Aktsiaselts Infortar Unaudited Consolidated Interim Report for second quarter of 2024
Infortar will organize a webinar for introducing 2. quarter 2024 results today. Please join the webinar via the following links:
5 May 2024 at 12:00 (EET) Estonian webinar 5 May 2024 at 14:00 (EET) English webinar In the first half of the year, Infortar's sales volumes increased by 40 percent, reaching 576 million euros. The company's net profit amounted to 73 million euros. The value of Infortar's assets reached 1.5 billion euros, and investments totalled 41 million euros. "In the first half of the year, we have strengthened our positions in the Finnish and Baltic energy markets, gained additional market share, increased sales, and filled gas storage capacities for the next season – our fundamental indicators are strong and liquidity position is solid, this is a good platform for continuing our investments," noted Infortar's Chairman of the Board, Ain Hanschmidt. "The results of Infortar's main investments are strongly linked with seasonality – the energy sector delivers high numbers during the cold period, whereas maritime transportation’s passenger numbers peak in the summer," Hanschmidt added. In the first half of this year, Infortar invested 41.3 million euros. The company increased its shareholding in Tallink by 4.5 percent to 46.8 percent, acquired a majority shareholding in the Halinga farm in Pärnumaa, and commissioned a solar park in Nica, Latvia. The focus is on expanding operations in Poland and Germany, as well as gaining access to the wholesale gas market in the Netherlands and Belgium. The construction of the RIMI logistics centre and the new bridge in Pärnu have progressed according to planned schedule. Infortar’s subsidiary Eesti Gaas (Elenger in foreign markets), which is the largest privately owned energy company in the region, increased its sales volume by 40 percent compared to the same period last year, reaching a total of 10 TWh. The company's gas sales market share in the Finnish-Baltic market stands at 25.4 percent. The number of Tallink passengers on the Helsinki route has increased compared to last year, while the number of travellers between Finland and Sweden has decreased compared to the same period last year. In June, Infortar announced a voluntary takeover offer to Tallink's shareholders. Although the offer applies equally to all investors, it primarily enhances market liquidity, thereby providing a potential exit opportunity for larger investors who might otherwise face difficulties due to low trading volumes on the stock exchange. As of June 30 of 2024, Infortar's equity amounted to 840 million euros, and its total assets reached 1.5 billion euros. Compared to the results from the six-month period last year, Infortar's EBITDA and net profit decreased by 11 million euros. For the first six months of 2024, EBITDA was 76 million euros, and net profit was 73 million euros. KEY FIGURES OF FINANCIAL YEAR | 6 months 2024 | 6 months 2023 | Q2 2024 | Q2 2023 | Revenue (in thousands of EUR) | 576 139 | 560 352 | 203 555 | 212 872 | Gross profit (in thousands of EUR) | 53 089 | 88 351 | 3 085 | 22 346 | EBITDA (in thousands of EUR) | 75 510 | 86 571 | 1 506 | 34 011 | EBITDA margin % | 13% | 15% | 0,7% | 16% | Operating profit (in thousands of EUR) | 63 395 | 80 427 | -4 229 | 30 748 | Net profit (in thousands of EUR) | 73 017 | 83 683 | 10 955 | 36 906 | Earnings per share (EUR)* | 3,6 | 4,1 | 0,5 | 1,8 | Total equity (in thousands of EUR) | 840 216 | 575 783 | | | Total liabilities (in thousands of EUR) | 448 387 | 300 217 | | | * Earnings per share have been calculated for all reported periods based on the following formula: net profit for the reporting year divided by the number of issued shares as of June 30, 2024 (6 months 2024 = (72´839 * 1,000) / (21,166,239-945´000) = 3.6 euros per share). In 2023 and 2024, share splits and the issuance of new shares occurred. For comparability purposes, the formula uses the currently valid number of shares each time. Sales Revenue In the first half of the 2024 financial year, the group's consolidated sales revenue increased by 15.8 million euros, reaching 576.14 million euros (compared to 560.35 million euros in the first half of 2023). The significant positive impact was due to the growth in the regional gas sales market share to 25.4 percent, which allowed for an increase in sales revenue compared to the previous year. EBITDA and Segment Reporting Energy Segment: The EBITDA for the energy segment in the first half of the 2024 financial year was 73 million euros (compared to 82 million euros in the first half of 2023). Maritime transport Segment: The EBITDA for the maritime transport segment in the first half of the 2024 financial year was 81 million euros (compared to 96 million euros in the first quarter of the 2023 financial year). Infortar consolidates the results of AS Tallink Grupp using the equity method, meaning that results of AS Tallink Grupp are reflected in the segment reporting according to Infortar's ownership percentage in AS Tallink Grupp. In segment reporting, 100% of AS Tallink Grupp results (including 100% EBITDA) are accounted for in accordance with applicable accounting rules. Real Estate Segment: The profitability assessment considers the EBITDA of individual real estate companies. The EBITDA for the real estate segment in the first half of the 2024 financial year was 7 million euros (compared to 6 million euros in the first half of 2023). Net Profit The consolidated net profit for the first half of the 2024 financial year was 73 million euros (compared to 84 million euros in the first half of the 2023 financial year). Financing Loan and lease liabilities amounted to 448.4 million euros in the first half of the 2024 financial year (compared to 300.2 million euros in the first quarter of the 2023 financial year). The company's net debt decreased by 90.9 million euros compared to the end of 2023, totalling 263 million euros. The net debt to EBITDA ratio is 2.1. Numbers presented in thousands of euros | Q2 2024 | Q2 2023 | 6 m 2024 | 6 m 2023 | Sales Revenue | 203 555 | 212 872 | 576 139 | 560 352 | Cost of Sales | -200 420 | -183 766 | -522 993 | -465 051 | Impairment of Receivables | -50 | -6 760 | -57 | -6 950 | Gross Profit | 3 085 | 22 346 | 53 089 | 88 351 | Marketing Expenses | -423 | -369 | -838 | -715 | General Administrative Expenses | -7 018 | -5 145 | -14 256 | -8 588 | Profit (Loss) from Biological Assets | -27 | 0 | -27 | 0 | Loss on Changes in Fair Value of Investment Properties | 0 | 0 | 156 | 0 | Profit (Loss) from Derivative Instruments | -137 | 13 717 | 24 522 | 687 | Other Operating Income | 481 | 230 | 1 081 | 757 | Other Operating Expenses | -190 | -31 | -332 | -65 | Operating Profit | -4 229 | 30 748 | 63 395 | 80 427 | Profit from Investments Accounted for Using the Equity Method | 16 885 | 14 724 | 18 885 | 15 447 | Financial Income and Expenses | | | | | Income from Financial Investments | 2 738 | 0 | 2 738 | -24 | Interest Expense | -6 381 | -4 529 | -13 126 | -8 484 | Interest Income | 1 760 | 1 188 | 3 004 | 1 833 | Profit (Loss) from Foreign Exchange Rate Changes | -2 | -8 | -4 | -137 | Other Financial Income and Expenses | -6 | 0 | -2 | 0 | Total Financial Income and Expenses | -1 891 | -3 349 | -7 390 | -6 812 | Profit Before Tax | 10 765 | 42 123 | 74 890 | 89 062 | Corporate Income Tax | 190 | -5 217 | -1 873 | -5 379 | Profit (Loss) for the Reporting Period | 10 955 | 36 906 | 73 017 | 83 683 | Including: | | | | | Profit (Loss) Attributable to Owners of the Parent Company | 10 921 | 36 906 | 72 983 | 83 888 | Profit (Loss) Attributable to Non-controlling Interests | 34 | 0 | 34 | -205 | Other Comprehensive Income for the Reporting Period | | | -33 134 | -69 667 | Total Comprehensive income for the Reporting Period Including: | | | 39 883 | 14 016 | Comprehensive Income (Loss) Attributable to Owners of the Parent Company | | | 39 849 | 14 221 | Comprehensive Income (Loss) Attributable to Non-controlling Interests | | | 34 | -205 | Basic Earnings per Share | | | 3,61 | 13,32 | Diluted Earnings per Share | | | 3,48 | 13,17 | | | | | | * The non-cash revaluations of derivative instruments in comprehensive income do not affect the profitability or cash flow generating ability of AS Eesti Gaas or Infortar's core business operations. Numbers presented in thousands of euros | | | | | | | | ASSETS | | | 30.06.24 | | 30.06.23 | | 31.12.2023 | CURRENT ASSETS | | | | | | | | Cash | | | 185 243 | | 136 026 | | 87 115 | Short-term Financial Investments | | | 1 | | 1 | | 0 | Short-term Derivative Instruments | | | 2 511 | | 12 618 | | 28 728 | Receivables from Realized Derivative Instruments | | | 1 316 | | 365 | | 5 958 | Receivables from Customers | | | 84 856 | | 72 006 | | 162 575 | Tax Prepayments | | | 1 014 | | 951 | | 925 | Other Receivables and Prepayments | | | 11 285 | | 13 066 | | 20 185 | Prepayments for Inventories | | | 4 288 | | 1 238 | | 3 493 | Inventories | | | 137 177 | | 124 418 | | 146 884 | Biological Assets | | | 425 | | 0 | | 0 | Total Current Assets | | | 428 116 | | 360 689 | | 455 863 | NON-CURRENT ASSETS | | | | | | | | Investments in Associates | | | 386 702 | | 315 434 | | 346 014 | Long-term Derivative Instruments | | | 2 172 | | 3 959 | | 1 125 | Long-term Loans and Other Receivables | | | 7 418 | | 9 892 | | 9 072 | Investment Properties | | | 184 476 | | 165 815 | | 176 024 | Property, Plant, and Equipment | | | 456 339 | | 151 780 | | 446 748 | Intangible Assets | | | 14 624 | | 9 054 | | 14 366 | Right-of-use Assets | | | 12 498 | | 9 384 | | 11 300 | Biological Assets | | | 2 797 | | 0 | | 0 | | | | | | | | | Total non-current assets | | | 1 067 026 | | 665 318 | | 1 004 649 | TOTAL ASSETS | | | 1 495 142 | | 1 026 007 | | 1 460 512 | | | | | | | | | | | | | | | | | CURRENT LIABILITIES | | | | | | | | Loan Liabilities | | | 129 674 | | 107 937 | | 184 259 | Lease Liabilities | | | 1 734 | | 1 136 | | 1 766 | Payables to Suppliers | | | 88 009 | | 67 704 | | 74 751 | Tax Liabilities | | | 12 193 | | 14 955 | | 32 822 | Customer Prepayments | | | 479 | | 1 037 | | 3 099 | Realized Derivative Instruments | | | 7 081 | | 6 200 | | 1 463 | Other Short-term Liabilities | | | 11 367 | | 4 783 | | 10 851 | Short-term Derivative Instruments | | | 14 065 | | 44 | | 3 659 | Total Current Liabilities | | | 264 602 | | 203 796 | | 312 670 | NON-CURRENT LIABILITIES | | | | | | | | Long-term Provisions | | | 10 371 | | 7 492 | | 8 399 | Deferred Income Tax Liability | | | 33 435 | | 30 268 | | 33 233 | Other Long-term Liabilities | | | 29 302 | | 17 524 | | 30 679 | Long-term Derivative Instruments | | | 237 | | 0 | | 186 | Loan liabilities | | | 306 571 | | 183 082 | | 246 410 | Lease liabilities | | | 10 408 | | 8 062 | | 8 725 | TOTAL NON-CURRENT LIABILITIES | | | 390 324 | | 246 428 | | 327 632 | TOTAL LIABILITIES | | | 654 926 | | 450 224 | | 640 302 | EQUITY | | | | | | | | Share Capital | | | 2 117 | | 1 985 | | 2 105 | Treasury Shares | | | -95 | | -95 | | -95 | Share Premium | | | 32 484 | | 0 | | 29 344 | Statutory Reserve | | | 212 | | 205 | | 205 | Option Reserve | | | 5 781 | | 2 595 | | 3 864 | Hedging Reserve* | | | -9 103 | | 12 623 | | 24 118 | Unrealized Exchange Differences | | | 48 | | 20 | | -39 | Reserve for Post-employment Benefit Obligations | | | -44 | | 0 | | -44 | Retained Earnings | | | 729 579 | | 474 015 | | 466 140 | Profit for the Reporting Period | | | 72 983 | | 83 888 | | 293 778 | Equity Attributable to Owners of the Parent Company | | | 832 942 | | 575 236 | | 819 376 | Non-controlling Interests
| | | | | | | | | | 7 274 | | 547 | | 834 | TOTAL EQUITY | | | 840 216 | | 575 783 | | 820 210 | TOTAL EQUITY AND LIABILITIES | | | 1 495 142 | | 1 026 007 | | 1 460 512 | * This represents the change in the accounting hedging position, which affects the comprehensive income result. Numbers presented in thousands of euros | 6 months 2024 | | 6 months 2023 | | 2023 | Cash Flows from Operating Activities | | | | | | Profit for the Reporting Period | 73 017 | | 83 683 | | 293 830 | Adjustments | | | | | | Depreciation and Impairment of Fixed Assets | 12 271 | | 6 144 | | 15 581 | Change in Value of Investment Properties | -156 | | 0 | | 4 074 | Profit/Loss from Equity Investments | -18 885 | | -15 447 | | -39 639 | Change in Value of Derivative Instruments | 25 168 | | 67 397 | | 54 122 | Other Financial Income/Expenses | 83 | | -1 792 | | -161 965 | Accrued Interest Expenses | 13 126 | | 8 484 | | 22 573 | Profit/Loss from Disposal of Fixed Assets | -173 | | -31 | | -91 | Income from Targeted Financing Recognized in Revenue | -84 | | -313 | | 784 | Accrued Income Tax Expense | 1 873 | | 5 379 | | 8 610 | Income Tax Paid | -1 672 | | -1 | | -267 | Change in Receivables and Prepayments Related to Operating Activities | 91 407 | | 151 608 | | 54 540 | Change in Inventories | 9 606 | | -39 323 | | -61 914 | Change in Liabilities Related to Operating Activities | -27 452 | | -35 529 | | -406 | Change in Biological Assets | 149 | | 0 | | 0 | Total Cash Flows from Operating Activities | 178 278 | | 230 259 | | 189 832 | | | | | | | Cash Flows from investing activities | | | | | | Payments for Purchase of Associates | -21 822 | | -3 927 | | -10 314 | Payments for Purchase of Subsidiaries | -5 401 | | -4 | | -103 414 | Repayments of Loans Granted | 1 932 | | 5 844 | | 6 652 | Interest Received | 2 686 | | 1 834 | | 2 691 | Payments for Acquisition of Investment Properties | -8 296 | | -5 275 | | -18 304 | Payments for Acquisition of Property, Plant and other assets | -8 213 | | -8 968 | | -18 143 | Proceeds from Sale of Investment Properties and Fixed Assets | 282 | | 33 | | -252 | Total cash Flows from investing activities | -38 814 | | -10 463 | | -141 084 | Cash Flows from Financing Activities | | | | | | Change in Overdraft | -15 513 | | 7 499 | | 14 348 | Loans Received | 107 712 | | 900 | | 287 606 | Repayments of Loans Received | -92 357 | | -135 094 | | -312 846 | Repayments of Principal Portion of Lease Liabilities | -928 | | -922 | | -2 233 | Interest Paid | -13 070 | | -8 280 | | -22 224 | Dividends Paid | -30 332 | | -7 875 | | -15 750 | Proceeds from Issuance of Shares | 3 152 | | 0 | | 29 464 | Total Cash Flows from Financing Activities | -41 336 | | -143 772 | | -21 635 | | | | | | | Total cash flows | 98 128 | | 76 024 | | 27 113 | | | | | | | Cash and Cash Equivalents at Beginning of Period | 87 115 | | 60 002 | | 60 002 | Cash and Cash Equivalents at End of Period | 185 243 | | 136 026 | | 87 115 | Change in Cash and Cash Equivalents | 98 128 | | 76 024 | | 27 113 | Infortar operates in six countries, the company's main fields of activity are energy, maritime transport, and real estate. Infortar owns a 46,8% stake in AS Tallink Grupp, a 100% stake in AS Eesti Gaas and a versatile and modern real estate portfolio of approx. 113,000 m2. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, agriculture, printing, taxi business and many other areas. A total of 103 companies belong to the Infortar group: 48 subsidiaries, 5 affiliated companies and 50 subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 1,344 people. Additional information: Kadri Laanvee Investor Relations Manager e-mail: kadri.laanvee@infortar.ee phone: +372 5156662 https://infortar.ee/en/investor
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