Atnaujinta: 2024.05.19 08:14 (GMT+3)
AS MERKO EHITUS FINANCIAL RESULTS 11.11.2005
FINANCIAL RESULTS 9M 2005
COMMENTARY TO 9M 2005 FINANCIAL RESULTS
Third quarter proved profitable for Merko Ehitus Group due to successful
housing construction development activities and improved turnover in Latvia
and Lithuania. Group’s unaudited net sales amounted to 2 476.5 million kroons
(158.3 million euro) increasing by 10.9% as compared to the previous year.
Group's net profit for the first nine months amounted to 302.8 million kroons
(19.4 million euro) of which 249.0 million kroons was gained from construction
and real estate development activities, 28.0 million kroons from disposal of
surplus real estate and 25.8 million kroons as financial income. 38.9 million
kroons of net profit was gained from extraordinary operations of which 28.0
million kroons originated from disposal of real estate and 10.9 million kroons
from disposal of holdings.
However, current shortage on the workforce and building materials market
together with the subsequent rapid rise in prices may slow down construction
sector’s future development substantially regardless of ongoing good demand
and stable economic growth.
Companies of the Group 9M 2005 net sales and consolidated net sales
(sales outside the Group) were (in thousand kroons and euros):
Sales including
consolidated
net sales
EEK EUR EEK EUR
Estonian companies
Construction
AS Merko Ehitus 1 398 026 89 350 1 389 298 88 792
AS Gustaf (100% partnership) 54 568 3 488 46 917 2 999
OÜ Gustaf Tallinn (80% partnership) 61 455 3 928 59 697 3 815
AS Merko Tartu (66% partnership) 159 713 10 207 155 764 9 955
Tallinna Teede AS (100% partnership) 171 228 10 943 153 460 9 808
Construction
AS Normanni Linnagrupp
(50% partnership) 11 053 735 - -
Production of concrete
AS Tartu Maja Betoontooted
(25% partnership) 169 070 10 806 - -
Communication networks
AS Telegrupp (45% partnership) 51 720 3 305 - -
Latvian companies
Construction
SIA Merks (100% partnership) 458 891 29 329 453 874 29 008
Lithuanian companies
Construction
UAB Merko Statyba (100% partnership) 167 283 10 691 166 383 10 634
The ratios and calculation methods characterizing the operating activities of
the Group were as follows:
9M 2005 9M 2004
Net profit margin 10,7 % * 7,9 % *
Operating profit margin 12,2 % 8,4 %
Return on equity (per year) 48,1 % 46,4 %
Return on assets (per year) 24,8 % 20,7 %
Current ratio 1,8 1,6
Equity-to-assets ratio 47,9 % 48,3 %
The share of general expenses in sales 4,0 % 3,1 %
The share of labor costs in sales 6,6 % 6,2 %
* without extraordinary profit
Net profit margin: Net profit / Sales
Operating profit margin: Operating profit / Sales
Return on equity: Net profit x 4/3*/ Average equity during the period*
Return on assets: Net profit x 4/3* / Average assets during the period
Current ratio: Current assets / Current liabilities
Equity-to-assets ratio: Owners equity* / Total assets
The share of general expenses in sales: General expenses / Sales
The share of labor costs in sales: Labor costs / Sales
* calculated for the shareholders of the parent company
Year 2005 9M interim consolidated and unaudited income statement and balance
sheet are compiled in accordance with the principles of the International
Financial Reporting Standards (IFRS).
INCOME STATEMENT III quarter 2005
consolidated, unaudited in thousand EEK and EUR
EEK EUR
IIIq 2005 IIIq 2004 IIIq 2005 IIIq 2004
Sales 1 023 758 733 957 65 430 46 908
Sales costs (840 328) (631 561) (53 707) (40 364)
GROSS PROFIT 183 430 102 396 11 723 6 544
Marketing expenses (5 080) (3 645) (325) (233)
Administrative expenses (28 985) (20 170) (1 852) (1 289)
Other operating income 911 449 58 29
Other operating expenses (322) (1 321) (20) (84)
OPERATING PROFIT 149 954 77 709 9 584 4 967
Financial income and expenses
from stocks of subsidiaries 5 143 - 329 -
Financial income and expenses
from stocks of associate companies 3 355 7 661 214 490
Financial income and expenses from
other long-term financial investments1 426 97 91 6
Interest expense (1 776) (5 208) (113) (333)
Foreign exchange gain (464) 2 082 (30) 133
Other financial income and expense 1 163 (2 404) 74 (154)
Total financial income and expenses 8 847 2 228 565 142
PROFIT BEFORE TAXES 158 801 79 937 10 149 5 109
Income tax (4 417) (1 572) (282) (101)
NET PROFIT FOR CURRENT PERIOD 154 384 78 365 9 867 5 008
incl. net profit attributable
to parent company 153 067 77 916 9 783 4 980
net profit attributable
to minority shareholders 1 317 449 84 29
Parent company's net profit per share
(basic and diluted, in EEK and EUR) 8,65 4,40 0,55 0,28
INCOME STATEMENT 9M 2005
consolidated, unaudited in thousand EEK and EUR
EEK EUR
9M 2005 9M 2004 9M 2005 9M 2004
Sales 2 476 548 2 232 593 158 280 142 689
Sales costs (2 075 067) (1 976 331) (132 621) (126 311)
GROSS PROFIT 401 481 256 262 25 659 16 378
Marketing expenses (15 449) (11 415) (987) (729)
Administrative expenses (83 666) (57 125) (5 347) (3 651)
Other operating income 1 711 12 960 109 828
Other operating expenses (1 546) (2 418) (99) (155)
OPERATING PROFIT 302 531 198 264 19 335 12 671
Financial income and expenses
from stocks of subsidiaries 5 143 (299) 329 (19)
Financial income and expenses
from stocks of associate companies 14 358 10 900 918 697
Financial income and expenses from
other long-term financial investments2 714 147 173 9
Interest expense (2 869) (6 077) (183) (387)
Foreign exchange gain (584) 2 697 (37) 172
Other financial income and expense 7 125 (6 127) 455 (392)
Total financial income and expenses 25 887 1 241 1 655 80
PROFIT BEFORE TAXES 328 418 199 505 20 990 12 751
Income tax (23 035) (10 025) (1 472) (641)
NET PROFIT FOR CURRENT PERIOD 305 383 189 480 19 518 12 110
incl. net profit attributable
to parent company 302 846 187 715 19 356 11 997
net profit attributable
to minority shareholders 2 537 1 765 162 113
Parent company's net profit per share
(basic and diluted, in EEK and EUR) 17,11 10,61 1,09 0,68
BALANCE SHEET AS OF 30.09.2005
consolidated, unaudited in thousand EEK and EUR
EEK EUR
30.09.2005 31.12.2004 30.09.2005 31.12.2004
ASSETS
Current assets
Cash 92 422 141 812 5 907 9 063
Short-term financial investments 655 11 775 42 753
Receivables and prepayments 1 039 329 499 165 66 425 31 903
Inventories 526 044 351 332 33 620 22 454
Total current assets 1 658 450 1 004 084 105 994 64 173
Non-current assets
Long-term financial investments 44 176 55 438 2 823 3 543
Real estate investments 38 449 61 389 2 457 3 924
Tangible assets 264 460 131 765 16 903 8 421
Intangible assets 4 662 1 110 298 71
Total non-current assets 351 747 249 702 22 481 15 959
TOTAL ASSETS 2 010 197 1 253 786 128 475 80 132
LIABILITIES AND OWNERS' EQUITY
Current liabilities
Raised loans 83 192 12 578 5 317 804
Liabilities and prepayments 816 424 488 170 52 179 31 200
Current provisions 6 088 5 784 389 369
Total current liabilities 905 704 506 532 57 885 32 373
Non-current liabilities
Loans, bonds and
finance lease liabilities 123 937 14 046 7 921 898
Other long-term payables 10 503 8 038 671 514
Total non-current liabilities 134 440 22 084 8 592 1 412
Total liabilities 1 040 144 528 616 66 477 33 785
Owners' equity
Minority interest 7 137 7 200 456 460
Equity attributable to parent company's shareholders
Share capital 177 000 88 500 11 312 5 656
Share premium - 2 950 - 189
Mandatory legal reserve 8 850 8 850 566 566
Other reserves (5 038) (4 663) (322) (298)
Undistributed profit 782 104 622 333 49 986 39 774
Total equity attributable to
parent company's shareholders 962 916 717 970 61 542 45 887
Total owners' equity 970 053 725 170 61 998 46 347
TOTAL LIABILITIES
AND OWNERS' EQUITY 2 010 197 1 253 786 128 475 80 132
Alar Lagus
Member of Board
+372 6 805 109
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