Published: 2019-08-16 15:30:00 CEST
Linda Nektar
Company Announcement

The Interim Report for the six month period ended 30 June 2019 (unaudited)

Management Report

In H1 2019 AS Linda Nektar’s (the ‘Company’) turnover amounted to EUR 1,048,569 marking a decrease of 4% year-on-year (H1 2018: EUR 1,092,104). Revenue diversification on a geographical basis has continued its earlier trend, with Latvian revenues representing 45% of the total in the reporting period (previous corresponding period, p-c-p was 36%), exceeding that of Estonia. A total of 5 countries generated turnover, albeit Lithuanian and German sales were rather miniscule.

Although much media attention has recently focused on both Estonia and Latvia, who have both now reduced various alcohol-related excise taxes (expected to be somewhat supportive for the Company overall), this misses some important developments on a European Union scale which were first touched on in the 2018 unaudited accounts release. This has the potential to bring better clarity for both taxation and classification aspects for the alcohol industry and also the Company, a B2B fruit wines and ferments producer for the beverages industry.

Fortunately for the Company, it has the flexibility and technology to develop fruit wines and ferments from broad range of concentrate bases. The updated regulation may therefore create more opportunities for niche producers such as Linda Nektar, as brewers (key producers of such drinks in-house) could be expected to find it increasingly efficient to outsource such tasks.

Work to diversify the Company’s client base (alcoholic and non-alcoholic beverage varieties) continues as do plans to more actively embrace aroma recovery proprietary technology. Strategic co-operation with partners such as Germany’s Symrise AG is ongoing.

H1 2019 ended in a net loss of EUR 21,510 (H1 2018 came in with a loss of EUR 51,013). Management believes that this represents a stabilization of sorts in what has been a very volatile market due to reasons noted above and in other previously-published financial reports.

Operating cash flow in H1 2019 was a positive EUR 76,528 (H1 2018: EUR 97,891).

Revenue guidance provided earlier this year for 2019 remains at EUR 2.2m (flat year on year).

As of 30 June 2019, the Company’s total assets came to EUR 3,966,072 (H1 2018: EUR 4,164,746) marking a decrease of 4.77 % year-on-year. Current assets amounted to EUR 1,694,119 (H1 2018: EUR 1,638,157) or 42.72 % of total assets. Fixed assets amounted to EUR 2,271,953 (H1 2018: EUR 2,526,589 euros) or 57.28 % of the balance sheet total. The liabilities of AS Linda Nektar totalled EUR 214,152 (H1 2018: EUR 246,788) and equity capital amounted to EUR 3,751,920 (H1 2018: EUR 3,917,958).

As of 30 June 2019, there were no loan commitments.

A total of EUR 125,863 was invested in fixed assets (H1 2018: EUR 149,703).

Depreciation costs in H1 2019 amounted to EUR 185,800 (H1 2018: EUR 230,538).

In H1 2019, the Company paid EUR 126,009 euros in dividends (H1 2018: EUR 126,009). The income tax cost on dividends was EUR 27,839 (H1 2018: EUR 31,502).

Development costs in H1 2019 amounted to EUR 12,505 (H1 2018: EUR 8,854).

As of 30 June 2019, the Company had 12 employees, one Management Board Member, and four Supervisory Board Members. Labor costs in H1 2019 (including taxes) amounted to EUR 163,346 (H1 2018: EUR 156,373).

 

Financial Ratios:

  January - June
2019
January - June
2018
Current Ratio = Current Assets/ Current Liabilities x 7.91 6.64
Quick ratio = (Current Assets – Inventories) / Current Liabilities x 6.20 5.08
Working Capital = Current Assets - Current Liabilities   1 479 967 1 391 369
Equity Ratio = Total Equity / Total Assets % 94.60 94.07
Net Profit Margin= Net Profit / Sales Revenue % -2.05 -4.67
Debt to Assets= Total Liabilities / Total Assets x 0.05 0.06

 

The Interim accounts

 

Statement of financial position

(In Euros)

  30.06.2019 31.12.2018 30.06.2018
Assets      
Current assets      
Cash and cash equivalents 859 878 1 012 339 848 124
Receivables and prepayments 466 949 296 462 404 787
Inventories 367 292 325 728 385 246
Total current assets 1 694 119 1 634 529 1 638 157
Non-current assets      
Receivables and prepayments 48 25 25
Property, plant and equipment 2 264 271 2 343 123 2 481 242
Intangible assets 7 634 9 108 45 322
Total non-current assets 2 271 953 2 352 256 2 526 589
Total assets 3 966 072 3 986 785 4 164 746
Liabilities and equity      
Liabilities      
Current liabilities      
Payables and prepayments 214 152 87 346 246 788
Total current liabilities 214 152 87 346 246 788
Total liabilities 214 152 87 346 246 788
Equity      
Issued capital 1 575 109 1 575 109 1 575 109
Share premium 617 517 617 517 617 517
Statutory reserve capital 70 672 70 672 70 672
Other reserves 8 809 8 809 1 804
Retained earnings (loss) 1 501 323 1 703 869 1 703 869
Reporting period profit (loss) -21 510 -76 537 -51 013
Total equity 3 751 920 3 899 439 3 917 958
Total liabilities and equity 3 966 072 3 986 785 4 164 746

 

Income statement

(In Euros)

  01.01.2019
- 30.06.2019
01.01.2018
- 30.06.2018
Revenue 1 048 569 1 092 104
Other income 7 609 5 963
Changes in inventories of finished goods
and work in progress
9 344 43 321
Raw materials and consumables used -624 706 -674 560
Other operating expense -85 323 -99 430
Employee expense -163 346 -156 373
Depreciation and impairment loss (reversal) -185 800 -230 538
Other expense -66 -43
Operating profit (loss) 6 281 -19 556
Interest income 48 45
Profit (loss) before tax 6 329 -19 511
Income tax expense -27 839 -31 502
Reporting period profit (loss) -21 510 -51 013

 

Statement of cash flows

(In Euros)

  01.01.2019 -30.06.2019 01.01.2018 -30.06.2018
Cash flows from operating activities    
Operating profit (loss) 6 281 -19 556
Adjustments    
Depreciation and impairment loss (reversal) 185 800 230 538
Profit (loss) from sale of non-current assets -861 0
Total adjustments 184 939 230 538
Changes in receivables and prepayments related to operating activities -170 510 -202 357
Changes in inventories -41 564 -37 982
Changes in payables and prepayments related to operating activities 125 221 158 750
Income tax refund (paid) -27 839 -31 502
Total cash flows from operating activities 76 528 97 891
Cash flows from investing activities    
Purchase of property, plant and equipment and intangible assets -124 278 -157 877
Proceeds from sales of property, plant and equipment and intangible assets 21 250 0
Proceeds from government grants 0 313 580
Interest received 48 45
Total cash flows from investing activities -102 980 155 748
Cash flows from financing activities    
Dividends paid -126 009 -126 009
Total cash flows from financing activities -126 009 -126 009
Total cash flows -152 461 127 630
Cash and cash equivalents at beginning of period 1 012 339 720 494
Change in cash and cash equivalents -152 461 127 630
Cash and cash equivalents at end of period 859 878 848 124

 

Statement of changes in equity

(In Euros)

  Issued capital Share premium Statutory reserve capital Other reserves Retained earnings (loss) Total
31.12.2017 1 575 109 617 517 66 402 1 804 1 834 147 4 094 979
Reporting period profit (loss) 0 0 0 0 -51 013 -51 013
Declared dividends 0 0 0 0 -126 009 -126 009
Changes in reserves 0 0 4 270 0 -4 269 1
30.06.2018 1 575 109 617 517 70 672 1 804 1 652 856 3 917 958
Reporting period profit (loss) 0 0 0 0 -25 524 -25 524
Declared dividends 0 0 0 0 0 0
Changes in reserves 0 0 0 7 005 0 7 005
31.12.2018 1 575 109 617 517 70 672 8 809 1 627 332 3 899 439
Reporting period profit (loss) 0 0 0 0 -21 510 -21 510
Declared dividends 0 0 0 0 -126 009 -126 009
Changes in reserves 0 0 0 0 0 0
30.06.2019 1 575 109 617 517 70 672 8 809 1 479 813 3 751 920

 

         Additional information:
         
         Kadri Rauba
         Member of Management Board
         AS Linda Nektar
         Address: Kobela, Antsla parish, 66407 Võrumaa, Estonia
         Telephone: +372 785 5768
         E-mail: info@lindanektar.ee


Interim Report H1_2019_en_eur_.pdf