AS Tallinna Vesi´s financial results for the 3rd quarter of 2021AS Tallinna Vesi’s sales revenue for the 3rd quarter of 2021 was €13.61 million, showing a 2.5% increase on the same period last year. The revenue was reflected by higher commercial consumption due to the easement of COVID-19 restrictions and increase in construction revenues. Sales to private customers in the main service area remained at the same level amounting to €4.89 million. In the main service area, the sales revenue from commercial customers increased by 3.0% to €3.83 million as a result of their consumption being higher by €0.11 million. As a result of slight easement of the pandemic restrictions the hospitality sector reopened in June, and less people were working at home. The gross profit for the 3rd quarter of 2021 was €5.36 million, being 7.5% lower due to higher cost of goods and services sold. The operating profit was €5.50 million, having decreased by €0.26 compared to the same period last year. The main factor impacting the operating profit was also related to higher cost of goods and services sold. The net profit for the 3rd quarter of 2021 was €5.34 million, showing a decrease of €0.30 million compared to the same period in 2020. The increase in the net profit was mainly impacted by lower operating profit, accompanied by lower interest costs. In the 3rd quarter of 2021 the construction revenue of subsidiary Watercom increased year-on-year due to pipe and road construction procurements won during 2020 and the first nine months of 2021 in Tallinn and surrounding municipalities. The sales revenue from construction services for the 3rd quarter was €2.23 million, indicating a 30.5% increase compared to the same period in 2020. MAIN FINANCIAL INDICATORS € million,
except key ratios
| 3rd quarter | Change 2021/ 2020
| 9 months | Change 2021/ 2020
| | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | | Sales | 13.61 | 13.28 | 16.49 | 2.5% | 38.36 | 38.55 | 47.30 | -0.5% | | Gross profit | 5.36 | 5.80 | 8.92 | -7.5% | 15.78 | 16.59 | 25.97 | -4.9% | | Gross profit margin % | 39.40 | 43.69 | 54.12 | -9.8% | 41.12 | 43.04 | 54.91 | -4.5% | | Operating profit before depreciation and amortisation | 7.17 | 7.35 | 9.01 | -2.4% | 20.20 | 20.66 | 25.47 | -2.3% | | Operating profit before depreciation and amortisation margin % | 52.67 | 55.33 | 54.63 | -4.8% | 52.64 | 53.60 | 53.85 | -1.8% | | Operating profit | 5.50 | 5.77 | 7.52 | -4.6% | 15.36 | 16.03 | 21.01 | -4.2% | | Operating profit - main business | 5.15 | 5.44 | 7.19 | -5.2% | 14.61 | 15.37 | 20.37 | -4.9% | | Operating profit margin % | 40.42 | 43.43 | 45.60 | -6.9% | 40.04 | 41.58 | 44.42 | -3.7% | | Profit before taxes | 5.41 | 5.64 | 7.33 | -4.1% | 15.09 | 15.70 | 20.35 | -3.9% | | Profit before taxes margin % | 39.72 | 42.45 | 44.47 | -6.4% | 39.32 | 40.73 | 43.03 | -3.4% | | Net profit | 5.34 | 5.64 | 7.33 | -5.3% | 12.96 | 11.34 | 16.81 | 14.3% | | Net profit margin % | 39.21 | 42.45 | 44.47 | -7.6% | 33.78 | 29.43 | 35.53 | 14.8% | | ROA % | 2.13 | 2.24 | 2.89 | -5.0% | 5.10 | 4.40 | 6.64 | 16.0% | | Debt to total capital employed % | 55.54 | 57.73 | 59.29 | -3.8% | 55.54 | 57.73 | 59.29 | -3.8% | | ROE % | 4.87 | 5.42 | 7.27 | -10.0% | 11.55 | 10.20 | 16.21 | 13.2% | | Current ratio | 3.07 | 3.66 | 5.14 | -16.1% | 3.07 | 3.66 | 5.14 | -16.1% | | Quick ratio | 3.01 | 3.62 | 5.10 | -16.9% | 3.01 | 3.62 | 5.10 | -16.9% | | Investments into fixed assets | 4.32 | 5.91 | 4.65 | -27.0% | 9.95 | 13.77 | 10.76 | -27.7% | | Payout ratio % | na | 77.70 | 72.05 | | na | 77.70 | 72.05 | |
Gross profit margin – Gross profit / Net sales
Operating profit before depreciation and amortisation – Operating profit + depreciation and amortisation
Operating profit before depreciation and amortisation margin – Operating profit before depreciation and amortisation / Net sales
Operating profit margin – Operating profit / Net sales
Net profit margin – Net profit / Net sales
ROA – Net profit / Average Total assets for the period
Debt to Total capital employed – Total liabilities / Total capital employed
ROE – Net profit / Average Total equity for the period
Current ratio – Current assets / Current liabilities
Quick ratio – (Current assets – Stocks) / Current liabilities
Payout ratio - Total Dividends per annum/ Total Net Income per annum
Main business – water services related activities, excl. connections profit and government grants, construction services, doubtful receivables | STATEMENT OF COMPREHENSIVE INCOME | 3rd quarter | 3rd quarter | | 9 months | 9 months | | 12 months | | € thousand | 2021 | 2020 | | 2021 | 2020 | | 2020 | | | | | | | | | | | Revenue | 13,611 | 13,276 | | 38,363 | 38,545 | | 51,717 | | Cost of goods and services sold | -8,248 | -7,476 | | -22,588 | -21,954 | | -29,491 | | GROSS PROFIT | 5,363 | 5,800 | | 15,775 | 16,591 | | 22,226 | | | | | | | | | | | Marketing expenses | -108 | -94 | | -332 | -320 | | -433 | | General administration expenses | -847 | -1,123 | | | -3,631 | | -4,576 | | Other income (+)/ expenses (-) | 1,093 | 1,182 | | 3,308 | 3,387 | | 4,567 | | OPERATING PROFIT | 5,501 | 5,765 | | 15,361 | 16,027 | | 21,784 | | | | | | | | | | | Financial income | 1 | 3 | | 8 | 28 | | 31 | | Financial expenses | -96 | -113 | | -283 | -357 | | -473 | | PROFIT BEFORE TAXES | 5,406 | 5,635 | | 15,086 | 15,698 | | 21,342 | | | | | | | | | | | Income tax on dividends | -70 | 0 | | -2,126 | -4,355 | | -4,610 | | | | | | | | | | | NET PROFIT FOR THE PERIOD | 5,336 | 5,635 | | 12,960 | 11,343 | | 16,732 | | COMPREHENSIVE INCOME FOR THE PERIOD | 5,336 | 5,635 | | 12,960 | 11,343 | | 16,732 | | | | | | | | | | | Attributable profit to: | | | | | | | | | Equity holders of A-shares | 5,336 | 5,634 | | 12,960 | 11,342 | | 16,731 | | B-share holder | 0.00 | 0.60 | | 0.00 | 0.60 | | 0.60 | | | | | | | | | | | Earnings per A share (in euros) | 0.27 | 0.28 | | 0.65 | 0.57 | | 0.84 | | Earnings per B share (in euros) | 0 | 600 | | 0 | 600 | | 600 |
STATEMENT OF FINANCIAL POSITION
| | | | | € thousand | 30/09/2021 | 30/09/2021 | | 31/12/2020 | | | | | | | | ASSETS | | | | | | CURRENT ASSETS | | | | | | Cash and cash equivalents | 36,143 | 45,868 | | 44,514 | | Trade receivables, accrued income and prepaid expenses | 6,858 | 6,827 | | 7,019 | | Inventories | 849 | 695 | | 701 | | TOTAL CURRENT ASSETS | 43,850 | 53,390 | | 52,234 | | | | | | | | NON-CURRENT ASSETS | | | | | | Property, plant and equipment | 208,002 | 198,839 | | 202,802 | | Intangible assets | 532 | 598 | | 629 | | TOTAL NON-CURRENT ASSETS | 208,534 | 199,437 | | 203,431 | | | | | | | | TOTAL ASSETS | 252,384 | 252,827 | | 255,665 | | | | | | | | LIABILITIES AND EQUITY | | | | | | | | | | | | CURRENT LIABILITIES | | | | | | Current portion of long-term lease liabilities | 386 | 397 | | 393 | | Current portion of long-term loans | 3,630 | 3,631 | | 3,630 | | Trade and other payables | 7,182 | 7,757 | | 7,084 | | Derivatives | 0 | 28 | | 0 | | Prepayments | 3,096 | 2,757 | | 2,445 | | TOTAL CURRENT LIABILITIES | 14,294 | 14,570 | | 13,552 | | | | | | | | NON-CURRENT LIABILITIES | | | | | | Deferred income from connection fees | 36,226 | 33,278 | | 34,564 | | Leases | 1,185 | 1,465 | | 1,400 | | Loans | 82,144 | 85,791 | | 83,978 | | Provision for possible third party claims | 6,018 | 10,832 | | 9,628 | | Deferred tax liability | 264 | 0 | | 255 | | Other payables | 38 | 25 | | 32 | | TOTAL NON-CURRENT LIABILITIES | 125,875 | 131,391 | | 129,857 | | TOTAL LIABILITIES | 140,169 | 145,961 | | 143,409 | | | | | | | | EQUITY | | | | | | Share capital | 12 | 12 | | 12,000 | | Share premium | 24,734 | 24,734 | | 24,734 | | Statutory legal reserve | 1,278 | 1,278 | | 1,279 | | Retained earnings | 74,203 | 68,854 | | 74,243 | | TOTAL EQUITY | 112,215 | 106,866 | | 112,256 | | | | | | | | TOTAL LIABILITIES AND EQUITY | 252,384 | 252,827 | | 255,665 |
| CASH FLOWS STATEMENT | 9 months | 9 months | | 12 months | | € thousand | 2021 | 2020 | | 2020 | | | | | | | | CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | Operating profit | 15,361 | 16,027 | | 21,784 | | Adjustment for depreciation/amortisation | 4,837 | 4,634 | | 6,283 | | Adjustment for revenues from connection fees | -379 | -341 | | -542 | | Other non-cash adjustments | -3,610 | -3,610 | | -4,814 | | Profit/loss(+) from sale and write off of property, plant and equipment, and intangible assets | 0 | -14 | | -14 | | Change in current assets involved in operating activities | 24 | 221 | | 140 | | Change in liabilities involved in operating activities | 537 | -249 | | -215 | | TOTAL CASH FLOWS FROM OPERATING ACTIVITIES | 16,770 | 16,668 | | 22,622 | | | | | | | | CASH FLOWS USED IN INVESTING ACTIVITIES | | | | | | Acquisition of property, plant and equipment, and intangible assets | -9,491 | -10,114 | | -15,682 | | Compensations received for construction of pipelines, incl connection fees | 1,933 | 1,618 | | 1,998 | | Proceeds from sales of property, plant and equipment and intangible assets | 0 | 32 | | 32 | | Interest received | 11 | 34 | | 35 | | TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES | -7,547 | -8,430 | | -13,617 | | | | | | | | CASH FLOWS USE D IN FINANCING ACTIVITIES | | | | | | Interest paid and loan financing costs, incl swap interests | -353 | -519 | | -719 | | Lease payments | -307 | -452 | | -555 | | Received loans | 0 | 0 | | 0 | | Repayment of loans | -1,818 | -1,818 | | -3,636 | | Dividends paid | -12,841 | -19,888 | | -19,888 | | Withheld income tax paid on dividends | -159 | -113 | | -113 | | Income tax paid on dividends | -2,116 | -4,355 | | -4,355 | | TOTAL CASH FLOW USED IN FINANCING ACTIVITIES | -17,594 | -27,145 | | -29,266 | | | | | | | | CHANGE IN CASH AND CASH EQUIVALENTS | -8,371 | -18,907 | | -20,261 | | | | | | | | CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 44,514 | 64,775 | | 64,775 | | | | | | | | CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 36,143 | 45,868 | | 44,514 |
Aleksandr Timofejev CEO Member of the Management Board +372 62 62 200 aleksandr.timofejev@tvesi.ee Kristi Ojakäär CFO Member of the Management Board +372 62 62 200 kristi.ojakaar@tvesi.ee
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