Audited annual report 2024
STATEMENT OF THE CHAIRMAN OF THE MANAGEMENT BOARD
Dear shareholders and readers,
2024, a year of record turnover and profit for Merko, is now in the books. This report gives an overview of the figures as well as the activities during these successful 12 months. The solid results are not just the product of chance. Now on the cusp of its 35th anniversary, Merko has been successful for years on the strength of its masterful workforce and has grown to be a clearly international company. In 2024, we did exit the Norwegian market, but we continue operations in Estonia, Latvia and Lithuania.
2024 brought a clear indication that despite their geographic proximity to each other, sentiment and market behaviour on our home markets can be diametrically opposite. The opportunities and risks are also very different in every company we operate in. It is a pleasure to note that we have so far been able to find a balance between risks and opportunities thanks to our local strong and professional teams, who have made the right choices and decisions and perform high-quality work. Our Estonian, Latvian and Lithuanian companies see clear value in being part of a larger Merko family – be it dispensing good advice, sharing experience, learning from others’ mistakes, financial support, providing references or servicing clients operating across borders.
Merko is as strong as its teams. And our teams are strong. Many thanks, dear people of Merko, for an excellent 2024. A deep bow of gratitude to our construction service customers and home buyers who put value on our quality. And thank you to investors who believe in Merko.
Besides our results, various awards and honours attest to our achievements in 2024 – some were bestowed on the company as a whole, some for projects we established and developed, and others were awarded to our colleagues in Estonia, Latvia and Lithuania. We continue to consider it important to give back to society. All this, too, is covered in the report. Merko is one of the few Estonian companies whose 2024 report includes, for the first time, an ESG report. That makes the annual report a far thicker volume when printed out, so we urge you to read it in electronic form to avoid using natural resources.
2025 has started with noteworthy tumult on the political scene and markets around the world. Depending on the developments and new equilibrium, nothing can be ruled out on the construction and real estate markets – we may see sporadic sluggishness continue, or we could witness a recovery of volumes and a shift in focus.
These are turbulent times, and predicting future scenarios is a thankless endeavour. One thing is certain – Merko is poised to thrive in 2025 and beyond, thanks to its adaptability, strong team and trustworthy balance sheet.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
in thousand euros
| 2024 | 2023 | |
| Revenue | 539,049 | 466,304 |
| Cost of goods sold | (443,162) | (401,267) |
| Gross profit | 95,887 | 65,037 |
| Marketing expenses | (5,030) | (4,312) |
| General and administrative expenses | (21,908) | (19,423) |
| Other operating income | 5,724 | 4,171 |
| Other operating expenses | (2,190) | (991) |
| Operating profit | 72,483 | 44,482 |
| Finance income | 2,017 | 297 |
| Finance costs | (2,950) | (3,017) |
| Loss from investments in subsidiaries | (5,087) | - |
| Profit from joint ventures | 9,951 | 10,220 |
| Profit before tax | 76,414 | 51,982 |
| Corporate income tax expense | (11,820) | (6,081) |
| Net profit for financial year | 64,594 | 45,901 |
| incl. net profit attributable to equity holders of the parent | 64,668 | 46,048 |
| net profit attributable to non-controlling interest | (74) | (147) |
| Other comprehensive income (loss), which can subsequently be classified in the income statement | ||
| Currency translation differences of foreign entities | 105 | (41) |
| Comprehensive income for the period | 64,699 | 45,860 |
| incl. attributable to equity holders of the parent | 64,764 | 45,993 |
| attributable to non-controlling interest | (65) | (133) |
| Earnings per share for profit attributable to equity holders of the parent (basic and diluted, in EUR) | 3.65 | 2.60 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
in thousand euros
| 31.12.2024 | 31.12.2023 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 91,879 | 77,330 |
| Short-term deposits | 10,000 | - |
| Trade and other receivables | 51,419 | 68,754 |
| Prepaid corporate income tax | 270 | 2 |
| Inventories | 196,521 | 195,435 |
| 350,089 | 341,521 | |
| Non-current assets | ||
| Investments in joint ventures | 21,571 | 21,915 |
| Other shares and securities | 80 | 80 |
| Other long-term loans and receivables | 40,196 | 24,490 |
| Deferred income tax assets | 5,056 | 3,298 |
| Investment property | 12,606 | 16,823 |
| Property, plant and equipment | 17,147 | 16,613 |
| Intangible assets | 350 | 520 |
| 97,006 | 83,739 | |
| TOTAL ASSETS | 447,095 | 425,260 |
| LIABILITIES | ||
| Current liabilities | ||
| Borrowings | 21,303 | 19,673 |
| Payables and prepayments | 129,786 | 133,898 |
| Income tax liability | 7,101 | 4,260 |
| Short-term provisions | 7,678 | 10,451 |
| 165,868 | 168,282 | |
| Non-current liabilities | ||
| Long-term borrowings | 12,102 | 35,142 |
| Deferred income tax liability | 6,148 | 4,441 |
| Other long-term payables | 8,719 | 5,495 |
| 26,969 | 45,078 | |
| TOTAL LIABILITIES | 192,837 | 213,360 |
| EQUITY | ||
| Non-controlling interests | - | (155) |
| Equity attributable to equity holders of the parent | ||
| Share capital | 7,929 | 7,929 |
| Statutory reserve capital | 793 | 793 |
| Currency translation differences | (41) | (838) |
| Retained earnings | 245,577 | 204,171 |
| 254,258 | 212,055 | |
| TOTAL EQUITY | 254,258 | 211,900 |
| TOTAL LIABILITIES AND EQUITY | 447,095 | 425,260 |
A copy of AS Merko Ehitus audited annual report for 2024 is attached to the announcement and is also published on NASDAQ Tallinn and Merko’s web page (). The ESEF-compliant machine-readable annual report is generated only in Estonian language.
Ivo Volkov
Chairman of Management Board
AS Merko Ehitus
+372 650 1250
Urmas Somelar
Head of Finance
AS Merko Ehitus
AS Merko Ehitus () group companies construct buildings and infrastructure and develop real estate. We create a better living environment and build the future. We operate in Estonia, Latvia, and Lithuania. As at the end of 2024, the group employed 605 people, and the group’s revenue for 2024 was EUR 539 million.
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