
|
|
|
Corporate income tax expense |
(1,827) |
(1,911) |
(898) |
(735) |
(2,995) |
|
|
|
|
|
|
Net profit for financial year |
32,010 |
16,763 |
12,719 |
9,575 |
34,103 |
incl. net profit attributable to equity holders of the parent |
32,148 |
17,023 |
12,698 |
9,821 |
34,640 |
net profit attributable to non-controlling interest |
(138) |
(260) |
21 |
(246) |
(537) |
Other comprehensive income, which can subsequently be
classified in the income statement |
|
|
|
|
|
Currency translation differences of foreign entities |
(16) |
11 |
(88) |
23 |
30 |
Comprehensive income for the period |
31,994 |
16,774 |
12,631 |
9,598 |
34,133 |
incl. net profit attributable to equity holders of the parent |
32,116 |
17,020 |
12,626 |
9,831 |
34,648 |
net profit attributable to non-controlling interest |
(122) |
(246) |
5 |
(233) |
(515) |
Earnings per share for profit attributable to equity holders of the
parent (basic and diluted, in EUR) |
1.82 |
0.96 |
0.72 |
0.55 |
1.96 |
CONSOLIDATED STATEMENT OF FINANCIAL
POSITIONunauditedin thousand euros
|
30.09.2023 |
30.09.2022 |
31.12.2022 |
ASSETS |
|
|
|
Current assets |
|
|
|
Cash
and cash equivalents |
31,282 |
22,200 |
17,665 |
Trade
and other receivables |
86,895 |
72,295 |
77,959 |
Prepaid
corporate income tax |
2 |
5 |
38 |
Inventories |
206,603 |
243,222 |
225,661 |
|
324,782 |
337,722 |
321,323 |
Non-current assets |
|
|
|
Investments in joint ventures |
17,756 |
10,472 |
12,895 |
Other
shares and securities |
80 |
- |
- |
Other
long-term loans and receivables |
21,104 |
28,323 |
22,982 |
Deferred income tax assets |
1,852 |
1,155 |
693 |
Investment property |
15,534 |
11,511 |
11,485 |
Property, plant and equipment |
17,238 |
17,527 |
17,452 |
Intangible assets |
508 |
592 |
582 |
|
74,072 |
69,580 |
66,089 |
|
|
|
|
TOTAL ASSETS |
398,854 |
407,302 |
387,412 |
|
|
|
|
LIABILITIES |
|
|
|
Current liabilities |
|
|
|
Borrowings |
23,325 |
60,034 |
49,687 |
Payables and prepayments |
124,285 |
119,251 |
96,248 |
Income
tax liability |
1,846 |
1,830 |
1,241 |
Short-term provisions |
10,268 |
5,584 |
9,820 |
|
159,724 |
186,699 |
156,996 |
Non-current liabilities |
|
|
|
Long-term borrowings |
36,377 |
50,469 |
42,236 |
Deferred income tax liability |
1,878 |
1,671 |
2,355 |
Other
long-term payables |
2,841 |
2,377 |
2,133 |
|
41,096 |
54,517 |
46,724 |
|
|
|
|
TOTAL LIABILITIES |
200,820 |
241,216 |
203,720 |
|
|
|
|
EQUITY |
|
|
|
Non-controlling interests |
(380) |
(473) |
(495) |
Equity attributable to equity holders of the
parent |
|
|
|
Share
capital |
7,929 |
7,929 |
7,929 |
Statutory reserve capital |
793 |
793 |
793 |
Currency translation differences |
(815) |
(794) |
(783) |
Retained earnings |
190,507 |
158,631 |
176,248 |
|
198,414 |
166,559 |
184,187 |
TOTAL EQUITY |
198,034 |
166,086 |
183,692 |
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
398,854 |
407,302 |
387,412 |
Interim report is attached to the announcement
and is also published on NASDAQ Tallinn and Merko’s web page
(group.merko.ee).
Urmas SomelarHead of FinanceAS Merko Ehitus+372
650 1250urmas.somelar@merko.ee
AS Merko Ehitus (group.merko.ee) group companies develop real
estate and construct buildings and infrastructure. We create a
better living environment and build the future. We operate in
Estonia, Latvia, Lithuania and Norway. As at the end of 2022, the
group employed 661 people, and the group’s revenue for 2022 was EUR
410 million.
- Merko_Ehitus_2023_9M_interim_report
Grafico Azioni Merko Ehitus As (LSE:0JKW)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Merko Ehitus As (LSE:0JKW)
Storico
Da Mag 2023 a Mag 2024