Harju Elekter Group financial results, 1-3/2017

26.04.2017 Reports Market Announcements

The reporting quarter was successful for the Harju Elekter Group. The large agreements and purchase orders concluded at the end of the year increased the sales revenues and operating profit, and the realisations of the takeover bids for the shareholders of PKC Group Oyj earned a one-time financial profit in the amount of 24.8 million euros.

Change%

January – March

Year

2017

2016

2016

Revenue (thousand euros)

49.0

17,519

11,757

61,167

Gross profit (thousand euros)

29.0

2,670

2,069

10,348

EBITDA (thousand euros)

34.6

1,050

780

4,777

EBIT (thousand euros)

71.3

668

390

3,181

Profit for the period (thousand euros)

8,063.2

25,366

311

3,224

 incl attributed to Owners of the Company (thousand euros)

7,726.0

25,374

324

3,219

In the accounting quarter, the Group’s consolidated revenue was 17.5 (Q1 2016: 11.8) million euros. Sales revenue of the reporting quarter increased by 49% or 5.8 million euros in relation to the comparison period. 92% of revenue was earned from the Manufacturing segment, Real Estate and Unallocated activities contributed 8% of the consolidated sales volume. The sales of electrical equipment accounted for 95% (Q1 2016: 94%) of the sales revenue of the Production segment and 88% (Q1 2016: 84%) of the sales revenue of the whole Group. The sale of electrical equipment was up by 56% or 5.5 million euros.

The Group’s sales revenue earned outside Estonia accounted for 77.4% in Q1 2017 (Q1 2016: 73.8%).

The Finnish market, which is the Group’s largest, has grown by 57% or 4.2 million euros year-on-year. In the reporting quarter, 67% of the Group’s products and services were sold on the Finnish market (Q1 2016: 63%). The main reason for the growth was the contracts concluded with Finnish network companies at the end of 2016, whose orders already began in Q1 of 2017.

The purposeful work of the Group and AS Harju Elekter Elektrotehnika continued for growing sales volume on the Swedish market, which resulted in growth of sales to the Swedish market in the reporting quarter – compared to the same period last year – by a fifth, to 1.0 million euros.

During the reporting quarter grew by 28.7% or 0.9 million euros up to 4.0 million euros of the Group’s products and services were sold on the Estonian market. It was 22.6% of the consolidated sales revenue.

Operating expenses increased 48.1% or 5.5 million euros in the reporting quarter compared to the reference period. The main reason for the upsurge in costs is rise of metal prices on the world markets, while the salaries of the manufacturing staff of the Group’s Estonian companies have also grown. The continued focus of the Group towards increasing exports has led to a rise in distribution costs, growing by 10% in the reporting quarter in respect to the comparable period. The rate of distribution costs accounted for 4.5% of the sales revenue (Q1 2016: 6.1%). Administrative expenses increased by 24.8%, i.e. 235 thousand euros in the reporting quarter. More than half of the increase was due to growth in development expenses related to new orders and thereby development of new products. The rate of administrative expenses to revenue accounted for 6.7%, having decreased by 1.4 percentage points.

In Q1 of 2017, an average of 490 employees worked in the Group, which is 37 people more than in the comparable period. As at the balance day on 31 March, there were 517 people working in the Group, which was 45 persons more than a year ago. From the beginning of the year, the number of employees increased by 37. In the reporting quarter, the employees were paid as salaries and fees 2,616 (Q1 2016: 2,374) thousand euros, which was 10.2% higher than in the reference period. The growth of wages was due to hiring new employees in connection with the significant increase in production volumes. The average monthly salary for an employee of the Group was 1,780 (Q1 2016: 1,747) euros.

In the reporting quarter the gross profit of the Group was 2,670 (Q1 2016: 2,069) thousand euros. The gross profit margin was 15.2% (Q1 2016: 17.6%).

The Group’s operating profit in the reporting quarter was 668 (Q1 2016: 390) thousand euros and EBITDA 1,050 (Q1 2016: 780) thousand euros. Return of sales for the accounting quarter was 3.8% (Q1 2016: 3.3%) and return of sales before depreciation 6.0% (Q1 2016: 6.6%).

The profit before taxes for the reporting quarter was 25,505 (2016 QI: 385) thousand euros. The calculated income tax expense of three months was 139 (2016 IQ: 74) thousand euros.

In the reporting quarter, the consolidated net profit was 25,366 (Q1 2016: 311) thousand euros, of which the share of the owners of the Company was 25,374 (Q1 2016: 324) thousand euros. EPS in the Q1 2017 was 1.43 euros (Q1 2016: 0.02 euros). Large net profit was the result of Motherson Sumi Systems Limited acquiring the shares of PKC Group Oyj at the price of EUR 23.55 per share. AS Harju Elekter owned 1,094,641 shares of PKC Group Oyj. Financial income from the sale of shares was 24,839 thousand euros.

In Q1 2017, EPS was 1.43 (Q1 2016: 0.02) euros. During the reporting quarter, Harju Elekter’s share in Nasdaq Tallinn increased by 32.5% from 2.83 euros up to 3.75 euros.

In three months’ period, the Group has made a total of 1.7 million (Q1 2016: 49 thousand) euros worth of investments to property, plant and equipment and investment properties. Investment growth is related to the ongoing developments of Allika Industrial Park.

Andres Allikmäe
Chairman of the Management Board
+372 674 7400

For more information: Tiit Atso, CFO, +372 674 7400 or Interim report 1-3/2017

AS HARJU ELEKTER
CONSOLIDATED BALANCE SHEET,31.03.2017
Unaudited
EUR’000
ASSETS 31.03.17 31.12.16
Cash and cash equivalents 26 517 3 278
Trade receivables and other receivables 11 458 8 480
Prepayments 793 771
Prepaid income tax 70 24
Inventories 11 917 9 712
TOTAL CURRENT ASSETS 50 755 22 265
Deferred income tax asset 37 37
Other long-term financial investments 4 684 21 990
Investment property 14 181 13 273
Property, plant and equipment 11 004 10 972
Intangible assets 5 848 5 431
TOTAL NON-CURRENT ASSETS 35 754 51 703
TOTAL ASSETS 86 509 73 968
LIABILITIES AND OWNERS’ EQUITY
Interest-bearing loans and borrowings 720 804
Advances from customers 1 104 857
Trade payables and other payables 10 528 8 283
Payables to shareholders 0 1 242
Tax liabilities 1 675 1 075
Income tax liabilities 61 133
Short-term provision 15 15
TOTAL CURRENT LIABILITIES 14 103 12 409
NON-CURRENT LIABILITIES 3 014 1 167
TOTAL LIABILITIES 17 117 13 576
Share capital 11 176 11 176
Share premium 804 804
Restricted reserves 2 844 19 214
Retained earnings 54 487 29 113
TOTAL OWNERS’ EQUITY 69 311 60 307
Non-controlling interests 81 85
TOTAL EQUITY 69 392 60 392
TOTAL LIABILITIES AND OWNERS’ EQUITY 86 509 73 968
CONSOLIDATED INCOME STATEMENT,  1-3/2017
Unaudited
EUR’000 Q1 2017 Q1 2016
Revenue 17 519 11 757
Cost of goods sold -14 849 -9 688
Gross profit 2 670 2 069
Distribution costs -796 -723
Administrative expenses -1 182 -947
Other income 2 10
Other expenses -26 -19
Operating profit 668 390
Finance income 24 846 1
Finance costs -9 -6
Profit from normal operations 25 505 385
Corporate income tax -139 -74
Profit for the period, attributable to 25 366 311
   owners of the Company 25 374 324
   non-controlling interests -8 -13
Basic earnings per share  (EUR) 1,43 0,02
Diluted earnings per share  (EUR) 1,43 0,02

Tiit Atso
CFO
+372 674 7400

Recent news

23.02.2021 Harju Elekter Group financial results, 1-12/2020 Read more... 11.02.2021 Harju Elekter to conclude an important agreement in Sweden Read more... 08.02.2021 AS Harju Elekter comments on trading activity of its stock Read more... 20.01.2021 Harju Elekter Group concluded an agreement with Finland’s largest distribution network company Read more... 15.01.2021 Harju Elekter Group’s Finnish subsidiary’s name was changed Read more... 05.01.2021 Merger and division of the Group’s Finnish subsidiaries Read more... 01.01.2020 Archive Read more... 17.12.2020 Publication of Financial Reports in 2021 Read more... 16.12.2020 Changes in the Swedish subsidiaries of Harju Elekter Group Read more... 02.11.2020 The merger of Swedish subsidiaries of Harju Elekter Group was entered into the commercial register Read more... 28.10.2020 Harju Elekter Group financial results, 1-9/2020 Read more... 22.09.2020 Harju Elekter Group concluded an agreement with Finland’s second largest electricity distribution system operator Read more... 21.09.2020 Harju Elekter’s Swedish subsidiary signed a contract related to the upgrading of the Slussen metro station’s electrical substation in Stockholm Read more... 01.09.2020 Harju Elekter Group won an important tender in Finland Read more... 29.07.2020 Harju Elekter Group financial results, 1-6/2020 Read more... 22.07.2020 Harju Elekter invests up to 6 million euros in factory expansion of the Lithuanian subsidiary Read more... 09.07.2020 Dividend payment ex-date of Harju Elekter Read more... 30.06.2020 AGM decisions Read more... 03.06.2020 Harju Elekter notice of the AGM Read more... 30.04.2020 Harju Elekter will merge its Swedish subsidiaries Read more... 29.04.2020 Harju Elekter Group financial results, 1-3/2020 Read more... 27.03.2020 Audited annual report 2019 Read more... 17.03.2020 Appointment of the Chairman of the Management Board Read more... 21.02.2020 Harju Elekter Group financial results, 1-12/2019 Read more... 29.01.2020 Harju Elekter merges Finnish subsidiaries Read more... 20.12.2019 Publication of financial reports in 2020 Read more... 10.12.2019 Regarding changes in the management of Harju Elekter Read more... 09.12.2019 Harju Elekter won Elektrilevi tender Read more... 05.11.2019 Large order received by Harju Elekter’s subsidiary Read more... 31.10.2019 Harju Elekter Group financial results, 1-9/2019 Read more... 30.10.2019 Extension of the powers of Members of the Management Board of Harju Elekter Read more... 19.09.2019 Harju Elekter Lithuanian subsidiary opened new production facilities Read more... 03.09.2019 Changes to the governing bodies of Swedish subsidiaries of Harju Elekter Read more... 03.09.2019 Changes to the governing body of Harju Elekter’s Finnish subsidiary Read more... 02.09.2019 The subsidiary of Harju Elekter bought a real estate company in Finland Read more... 31.07.2019 Harju Elekter Group financial results, 1-6/2019 Read more... 04.07.2019 Harju Elekter brings subsidiaries under a joint trademark Read more... 13.05.2019 Dividend payment ex-date of Harju Elekter Read more... 02.05.2019 Harju Elekter Group financial results, 1-3/2019 Read more... 02.05.2019 AGM decisions Read more... 04.04.2019 Change in AS Harju Elekter subsidiary’s Management Board Read more... 03.04.2019 Harju Elekter notice of the AGM Read more... 02.04.2019 Audited annual report 2018 Read more... 27.02.2019 Harju Elekter Group financial results, 1-12/2018 Read more... 10.01.2019 Changes to the management boards of Harju Elekter’s subsidiaries Read more... 02.01.2019 Large order received by Harju Elekter’s subsidiary Read more... 21.12.2018 Publication of financial reports in 2019 Read more... 27.11.2018 Extension of delivery contract until 2020 Read more... 24.10.2018 Harju Elekter Group financial results, 1-9/2018 Read more... 06.09.2018 Harju Elekter raises its technology capacity Read more... 30.08.2018 Harju Elekter expands production capacity in Lithuania Read more... 25.07.2018 Harju Elekter Group financial results, 1-6/2018 Read more... 11.05.2018 Dividend payment ex-date of Harju Elekter Read more... 03.05.2018 AGM decisions Read more... 25.04.2018 Harju Elekter Group financial results, 1-3/2018 Read more... 04.04.2018 Audited annual report 2017 Read more... 20.03.2018 Harju Elekter Group won Elektrilevi tender Read more... 28.02.2018 Harju Elekter Group financial results, 1-12/2017 Read more... 09.02.2018 Harju Elekter Group won an important tender in Sweden Read more... 25.01.2018 Harju Elekter’s subsidiary won an important tender in Finland Read more... 05.01.2018 Changes to the management boards of Harju Elekter’s Finnish subsidiaries Read more... 21.12.2017 Publication of financial reports in 2018 Read more... 13.12.2017 Harju Elekter purchases SEBAB AB Read more... 13.12.2017 Correction: Harju Elekter purchases SEBAB AB Read more... 06.11.2017 Harju Elekter signed a Letter of Intent for the acquisition of all shares of SEBAB AB Read more... 27.10.2017 Changes in AS Harju Elekter subsidiary’s management board Read more... 25.10.2017 Harju Elekter Group financial results, 1-9/2017 Read more... 25.09.2017 Termination of the contract of service of the managing director of a subsidiary Read more... 11.09.2017 Commencement of negotiations Read more... 02.08.2017 Termination of the contract of service of the managing director of a subsidiary Read more... 26.07.2017 Harju Elekter Group financial results, 1-6/2017 Read more... 05.06.2017 Harju Elekter purchased Telesilta Oy Read more... 10.05.2017 Commencement of negotiations Read more... 04.05.2017 Extension of the authorisations of the Chairman of the Management Board Read more... 27.04.2017 AGM resolutions Read more... 30.03.2017 Harju Elekter purchased a majority holding in Energo Veritas Read more... 28.03.2017 AS Harju Elekter notice of AGM Read more... 28.03.2017 Audited annual report 2016 Read more... 16.03.2017 AS Harju Elekter accepted a takeover bid for shares of PKC Group Plc Read more... 27.02.2017 Harju Elekter Group financial results, 1-12/2016 Read more... 20.01.2017 Motherson Sumi Systems made a takeover bid for shares of PKC Group Read more... 16.01.2017 The payment related to reduction of the share capital Read more... 13.01.2017 ADJUSTMENT: Large order received by Harju Elekter’s subsidiary Read more... 11.01.2017 Large order received by Harju Elekter’s subsidiary Read more... 28.12.2016 Publication of financial reports in 2017 Read more... 20.12.2016 Harju Elekter Group signed a large volume contract Read more... 27.10.2016 Harju Elekter Group financial results, 1-9/2016 Read more... 26.10.2016 Changes in the Management Board of AS Harju Elekter Read more... 21.10.2016 Harju Elekter laid the cornerstone for two new buildings in Allika Industrial Park Read more... 18.10.2016 Reduction of share capital was entered in the Commercial Register Read more... 14.10.2016 Harju Elekter acquired Finnish real estate company Kiinteistö Oy Uutvallinkulma Read more... 27.07.2016 Harju Elekter Group financial results, 1-6/2016 Read more... 28.04.2016 Harju Elekter Group financial results, 1-3/2016 Read more... 28.04.2016 Resolution of AGM Read more... 07.04.2016 CORRECTION: Notice of the AGM Read more... 06.04.2016 Audited annual report 2015 Read more... 06.04.2016 Notice of the AGM Read more... 05.04.2016 Restructuring of AS Harju Elekter subsidiaries in Estonia Read more... 26.02.2016 Harju Elekter – 50 years of experience in offering solutions for electricity distribution! Harju Elekter Group financial results, 1-12/2015 Read more... 22.12.2015 Publication of financial reports in 2016 Read more... 04.11.2015 Harju Elekter Group financial results, 1-9/2015 Read more... 08.08.2015 Harju Elekter Group financial results, 1-6/2015 Read more... 22.07.2015 Registration of the share capital increase in the Commercial Register Read more... 03.06.2015 AS Harju Elekter acquired a 10% holding in the ultracapacitors’ manufacturer Skeleton Technologies Group OÜ. Read more... 01.06.2015 Termination of the contract of service of the managing director of a subsidiary Read more... 14.05.2015 Resolutions of AGM Read more... 29.04.2015 Financial results, 1-3/2015 Read more... 24.04.2015 AS Harju Elekter acquired all of the shares of their Lithuanian subsidiary UAB Rifas Read more... 15.04.2015 AS Harju Elekter Supervisory Board approved audited annual report 2014 Read more... 14.04.2015 AS Harju Elekter notice of the annual general meeting Read more... 25.02.2015 Financial results, 1-12/2014 Read more... 29.12.2014 Publication of financial reports in 2015 Read more... 05.11.2014 Financial results, 1-9/2014 Read more... 06.08.2014 Financial results, 1-6/2014 Read more... 09.07.2014 AS Harju Elekter sold its holding in AS Draka Keila Cables Read more... 17.06.2014 Group’s Finnish subsidiary purchases Finnkumu Oy Read more... 10.06.2014 Purchase of Finnkumu Oy approved by Supervisory Board Read more... 08.05.2014 Notice on the decrease of an important holding Read more... 08.05.2014 Resolutions of AGM Read more... 06.05.2014 Financial results, 1-3/2014 Read more... 30.04.2014 Commencement of negotiations Read more... 17.04.2014 Audited annual report 2013 Read more... 16.04.2014 Resignation Application from a Member of the Supervisory Board Read more... 16.04.2014 Invitation, agenda and proposals to the AGM of shareholders Read more... 28.02.2014 AS Harju Elekter consolidated unaudited results for Q4 and 12 months 2013 Read more... 28.02.2014 Suspension of the activities of Swedish subsidiary Harju Elekter AB Read more... 02.01.2014 Publication of financial reports in 2014 Read more... 02.01.2014 Publication of financial reports in 2014 Read more... 06.11.2013 Financial results, 1-9/2013 Read more... 22.10.2013 The subsidiary of AS Harju Elekter signed a large volume contract Read more... 07.08.2013 Financial results, 1-6/2013 Read more... 09.05.2013 Resolutions of AGM Read more... 07.05.2013 Financial results, 1-3/2013 Read more... 10.04.2013 Invitation, agenda and proposals to the AGM of shareholders Read more... 27.02.2013 Financial results, 1-12/2012 Read more... 11.01.2013 Publication of financial reports in 2013 Read more...