Energy, Estonia, Markets and Companies

International Internet Magazine. Baltic States news & analytics Tuesday, 23.07.2019, 06:18

Q2 revenue of Harju Elekter grows by third on year

BC, Tallinn, 25.07.2018.Print version
Revenue of the listed Estonian electrical equipment maker Harju Elekter Group in the second quarter of 2018 grew 34.9% on year to 33.9 mln euros, informs LETA/BNS.

The consolidated sales revenue of the half-year increased by 40.4% and reached 59.8 mln euros compared to the reference period. The boost in sales volumes was due to the increase in order volumes and the acquisition of new business combinations in the second half of 2017 and in January 2018, Harju Elekter told the stock exchange.

Net profit in the second quarter fell 1.5% on year to 1 mln euros, while the net profit of the first six months dropped 95.7% to 1.2 mln euros.

During the reporting quarter, 81.5% of revenue was earned from the manufacturing segment, real estate and unallocated activities contributed 18.5% of the consolidated sales revenue. In the first half of 2018, the manufacturing segment contributed 80.5% of the consolidated sales revenue. The sales revenue of the real estate segment increased by 0.2 mln euros to 0.6 mln euros in the second quarter and by 0.3 mln euros to 1.2 mln euros in the first half of 2018, compared to the reference period.

The increase in the sales revenue in the real estate segment compared to the previous period is related to a long-term major tenant leaving the group's rental space at the beginning of 2017, which reduced the sales revenue of the reference period. The new production and storage buildings completed in the Allika industrial park in fall 2017 and rented out to Stera Technologies AS and the Laohotell that was taken into use at the beginning of the current year have halted the decrease in the sales revenue of the real estate segment and increased the rental income of this year.  

In the second quarter of 2018, the group's sales revenue earned outside Estonia accounted for 89.5%, increasing by 10.0 mln to 30.3 mln euros, and in the first half of the year for 89.4%, increasing by 19.6 mln to 53.5 mln euros.

The group's largest market is Finland. Both in the reporting quarter and in the first half of the year, 70.0% of the group's products and services were sold on the Finnish market, compared to 68.3% and 67.6% respectively in 2017. In the quarterly comparison, sale to the Finnish market has grown by 6.5 mln euros to 23.7 mln euros and in the first six months by 44.6%, that is 12.8 mln euros up to 41.7 mln euros. Half of the growth in the reporting quarter sales revenue came from the Finnish subsidiary Telesilta Oy, acquired in June 2017, but also large-scale contracts concluded with Finnish grid companies in the years 2016-2017 were behind the growth.


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