Linda Nektar
Company Announcement

Interim Report for the six month period ended 30 June 2024 (unaudited)

Management report

AS Linda Nektar (The Company´s) unaudited turnover during the first half of 2024 was EUR 1.4m while the bottom line produced a net loss of EUR 0.04m. This was largely in line with management estimates. Although the revenue level was a couple of percentage points lower y-o-y (2.4%), an almost equal negative impact came from higher costs of raw materials during the period.

From an overall cash flow perspective the total net change was negligible. Key items to comment here would be that operating cash flows were lower mainly due to lower revenues and higher costs (EUR 162k in H1 2024 vs EUR 220k in H1 2023) while capex reduced as a result of previous projects moving to completion (EUR 58k vs EUR 202k for the respective periods). Financing cash flows had 2 items worth noting. These included close to 2/3 of a loan taken in 2023 being repaid (EUR 109k) as well as a dividend payment of EUR 63k (vs. EUR 158k in H1 2023).

It is important to note that the material deviation from the prior dividend payment size reflects a decision made at the most recent Annual General Meeting (https://view.news.eu.nasdaq.com/view?id=bf2f68170218ca321b9e21dfd4da89989&lang=en&src=listed). To clarify, the dividend payments undertaken in 2024 will be made in two equal tranches of EUR 0.04 per share. This compares with a single traditional dividend distribution of prior years. The second payment of EUR 0.04 per share is due in December 2024 with an ex-dividend date of November 19, 2024. More information can be found in the above link.

During H1 2024 a grant of EUR 66k was received through the Rural Development Plan measure 4.2.6 ‘Investment Support’ provided by the Agricultural Registers and Information Board (ARIB).

The sales revenue of the company's products in the EU did not change significantly during the reporting period compared to the first half of 2023. However, there is one important point worth highlighting in the sales breakdown that confirms some progress in diversifying future revenue streams. This was a EUR 95k non-EU sale and is related to an industrial launch as a result of a long-term collaboration with global beverage industry players and partners.

Financial review

In H1 2024 AS Linda Nektar (The Company´s) unaudited turnover was EUR 1,401,531 (H1 2023: EUR 1,436,642). This marked a decrease of 2.4% year-on-year. The first 6 months of 2024 ended in a net loss of EUR 36,798 (H1 2023: net profit EUR 39,898).

As of 30 June 2024, the Company’s total assets came to EUR 3,601,265 (30.06.2023: EUR 3,955,492) marking a decrease of 9.0% year-on-year. Current assets amounted to EUR 1,230,093 (30.06.2023: EUR 1,458,883) or 34.2% of total assets. Fixed assets amounted to EUR 2,371,172 (30.06.2023: EUR 2,496,609) or 63.1% of the balance sheet total. Cash and cash equivalents came to EUR 313,303 (30.06.2023: EUR 319,198). Operating cash flow for the first 6 months of 2024 was a positive EUR 161,810 (H1 2023: EUR 220,457).

The liabilities of AS Linda Nektar totalled EUR 284,811 (30.06.2023: EUR 305,270) and equity amounted to EUR 3,316,454 (30.06.2023: EUR 3,650,222). As of 30 June 2024, there were loan commitments of EUR 37,484 for investments (30.06.2023: EUR 46,900).

A total of EUR 59,949 was invested into fixed assets (6 months 2023: EUR 130,057). Depreciation costs for the first 6 months of 2024 amounted to EUR 177,521 (6 months 2023: EUR 180,414).

As of 30 June 2024, the Company had 15 employees, one Management Board Member, and four Supervisory Board Members. Labour costs for the 6 months of 2024 (including taxes) amounted to EUR 257,887 (6 months 2023: EUR 260,043).

In H1 2024, the Company paid EUR 63,206 in dividends (H1 2023: EUR 158,014). The income tax cost on dividends was EUR 10,289 (6 months 2023: EUR 26,654).

Taking into account the present operating environment management reiterates its conservative 2024 revenue guidance figure of EUR 2.5m, effectively reflecting a flat outcome compared with 2023.

Financial Ratios

Statement of financial position

(In Euros)

Income statement

(In Euros)

Statement of cash flows

(In Euros)

Statement of changes in equity

(In Euros)

         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