AS Tallinna Vesi´s financial results for the 1st quarter of 2021
AS Tallinna Vesi’s sales revenue for the first quarter of 2021 was €11.78 million, showing 10.6% reduction on the same period last year. The revenues reflect lower commercial consumption brought about by the COVID-19 restrictions, whereas higher domestic consumption gave a slight increase in the sales revenue from private customers.
Sales to private customers in the main service area increased by 1.7% to €5.11 million, due to reduced consumption of businesses and higher household consumption, both of which were attributable to the COVID-19 restrictions.
In the main service area, the sales revenue from commercial customers dropped by 21.5% to €3.26 million as a result of their consumption being lower by €0.89 million. The hospitality sector has seen the greatest impact from the pandemic, affecting the volumes of the water services provided by the Company.
The gross profit for the 1st quarter of 2021 was €5.18 million, being 14.5% lower due to reduced sales revenue. The operating profit was €4.66 million, having decreased by €1.01 compared to the same period last year. The main factor impacting the operating profit was lower sales revenue resulting from decreased consumption.
The net profit for the 1st quarter of 2021 was €4.55 million, showing a decrease of €1.01 million compared to the same period of 2020. The decline in the net profit was predominantly a consequence of lower operating profits. Deferred tax also contributed to the decrease in net profit, whilst lower interest costs had a positive impact on profitability.
Snowy winter made an impact on the construction revenues in comparison with the previous year: in the 1st quarter, subsidiary OÜ Watercom continued to work on the projects secured in 2020, both in Tallinn and across Estonia. The sales revenue from constructions services for the 1st quarter was €0.76 million, indicating a 25.7% decline compared to the same period of 2020. The decrease in revenue was primarily related to a lower revenue from pipe construction services, which were partly balanced by higher revenues from road construction services.
MAIN FINANCIAL INDICATORS
| € million, except key ratios | 1st quarter | Change 2021/ 2020 | ||
| 2021 | 2020 | 2019 | ||
| Sales | 11.78 | 13.18 | 14.66 | -10.6% |
| Gross profit | 5.18 | 6.06 | 8.26 | -14.5% |
| Gross profit margin % | 43.97 | 45.96 | 56.33 | -4.3% |
| Operating profit before depreciation and amortisation | 6.23 | 7.18 | 8.39 | -13.3% |
| Operating profit before depreciation and amortisation margin % | 52.83 | 54.48 | 57.24 | -3.0% |
| Operating profit | 4.66 | 5.67 | 6.89 | -17.8% |
| Operating profit - main business | 4.50 | 5.62 | 6.78 | -20.0% |
| Operating profit margin % | 39.55 | 43.02 | 47.00 | -8.1% |
| Profit before taxes | 4.57 | 5.56 | 6.68 | -17.7% |
| Profit before taxes margin % | 38.78 | 42.15 | 45.58 | -8.0% |
| Net profit | 4.55 | 5.56 | 1.01 | -18.1% |
| Net profit margin % | 38.59 | 42.15 | 45.58 | -8.4% |
| ROA % | 1.77 | 2.09 | 2.74 | -15.5% |
| Debt to total capital employed % | 54.83 | 54.81 | 57.78 | 0.0% |
| ROE % | 3.97 | 4.70 | 6.85 | -15.4% |
| Current ratio | 4.48 | 5.87 | 6.28 | -23.7% |
| Quick ratio | 4.42 | 5.83 | 6.24 | -24.2% |
| Investments into fixed assets | 2.28 | 3.59 | 3.41 | -36.5% |
| Payout ratio % | na | na | na | |
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 debt
| STATEMENT OF COMPREHENSIVE INCOME | 1st quarter | 1st quarter | 12 months | |
| € thousand | 2021 | 2020 | 2020 | |
| Revenue | 11,784 | 13,180 | 51,717 | |
| Cost of goods and services sold | -6,603 | -7,123 | -29,491 | |
| GROSS PROFIT | 5,181 | 6,057 | 22,226 | |
| Marketing expenses | -121 | -117 | -433 | |
| General administration expenses | -1,551 | -1,295 | -4,576 | |
| Other income (+)/ expenses (-) | 1,151 | 1,025 | 4,567 | |
| OPERATING PROFIT | 4,660 | 5,670 | 21,784 | |
| Financial income | 5 | 12 | 31 | |
| Financial expenses | -95 | -127 | -473 | |
| PROFIT BEFORE TAXES | 4,570 | 5,555 | 21,342 | |
| Income tax on dividends | -21 | 0 | -4,610 | |
| NET PROFIT FOR THE PERIOD | 4,549 | 5,555 | 16,732 | |
| COMPREHENSIVE INCOME FOR THE PERIOD | 4,549 | 5,555 | 16,732 | |
| Attributable profit to: | ||||
| Equity holders of A-shares | 4,548 | 5,554 | 16,731 | |
| B-share holder | 0.60 | 0.60 | 0.60 | |
| Earnings per A share (in euros) | 0.23 | 0.28 | 0.84 | |
| Earnings per B share (in euros) | 600 | 600 | 600 |
| STATEMENT OF FINANCIAL POSITION | ||||
| € thousand | 31/03/2021 | 31/03/2020 | 31/12/2020 | |
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | 47,122 | 68,658 | 44,514 | |
| Trade receivables. accrued income and prepaid expenses | 6,514 | 6,277 | 7,019 | |
| Inventories | 809 | 602 | 701 | |
| TOTAL CURRENT ASSETS | 54,445 | 75,537 | 52,234 | |
| NON-CURRENT ASSETS | ||||
| Property. plant and equipment | 203,516 | 191,732 | 202,802 | |
| Intangible assets | 634 | 666 | 629 | |
| TOTAL NON-CURRENT ASSETS | 204,150 | 192,398 | 203,431 | |
| TOTAL ASSETS | 258,595 | 267,935 | 255,665 | |
| LIABILITIES AND EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Current portion of long-term lease liabilities | 393 | 362 | 393 | |
| Current portion of long-term loans | 3,630 | 3,631 | 3,630 | |
| Trade and other payables | 5,943 | 6,721 | 7,084 | |
| Derivatives | 0 | 158 | 0 | |
| Prepayments | 2,182 | 1,990 | 2,445 | |
| TOTAL CURRENT LIABILITIES | 12,148 | 12,862 | 13,552 | |
| NON-CURRENT LIABILITIES | ||||
| Deferred income from connection fees | 35,611 | 31,902 | 34,564 | |
| Leases | 1,331 | 1,231 | 1,400 | |
| Loans | 83,966 | 87,597 | 83,978 | |
| Provision for possible third-party claims | 8,424 | 13,238 | 9,628 | |
| Deferred tax liability | 276 | 0 | 255 | |
| Other payables | 35 | 26 | 32 | |
| TOTAL NON-CURRENT LIABILITIES | 129,643 | 133,994 | 129,857 | |
| TOTAL LIABILITIES | 141,791 | 146,856 | 143,409 | |
| EQUITY | ||||
| Share capital | 12,000 | 12,000 | 12,000 | |
| Share premium | 24,734 | 24,734 | 24,734 | |
| Statutory legal reserve | 1,278 | 1,278 | 1,279 | |
| Retained earnings | 78,792 | 83,067 | 74,243 | |
| TOTAL EQUITY | 116,804 | 121,079 | 112,256 | |
| TOTAL LIABILITIES AND EQUITY | 258,595 | 267,935 | 255,665 | |
| CASH FLOWS STATEMENT | 3 months | 3 months | 12 months | |
| € thousand | 2021 | 2020 | 2020 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Operating profit | 4,660 | 5,670 | 21,784 | |
| Adjustment for depreciation/amortisation | 1,567 | 1,510 | 6,283 | |
| Adjustment for revenues from connection fees | -125 | -111 | -542 | |
| Other non-cash adjustments | -1,204 | -1,204 | -4,814 | |
| Profit/loss(+) from sale and write off of property. plant and equipment. and intangible assets | 0 | -11 | -14 | |
| Change in current assets involved in operating activities | 402 | 865 | 140 | |
| Change in liabilities involved in operating activities | -54 | 162 | -215 | |
| TOTAL CASH FLOWS FROM OPERATING ACTIVITIES | 5,246 | 6,881 | 22,622 | |
| CASH FLOWS USED IN INVESTING ACTIVITIES | ||||
| Acquisition of property. plant and equipment. and intangible assets | -2,923 | -2,986 | -15,682 | |
| Compensations received for construction of pipelines. incl connection fees | 508 | 275 | 1,998 | |
| Proceeds from sales of property. plant and equipment and intangible assets | 0 | 28 | 32 | |
| Interest received | 1 | 11 | 35 | |
| TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES | -2,414 | -2,672 | -13,617 | |
| CASH FLOWS USE D IN FINANCING ACTIVITIES | ||||
| Interest paid and loan financing costs. incl swap interests | -121 | -173 | -719 | |
| Lease payments | -102 | -153 | -555 | |
| Received loans | 0 | 0 | 0 | |
| Repayment of loans | 0 | 0 | -3,636 | |
| Dividends paid | 0 | 0 | -19,888 | |
| Withheld income tax paid on dividends | 0 | 0 | -113 | |
| Income tax paid on dividends | 0 | 0 | -4,355 | |
| TOTAL CASH FLOW USED IN FINANCING ACTIVITIES | -223 | -326 | -29,266 | |
| CHANGE IN CASH AND CASH EQUIVALENTS | 2,609 | 3,883 | -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 | 47,123 | 68,658 | 44,514 |
Kristi Ojakäär
Member of the Management Board
Aleksandr Timofejev
Member of the Management Board
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