May 25, 2022

StrategisChhr

Skillful Business Crafters

Audited annual report 2021

Merko Ehitus AS

AS Merko Ehitus consolidated audited financial results for 2021 remain unchanged compared to the preliminary disclosure on 10 February 2022.

STATEMENT OF THE CHAIRMAN OF THE MANAGEMENT BOARD

2021 was a successful year for Merko. We fulfilled the group’s financial goals and investment plans and our profit grew 26%. These targets were met despite the continuing pandemic, supply chain problems, rising costs of construction and a spike in energy prices. Our greater strategic focus on residential development, selection of projects with higher potential, efficient implementation of decisions, and organizational ability to adapt – all rewarded us.

The 18.8% return on equity achieved last year is a good result considering the group’s high capitalization. Moreover, with the purchasing power of money decreasing, the fact that our return on equity outstripped inflation is to be cheered.

During the last two years, we have learned to operate in the environment of coronavirus restrictions, unexpected supply chain disruptions and volatile prices. Just as we thought the pandemic might be ending and we would return to the usual stability, another black swan entered the picture. The Ukraine war and the global economic conflict that started concurrently will not leave us or the construction and real estate sector unscathed. We do not yet know how the further developments will impact us. But we do have the knowledge that Merko is a strong company with a well-functioning team and that we will get by.

I would like to thank the employees and partners of the Merko group for their joint efforts and positive results. I gratefully acknowledge the buyers of the homes we have built and construction service customers for your trust in us. And I thank all of our shareholders who have decided to make the journey with us in the current unstable world.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
in thousand euros

2021

2020

Revenue

339,375

315,918

Cost of goods sold

(292,563)

(272,169)

Gross profit

46,812

43,749

Marketing expenses

(3,611)

(4,212)

General and administrative expenses

(13,925)

(13,412)

Other operating income

3,508

2,320

Other operating expenses

(582)

(2,979)

Operating profit

32,202

25,466

Finance income

12

1

Finance costs

(886)

(866)

Profit (loss) from associates and joint ventures

799

(144)

Profit before tax

32,127

24,457

Corporate income tax expense

(3,104)

(1,954)

Net profit for financial year

29,023

22,503

incl. net profit attributable to equity holders of the parent

29,140

22,994

net profit attributable to non-controlling interest

(117)

(491)

Other comprehensive income (loss), which can subsequently be classified in the income statement

Currency translation differences of foreign entities

33

(115)

Comprehensive income for the period

29,056

22,388

incl. attributable to equity holders of the parent

29,163

22,890

attributable to non-controlling interest

(107)

(502)

Earnings per share for profit attributable to equity holders of the parent (basic and diluted, in EUR)

1.65

1.30

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
in thousand euros

31.12.2021

31.12.2020

ASSETS

Current assets

Cash and cash equivalents

44,930

47,480

Trade and other receivables

55,484

32,657

Prepaid corporate income tax

114

306

Inventories

160,593

126,332

261,121

206,775

Non-current assets

Investments in associates and joint ventures

7,703

2,354

Other long-term loans and receivables

24,079

17,979

Deferred income tax assets

622

653

Investment property

13,828

13,922

Property, plant and equipment

16,350

14,521

Intangible assets

669

711

63,251

50,140

TOTAL ASSETS

324,372

256,915

LIABILITIES

Current liabilities

Borrowings

11,636

13,649

Payables and prepayments

90,054

55,846

Income tax liability

681

1,202

Short-term provisions

7,976

6,347

110,347

77,044

Non-current liabilities

Long-term borrowings

41,001

15,409

Deferred income tax liability

3,112

3,001

Other long-term payables

2,900

4,026

47,013

22,436

TOTAL LIABILITIES

157,360

99,480

EQUITY

Non-controlling interests

(227)

4,207

Equity attributable to equity holders of the parent

Share capital

7,929

7,929

Statutory reserve capital

793

793

Currency translation differences

(791)

(814)

Retained earnings

159,308

145,320

167,239

153,228

TOTAL EQUITY

167,012

157,435

TOTAL LIABILITIES AND EQUITY

324,372

256,915

AS Merko Ehitus audited annual report for 2021 is attached to the announcement and is also published on NASDAQ Tallinn and Merko’s web page (group.merko.ee).

Andres Trink
Chairman of Management Board
AS Merko Ehitus
+372 650 1250
[email protected]

Urmas Somelar
Head of Finance
AS Merko Ehitus
+372 650 1250
[email protected]

AS Merko Ehitus (group.merko.ee) group companies develop real estate and construct buildings and infrastructure. We create a better living environment and build the future. We operate in Estonia, Latvia, Lithuania and Norway. As at the end of 2021, the group employed 670 people, and the group’s revenue for 2021 was EUR 339 million.

Attachment

https://finance.yahoo.com/news/audited-annual-report-2021-050000199.html