Comment on 2Q and 6 months of 2023 economic performance
Sales revenue was 677,202 euros in 2Q 2023 (661,548 euros in 2Q 2022) and 1,368,371 euros for the six months of 2023 (1,331,207 euros for 6 months of 2022). Operating profit was 614,471 euros in 2Q 2023 (574,693 euros in 2Q 2022) and 1,216,041 euros for the six months of 2023 (2,611,042 euros for 6 months of 2022). Net income was 238,604 euros in 2Q 2023 (281,606 euros in 2Q 2022) and 508,360 euros for the six months of 2023 (2,048,879 euros for 6 months 2022).
The lower operating and net profit for the six months is primarily attributed to two factors. Firstly, a higher comparison base in 2022 due to the revaluation of real estate on that year, and secondly, increased interest expenses during the current reporting period. The rise in interest expenses is a result of the higher 3-month EURIBOR rate, to which Olaines Logistics SIA's bank loan is tied. Some further increase in interest expenses is also expected in future interim reports.
| Financial ratios of the Group | 6 months 2023 | 6 months 2022 |
| Net profit margin % | 37.15% | 154.00% |
| ROA % | 1.50% | 6.20% |
| LTV % | 66.66% | 69.47% |
| DSCR | 1.2 | 1.1 |
Management board
The management board of UPP Olaines OÜ has one member: Marko Tali, the chairman of the board. The management board of Olaines Logistics SIA has also one member: Siim Sild, chairman of the board.
No remuneration or other benefits have been allotted to the member of the management board of UPP Olaines OÜ. The member of board of Olaines Logistics SIA receives remuneration according to Latvian legislation. There are no employees in the company besides the members of the management board.
CONSOLIDATED INTERIM ANNUAL ACCOUNTS
CONSOLIDATED BALANCE SHEET
| (EUR) | 30.06.2023 | 30.06.2022 | |
| Cash and cash equivalents | 661,540 | 505,861 | |
| Trade and ohter receivables | 137,112 | 241,897 | |
| Total current assets | 798,652 | 747,758 | |
| Investment property | 32,870,000 | 32,939,000 | |
| Investment property improvements | 68,342 | 285,796 | |
| Land (acquisition cost) | 295,288 | 0 | |
| Total non-current assets | 33,233,630 | 33,224,796 | |
| TOTAL ASSETS | 34,032,282 | 33,972,554 | |
| Trade and ohter payables | 1,169,356 | 777,046 | |
| Financial derivatives | 0 | 69,985 | |
| Loans and borrowings | 1,064,000 | 16,669,334 | |
| Total current liabilities | 2,233,356 | 17,516,365 | |
| Loans and borrowings | 23,820,494 | 9,157,028 | |
| Total non-current liabilities | 23,820,494 | 9,157,028 | |
| TOTAL LIABILITIES | 26,053,850 | 26,673,393 | |
| Share capital | 2,500 | 2,500 | |
| Retained earnings | 7,975,932 | 7,296,661 | |
| TOTAL EQUITY | 7,978,432 | 7,299,161 | |
| TOTAL EQUITY AND LIABILITIES | 34,032,282 | 33,972,554 |
CONSOLIDATED INCOME STATEMENT
| (EUR) | 2Q 2023 | 2Q 2022 | 6 months 2023 | 6 months 2022 | |||
| Sales revenue | 677,202 | 661,548 | 1,368,371 | 1,331,207 | |||
| Cost of goods sold | (19,279) | (34,555) | (52,741) | (67,367) | |||
| Gross profit | 657,923 | 626,993 | 1,315,630 | 1,263,840 | |||
| General and administrative expenses | (43,452) | (52,218) | (93,464) | (85,260) | |||
| Real estate investment revaluation | 0 | 0 | 0 | 1,434,393 | |||
| Other operating expenses | 0 | (82) | (6,125) | (1,931) | |||
| Operating income | 614,471 | 574,693 | 1,216,041 | 2,611,042 | |||
| Financial income / (cost) | (375,867) | (293,087) | (707,681) | (562,163) | |||
| Profit before income tax | 238,604 | 281,606 | 508,360 | 2,048,879 | |||
| Net income | 238,604 | 281,606 | 508,360 | 2,048,879 | |||
| Total comprehensive income for the period | 238,604 | 281,606 | 508,360 | 2,048,879 |