Published: 2021-02-15 15:30:00 CET
Linda Nektar
Company Announcement

The Interim Report for the 12 months of 2020 (unaudited)

Management report

In 2020 AS Linda Nektar’s (the ‘Company’) turnover amounted to EUR 2,512,281 and marked an increase of 19.76% year-on-year (12 months 2019: 2,097,789). This is exactly in line with management guidance. The change in the product portfolio during the past 12 months has been progressing well.

The Company continues to observe requirements relating to the COVID-19 pandemic. The availability of raw materials and the health situation among personnel have been good. No production disruptions have taken place. In terms of operational impact, ongoing investments are continuing to be made, however, delays are occasionally endured due to factors such as travel restrictions.

All of our markets were affected, by the COVID-19 outbreak in 2020. The consumption of lower alcohol content beverages in Europe has fluctuated somewhat due to factors including border closures, hence, with various regional differences. The focus of consumer demand has shifted from cross-border and on-trade sales to retail sales. HORECA-related demand together with traditional Estonian-Finnish travel purchases has been softer than in previous years, however, this has been compensated by new products and geographical sales diversification. 

12 months 2020 resulted in a net profit of EUR 65,523 (12 months 2019 came in with a loss of EUR 44,598). Around one third of the difference in the net profit from H1 2020 can be attributed to non-cash expenses relating to incentive-based performance. Some of the balance can be attributed to shorter-term volume related fluctuations of various product sales.

Operating cash flow for the 12 months of 2020 was a positive EUR 398,018 (12 months 2019: EUR 155,150).

As at 31 December 2020, the Company’s total assets came to EUR 3,864,511 (31.12.2019: EUR 3,844,886), up 0.51% year-on-year. Current assets amounted to EUR 1,717,386 (31.12.2019: EUR 1,708,799) or 44.44% of total assets. Fixed assets amounted to EUR 2,147,125 (31.12.2019: EUR 2,136,087) or 55.56% of the balance sheet total. The liabilities of AS Linda Nektar totalled EUR 178,796 (31.12.2019: EUR 113,447). Equity capital amounted to EUR 3,685,715 (31.12.2019: EUR 3,731,439).

As of 31 December 2020, there were no loan commitments. The Company retains a conservative financial leverage policy.

A total of EUR 398,429 was invested into fixed assets (12 months 2019: EUR 177,290). Depreciation costs for the 12 months of 2020 amounted to EUR 386,952 (12 months 2019: EUR 370,257). This investment is being undertaken to enable a wider as well as higher product quality capability. In turn, such activity provides the possibility for generating more sophisticated products. Moreover, some additional adjoining land for more efficient expansion capabilities was also acquired. The Company has also invested into upgrading its corporate presence with an upgraded web presence (please see www.lindanektar.ee) as well as engaging in greater use of digitalisation for embracement of both existing and corporate customers via interactive communications.

Strategic co-operation with partners such as Germany’s Symrise is ongoing.

In 2020, the Company paid EUR 126,009 euros in dividends (12 months 2019: EUR 126,009). The income tax cost on dividends was EUR 24,176 (12 months 2019: EUR 27,839).

As of 31 December 2020, the Company had 13 employees, one Management Board Member, and four Supervisory Board Members. Labour costs for the 12 months of 2020 (including taxes) amounted to EUR 393,193 (12 months 2019: EUR 346,269). The services received of the share option of fair value is recognised as an employee expense in the income statement and as a reserve in equity (non-cash item).

In light of the market conditions, management believes that the overall operating environment remains better than during 2020. Therefore revenue guidance for 2021 is set for EUR 2.7m. This is predicated on limited additional impacts stemming from COVID-19 related issues.

 

Financial Ratios:

  2020 2019
Current Ratio = Current Assets / Current Liabilities x 9.61 15.06
Quick ratio = (Current Assets – Inventories) / Current Liabilities x 7.07 11.13
Working Capital = Current Assets - Current Liabilities   1 538 590 1 595 352
Equity Ratio = Total Equity / Total Assets*100 % 95.37 97.05
Net Profit Margin= Net Profit / Sales Revenue*100 % 2.61 -2.13
Debt to Assets= Total Liabilities / Total Assets x 0.05 0.03

 

 

Financial Statements

 

Statement of financial position

(In Euros)

  31.12.2020 30.06.2020 31.12.2019 30.06.2019
Assets        
Current assets        
Cash and cash equivalents 835 166 697 377 883 944 859 878
Receivables and prepayments 429 059 625 591 378 175 466 949
Inventories 453 161 445 345 446 680 367 292
Total current assets 1 717 386 1 768 313 1 708 799 1 694 119
Non-current assets        
Receivables and prepayments 12 12 42 48
Property, plant and equipment 2 136 844 1 997 004 2 129 820 2 264 271
Intangible assets 10 269 5 139 6 225 7 634
Total non-current assets 2 147 125 2 002 155 2 136 087 2 271 953
Total assets 3 864 511 3 770 468 3 844 886 3 966 072
Liabilities and equity        
Liabilities        
Current liabilities        
Payables and prepayments 178 796 112 398 113 447 214 152
Total current liabilities 178 796 112 398 113 447 214 152
Total liabilities 178 796 112 398 113 447 214 152
Equity        
Issued capital 1 575 109 1 575 109 1 575 109 1 575 109
Share premium 617 517 617 517 617 517 617 517
Statutory reserve capital 70 672 70 672 70 672 70 672
Other reserves 26 177 11 416 11 416 8 809
Retained earnings (loss) 1 330 717 1 330 717 1 501 323 1 501 323
Reporting period profit (loss) 65 523 52 639 -44 598 -21 510
Total equity 3 685 715 3 658 070 3 731 439 3 751 920
Total liabilities and equity 3 864 511 3 770 468 3 844 886 3 966 072

 

 

Income statement

 (In Euros)

  2020 2020 H2 2019 2019 H2
Revenue 2 512 281 1 196 612 2 097 789 1 049 220
Other income 773 0 27 074 19 466
Changes in inventories of finished goods and work in progress 1 402 -19 989 54 543 45 200
Raw materials and consumables used -1 497 379 -689 484 -1 297 803 -673 097
Other operating expense -131 200 -66 294 -181 825 -96 503
Employee expense -393 193 -211 678 -346 269 -182 923
Depreciation and impairment loss (reversal) -386 952 -196 302 -370 257 -184 457
Significant impairment of current asset -16 046 0 0 0
Other expense -73 -30 -107 -42
Operating profit (loss) 89 613 12 835 -16 855 -23 136
Interest income 86 49 96 48
Profit (loss) before tax 89 699 12 884 -16 759 -23 088
Income tax expense -24 176 0 -27 839 0
Reporting period profit (loss) 65 523 12 884 -44 598 -23 088

 

 

Statement of cash flows

(In Euros)

  2020 2020 H2 2019 2019 H2    
Cash flows from operating activities        
Operating profit (loss) 89 613 12 835 -16 855 -23 136
Adjustments        
Depreciation and impairment loss (reversal) 386 952 196 302 370 257 184 457
Profit (loss) from sale of non-current assets -58 0 -861 0
Other adjustments 14 084 14 084 2 606 2 606
Total adjustments 400 978 210 386 372 002 187 063
Changes in receivables and prepayments related to operating activities -50 854 196 532 -81 730 88 780
Changes in inventories -6 481 -7 816 -118 121 -76 558
Changes in payables and prepayments related to operating activities -11 062 -60 27 693 -97 527
Income tax refund (paid) -24 176 0 -27 839 0
Total cash flows from operating activities 398 018 411 877 155 150 78 622
Cash flows from investing activities        
Purchase of property, plant and equipment and intangible assets -320 873 -274 137 -178 882 -54 604
Proceeds from sales of property, plant and equipment and intangible assets 0 0 21 250 0
Interest received 86 49 96 48
Total cash flows from investing activities -320 787 -274 088 -157 536 -54 556
Cash flows from financing activities        
Dividends paid -126 009 0 -126 009 0
Total cash flows from financing activities -126 009 0 -126 009 0
Total cash flows -48 778 137 789 -128 395 24 066
Cash and cash equivalents at beginning of period 883 944 697 377 1 012 339 859 878
Change in cash and cash equivalents -48 778 137 789 -128 395 24 066
Cash and cash equivalents at end of period 835 166 835 166 883 944 883 944

 

 

Statement of changes in equity

(In Euros)

  Issued capital Share premium Statutory reserve capital Other reserves Retained earnings (loss) Total
31.12.2018 1 575 109 617 517 70 672 8 809 1 627 332 3 899 439
Reporting period profit (loss) 0 0 0 0 -21 510 -21 510
Declared dividends 0 0 0 0 -126 009 -126 009
30.06.2019 1 575 109 617 517 70 672 8 809 1 479 813 3 751 920
Reporting period profit (loss) 0 0 0 0 -23 088 -23 088
Changes in reserves 0 0 0 2 607 0 2 607
31.12.2019 1 575 109 617 517 70 672 11 416 1 456 725 3 731 439
Reporting period profit (loss) 0 0 0 0 52 639 52 639
Declared dividends 0 0 0 0 -126 009 -126 009
Other changes in equity 0 0 0 0 1 1
30.06.2020 1 575 109 617 517 70 672 11 416 1 383 356 3 658 070
Reporting period profit (loss) 0 0 0 0 12 884 12 884
Changes in reserves 0 0 0 14 761 0 14 761
31.12.2020 1 575 109 617 517 70 672 26 177 1 396 240 3 685 715

 

         Additional information:
         
         Kadri Rauba
         Member of Management Board
         
         AS Linda Nektar
         Address: Kobela, Antsla parish
         66407 Võrumaa, Estonia
         Telephone: +372 785 5768
         E-mail: info@lindanektar.ee


2020_h2_en_eur.pdf