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Thursday, 28.03.2024, 20:26
Merko's Q2 revenue rose by 20%
Sales revenue in the first six months of the year totaled 128.8 million
euros, while net profit amounted to 3.2 million euros, the company told the
stock exchange. This year, the group has increased its secured order book,
above all in Latvia. In the first six months of 2017 Merko has sold 80 apartments more than at the same time last year
and increased its sales revenue from the sale of apartments by 54%.
"Sales revenue and profit in the second quarter showed the expected
growth compared to 2016 and. It is gratifying to see that sales revenue
increased on all of the group's home markets. This year, the group has
increased its secured order book, above all in Latvia, where we have launched
construction on several major projects. As a result, the number of the Latvian
company's employees has grown. Competition between general contractors
continues to be very close in all of the countries in which we operate.
Furthermore, the availability of workforce and stability of suppliers is
becoming increasingly complicated, which in the assessment of the management
puts general contractors under pressure with regard to profit margins and
deadlines and forces a search for solutions," AS Merko Ehitus CEO Andres
Trink said.
"Apartment sales have proceeded according to expectations. Compared to
the same period last year, Merko Ehitus
sold 50% more apartments in the first six months of this year and earned 54%
more sales revenue. A contributing factor was the simultaneous completion and
sales of several projects at the same time in the first half-year. The
apartment market in Tallinn and Vilnius continues to be active, even though it
appeared that the price ceiling has been reached, and in future, somewhat
longer sales periods in some development projects can be expected. The Riga
apartment market has not built up the same momentum yet," Trink said.
Merko in the second
quarter sold 98 and in the first six months of the year 239 apartments with a
revenue of 10.5 million euros and 26.9 million euros, respectively. In the
first six months of this year Merko
has launched the construction of 385 apartments and invested 18.4 million euros
in new development projects launched in 2017 as well as projects already in
progress.
The group's sales revenue in the second quarter of this year was 70.7
million euros, earnings before interest, taxes, depreciation and amortization
(EBITDA) totaled 4.1 million euros, profit before tax amounted to 3.3 million
euros and net profit to 2.2 million euros. Merko's
sales revenue in the first six months of 2017 was 128.8 million euros, EBITDA
totaled 6.0 million euros, profit before tax amounted to 4.4 million euros and
net profit to 3.2 million euros. In the second quarter the company signed new
contracts in the amount of 158 million euros, including the construction of the
Akropole multifunctional center and the Z-Towers complex in Riga and the
extension of the air traffic control center in Tallinn.
As at June 30, 2017, the group's secured order book had grown to 387.5
million euros compared to the 279.4 million euros at the same time the year
before. Among the major projects in progress in Estonia in the second quarter
were the T1 shopping center, the Maakri Quarter, Opiku office building B,
and the tram line that will serve the airport. In Latvia, the biggest projects
in progress were the Akropole multifunctional center in Riga and the Ventspils
music school and concert hall. In Lithuania, the largest project included the
Radisson Blu Hotel Lietuva, the Philip Morris plant and a hotel and residential
building complex in the Rinktines Urban development project.