Management report

In 2024 AS Linda Nektar (The Company´s) unaudited turnover was EUR 2,543,793 (12 months 2023: EUR 2,489,789). This marked an increase of 2.2% year-on-year and was largely identical to the EUR 2.5m management guidance reiterated in August 2024. The 12 months of 2024 ended in a net loss of EUR 146,343 (12 months 2023: net loss EUR 130,660) reflecting a more complex macroeconomic landscape.

On a comparative year-on-year basis the bottom line was mainly impacted by higher operational costs in 2024. This represents increases in raw materials and labour expenses while energy costs have been slightly reduced by the introduction of on-site solar panel installations.

From a business development perspective management can confirm that the sales registered in the first half of the year outside the European Union are now part of a formal product launch, with further revenue expected to be recorded there in the first half of 2025. Absolute sales levels through time there will be largely dependent on the level of success of the final product in the local market there (note that Linda Nektar continues to only produce fermented beverages for the drinks industry focusing on unpacked fruit wines under a Business-to-Business [B2B] model). There is no exposure foreign exchange risk as the sales contract has been fixed in EUR terms. Other product development projects are in place however, they are not presently expected to be launched in the current financial year.

In 2025, in order to meet the needs of our customers and consumers, as well as to adapt to changes in the operating and regulatory environment, the Company will focus on gradual and long-term improvement through optimisation and innovation in our operations. This includes strengthening our export capabilities and expanding our portfolio with a new range of non-alcoholic products and other fermented ingredients. As noted previously, such projects typically have a lead time of several years in the development phase from the time of their inception.

Financial review

As of 31 December 2024, the Company’s total assets came to EUR 3,409,922 (31.12.2023: EUR 3,762,147) marking a decrease of 9.4% year-on-year. Current assets amounted to EUR 1,119,049 (31.12.2023: 1,215,241) or 32.8% of total assets. Fixed assets amounted to EUR 2,290,873 (31.12.2023: EUR 2,546,906) or 67.2% of the balance sheet total. Cash and cash equivalents came to EUR 125,136 (31.12.2023: EUR 316,256).

Operating cash flow for the 12 months of 2024 was positive EUR 151,985 (2023: EUR 342,762). Although this is less than half of the respective 2023 figure, the main influence on this is a sizeable EUR 145,015 amount of finished goods in transit. Investing cash flows are less than one third of the respective 2023 number as no active capital expenditure is presently required. Financing cash flows were impacted by the repayment of the majority of the previous loan liability of EUR 131,541. The liabilities of AS Linda Nektar totalled EUR 203,013 (31.12.2023: EUR 282,483) and equity amounted to EUR 3,206,909 (31.12.2023: EUR 3,479,664).

A total of EUR 157,240 was invested into fixed assets (12 months 2023: EUR 353,822). Depreciation costs for the 12 months of 2024 amounted to EUR 355,080 (12 months 2023: EUR 353,883). Some investments were implemented through support provided by the Agricultural Registers and Information Board (ARIB) as part of Rural Development Plan measure 4 ‘Investments into fixed assets’. A subsidy of EUR 66,466 was paid out in 2024. Assets acquired with the help of government grants are recorded in the balance sheet at net acquisition cost, i.e., the acquisition cost, less government grants received for the purpose of acquiring assets.

The Company works systematically to promote sustainability and responsibility. Adherence to sustainable operating principles, the Company's certified food safety management systems and the Lean operating model are important prerequisites for achieving responsibility goals. In order to protect the environment around us, we focus on using renewable energy in production as well as reducing water consumption.

As of 31 December 2024, the Company had 15 employees, one Management Board Member and four Supervisory Board Members. Labour costs for the 12 months of 2024 (including taxes) amounted to EUR 522,685 (12 months 2023: EUR 514,856).

In 2024, the Company paid a total of EUR 126,412 in two dividend payments (12 months 2023: EUR 158,014). The income tax cost on dividends was EUR 20,578 (12 months 2023: EUR 26,654).

Taking into account the present operating environment management is setting its 2025 revenue guidance at EUR 2.6m, effectively reflecting a flat outcome compared with 2024.

Financial Ratios

Statement of financial position

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Income statement

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Statement of cash flows

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Statement of changes in equity

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