Harju Elekter Group financial results, 1-3/2022

27.04.2022 Market Announcements Reports

The year began for Harju Elekter on an optimistic note with a record order book, the possible stabilisation of material prices, and price negotiations for framework agreements. Nevertheless, the quarter was a difficult one and successive global challenges caused an adverse effect on the first-quarter results of Harju Elekter. The war does not have a direct impact on the operations of Harju Elekter, as our target markets have always been the Nordic and the Western European countries. At the same time, we can see indirect effects. Rising energy prices, continuing increases in material and key component prices, supply chain disruptions and rising inflation as a result of the ongoing crises in the world, are all factors that are inevitably having an impact on the company’s profitability. Despite strong sales growth, the quarter ended with a loss. We could not fill orders with enough efficiency nor pass the increase in material prices fully to the customers. In order to keep the production units running steadily, to increase the lower-than-expected security of supply in the first quarter and to prepare for the fulfilment of record orders for the full year, the Group is committed to maintaining higher material stocks and entering into larger-scale agreements with suppliers in the coming periods.

Revenue, Expenses, and Profit

The consolidated revenue for the first quarter of 2022 was 37.3 (Q1 2021: 30.7) million euros, which increased by 21.5% compared to the comparable period. At the same time, revenue increased in all of the Group’s largest target markets: Estonia, Finland, Sweden and Norway. The growth was ensured by long-term and large-scale contracts concluded at the beginning of last year.


 EUR’000   3 months 3 months +/-
    2022 2021  
Revenue 37,321 30,717 21.5%
Gross profit 2,986 3,844 -22.3%
EBITDA -68 1,485 -104.6%
Operating profit/loss (-) (EBIT) -1,125 516 -318.0%
Profit/loss (-) for the period -1,294 297 -535.7%
 Incl. attributable to owners of the parent company -1,308 310 -521.9%
Earnings per share (EPS) (euros) -0.07 0.02 -450.0%

Core Business and Markets

The Group’s core business, production, accounted for 87.7% of the Group’s consolidated revenue. Thanks to the growth in sales volumes of companies manufacturing electrical equipment, the sales volume of the production segment increased by 20.3% to 32.7 million euros in the reporting quarter.

Sales to the Estonian market increased by 36.1% to 6.9 (Q1 2021: 5.1) million euros year-on-year. The increase was mainly due to the increase in sales of hermetic distribution transformers and distribution cabinets. The Estonian market accounted for 18.5% (Q1 2021: 16.5%) of the consolidated revenue in the reporting quarter.

The Finnish market generated revenue of 16.7 (Q1 2021: 14.6) million euros. The majority of the sales volume in the reporting quarter consisted of the sale of substations to Finnish electricity network companies. The planned sales volume of project sales in the reporting quarter was not achieved due to some component shortages and production stoppages caused by illness. During the reporting year, 44.7% (Q1 2021: 47,5%) of the Group’s products and services were sold to the Group’s largest market, Finland.

Sales to the Swedish market increased by 9% compared to the reporting quarters, amounting to 5.8 (Q1 2021: 5.3) million euros. Operating volumes have stabilised; targeted work continued. Sweden accounted for 15.6% (Q1 2021: 17.4%) of consolidated revenue in the reporting quarter, this time remaining the third largest market.

During the quarter, the Group’s products and services worth 4.5 (Q1 2021: 1.9) million euros were sold to the Norwegian market, which was 141.2% more than in the same period of the previous year. The change in revenue is due to the low order volume in the comparison period. Looking at the longer term, it can be stated that the order volumes of the shipping sector have returned to the average level. The Norwegian market accounted for 12.1% (Q1 2021: 6.1%) of quarterly sales.


During the first quarter, the Group invested a total of 1.5 (Q1 2021: 2.1) million euros in non-current assets, incl 1.0 million euros in investment properties, 0.4 (Q1 2021: 2.0) million euros in property, plant, and equipment and 0.1 (Q1 2021: 0.1) million euros in intangible assets. Most of the investments during the reporting period were directed to the construction of the Laohotell III production and warehouse complex, in the Allika Industrial Park, and to production technology equipment.

Non-current financial investments increased by 0.8 million euros to 24.4 million euros during the reporting period. The main changes were the partial sale of securities and the decrease in the fair value of 0.5 million euros in the first quarter. A total of 665 thousand euros was received from the partial sale of listed securities in the reporting quarter, of which the realized profit was 0.2 million euros. In the comparable period, 0.2 million euros were received from the sale of listed securities, of which the realized profit was 43 thousand euros. In the reporting quarter, Harju Elekter Oy increased its holding in technology company IGL-Technologies Oy from 5,5% to 10%.


The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 6.92 euros. As of 31 March 2021, AS Harju Elekter had 9,745 shareholders. The number of shareholders increased during the reporting quarter by 358.


EUR’000 31 March 2022 31 December 2021
Current assets
Cash and cash equivalents 286 574
Trade and other receivables 35,663 33,689
Prepayments 3,119 1,844
Inventories 37,692 27,437
Total current assets 76,760 63,544
Non-current assets
Deferred income tax assets 776 690
Non-current financial investments 24,410 25,222
Investment properties 24,603 23,903
Property, plant and equipment 26,303 26,654
Intangible assets 7,659 7,544
Total non-current assets 83,751 84,013
TOTAL ASSETS 160,511 147,557
Borrowings 21,354 16,912
Prepayments from customers 6,681 4,659
Trade and other payables 31,063 24,490
Tax liabilities 3,663 3,156
Current provisions 51 35
Total current liabilities 62,812 49,252
Borrowings 12,401 11,426
Other non-current liabilities 33 33
Total non-current liabilities 12,434 11,459
Share capital 11,352 11,352
Share premium 1,601 1,601
Reserves 18,278 18,716
Retained earnings 54 158 55 315
Total equity attributable to the owners of the parent company 85,389 86,984
Non-controlling interests -124 -138
Total equity 85,265 86,846




EUR’000 3 months 3 months
2022 2021
Revenue 37,321 30,717
Cost of sales -34,335 -26,873
Gross profit 2,986 3,844
Distribution costs -1,350 -1,214
Administrative expenses -2,665 -2,217
Other income 56 172
Other expenses -152 -69
Operating profit/loss (-) -1,125 516
Finance income 39 17
Finance costs -119 -98
Profit/loss (-) before tax -1,205 435
Income tax -89 -138
Profit/loss (-) for the period -1,294 297
Profit/loss (-) attributable to:
    Owners of the parent company -1,308 310
    Non-controlling interests 14 -13
Earnings per share
  Basic earnings per share (EUR) -0.07 0.02
  Diluted earnings per share (EUR) -0.07 0.02


EUR’000 3 kuud 3 kuud
2022 2021
Profit/loss (-) for the period -1,294 297
Other comprehensive income
Items that may be reclassified to profit or loss
   Impact of exchange rate changes of a foreign subsidi­aries 20 -23
Items that will not be reclassified to profit or loss
   Gain on sales of financial assets 151 43
   Net gain/loss (-) on revaluation of financial assets -521 365
Total comprehensive income for the period -350 385
Other comprehensive income -1,644 682
Total comprehensive income attributable to:
    Owners of the Company -1,658 695
    Non-controlling interests 14 -13

Interim Report Q1 2022

Tiit Atso
Chairman of the Board
+372 674 7400