Baltic States – CIS, Construction, Estonia, Real Estate

Nordecon group informed the Tallinn stock exchange that it ended the first nine months of 2014 with a gross profit of 8.791 million euros versus 9.426 million euros at the same time last year and a gross margin of 7.3% (7.0% a year ago). Most of the period’s profit was earned in the third quarter when performance was not impacted by adverse weather conditions and the fixed costs of a technological standstill that typically characterise the beginning of the year. In contrast to the previous year, profit was not undermined by loss-making contracts and all segments succeeded in either maintaining or improving their profit margins.

Operating profit for the first nine months amounted to 4.379 thousand euros (5.587 million euros a year ago) while EBITDA was 5.743 million euros (7.088 million euros).

Adverse movements in the euro/hryvna exchange rate gave rise to exchange losses that were significantly larger than those of previous periods. The Ukrainian hryvna weakened by around 33%, which meant that group entities whose functional currency is the hryvna had to re-measure their euro-denominated liabilities. As a result, the group’s net profit amounted to 3.250 million euros (nine months 2013: 5.309 million euros) of which the profit attributable to owners of the parent, Nordecon AS, was 2.607 million euros (nine months 2013: 5.137 million euros).

The concern's revenue was 120.9 mln euros in the first nine months of the year, versus 134.7 million euros at the same time last year.