Harju Elekter Group financial results, 1-12/2023

21.02.2024 Market Announcements Reports

Commentary from the management

2023 will remain in Harju Elekter’s history as a year of transformation. We managed to turn the deep loss of the previous year into a strong profit, while achieving the largest operating profit in the Group’s history and a satisfactory net profit despite increased interest rates.

The fourth quarter results were weaker than usual due to the seasonality of the business, but compared to the same period last year, the results have continued to improve. In particular, we can be content with the change in operating profit (EBIT), which remained at a satisfactory level even after the year-end revaluation of the profitability of the projects and assets. Instead of losses in 2022, the Group earned both operating and net profit in 2023.

The year was marked by a number of fundamental decisions and pivotal changes to be proud of. The merger of the Estonian subsidiaries was more successful than expected, as demonstrated by the strong financial results. We can also be proud of the Lithuanian manufacturing company, which by today has grown to become the largest unit in the Group, and which we can commend for the strongest financial performance among all companies of the Group. In Finland, which continues to be our principal market, we exited from lower-volume business lines last year and focused on core activities and the strengthening thereof. Although the anticipated forecasts of turning the Swedish unit profitable did not materialise in the reporting year, we will continue our determined work towards making the company profitable in 2024.

As a whole, the structural reforms launched at the end of 2022 and introduced last year, as well as the implementation of the Strategic Action Plan, have been successful. In the spring, we will start setting the strategic targets for the Group’s next growth period, driven by the need to increase the Group’s EBIT margin and, in line with the expectations of shareholders, by the continued desire to increase the dividend. The Group’s central strategic objective in the coming years will be profitable growth.

Revenue and financial results

The Group’s revenue in the fourth quarter was 50.7 million euros, similar to the previous year’s revenue result of 50.0 million euros. However, in a full year comparison, we achieved faster increase in revenue at 19.2% per year. This was underpinned by strong framework agreements and increased demand for the Group’s services. In total, the Group’s revenue for 2023 was 209.0 (2022: 175.3) million euros.

EUR ’000   Q4 Q4 +/- 12M 12M +/-
    2023 2022   2023 2022  
Revenue   50,737 49,978 1.5% 209,014 175,293 19.2%
Gross profit   4,218 2,517 67.6% 23,588 12,269 92.3%
EBITDA   1,920 -943 303.6% 12,444 217 5634.6%
Operating profit/loss (-) (EBIT)   758 -2,063 136.7% 8,078 -4,546 277.7%
Profit/loss (-) for the period   135 -2,482 105.4% 5,160 -5,567 192.7%
Earnings per share (EPS) (euros)   0.01 -0.14 105.3% 0.28 -0.31 191.7%

The gross profit for the year was 23,588 (2022: 12,269) thousand euros and the gross margin was 11.3% (2022: 7.0%). During the year, operating profit (EBIT) of 8,078 (2022: operating loss -4,546) and net profit of 5,160 (2022: net loss -5,544) thousand euros were earned. Net profit per share was 0.28 (2022: net loss per share -0.31) euros.

Core business and markets

The Group’s core business, Production, accounted for 94.0% (Q4 2022: 92.5%) of the revenue of the quarter. The production segment’s revenue increased by 3.2% quarterly and by 25.6% annually, amounting to 47.7 and 197.9 million euros respectively.

The Group’s largest target markets are Estonia, Finland, Sweden, and Norway, where a total of 78.4% (Q4 2022: 89.7%) of the Group’s products and services were sold in the quarter.

In the fourth quarter, 5.2 (Q4 2022: 7.6) million euros were earned from Estonia, which was 2.4 million euros less than a year earlier. Compared to year before, the revenue decreased by 9.4 million to 20.9 million euros. The decrease in revenue in both periods is mostly related to the termination of the retail and project-based sale of electrical products in Estonia but sales of electrical equipment to contract customers also decreased. The increased volume in the previous year originated mainly from the contract for hermetic distribution transformers and distribution cabinets. The Estonian market accounted for 10.3% (Q4 2022: 15.2%) of the revenue of the quarter.

Compared to the quarters, revenue in Finland decreased by 7.7% to 19.6 (Q4 2022: 21.3) million euros. Revenue growth was hindered by a decline in investment in electricity networks due to regulatory changes in network charges. During the year, a total of 83.3 (2022: 81.8) million euros were earned from Finland, mainly from the supply of package substations and low-voltage distribution equipment. The Group’s largest market sold 38.7% (Q4 2022: 42.5%) of Harju Elekter products and services in the reporting quarter.

The revenue of the Swedish market increased due to the rise in the sale of substations and the growth of project business, being 9.2 (Q4 2022: 7.1) in the quarter and 32.5 (2022: 22.8) million euros in the summary of the year. Sweden accounted for 18.1% (Q4 2022: 14.2%) of the revenue of the reporting quarter.

Revenue from the Norwegian market was 5.7 (Q4 2022: 8.9) in the quarter, and 33.8 (2022: 21.8) million euros during the year. Revenue was mainly generated from the production of frequency converter systems and electrical and automation panels for the maritime and shipping sector. The Norwegian market accounted for 11.3% (Q4 2022: 17.8%) of the revenue of the reporting quarter.

Revenue from other markets increased by 5.8 to 11.0 million euros year-on-year. Revenue increased mainly from the Germany and Netherlands markets. In annual comparison, revenue from other markets increased by 20.0 million euros to 38.5 million euros. Most of the growth came from sales to the USA, where frequency converter equipment and MCC systems were shipped to the United States Steel Corporation’s Big River Steel plant. Other markets accounted for 21.6% (Q4 2022: 10.3%) of the revenue of the reporting quarter.


During the reporting period, the Group invested a total of 6.9 (2022: 15.2) million euros in non-current assets, incl 5.2 (2022: 1.8) in investment properties, 1.4 (2022: 12.9) in property, plant, and equipment and 0.4 (2022: 0.5) million euros in intangible assets. Most of the investments during the reporting period were made in the construction of the production building to be rented out to Reimax Electronics OÜ in the Allika Industrial Park, which was completed at the end of the year. In addition, investments were made in other real estate objects, production technology equipment, and production and process management systems.

The value of the Group’s non-current financial investments totalled 29.2 (31.12.22: 23.7) million euros as of the reporting date. The main part of the revaluation of financial assets in 2023 came from the estimated fair value change of OÜ Skeleton Technologies Group’s investment, which increased by 5.4 million euros to 27.2 million euros. The fair value of listed securities increased by 0.1 million euros during the year, compared to a decrease by 0.7 million euros a year earlier. There were no acquisitions or sales of listed securities during the year.


The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 4.97 euros. As of 31 December 2023, AS Harju Elekter Group had 11,164 shareholders. During the quarter, the number of shareholders decreased by 105 and increased by 580 during the entire year.

Dividend Proposal

In coordination with the Supervisory Board, the Group’s Management Board will propose to pay dividends to the shareholders 0.13 euros per share, totalling 2.4 million euros and representing 47% of consolidated net profit in 2023.

EUR ‘000 31.12.2023 31.12.2022
Current assets
Cash and cash equivalents 1,381 9,152
Trade and other receivables 38,837 31,612
Prepayments 1,071 1,126
Inventories 36,834 37,068
Total current assets 78,123 78,958
Non-current assets
Deferred income tax assets 731 1,008
Non-current financial investments 29,244 23,731
Investment properties 28,856 24,756
Property, plant, and equipment 34,067 35,740
Intangible assets 7,354 7,244
Total non-current assets 100,252 92,479
TOTAL ASSETS 178,375 171,437
Borrowings 19,387 24,385
Prepayments from customers 18,870 16,827
Trade and other payables 23,159 24,502
Tax liabilities 3,308 3,478
Current provisions 140 2,103
Total current liabilities 64,864 71,295
Borrowings 23,481 20,732
Other non-current liabilities 32 0
Total non-current liabilities 23,513 20,732
Share capital 11,655 11,523
Share premium 3,306 2,509
Reserves 23,055 17,768
Retained earnings 51,982 47,771
Total equity attributable to the owners of the parent company 89,998 79,571
Non-controlling interests 0 -161
Total equity 89,998 79,410




EUR ‘000 Q4 Q4 12M 12M
2023 2022 2023 2022
Revenue 50,737 49,978 209,014 175,293
Cost of sales -46,519 -47,461 -185,426 -163,024
Gross profit 4,218 2,517 23,588 12,269
Distribution costs -1,260 -1,449 -5,320 -5,578
Administrative expenses -2,657 -3,037 -10,112 -11,194
Other income 495 2 314 308
Other expenses -38 -96 -392 -351
Operating profit/loss (-) 758 -2,063 8,078 -4,546
Finance income 456 5 97 78
Finance costs -624 -433 -2,103 -809
Profit/loss (-) before tax 590 -2,491 6,072 -5,277
Income tax -455 9 -912 -290
Profit/loss (-) for the period 135 -2,482 5,160 -5,567
Profit /loss (-) attributable to:
    Owners of the parent company 135 -2,520 5,160 -5,544
    Non-controlling interests 0 38 0 -23
Earnings per share      
   Basic earnings per share (euros) 0.01 -0.14 0.28 -0.31
   Diluted earnings per share (euros) 0.01 -0.14 0.28 -0.30


EUR ‘000 Q4 Q4 12M 12M
2023 2022 2023 2022
Profit/loss (-) for the period 135 -2,482 5,160 -5,567
Other comprehensive income (loss)
Items that may be reclassified to profit or loss
   Impact of exchange rate changes of a foreign subsidiaries -212 -47 -139 -208
Items that will not be reclassified to profit or loss
   Gain on sales of financial assets 0 0 0 320
   Net gain/loss (-) on revaluation of financial assets -3,266 20 5,516 -726
Total comprehensive income (loss) for the period -3,478 -27 5,377 -614
Other comprehensive income (loss) -3,343 -2,509 10,537 -6,181
Total comprehensive income (loss) attributable to:
    Owners of the Company -3,343 -2,547 10,537 -6,158
    Non-controlling interests 0 38 0 -23

Interim Report Q4 2023 

Priit Treial
CFO and Member of the Management Board
+372 674 7400