AS Tallinna Vesi´s financial results for the 1st quarter of 2020AS Tallinna Vesi’s sales revenues in the 1st quarter of 2020 were €13.18 million, showing a 10.1% decrease year-on-year. From 1 December 2019 the domestic tariffs in the main services area decreased on average 27% and commercial tariffs 15%. In comparison with the last year, the total water services consumption was higher in the 1st quarter of 2020, however, since the middle of March, the coronavirus has been having an adverse impact on consumption. The 22.6% lower sales revenue from private customers in the 1st quarter of 2020 was mainly attributable to the 27% reduction in the tariffs, whereas, the consumption of private customers increased. The sales revenue from commercial customers dropped by 17.1% year-on-year. The tariffs for commercial customers fell by 15% starting from December 2019 and the consumption of commercial customers has decreased since the middle of March. 9% of the sales comprise of construction and other services revenues, which increased by 83.0% to €1.19 million. The gross profit in the 1st quarter of 2020 decreased by 26.7% or €2.20 million to €6.06 million being impacted by lower water and wastewater revenues from private and commercial customers within the service area, mostly affected by new tariffs from 1 December 2019 accompanied by higher staff costs and other costs of goods sold. The operating profit decreased year-on-year by 17.7% or €1.22 million to €5.67 million. Besides above-mentioned changes in gross profit, the operating profit was impacted by €1.20 million positive change in the provision for third-party claims in the 1st quarter of 2020. The net profit for the 1st quarter of 2020 was €5.56 million, showing a decrease by 16.9% or €1.13 million, being additionally impacted by lower net financial expenses. Dividend proposal Supervisory Board of AS Tallinna Vesi has also approved the dividend proposal to pay the shareholders a dividend of €1.00 per A-share and €600 per B-share for the financial year of 2019. The proposal will be submitted for approval to the Annual General Meeting of Shareholders on 28 May 2020. The share capital of the Company consists of 20 million A-shares and 1 preference share i.e. B-share. Company´s retained profits as of 31 December 2019 were €77,512,000, including the net profit for 2019 in the amount of €27,760,000. The proposed dividend payment amounts to €20,000,600. Subject to approval at the Annual General Meeting, the dividend payment will be made on 28 June 2020 and the list of shareholders entitled to receive dividends is fixed based on the share ledger as at 23.59 on 12 June 2020. MAIN FINANCIAL INDICATORS € million,
except key ratios | 1st quarter | Change 2020/ 2019 | | 2020 | 2019 | 2018 | | Sales | 13.18 | 14.66 | 14.08 | -10.1% | | Gross profit | 6.06 | 8.26 | 8.32 | -26.7% | | Gross profit margin % | 45.96 | 56.33 | 59.10 | -18.4% | | Operating profit before depreciation and amortisation | 7.18 | 8.39 | 8.22 | -14.5% | | Operating profit before depreciation and amortisation margin % | 54.48 | 57.24 | 58.40 | -4.8% | | Operating profit | 5.67 | 6.89 | 6.80 | -17.7% | | Operating profit - main business | 5.62 | 6.78 | 6.74 | -17.0% | | Operating profit margin % | 43.02 | 47.01 | 48.29 | -8.5% | | Profit before taxes | 5.56 | 6.69 | 6.53 | -16.9% | | Profit before taxes margin % | 42.15 | 45.59 | 46.42 | -7.5% | | Net profit | 5.56 | 6.68 | 6.53 | -16.9% | | Net profit margin % | 42.15 | 45.58 | 46.42 | -7.5% | | ROA % | 2.09 | 2.63 | 2.83 | -20.3% | | Debt to total capital employed % | 54.81 | 57.78 | 60.56 | -5.1% | | ROE % | 4.70 | 6.30 | 7.33 | -25.5% | | Current ratio | 5.87 | 6.28 | 6.98 | -6.5% | | Quick ratio | 5.83 | 6.24 | 6.93 | -6.6% | | Investments into fixed assets | 3.59 | 3.41 | 0.85 | 5.2% | | Payout ratio % | na | na | na | 0.0% |
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 | 2020 | 2019 | | 2019 | | | | | | | | Revenue | 13 180 | 14 664 | | 63 423 | | Cost of goods and services sold | -7 123 | -6 404 | | -29 470 | | GROSS PROFIT | 6 057 | 8 260 | | 33 953 | | | | | | | | Marketing expenses | -117 | -112 | | -390 | | General administration expenses | -1 295 | -1 261 | | -5 689 | | Other income/ expenses (-) | 1 025 | 6 | | 4 201 | | OPERATING PROFIT | 5 670 | 6 893 | | 32 075 | | | | | | | | Financial income | 12 | 8 | | 38 | | Financial expenses | -127 | -216 | | -809 | | PROFIT BEFORE TAXES | 5 555 | 6 685 | | 31 304 | | | | | | | | Income tax on dividends | 0 | 0 | | -3 544 | | | | | | | | NET PROFIT FOR THE PERIOD | 5 555 | 6 685 | | 27 760 | | COMPREHENSIVE INCOME FOR THE PERIOD | 5 555 | 6 685 | | 27 760 | | | | | | | | Attributable profit to: | | | | | | Equity holders of A-shares | 5 554 | 6 684 | | 27 759 | | B-share holder | 0,60 | 0,60 | | 0,60 | | | | | | | | Earnings per A share (in euros) | 0,28 | 0,33 | | 1,39 | | Earnings per B share (in euros) | 600 | 600 | | 600 |
| STATEMENT OF FINANCIAL POSITION | | | | | | € thousand | 31/03/2020 | 31/03/2019 | | 31/12/2019 | | | | | | | | ASSETS | | | | | | CURRENT ASSETS | | | | | | Cash and cash equivalents | 68 658 | 68 828 | | 64 775 | | Trade receivables, accrued income and prepaid expenses | 6 277 | 7 390 | | 7 239 | | Inventories | 602 | 537 | | 504 | | TOTAL CURRENT ASSETS | 75 537 | 76 755 | | 72 518 | | | | | | | | NON-CURRENT ASSETS | | | | | | Property, plant and equipment | 191 732 | 181 835 | | 189 627 | | Intangible assets | 666 | 623 | | 710 | | TOTAL NON-CURRENT ASSETS | 192 398 | 182 458 | | 190 337 | | TOTAL ASSETS | 267 935 | 259 213 | | 262 855 | | | | | | | | LIABILITIES AND EQUITY | | | | | | CURRENT LIABILITIES | | | | | | Current portion of long-term lease liabilities | 362 | 421 | | 352 | | Current portion of long-term bank loans | 3 631 | 3 631 | | 3 631 | | Trade and other payables | 6 721 | 5 694 | | 6 718 | | Derivatives | 158 | 139 | | 221 | | Prepayments | 1 990 | 2 334 | | 2 323 | | TOTAL CURRENT LIABILITIES | 12 862 | 12 219 | | 13 245 | | | | | | | | NON-CURRENT LIABILITIES | | | | | | Deferred income from connection fees | 31 902 | 25 792 | | 31 070 | | Leases | 1 231 | 1 138 | | 964 | | Loans | 87 597 | 91 299 | | 87 592 | | Derivatives | 0 | 201 | | 0 | | Provision for possible third party claims | 13 238 | 19 068 | | 14 442 | | Other payables | 26 | 46 | | 18 | | TOTAL NON-CURRENT LIABILITIES | 133 994 | 137 544 | | 134 086 | | TOTAL LIABILITIES | 146 856 | 149 763 | | 147 331 | | | | | | | | EQUITY | | | | | | Share capital | 12 000 | 12 000 | | 12 000 | | Share premium | 24 734 | 24 734 | | 24 734 | | Statutory legal reserve | 1 278 | 1 278 | | 1 278 | | Retained earnings | 83 067 | 71 438 | | 77 512 | | TOTAL EQUITY | 121 079 | 109 450 | | 115 524 | | TOTAL LIABILITIES AND EQUITY | 267 935 | 259 213 | | 262 855 |
| CASH FLOWS STATEMENT | 3 months | 3 months | | 12 months | | € thousand | 2020 | 2019 | | 2019 | | | | | | | | CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | Operating profit | 5 670 | 6 893 | | 32 075 | | Adjustment for depreciation/amortisation | 1 510 | 1 502 | | 6 109 | | Adjustment for revenues from connection fees | -111 | -86 | | -389 | | Other non-cash adjustments | -1 204 | 0 | | -4 624 | | Profit/loss(+) from sale and write off of property, plant and equipment, and intangible assets | -11 | -5 | | 138 | | Change in current assets involved in operating activities | 865 | 208 | | 391 | | Change in liabilities involved in operating activities | 162 | -224 | | 318 | | TOTAL CASH FLOWS FROM OPERATING ACTIVITIES | 6 881 | 8 288 | | 34 018 | | | | | | | | CASH FLOWS USED IN INVESTING ACTIVITIES | | | | | | Acquisition of property, plant and equipment, and intangible assets | -2 986 | -1 670 | | -10 441 | | Compensations received for construction of pipelines, incl connection fees | 275 | 787 | | 3 010 | | Proceeds from sales of property, plant and equipment and intangible assets | 28 | 7 | | 24 | | Interest received | 11 | 7 | | 36 | | TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES | -2 672 | -869 | | -7 371 | | | | | | | | CASH FLOWS USE D IN FINANCING ACTIVITIES | | | | | | Interest paid and loan financing costs, incl swap interests | -173 | -258 | | -1 056 | | Lease payments | -153 | -102 | | -404 | | Received loans | 0 | 0 | | 37 500 | | Repayment of loans | 0 | 0 | | -41 136 | | Dividends paid | 0 | 0 | | -14 965 | | Withheld income tax paid on dividends | 0 | 0 | | -36 | | Income tax paid on dividends | 0 | 0 | | -3 544 | | TOTAL CASH FLOW USED IN FINANCING ACTIVITIES | -326 | -360 | | -23 641 | | | | | | | | CHANGE IN CASH AND CASH EQUIVALENTS | 3 883 | 7 059 | | 3 006 | | | | | | | | CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 64 775 | 61 769 | | 61 769 | | | | | | | | CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 68 658 | 68 828 | | 64 775 |
Karl Heino Brookes Chairman of the Management Board +372 62 62 200 karl.brookes@tvesi.ee
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