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AS Tallinna Vesi´s financial results for the 1st quarter of 2021

Tallinna Vesi
·7-min read

AS Tallinna Vesi’s sales revenue for the first quarter of 2021 was11.78 million, showing 10.6% reduction on the same period last year. The revenues reflect lower commercial consumption brought about by the COVID-19 restrictions, whereas higher domestic consumption gave a slight increase in the sales revenue from private customers.

Sales to private customers in the main service area increased by 1.7% to €5.11 million, due to reduced consumption of businesses and higher household consumption, both of which were attributable to the COVID-19 restrictions.

In the main service area, the sales revenue from commercial customers dropped by 21.5% to €3.26 million as a result of their consumption being lower by €0.89 million. The hospitality sector has seen the greatest impact from the pandemic, affecting the volumes of the water services provided by the Company.

The gross profit for the 1st quarter of 2021 was €5.18 million, being 14.5% lower due to reduced sales revenue. The operating profit was €4.66 million, having decreased by €1.01 compared to the same period last year. The main factor impacting the operating profit was lower sales revenue resulting from decreased consumption.

The net profit for the 1st quarter of 2021 was €4.55 million, showing a decrease of €1.01 million compared to the same period of 2020. The decline in the net profit was predominantly a consequence of lower operating profits. Deferred tax also contributed to the decrease in net profit, whilst lower interest costs had a positive impact on profitability.

Snowy winter made an impact on the construction revenues in comparison with the previous year: in the 1st quarter, subsidiary OÜ Watercom continued to work on the projects secured in 2020, both in Tallinn and across Estonia. The sales revenue from constructions services for the 1st quarter was €0.76 million, indicating a 25.7% decline compared to the same period of 2020. The decrease in revenue was primarily related to a lower revenue from pipe construction services, which were partly balanced by higher revenues from road construction services.

MAIN FINANCIAL INDICATORS

€ million,
except key ratios

1st quarter

Change 2021/ 2020

2021

2020

2019

Sales

11.78

13.18

14.66

-10.6%

Gross profit

5.18

6.06

8.26

-14.5%

Gross profit margin %

43.97

45.96

56.33

-4.3%

Operating profit before depreciation and amortisation

6.23

7.18

8.39

-13.3%

Operating profit before depreciation and amortisation margin %

52.83

54.48

57.24

-3.0%

Operating profit

4.66

5.67

6.89

-17.8%

Operating profit - main business

4.50

5.62

6.78

-20.0%

Operating profit margin %

39.55

43.02

47.00

-8.1%

Profit before taxes

4.57

5.56

6.68

-17.7%

Profit before taxes margin %

38.78

42.15

45.58

-8.0%

Net profit

4.55

5.56

1.01

-18.1%

Net profit margin %

38.59

42.15

45.58

-8.4%

ROA %

1.77

2.09

2.74

-15.5%

Debt to total capital employed %

54.83

54.81

57.78

0.0%

ROE %

3.97

4.70

6.85

-15.4%

Current ratio

4.48

5.87

6.28

-23.7%

Quick ratio

4.42

5.83

6.24

-24.2%

Investments into fixed assets

2.28

3.59

3.41

-36.5%

Payout ratio %

na

na

na

Gross profit margin – Gross profit / Net sales
Operating profit before depreciation and amortisation – Operating profit + depreciation and amortisation
Operating profit before depreciation and amortisation margin – Operating profit before depreciation and amortisation / Net sales
Operating profit margin – Operating profit / Net sales
Net profit margin – Net profit / Net sales
ROA – Net profit / Average Total assets for the period
Debt to Total capital employed – Total liabilities / Total capital employed
ROE – Net profit / Average Total equity for the period
Current ratio – Current assets / Current liabilities
Quick ratio – (Current assets – Stocks) / Current liabilities
Payout ratio - Total Dividends per annum/ Total Net Income per annum
Main business – water services related activities, excl. connections profit and government grants, construction services, doubtful debt


STATEMENT OF COMPREHENSIVE INCOME

1st quarter

1st quarter

12 months

€ thousand

2021

2020

2020

Revenue

11,784

13,180

51,717

Cost of goods and services sold

-6,603

-7,123

-29,491

GROSS PROFIT

5,181

6,057

22,226

Marketing expenses

-121

-117

-433

General administration expenses

-1,551

-1,295

-4,576

Other income (+)/ expenses (-)

1,151

1,025

4,567

OPERATING PROFIT

4,660

5,670

21,784

Financial income

5

12

31

Financial expenses

-95

-127

-473

PROFIT BEFORE TAXES

4,570

5,555

21,342

Income tax on dividends

-21

0

-4,610

NET PROFIT FOR THE PERIOD

4,549

5,555

16,732

COMPREHENSIVE INCOME FOR THE PERIOD

4,549

5,555

16,732

Attributable profit to:

Equity holders of A-shares

4,548

5,554

16,731

B-share holder

0.60

0.60

0.60

Earnings per A share (in euros)

0.23

0.28

0.84

Earnings per B share (in euros)

600

600

600


STATEMENT OF FINANCIAL POSITION

€ thousand

31/03/2021

31/03/2020

31/12/2020

ASSETS

CURRENT ASSETS

Cash and cash equivalents

47,122

68,658

44,514

Trade receivables. accrued income and prepaid expenses

6,514

6,277

7,019

Inventories

809

602

701

TOTAL CURRENT ASSETS

54,445

75,537

52,234

NON-CURRENT ASSETS

Property. plant and equipment

203,516

191,732

202,802

Intangible assets

634

666

629

TOTAL NON-CURRENT ASSETS

204,150

192,398

203,431

TOTAL ASSETS

258,595

267,935

255,665

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Current portion of long-term lease liabilities

393

362

393

Current portion of long-term loans

3,630

3,631

3,630

Trade and other payables

5,943

6,721

7,084

Derivatives

0

158

0

Prepayments

2,182

1,990

2,445

TOTAL CURRENT LIABILITIES

12,148

12,862

13,552

NON-CURRENT LIABILITIES

Deferred income from connection fees

35,611

31,902

34,564

Leases

1,331

1,231

1,400

Loans

83,966

87,597

83,978

Provision for possible third-party claims

8,424

13,238

9,628

Deferred tax liability

276

0

255

Other payables

35

26

32

TOTAL NON-CURRENT LIABILITIES

129,643

133,994

129,857

TOTAL LIABILITIES

141,791

146,856

143,409

EQUITY

Share capital

12,000

12,000

12,000

Share premium

24,734

24,734

24,734

Statutory legal reserve

1,278

1,278

1,279

Retained earnings

78,792

83,067

74,243

TOTAL EQUITY

116,804

121,079

112,256

TOTAL LIABILITIES AND EQUITY

258,595

267,935

255,665


CASH FLOWS STATEMENT

3 months

3 months

12 months

€ thousand

2021

2020

2020

CASH FLOWS FROM OPERATING ACTIVITIES

Operating profit

4,660

5,670

21,784

Adjustment for depreciation/amortisation

1,567

1,510

6,283

Adjustment for revenues from connection fees

-125

-111

-542

Other non-cash adjustments

-1,204

-1,204

-4,814

Profit/loss(+) from sale and write off of property. plant and equipment. and intangible assets

0

-11

-14

Change in current assets involved in operating activities

402

865

140

Change in liabilities involved in operating activities

-54

162

-215

TOTAL CASH FLOWS FROM OPERATING ACTIVITIES

5,246

6,881

22,622

CASH FLOWS USED IN INVESTING ACTIVITIES

Acquisition of property. plant and equipment. and intangible assets

-2,923

-2,986

-15,682

Compensations received for construction of pipelines. incl connection fees

508

275

1,998

Proceeds from sales of property. plant and equipment and intangible assets

0

28

32

Interest received

1

11

35

TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES

-2,414

-2,672

-13,617

CASH FLOWS USE D IN FINANCING ACTIVITIES

Interest paid and loan financing costs. incl swap interests

-121

-173

-719

Lease payments

-102

-153

-555

Received loans

0

0

0

Repayment of loans

0

0

-3,636

Dividends paid

0

0

-19,888

Withheld income tax paid on dividends

0

0

-113

Income tax paid on dividends

0

0

-4,355

TOTAL CASH FLOW USED IN FINANCING ACTIVITIES

-223

-326

-29,266

CHANGE IN CASH AND CASH EQUIVALENTS

2,609

3,883

-20,261

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD

44,514

64,775

64,775

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

47,123

68,658

44,514


Kristi Ojakäär

Member of the Management Board

+372 62 62 200

kristi.ojakaar@tvesi.ee


Aleksandr Timofejev

Member of the Management Board

+372 62 62 200

aleksandr.timofejev@tvesi.ee

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