Published: 2018-07-31 15:45:37 CEST
Ekspress Grupp
Half Year financial report

AS Ekspress Grupp: Consolidated Interim Report for the Second Quarter and First Half-Year of 2018

While the first quarter passed in celebration of the 100th anniversary of Estonia and Lithuania, one of the key topics in the second quarter was the reorganisation of the joint venture Ajakirjade Kirjastus is Estonia. On 1 June, one part of Estonia's largest magazine publisher was merged with the Group's subsidiary Ekspress Meedia and the other part was merged with the joint venture SLÕhtuleht which bears the name Õhtuleht Kirjastus after the merger.

The key objective of the change was to find a better online output for the content of the printed publications of Ajakirjade Kirjastus and to foster the publications' cooperation with the existing strong web platforms. In 2018, it is not reasonable to start setting up a large new web-centre, but to offer high-quality content to the readers in cooperation with the existing platforms, i.e.  Delfi and Õhtuleht. Due to a thorough planning process, the transfers and changes were completed without any major incidents. The accompanying one-off expenses related to these changes amounted to ca EUR 200 thousand. We are able to state today that the content created by the companies of the former Ajakirjade Kirjastus has received greater visibility and readability due to large web portals.   

After very large-scale events in Lithuania in the first quarter such as the conference "The Idea for Lithuania" and "The Day of Best Classes" targeted at school children, slightly more modest but not less exciting projects were implemented in all countries in the second quarter. Ekspress Meedia organised an exclusive rally day with Ott Tänak on Tallinn Song Festival Ground, there was a concert given by Stig Rästa who performed the hits of Paul McCartney and the Beatles. Ajakirjade Kirjastus organised another Estonian Entertainment Awards event. As a media partner, Delfi Latvia contributed to several local conferences and festivals. The debate festival called Lampa is worth mentioning separately where one of the key speakers was President Toomas Hendrik Ilves. In collaboration with the Business Management Institute (BMI), Delfi Lithuania launched a new educational programme "Innovation and Digital Transformation" where one of the lecturers will also be the head of Delfi Lithuania. The joint project of Delfi Lithuania and Google DNI to fight fake news is successfully promoted at an international level. Delfi Lithuania was the main communication partner at the largest innovation conference in the Baltic States - Login.

The arrangement of events and activities under our different brands is becoming an increasingly important activity throughout the entire group. This will lead to the addition of a new revenue type and create an opportunity to grow advertising revenues which differ from the traditional approach.

Besides all of the above, we will continue producing strong journalistic content, and create the best and most reliable content for our readers. This is evidenced by the record number of journalism prizes awarded to our journalists by the Estonian Newspaper Association in the first quarter. We also received several awards for our journalistic activities in Latvia. We are trying to involve more young people in our activities. Eesti Ekspress has a summer youth campaign for the first time, the main objective of which is to encourage young people to make video and picture content, and introduce the Eesti Ekspress brand to them.  

We continue to invest in people and software solutions to enable new products to enter the market and to further develop, enhance and upgrade our digital platforms and online products. We are looking for synergies between printed products and online output. We are launching new verticals and shut down or reorganise the current ones.   

We are also expanding the direction of the outdoor advertising. In addition to the company acquired in Tartu in January, we are also expanding our network organically in Estonia and Latvia. The media buyer is beginning to understand the advantages of digital outdoor advertising; therefore the growth in this market as a whole is picking up.

The acquisition of a majority holding in Adnet, a provider of an advertising network and target group-based advertising sales solutions last November has together with Delfi companies significantly increased the Group’s online revenue and its share in total revenue. The share of the Group's digital revenue has increased to 37% of total revenue by the end of June. Delfi Lithuania has demonstrated especially strong growth. In Latvia, due to the local banking crisis and a change in the pricing policy of a major media monopoly, the advertising market is still stagnant. However, there is some pick-up in activities over the last month and an innovative approach to advertising sales has been successful.

The most complicated situation is at the Group's printing house that is under strong price pressures due to falling circulations. Our strength remains a very good service and quality of work which has made it possible to expand our service to the rest of Europe, but which will take longer than expected to grow. Paper shortages and a price increase have also had a negative impact. The decline in circulation and higher labour costs are also significantly affecting the results of our home delivery company.

The Group's revenue for the first half-year increased by 9% and totalled EUR 34 million. However, EBITDA decreased and amounted to EUR 2.3 million which is one-third less than in the same period last year. The main reason for the decrease in EBITDA is the lower-than-expected result of printing services, the difficult situation of the home delivery company and one-off reorganisation costs.

We are expecting the printing services segment to pick up in the second half of the year. The growth of media companies is forecasted to be modest and the reorganisation of the former Ajakirjade Kirjastus is still underway leading to stronger products that also have a future potential in the digital world.   

In the consolidated financial reports 50% joint ventures are recognised under the equity method, in compliance with International Financial Reporting Standards (IFRS). In its monthly reports, the management monitors the Group’s performance on the basis of proportional consolidation of joint ventures and the syndicated loan contract also determines the calculation of some loan covenants by proportional consolidation. For the purpose of clarity, the management report shows two sets of indicators: one where joint ventures are consolidated line-by-line 50% and the other where joint ventures are recognised under the equity method and their net result is presented as financial income in one line.


FINANCIAL INDICATORS AND RATIOS – joint ventures consolidated 50% line-by-line


Performance indicators – joint ventures consolidated 50%
(EUR thousand)
Q2 2018Q2 2017Change %Q2 2016Q2 2015Q2 2014
For the period      
Sales17 65916 3828%16 54515 99816 007
EBITDA1 6762 184-23%2 3321 4882 935
EBITDA margin (%)9.5%13.3% 14.1%9.3%18.3%
Operating profit8541 403-39%1 5467452 180
Operating margin (%)4.8%8.6% 9.3%4.7%13.6%
Interest expenses(102)(106)3%(134)(146)(181)
Net profit/(loss) for the period8931 221-27%1 3244811 858
Net margin (%)5.1%7.5% 8.0%3.0%11.6%
Return on assets ROA (%)1.1%1.6% 1.7%0.6%2.4%
Return on equity ROE (%)1.7%2.4% 2.7%1.0%4.2%
Earnings per share (EPS)0.03 0.04 0.050.020.06


Performance indicators – joint ventures consolidated 50%
(EUR thousand)
1st Half year 20181st Half year 2017Change %1st Half year 20161st Half year 20151st Half year 2014
For the period      
Sales34 01031 0799%30 94730 17930 773
EBITDA2 3443 427-32%3 5743 0054 389
EBITDA margin (%)6.9%11.0% 11.5%10.0%14.3%
Operating profit6951 891-63%2 0221 5072 871
Operating margin (%)2.0%6.1% 6.5%5.0%9.3%
Interest expenses(205)(222)7%(269)(320)(357)
Net profit/(loss) for the period6531 631-60%1 6361 0372 361
Net margin (%)1.9%5.2% 5.3%3.4%7.7%
Return on assets ROA (%)0.8%2.1% 2.1%1.3%3.1%
Return on equity ROE (%)1.2%3.2% 3.4%2.2%5.5%
Earnings per share (EPS)0.02 0.05 0.060.030.08


Balance sheet – joint ventures consolidated 50%
(EUR thousand)
30.06.201831.12.2017Change %
As of the end of the period   
Current assets16 70316 7250%
Non-current assets62 94662 5971%
Total assets79 64979 3220%
  incl. cash and bank1 3912 818-51%
  incl. goodwill39 68539 920-1%
Current liabilities13 32511 08120%
Non-current liabilities15 26215 747-3%
Total liabilities28 58726 8287%
  incl. borrowings15 36615 791-3%
Equity51 06252 494-3%


Financial ratios (%) - joint ventures consolidated 50% 30.06.201831.12.2017
Equity ratio (%)64%66%
Debt to equity ratio (%) 30%30%
Debt to capital ratio (%) 21%20%
Total debt/EBITDA ratio2.732.35
Liquidity ratio1.251.51


FINANCIAL INDICATORS AND RATIOS – joint ventures recognised under the equity method


Performance indicators – joint ventures under equity method
(EUR thousand)
Q2 2018Q2 2017Change %Q2 2016Q2 2015Q2 2014
For the period      
Sales15 30413 92310%14 12013 76513 763
EBITDA1 6261 944-16%1 9621 1132 664
EBITDA margin (%)10.6%14.0% 13.9%8.1%19.4%
Operating profit8971 253-28%1 2494291 936
Operating margin (%)5.9%9.0% 8.8%3.1%14.1%
Interest expenses(99)(99)0%(121)(130)(181)
Profit /(loss) of joint ventures under equity method1521418%224225190
Net profit/(loss) for the period8931 221-27%1 3244811 858
Net margin (%)5.8%8.8% 9.4%3.5%13.5%
Return on assets ROA (%)1.2%1.6% 1.8%0.6%2.5%
Return on equity ROE (%)1.7%2.4% 2.7%1.0%4.2%
Earnings per share (EPS)0.03 0.04 0.050.020.06


Performance indicators – joint ventures under equity method
(EUR thousand)
1st Half year 20181st Half year 2017Change %1st Half year 20161st Half year 20151st Half year 2014
For the period      
Sales29 32126 33211%26 37525 85826 498
EBITDA2 2483 018-26%2 9872 3513 993
EBITDA margin (%)7.7%11.5% 11.3%9.1%15.1%
Operating profit7901 661-52%1 5739722 529
Operating margin (%)2.7%6.3% 6.0%3.8%9.5%
Interest expenses(196)(208)6%(241)(285)(357)
Profit /(loss) of joint ventures under equity method91210-57%356419288
Net profit/(loss) for the period6531 631-60%1 6361 0372 361
Net margin (%)2.2%6.2% 6.2%4.0%8.9%
Return on assets ROA (%)0.9%2.2% 2.2%1.4%3.2%
Return on equity ROE (%)1.2%3.2% 3.4%2.2%5.5%
Earnings per share (EPS)0.02 0.05 0.060.030.08


Balance sheet - joint ventures under equity method
(EUR thousand)
30.06.201831.12.2017Change %
As of the end of the period   
Current assets14 97513 8278%
Non-current assets62 48862 1301%
Total assets77 46475 9572%
  incl. cash and bank5951 073-45%
  incl. goodwill37 96937 9690%
Current liabilities11 3478 37236%
Non-current liabilities15 05415 0910%
Total liabilities26 40123 46313%
  incl. borrowings15 12815 257-1%
Equity51 06252 494-3%


Financial ratios  (%) –
joint ventures consolidated under equity method
30.06.201831.12.2017
Equity ratio (%)66%69%
Debt to equity ratio (%) 30%29%
Debt to capital ratio (%) 22%21%
Total debt/EBITDA ratio2.752.44
Liquidity ratio1.321.65


Formulas used to calculate the financial ratios
EBITDAEarnings before interest, tax, depreciation and amortization. EBITDA does not include any impairment losses recognized during the period or result from restructuring.
EBITDA margin (%) EBITDA/sales x 100
Operating margin (%) Operating profit/sales x100
Net margin (%)  Net margin in financial statements/sales x100
Earnings per share Net profit / average number of shares
Equity ratio (%)Equity/ (liabilities + equity) x100
Debt to equity ratio (%)Interest bearing liabilities /equity x 100
Debt to capital ratio (%)Interest bearing liabilities – cash and cash equivalents (net debt) /(net debt +equity) x 100
Total debt/EBITDA ratioInterest bearing borrowings /EBITDA
Debt service coverage ratio EBITDA/loan and interest payments for the period
Liquidity ratioCurrent assets / current liabilities
Return on assets ROA (%)Net profit /average assets x 100
Return on equity ROE (%)Net profit /average equity x 100

Cyclicality

All operating areas of the Group are characterised by cyclicality and fluctuation, related to the changes in the overall economic conditions and consumer confidence. The Group’s revenue can be adversely affected by an economic slowdown or recession in home and export markets. It can appear in lower advertising costs in retail, preference of other advertising channels like preference of internet rather than print media and changes in consumption habits of retail consumers e.g. following current news in news portals versus reading printed newspapers, preference of the younger generation to use mobile devices and other communication channels, etc.

Seasonality

The revenue from the Group’s advertising sales as well as in the printing services segment is impacted by major seasonal fluctuations. The level of both types of revenue is the highest in the 2nd and 4th quarter of each year and the lowest in the 3rd quarter. Revenue is higher in the 4th quarter because of higher consumer spending during the Christmas season, accompanied by the increase in advertising expenditure. Advertising expenditure is usually the lowest during the summer months, as well as during the first months of the year following Christmas and New Year’s celebrations. Book sales are the strongest in the last quarter of the year. Subscriptions and retail sales of periodicals do not fluctuate as much as advertising revenue. However the summer period is always more quiet and at the beginning of the school year in September there is an increase in subscriptions and retail sale which usually continues until next summer holiday period.


SEGMENT OVERVIEW

The Group’s activities are divided into two large segments - media segment and printing services segment.

The segments’ EBITDA does not include intragroup management fees, impairment of goodwill and trademarks. Volume-based and other fees payable to advertising agencies have not been deducted from the advertising sales of segments, because the management monitors gross advertising sales. Discounts and rebates are reduced from the Group’s sales and are included in the combined line of eliminations.


Key financial data of the segments Q2 2014–2018


 (EUR thousand)SalesSales
 Q2 2018Q2 2017Change %Q2 2016Q2 2015Q2 2014
media segment (under equity method)9 8898 62115%8 5117 9847 492
  incl. revenue from all digital and online channels6 4925 11727%4 7404 1163 730
printing services segment6 3556 1993%6 6636 3867 210
entertainment segment----392-
corporate functions69759218%593488422
intersegment eliminations(1 637)(1 490) (1 648)(1 485)(1 361)
TOTAL GROUP under equity method15 30413 92310%14 12013 76513 763
media segment (by proportional consolidation)12 52711 41010%11 23210 5069 950
  incl. revenue from all digital and online channels6 8705 42227%4 9034 2583 848
printing services segment6 3556 1993%6 6636 3867 210
entertainment segment----392-
corporate functions69759218%593488422
intersegment eliminations(1 920)(1 819) (1 944)(1 774)(1 575)
TOTAL GROUP by proportional consolidation17 65916 3828%16 54515 99816 007



(EUR thousand)
EBITDAEBITDA
 Q2 2018Q2 2017Change %Q2 2016Q2 2015Q2 2014
media segment (under equity method)1 1511 189-3%1 0591 2561 261
media segment (by proportional consolidation)1 2021 430-16%1 4301 6311 532
printing services segment7831 024-24%1 1481 2711 537
entertainment segment----(1 129)-
corporate functions(309)(270)-15%(246)(285)(134)
TOTAL GROUP under equity method1 6261 944-16%1 9621 1132 664
TOTAL GROUP by proportional consolidation1 6762 184-23%2 3321 4882 935


EBITDA marginQ2 2018Q2 2017Q2 2016Q2 2015Q2 2014
media segment (under equity method)12%14%12%16%17%
media segment (by proportional consolidation)10%13%13%16%15%
printing services segment12%17%17%20%21%
TOTAL GROUP under equity method11%14%14%8%19%
TOTAL GROUP by proportional consolidation9%13%14%9%18%


Key financial data of the segments in the first-half year 2014–2018


 (EUR thousand)SalesSales
 1st Half year 20181st Half year 2017Change %1st Half year 20161st Half year 20151st Half year 2014
media segment (under equity method)18 41916 04915%15 28214 56513 906
  incl. revenue from all digital and online channels11 9139 31728%8 2987 4666 517
printing services segment12 57611 9665%13 00412 70414 272
entertainment segment----453-
corporate functions1 3881 16719%1 132960844
intersegment eliminations(3 062)(2 849) (3 043)(2 823)(2 524)
TOTAL GROUP under equity method29 32126 33211%26 37525 85826 498
media segment (by proportional consolidation)23 68821 43611%20 42819 46818 587
  incl. revenue from all digital and online channels12 5979 87528%8 6027 7166 735
printing services segment12 57611 9665%13 00412 70414 272
entertainment segment----453-
corporate functions1 3881 16719%1 132960844
intersegment eliminations(3 643)(3 489) (3 618)(3 406)(2 930)
TOTAL GROUP by proportional consolidation34 01031 0799%30 94730 17930 773



(EUR thousand)
EBITDAEBITDA
 1st Half year 20181st Half year 2017Change %1st Half year 20161st Half year 20151st Half year 2014
media segment (under equity method)1 3971 543-9%1 0941 5351 600
media segment (by proportional consolidation)1 4921 951-24%1 6812 1891 995
printing services segment1 4841 922-23%2 3302 4322 995
entertainment segment---(1)(1 105)-
corporate functions(633)(446)-42%(436)(511)(601)
TOTAL GROUP under equity method2 2483 018-26%2 9872 3513 993
TOTAL GROUP by proportional consolidation2 3443 427-32%3 5743 0054 389


EBITDA margin1st Half year 20181st Half year 20171st Half year 20161st Half year 20151st Half year 2014
media segment (under equity method)8%10%7%11%12%
media segment (by proportional consolidation)6%9%8%11%11%
printing services segment12%16%18%19%21%
TOTAL GROUP under equity method8%11%11%9%15%
TOTAL GROUP by proportional consolidation7%11%12%10%14%


MEDIA SEGMENT

The media segment includes the Group's activities in Estonia, Latvia and Lithuania. It comprises the operations of online portal Delfi, several different news portal providing online advertising network and programmatic sales, outdoor digital screen advertising in Estonia and Latvia, publishing of the Estonian weekly newspapers Maaleht, Eesti Ekspress and LP, the daily newspaper Päevaleht, tabloid Õhtuleht, freesheet Linnaleht, publishing of books and magazines in Estonia, publishing of magazines in Lithuania until December 2017 and providing home delivery services.

We acquired the Latvian digital screen company ACM LV in the 3rd quarter of 2017 and a 100% ownership in Adnet Media in the 4th quarter of 2017. On 1 June 2018, the joint venture Ajakirjade Kirjastus was organised. The publishing of primarily monthly magazines was moved to Ekspress Meedia and that of the weekly magazines to Õhtuleht Kirjastus (former name SL Õhtuleht). From the same date, Ajakirjade Kirjastus and SL Õhtuleht are considered as merged and it now bears the name of Õhtuleht Kirjastus. The figures of Ajakirjade Kirjastus for June include the revenue and EBITDA earned until the end of May. The revenue and expenses of the magazines moved to Ekspress Meedia are 100% included in the figures of AS Ekspress Meedia. The figures of magazines moved to Õhtuleht Kirjastus for June are included in the income statement of Õhtuleht Kirjastus.

 News portals owned by the Group

OwnerPortalOwnerPortal
Ekspress Meedia www.delfi.eeEkspress Meediawww.ekspress.ee
 rus.delfi.ee www.maaleht.ee
Delfi Latviawww.delfi.lv www.epl.ee
 rus.delfi.lv  
Delfi Lithuaniawww.delfi.ltÕhtuleht Kirjastuswww.ohtuleht.ee
 ru.delfi.lt www.vecherka.ee



(EUR thousand)
SalesEBITDA
 Q2 2018Q2 2017Change %Q2 2018Q2 2017Change %
Ekspress Meedia5 4765 0658%416424-2%
  incl. online advertising revenue1 9461 9032%   
Delfi Latvia1 0281 0072%14613111%
Delfi Lithuania2 4972 4611%590645-8%
  incl. online advertising revenue 2 4691 99324%   
Adnet1 003--57--
Hea Lugu1459060%(9)(10)5%
ACM LV45--(54)--
Other companies--5(1)657%
Intersegment eliminations(304)(2) 00 
TOTAL subsidiaries9 8898 62115%1 1511 189-3%
Õhtuleht Kirjastus*1 4131 18120%103161-36%
Ajakirjade Kirjastus (until May 2018)*8091 161-30%1553-72%
Express Post*516601-14%(105)(0)-29445%
Linna Ekraanid*14410142%382743%
Intersegment eliminations(244)(256) 00 
TOTAL subsidiaries2 6382 789-5%51241-79%
TOTAL segment by proportional consolidation12 52711 41010%1 2021 430-16%


(EUR thousand)SalesEBITDA
 1st Half year 20181st Half year 2017Change %1st Half year 20181st Half year 2017Change %
Ekspress Meedia10 3309 5608%549645-15%
  incl. online advertising revenue3 5533 4393%   
Delfi Latvia1 8681 8620%133218-39%
Delfi Lithuania4 5454 4442%7086962%
  incl. online advertising revenue 4 4953 61124%   
Adnet1 927--105--
Hea Lugu30418663%(10)(15)29%
ACM LV88--(93)--
Other entities---5(1)508%
Intersegment eliminations(644)(3) 00 
TOTAL subsidiaries18 41916 04915%1 3971 543-9%
Õhtuleht Kirjastus*2 5852 27813%172258-33%
Ajakirjade Kirjastus (until May 2018)*1 8622 292-19%59137-57%
Express Post*1 0801 187-9%(180)(25)-608%
Linna Ekraanid*24017438%453915%
Intersegment eliminations(497)(544) 00 
TOTAL subsidiaries5 2695 387-2%96408-77%
TOTAL segment by proportional consolidation23 68821 43611%1 4921 951-24%

* Proportional share of joint ventures


ONLINE MEEDIA

Estonian online readership

In the quarter ended, Ekspress Meedia launched new online outputs for all magazines: www.eestinaine.ee; www.tervispluss.ee; www.omamaitse.ee; www.kroonika.ee; www.annestiil.ee; www.perejakodu.ee. Delfi IOS app was updated, the interior design channel www.dekor.ee was launched for the Russian population. Popular coverages worth mentioning include the WRC series and Anett Kontaveit games. Õhtuleht Kirjastus launched new websites: www.linnaleht.ee and www.ohtulehtkirjastus.ee.

Latvian online readership

Delfi has maintained its stable position as the news portal with the largest user base in Latvia. In the quarter ended, several major projects were implemented, e.g. a special China-themed page, coverage of the song and dance festival. Hockey and soccer themed special pages were launched and a new video studio was opened. Since June, an updated methodology of Gemius audience survey is used in Latvia.

Lithuanian online readership

Delfi.lt remains the largest online portal in Lithuania and has a significant impact on the society. In the first quarter of 2018, DELFI's innovative solution “Hot spots” and an interactive map of the places around the world with the most news coverage were launched, and Delfi TV https://www.delfi.lt/video/ was revamped. From April, an updated methodology of Gemius audience survey was used in Lithuania. As a result, since April we have used the average daily users as the basis for comparing the number of readers in Lithuania.


PRINT MEDIA

Estonian newspaper circulation

Õhtuleht continues to be the largest daily newspaper by circulation. Traditionally, Maaleht was the largest newspaper in January and last December.


PRINTING SERVICES SEGMENT

All printing services of the Group are provided by AS Printall which is one of the largest printing companies in Estonia. We are able to print high-quality magazines, newspapers, advertising materials, product and service catalogues, paperback books and other publications in our printing plant. 

(EUR thousand)SalesEBITDA
 Q2 2018Q2 2017Change %Q2 2018Q2 2017Change %
Printall6 3556 1993%7831 024-24%


(EUR thousand)SalesEBITDA
 1st Half year 20181st Half year 2017Change %1st Half year 20181st Half year 2017Change %
Printall12 57611 9665%1 4841 922-23%

For several years already, the printing services segment has been under pressure due to continued digitalisation of regular journalism and the increasing popularity of Internet as compared to printed products. The price pressure is very strong both in Scandinavia and Estonia, because other Baltic States also have very competitive services. A sheet-fed printing press purchased two years ago has helped us expand the product range also outside the regular media sector. We are also engaged in active sales activities outside Nordic countries. 


Consolidated balance sheet (unaudited)

(EUR thousand)30.06.201831.12.2017
ASSETS  
Current assets  
Cash and cash equivalents5951 073
Trade and other receivables10 5879 917
Corporate income tax prepayment1484
Inventories3 6462 832
Total current assets14 97513 827
Non-current assets  
Trade and other receivables1 2411 750
Deferred tax asset4747
Investments in joint ventures2 5042 372
Investments in associates354354
Property, plant and equipment12 07912 189
Intangible assets46 26445 419
Total non-current assets62 48862 130
TOTAL ASSETS77 46475 957
LIABILITIES  
Current liabilities  
Borrowings74166
Trade and other payables11 1778 095
Corporate income tax payable96111
Total current liabilities 11 3478 372
Non-current liabilities   
Long-term borrowings15 05415 091
Total non-current liabilities 15 05415 091
TOTAL LIABILITIES26 40123 463
EQUITY  
Minority shareholding6768
Capital and reserves attributable to equity holders of parent company:  
Share capital17 87817 878
Share premium14 27714 277
Treasury shares(22)(22)
Reserves1 6881 531
Retained earnings17 17418 762
Total capital and reserves attributable to equity holders of parent company50 99652 426
TOTAL EQUITY 51 06252 494
TOTAL LIABILITIES AND EQUITY77 46475 957

 

Consolidated statement of comprehensive income (unaudited)

(EUR thousand)Q2 2018Q2 20171st Half year 20181st Half year 2017
Sales15 30413 92329 32126 332
Cost of sales(12 027)(10 725)(23 591)(20 800)
Gross profit3 2783 1985 7315 532
Other income121270160448
Marketing expenses(718)(798)(1 485)(1 514)
Administrative expenses (1 766)(1 400)(3 582)(2 762)
Other expenses(18)(18)(34)(42)
Operating profit8971 2537901 661
Interest income445587114
Interest expenses(99)(99)(196)(208)
Other finance income and costs(15)(18)(34)(34)
Net finance cost(70)(63)(142)(127)
Profit (loss) on shares of joint ventures15214191210
Profit (loss) on shares of associates0(21)0(23)
Profit before income tax9791 3107401 721
Income tax expense(86)(89)(86)(90)
Net profit  for the reporting period8931 2216531 631
Net profit for the reporting period attributable to    
Equity holders of the parent company 8941 2216541 631
Minority shareholders(1)0(1)0
Other comprehensive income 0000
Total comprehensive income 8931 2216531 631
Comprehensive income for the reporting period attributable to     
Equity holders of the parent company 8941 2216541 631
Minority shareholders(1)(1)0
Basic and diluted earnings per share0.030.040.020.05


Consolidated cash flow statement (unaudited)

(EUR thousand)1st Half year 20181st Half year 2017
Cash flows from operating activities  
Operating profit for the reporting year7901 661
Adjustments for:  
Depreciation, amortisation and impairment1 4581 357
(Gain)/loss on sale and write-down of property, plant and equipment(7)(3)
Cash flows from operating activities:  
Trade and other receivables(274)80
Inventories(814)78
Trade and other payables 960(487)
Cash generated from operations2 1132 686
Income tax paid(245)(231)
Interest paid(196)(208)
Net cash generated from operating activities 1 6722 247
Cash flows from investing activities   
Interest received67102
Purchase of other investments(1 000)(35)
Purchase of  property, plant and equipment(1 212)(814)
Proceeds from sale of property, plant and equipment2513
Loans granted(476)(2 025)
Loan repayments received5741 028
Net cash used in investing activities (2 022)(1 732)
Cash flows from financing activities  
Dividends received056
Finance lease payments made(37)(35)
Change in overdraft(92)0
Repayments of bank loans0(552)
Net cash used in financing activities (129)(531)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS(479)(15)
Cash and cash equivalents at the beginning of the year1 0732 856
Cash and cash equivalents at the end of the year5952 842

   

Additional information:

         Mari-Liis Rüütsalu
         Chairman of the Management Board
         GSM: +372 512 2591
         e-mail: mariliis.ryytsalu@egrupp.ee



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EG_II_kvartal_2018_ENG.pdf