Harju Elekter Group financial results, 1-3/2021

28.04.2021 Reports Market Announcements

The first quarter at Harju Elekter was a period of preparations for the year: developments were started to fulfil the new framework contracts in Finland and Sweden, the construction of the Lithuanian plant extension reached its final stages, and the full-time operation of the industrial robot was launched. Although revenue increased both in Estonia and Sweden, the decrease in revenue was affected by the postponements of the installation works in the Group’s largest market, Finland. Despite the health and raw materials crisis, the Group did not have to stop production for a single day. The increase in client queries and orders in all operating segments gives reason to believe that a challenging yet fascinating economic cycle awaits after the retreat of the crisis.

Revenue, Expenses, and Profit

The consolidated unaudited revenue for the first quarter of 2021 was 30.7 (Q1 2020: 35.0) million euros, which was 12.2% more modest than in the reference period. In addition to the usual seasonality, the profitability of the quarter was also affected by the postponed instalment works of our customers due to the snowy winter months, which did not have a similar effect in the reference period. The situation was amplified by supply difficulties caused by a shortage of materials.


 EUR’000   Q1 Q1 +/-
    2021 2020  
Revenue 30,717 34,998 -12.2%
Gross profit 3,844 4,923 -21.9%
EBITDA 1,485 1,943 -23.5%
Operating profit (EBIT) 516 1,053 -51.0%
Profit for the period 297 703 -57.8%
 Incl. attributable to owners of the parent company 310 728 -57.4%
Earnings per share (EPS) (euros) 0.02 0.04 -57.4%


The total operating expenses for the reporting quarter were 30.3 (Q1 2020: 33.9) million euros. The majority of the 10.7% decrease in expenses was due to a decrease in the cost of sales: 3.2 million euros year-on-year. Labour costs increased year-on-year, amounting to 7.3 (Q1 2020: 6.6) million euros. The increase in labour costs and average remuneration was affected most by the increase of the proportion of Swedish employees in the Group, since wage levels are significantly higher in Scandinavian countries than they are in Estonian and Lithuanian companies.

The consolidated gross profit for the reporting quarter was 3,844 (Q1 2020: 4,923) thousand euros and the gross profit margin was 12.5% (Q1 2020: 14.1%). Quarterly consolidated operating profit (EBIT) amounted to 516 (Q1 2020: 1,053) thousand euros. The operating margin for the first quarter was 1.7% (Q1 2020: 3.0%).

The consolidated net profit for the reporting quarter was 297 (Q1 2020: 703) thousand euros of which the share of the owners of the parent company was 310 (Q1 2020: 728) thousand euros. The earnings per share were 0.02 (Q1 2020: 0.04) euros. The lower profitability was a result of increased labour costs, setback on revenue and a sharp increase in the price of raw materials.

Core Business and Markets

The Group’s core business, Production, accounted for 89% of the Group’s consolidated revenue. Beginning with new orders, the usual seasonality and the low availability of raw materials decreased the revenue of the production segment by 4.1 million to 27.2 million euros on a year-on year.

The largest target markets of the Group are Estonia, Finland, Sweden, and Norway, which is why the sales volumes of the Group are strongly affected by the events happening in these markets. Quarterly sales to the Estonian market increased by 1.5 million to 5.1 million euros in a year-on-year comparison. During the reporting quarter the Group continued the production and delivery of prefabricated substations that began in Q2 2020 in the Elektrilevi OÜ framework procurement.

Sales to the Finnish market decreased by 4.9 million to 14.6 million euros in a quarterly comparison and were most affected by the decrease in orders caused by the snowy and cold winter, commencing with new long-term orders, but also some supply difficulties and shortage in materials. In the reporting quarter, 47.5% (Q1 2020: 55.6%) of the Group’s products and services were sold to the Group’s largest market, Finland.

In comparison with the reporting quarters, the revenue earned from the Swedish market increased by 0.4 million to 5.3 million euros. Sweden accounted for 17.4% (Q1 2020: 14.3%) of consolidated revenue in the reporting quarter, being the second largest market.

Norway ranks fourth in the Group’s markets, accounting for 6.1% of the Group’s first quarter revenue. In the first quarter, the Group’s products, and services worth 1.9 million euros were sold to the Norwegian market, which is 3.6 million less than in the same period of the previous year. The decrease in Norwegian revenue was caused by record high orders in the reference period.


The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 8.3 euros. As of 31 March 2021, AS Harju Elekter had 7,387 shareholders. The number of shareholders increased during the reporting quarter by 2,303.


EUR’000 31 March 2021 31 December 2020
Current assets
Cash and cash equivalents 2,614 2,843
Trade and other receivables 26,663 27,226
Prepayments 1,454 820
Inventories 21,104 18,856
Total current assets 51,835 49,745
Non-current assets
Deferred income tax assets 569 514
Non-current financial investments 12,373 11,918
Investment properties 23,375 23,605
Property. plant and equipment 24,068 22,494
Intangible assets 7,186 7,199
Total non-current assets 65,571 65,730
TOTAL ASSETS 119,406 115,475
Borrowings 11,317 12,056
Prepayments from customers 2,760 4,182
Trade and other payables 20,703 15,837
Tax liabilities 2,454 2,871
Current provisions 35 34
Total current liabilities 37,269 34,980
Borrowings 7,921 7,032
Other non-current liabilities 65 66
Total non-current liabilities 7,986 7,098
Share capital 11,176 11,176
Share premium 804 804
Reserves 7,123 6,709
Retained earnings 55,211 54,858
Total equity attributable to the owners of the parent company 74,314 73,547
Non-controlling interests -163 -150
Total equity 74,151 73,397


EUR’000 Q1 Q1
2021 2020
Revenue 30,717 34,998
Cost of sales -26,873 -30,075
Gross profit 3,844 4,923
Distribution costs -1,214 -1,308
Administrative expenses -2,217 -2,561
Other income 172 52
Other expenses -69 -53
Operating profit 516 1 053
Finance income 17 37
Finance costs -98 -102
Profit before tax 435 988
Income tax -138 -285
Profit for the period 297 703
Profit attributable to:
    Owners of the parent company 310 728
    Non-controlling interests -13 -25
Earnings per share
   Basic earnings per share (EUR) 0.02 0.04
   Diluted earnings per share (EUR) 0.02 0.04

Interim Report Q1, 2021

Tiit Atso
Chairman of the Board
+372 674 7400