Harju Elekter Group financial results, 1-3/2024

24.04.2024 Market Announcements Reports

Commentary from the management

Harju Elekter’s 2024 began with more modest results than in the year before. In the longer term, however, it was still a strong first quarter. Despite our efforts to minimise seasonality, the Q1 and Q4 results tend to be weaker than the Q2 and Q3 results. In this year as well, the significant increase in production volumes started in March, and based on orders is expected to continue until the end of autumn.

The biggest contribution to the financial results originated from production in Lithuania, and from production in Estonia to some extent. The Finnish production unit has a number of activities ahead to restore its profitability, and we can be increasingly optimistic about the Swedish unit’s return to profitability, which has taken longer time than anticipated. Amendments to the Finnish national energy network regulations that govern distribution networks had a significant economic impact on sales results in Estonia and Finland, resulting in reduced investments for the current and coming years.

On 11 March this year, the Regulation of the European Parliament and of the Council banning the use of fluorinated greenhouse gases (SF6) in electrical equipment from 2026 entered into force. For Harju Elekter, this will very likely mean that a number of electricity grid contracts will be amended or cancelled in 2025. As equipment manufacturers are only starting up their production of SF6-free equipment, a shortage situation could emerge in the market, affecting both the availability of equipment and leading to a sharp increase in prices. This, in turn, will lead to significant fluctuations in the volume of orders for complex substations before and after the commissioning date of said equipment.

By today, we have completed the restructuring commenced in the second half of 2022, which transformed the management of the Group and its subsidiaries, sharpened the focus on core activities, and provided for other important steps to be ready for the implementation of the new strategic development plan. There is no development without growth, which is why we will keep looking for opportunities to continue profitable growth in both existing and new locations.

Revenue and financial results

The Group’s revenue in the first quarter was 46.8 million euros, representing a 3.3% growth compared to the same period last year. Sales of electrical equipment showed stable growth and made a significant contribution to the company’s revenue, amounting to 42.2 million euros and accounting for 90.3% of total quarterly revenue. The majority of electrical equipment sales consisted of substations, low-voltage distribution equipment, technical buildings, and subcontracting services.

EUR ’000   3M 3M +/-
    2024 2023  
Revenue 46,775 45,269 3.3%
Gross profit 4,836 5,386 -10.2%
EBITDA 1,941 2,382 -18.5%
Operating profit (EBIT) 976 1,309 -25.4%
Profit for the period 361 749 -51.8%
Earnings per share (EPS) (euros) 0.02 0.04 -50.0%

While revenue increased, profitability declined compared to the previous year. The three-month gross profit was 4.8 (2023 Q1: 5.4) million euros, resulting in a gross profit margin of 10.3% (2023 Q1: 11.9%). Operating profit (EBIT) amounted to 1.0 (2023 Q1: 1.3) million euros, with an operating margin of 2.1% (2023 Q1: 2.9%). Net profit for the first quarter was 0.4 (2023 Q1: 0.7) million euros. Earnings per share for the first quarter were 0.02 (2023 Q1: 0.04) euros.

Core business and markets

The Group’s core business, Production, accounted for 94.9% of the revenue of the quarter. The production segment’s revenue increased by 4.2%, amounting to 44.4 million euros.

The Group’s largest target markets, Estonia, Finland, Sweden, and Norway, together accounted for 80.6% of total revenue in the first quarter, representing a significant increase compared to the previous year (2023 Q1: 75.3%).

Estonia and Finland markets were more modest compared to the previous year. In the reporting quarter, revenue from Estonia amounted to 4.5 (2023 Q1: 5.0) million euros, comprising 9.6% (2023 Q1: 10.9%) of consolidated revenue. Sales of substations and cable distribution cabinets to electricity distribution sector clients decreased, while rental income from real estate properties increased. From the Finnish market, revenue amounted to 17.0 million euros, which is 8.9% less than the previous year. The majority portion of the revenue decline was due to reduced sales of electrical equipment and electrical works. Sales of substations to electricity distribution sector customers and electric vehicle chargers remained modest.

There was a significant growth in the Norwegian market, where revenue doubled to 9.3 million euros, primarily from the sale of low-voltage equipment to maritime sector customers. The Norwegian market accounted for 19.9% of consolidated revenue in the reporting quarter. Revenue from the Swedish market also slightly increased, reaching 6.9 (2023 Q1: 6.5) million euros, indicating stable development in this market segment.


During the reporting period, Harju Elekter invested a total of 0.7 (Q1 2023: 0.6) million euros in non-current assets, including 0.4 (2023 Q1: 0.3) million euros in investment properties, 0.1 (2023 Q1: 0.3) million euros in property, plant, and equipment and 0.2 (2023 Q1: 0.1) million euros in intangible assets. The investments primarily focused on extensive renovation and reconstruction works in the Keila Industrial Park, aimed at meeting the long-term needs of a tenant, Prysmian Group Baltics. Additionally, investments were made in production technology equipment and production and process management systems.

The total value of the Group’s long-term financial investments as of the reporting date was 29.3 (31.12.23: 29.2) million euros.


The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 4.79 euros. As of 31 March 2024, AS Harju Elekter Group had 11,103 shareholders.


EUR ‘000 31.03.2024 31.12.2023 31.03.2023
Current assets
Cash and cash equivalents 1,444 1,381 1,028
Trade and other receivables 49,050 38,837 37,627
Prepayments 1,400 1,071 1,945
Inventories 35,900 36,834 44,704
Total current assets 87,794 78,123 85,304
Non-current assets
Deferred income tax assets 868 731 1,002
Non-current financial investments 29,313 29,244 23,767
Investment properties 28,922 28,856 24,766
Property, plant, and equipment 33,549 34,067 35,042
Intangible assets 7,440 7,354 7,284
Total non-current assets 100,092 100,252 91,861
TOTAL ASSETS 187,886 178,375 177,165
Borrowings 22,576 19,387 18,366
Prepayments from customers 20,946 18,870 21,310
Trade and other payables 27,432 23,159 31,888
Tax liabilities 2,978 3,308 3,033
Current provisions 150 140 1,950
Total current liabilities 74,082 64,864 76,547
Borrowings 23,207 23,481 20,412
Other non-current liabilities 32 32 0
Total non-current liabilities 23,239 23,513 20,412
TOTAL LIABILITIES 97,321 88,377 96,959
Share capital 11,655 11,655 11,523
Share premium 3,306 3,306 2,509
Reserves 23,261 23,055 17,815
Retained earnings 52,343 51,982 48,552
Total equity attributable to the owners of the parent company 90,565 89,998 80,399
Non-controlling interests 0 0 -193
Total equity 90,565 89,998 80,206
TOTAL LIABILITIES AND EQUITY 187,886 178,375 177,165


EUR ‘000 3M 3M
2024 2023
Revenue 46,775 45,269
Cost of sales -41,939 -39,883
Gross profit 4,836 5,386
Distribution costs -1,195 -1,356
Administrative expenses -2,517 -2,580
Other income 19 18
Other expenses -167 -159
Operating profit 976 1,309
Finance income 92 75
Finance costs -590 -549
Profit before tax 478 835
Income tax -117 -86
Profit for the period 361 749
Profit attributable to:
    Owners of the parent company 361 781
    Non-controlling interests 0 -32
Earnings per share    
   Basic earnings per share (euros) 0.02 0.04
   Diluted earnings per share (euros) 0.02 0.04


EUR ‘000 3M 3M
2024 2023
Profit for the period 361 749
Other comprehensive income
Items that may be reclassified to profit
   Impact of exchange rate changes of a foreign subsidiaries 106 -41
Items that will not be reclassified to profit
   Gain on sales of financial assets 0 0
   Net gain on revaluation of financial assets 70 36
Total comprehensive income for the period 176 -5
Other comprehensive income 537 744
Total comprehensive income attributable to:
    Owners of the Company 537 776
    Non-controlling interests 0 -32

Interim Report 2024 Q1

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