The Group’s six month sales revenue was 24.5 million euros and in the accounting quarter 13.1 million euros. In H1, the operating profit amounted 0.8 million euros and in the accounting quarter 0.6 million euros. Overall, the consolidated net profit of the H1 2013 increased to 2.5 million euros and to 1.8 million euros in Q2 2013.
| Change | April – June | Change | January – June | Year | |||
| (thousand euros) | % | 2013 | 2012 | % | 2013 | 2012 | 2012 |
| Revenue | -7.2 | 13,060 | 14,079 | -5.1 | 24,450 | 25,750 | 52,801 |
| Gross profit | -0.8 | 2,344 | 2,363 | -4.6 | 4,066 | 4,259 | 8,653 |
| EBITDA | -4.2 | 952 | 993 | -12.7 | 1,507 | 1,727 | 3,439 |
| EBIT | -8.1 | 579 | 630 | -23.7 | 768 | 1,005 | 1,970 |
| Profit for the period | 15.8 | 1,752 | 1,513 | 17.3 | 2,470 | 2,105 | 3,603 |
| incl attributed to Owners of the Company | 14.2 | 1,705 | 1,493 | 15.9 | 2,403 | 2,073 | 3,517 |
In the reporting quarter, the consolidated sales volume dropped by 7% to 13.1 million euros compared to the indicator from the same period of last year, mainly as a result of decreased sales revenue from the Production segment. At the same time, Production segment sales volume was 1.5 million euros higher than in Q1 of the financial year and 500,000 euros higher than the indicator for the last quarter of last year. 89.3% of sales revenue came from the Production segment, 5.1% from real estate and 5.6% from unallocated activities. Around 83% of the sales revenue came from the production and sale of electrical equipment, its sales volume decreasing 9% to 11 million euros during the reporting quarter and 6% to 20.3 million euros during the first half of the year. The sale of electrical equipment usually increases in Q2 and Q3, while being more modest in Q1 and Q4. In Q2 2013 the sales volume of electrical equipment was 1.6 million euros higher than in Q1 2013.
63% of the Group’s products and services were sold in foreign markets, outside Estonia (H1 2012: 65.1%) and 92% revenues received from the Group’s companies home markets – Estonia, Finland, Sweden, Lithuania. The largest target markets of the Group are Estonia and Finland, which is why the sales volumes of the Group are strongly influenced by the developments there. The Group’s sales on the Finnish market decreased by 1.3 million euros in the first half of the year to 11.3 million euros and by 1 million euros to 5.9 million euros in the reporting quarter, thus also decreasing the relative importance of the Finnish market in the consolidated sales revenues to 46.1%. 1.3% of the Group’s products and services were marketed in other EU countries and 7% outside the EU in the first half of the year.
Decreased production volumes have also resulted in decreased costs. In the reporting quarter, operating costs decreased 7.5%; with 8.5% lower costs related to the sale of products and services and 1.9% lower costs related to marketing. General administrative costs remained on the same level with the comparable period.
In Q2 2013, the average 464 people worked in the Group − on the average by 14 persons more than in the reference period. During the first 6 months, the average number of employees increasing by 21 persons up to 463 employees. However, in the reporting quarter, labour costs decreased by 2.1% to 3.1 million euros and wage costs decreased by 1.5% to 2.3 million euros, being in the first half of the year 3.9% and 4.5% respectively. In the second quarter, employee wages and salaries totalled 2,305 (Q2 2012: 2,339) thousand euros and during the first 6 months 4,414 (H1 2012: 4,619) thousand euros. The average wages per employee per month amounted 1,591 (2012 H1: 1,740) euros.
Operating profit of Q2 2013 was 579 (Q2 2012: 630) thousand euros and EBITDA 952 (Q2 2012: 993) thousand euros. Return of sales for the accounting quarter was 4.4% (Q2 2012: 4.5%) and return of sales before depreciation 7.3% being 0.1 per cent point better compering to the same period figure a year before. The operating profit before depreciation decreased by 12.7% up to 1.51 million euros and operating profit by 23.7% to 0.77 million euros. The decrease in operating profit was the result of the decrease of profitability in Group’s Finnish and Lithuanian subsidiaries in the first quarter. EBITDA was 6.2% (H1 2012: 6.7%) and EBIT 3.1% (H1 2012: 3.9%).
Dividend income in the reporting quarter was 948,000 (Q2 2012: 831,000) euros. In the first quarter, also 30,000 (Q1 2012: 15,400) PKC Group Oyj shares were sold and the financial income from selling the shares was 453,000 (Q1 2012: 175,000) euros. Totally, the net financial expenses have increased by 400,000 euros to 1.39 million euros. In Q2 2013, the Group consolidated from the associated company a profit of 608,000 (Q2 2012: 374,000) euros and during the first six months totally in amount of 0.68 (H1 2012: 0.45) million euros.
The consolidated net profit of the Q2 2013 was 1.75 (Q2 2012: 1.51) million euros, of which the share of the owners of the company was 1.71 (Q2 2012: 1.49) million euros. EPS in the Q2 was 0.10 (Q2 2012: 0.09) euros. Overall, the consolidated net profit of the H1 2013 was 2.47 million euros, increasing by 17.3%. The share of the owners of the company was 2.40 million euros. EPS in the H1 was 0.14 (H1 2012: 0.12) euros.
During first six months cash flow from operating activities increased by 0,4 million euros, from investment activities by 1.2 million euros and cash out-flow from financial activities was 1.8 million euros; compared to the reference period the numbers were 1.2 million euros, 0.7 million euros and -1.5 million euros respectively. During the H1 2013, cash and cash equivalents decreased by 0.3 million euros to 3.1 million euros; within the comparable period, cash and cash equivalents increased by 0.4 million euros to 1.2 million euros.
Andres Allikmäe
Managing director/ CEO
Tel +372 674 7400
For more information: Internal report 1-6/2013
| AS HARJU ELEKTER | ||||
| BALANCE SHEET, 30.06.13 | ||||
| Consolidated, unaudited | ||||
| Group | ||||
| EUR’000 | ||||
| ASSETS | 30.06.13 | 31.12.12 | ||
| Cash and cash equivalents | 3 087 | 3 352 | ||
| Trade receivables and other receivables | 7 479 | 6 493 | ||
| Prepayments | 318 | 232 | ||
| Prepaid income tax | 58 | 0 | ||
| Inventories | 6 837 | 6 395 | ||
| TOTAL CURRENT ASSETS | 17 779 | 16 472 | ||
| Deferred income tax asset | 4 | 5 | ||
| Investments in associates | 2 978 | 2 295 | ||
| Other long-term financial investments | 24 676 | 21 386 | ||
| Investment property | 10 245 | 10 454 | ||
| Property, plant and equipment | 8 298 | 8 546 | ||
| Intangible assets | 424 | 451 | ||
| Total non-current assets | 46 625 | 43 137 | ||
| TOTAL ASSETS | 64 404 | 59 609 | ||
| LIABILITIES AND OWNERS’ EQUITY | ||||
| Interest-bearing loans and borrowings | 847 | 1 075 | ||
| Trade payables and other payables | 6 733 | 5 902 | ||
| Tax liabilities | 1 042 | 1 049 | ||
| Income tax liabilities | 28 | 75 | ||
| Short-term provision | 45 | 23 | ||
| TOTAL CURRENT LIABILITIES | 8 695 | 8 124 | ||
| NON-CURRENT LIABILITIES | 1 349 | 1 349 | ||
| TOTAL LIABILITIES | 10 044 | 9 473 | ||
| Share capital | 12 180 | 12 180 | ||
| Share premium | 240 | 240 | ||
| Restricted reserves | 24 707 | 21 354 | ||
| Retained earnings | 15 839 | 15 008 | ||
| TOTAL OWNERS’ EQUITY | 52 966 | 48 782 | ||
| Non-controlling interests | 1 394 | 1 354 | ||
| TOTAL EQUITY | 54 360 | 50 136 | ||
| TOT.LIABILIT.AND OWNERS’ EQUITY | 64 404 | 59 609 | ||
| INCOME STATEMENT, 1-6/2013 | ||||
| Consolidated,unaudited | ||||
| EUR’000 | ||||
| GROUP | Q2 2013 | Q2 2012 | H1 2013 | H1 2012 |
| NET SALES | 13 060 | 14 079 | 24 450 | 25 750 |
| Cost of goods sold | -10 716 | -11 716 | -20 384 | -21 491 |
| Gross profit | 2 344 | 2 363 | 4 066 | 4 259 |
| Marketing expenses | -704 | -718 | -1 304 | -1 355 |
| Administrative expenses | -1 045 | -1 043 | -1 984 | -1 918 |
| Other revenue | 1 | 38 | 18 | 40 |
| Other expenses | -17 | -10 | -28 | -21 |
| Operating profit | 579 | 630 | 768 | 1 005 |
| Net financial incomes/expenses | 940 | 821 | 1 394 | 994 |
| Income from subsidiaries | 608 | 374 | 683 | 453 |
| Profit from normal operations | 2 127 | 1 825 | 2 845 | 2 452 |
| Corporate Income tax | -375 | -312 | -375 | -347 |
| Profit after taxes, incl | 1 752 | 1 513 | 2 470 | 2 105 |
| Net profit for the year | 1 705 | 1 493 | 2 403 | 2 073 |
| Non-controlling interest | 47 | 20 | 67 | 32 |
| Basic earnings per share | 0,10 | 0,09 | 0,14 | 0,12 |
| Diluted earnings per share | 0,10 | 0,09 | 0,14 | 0,12 |
| Karin Padjus | ||||
| FO | ||||
