In Q1 2015, AS Harju Elekter was affected by normal seasonality. Finnkumu Oy was consolidated and added to the Group’s results; although, compared to last year, the profit from AS Draka Keila Cables was no longer consolidated. A decline in the Estonian segment was mostly due to the non-performance of the contractual order volume by Eesti Energia.
In the accounting quarter, the Group’s consolidated revenue was 10.9 million euros, which was 13.3% compared to the reference period. 90% of sales income was earned from the Production segment, and Real Estate together with other areas of activity contributed 10% of the consolidated sales volume.
There has been a growth in sales revenue among almost all products and services. More than 91% of sales revenue originated from the sale of electrical equipment, having increased 14% in the reporting quarter. 72% of the Group’s products and services were sold in foreign markets, outside Estonia (Q1 2014: 64%). Finland is the biggest market of the Group. In the reporting quarter, 56% of the Group’s products and services were sold in Finland (Q1 2014: 45%). The sales volume of Estonian segment has decreased by 11.2%.
In the reporting quarter, the operating expenses increased by 14.3%. Since the cost of sales increased at a pace that exceeded the sales revenue, the gross profit margin decreased by 2.1 percentage points in comparison to the indicator for the comparable period. Because of the Group’s Estonian and Finnish subsidiaries participation in Tampere energy fair, the distribution costs increased by 33,000 euros to 684,000 euros, the rate of distribution costs to revenue accounted for 6.2% (Q1 2014: 6.7%) in the reporting quarter. Administrative expenses were 49,000 euros higher than the indicator for the comparable period, and the rate of administrative expenses to revenue accounted for 9.4%, having decreased by 0.7 percentage points.
In Q1 2015, the average 467 people worked in the Group − on the average by 27 persons more than in the reference period. In the first quarter, employee wages and salaries totalled 2,388 (Q1 2014: 2,170) thousand euros. The average wages per employee per month amounted 1,705 (Q1 2014: 1,645) euros. The labour and salary costs increased by 9.7% up to 3.1 million euros in Q1 2015 and the rate of labour costs decreased to 28.2%, from 29.1% in Q1 2014.
In the first quarter the gross profit of the Group was 1.7 (Q1 2014: 1.7) million euros. The gross profit margin was 15.5% (Q1 2014: 17.6%). The Group’s operating profit of Q1 2015 was 29 (Q1 2014:56) thousand euros and EBITDA 388 (Q1 2014: 441) thousand euros. Return of sales for the accounting quarter was 0.3% (Q1 2014: 0.6%) and return of sales before depreciation 3.5% (Q1 2014: 4.6%). In Q1 2014, the Group consolidated from the associated company a profit of 324,000 euros. The Group sold the associated company in 2014. The consolidated profit of AS Draka Keila Cables contributed 87% of the Group’s net profit for Q1 2014.
Overall, the consolidated net profit of the Q1 2015 was 10 (Q1 2014: 371) thousand euros, of which the share of the owners of the Company was 16 (Q1 2013: 391) thousand euros.
During 3 months, the amount of the consolidated balance sheet increased by 5.3 million euros and compered to the period under review increased by 4.2 million euros up to 75.0 million euros, as of 31 March 2015.
During the 3-months period, the Group’s investments to non-current assets totalled 1.04 (Q1 2014: 0.40) million euros.
The Management Board of AS Harju Elekter sent out invitations to its shareholders on convening an annual general meeting of shareholders in the Keila Kultuurikeskus, on 14 May 2015. The Board will propose to the AGM to pay a dividend of 0.15 (2013: 0.10) euros per share for the year 2014, totalling 2.61 (2013: 1.74) million euros.
On 23 April 2015, AS Harju Elekter signed a contract for the purchase of all shares in Lithuanian subsidiary UAB Rifas. In the transaction, AS Harju Elekter acquired a holding of 37% in their subsidiary UAB Rifas, in addition to the previously acquired 63%, and in doing so became the sole owner of the company. Acquiring all of the shares of UAB Rifas was a strategic move by the Group, helping to secure their position in Lithuania and on export markets.
For more information: Internal report 1-3/2015