Management report
AS Linda Nektar (The Company's) unaudited turnover during the first half of 2024 was EUR 1.4m while the bottom line produced a net loss of EUR 0.04m. This was largely in line with management estimates. Although the revenue level was a couple of percentage points lower y-o-y (2.4%), an almost equal negative impact came from higher costs of raw materials during the period.
From an overall cash flow perspective the total net change was negligible. Key items to comment here would be that operating cash flows were lower mainly due to lower revenues and higher costs (EUR 162k in H1 2024 vs EUR 220k in H1 2023) while capex reduced as a result of previous projects moving to completion (EUR 58k vs EUR 202k for the respective periods). Financing cash flows had 2 items worth noting. These included close to 2/3 of a loan taken in 2023 being repaid (EUR 109k) as well as a dividend payment of EUR 63k (vs. EUR 158k in H1 2023).
It is important to note that the material deviation from the prior dividend payment size reflects a decision made at the most recent Annual General Meeting (https://view.news.eu.nasdaq.com/view?id=bf2f68170218ca321b9e21dfd4da89989&lang=en&src=listed). To clarify, the dividend payments undertaken in 2024 will be made in two equal tranches of EUR 0.04 per share. This compares with a single traditional dividend distribution of prior years. The second payment of EUR 0.04 per share is due in December 2024 with an ex-dividend date of November 19, 2024. More information can be found in the above link.
During H1 2024 a grant of EUR 66k was received through the Rural Development Plan measure 4.2.6 'Investment Support' provided by the Agricultural Registers and Information Board (ARIB).
The sales revenue of the company's products in the EU did not change significantly during the reporting period compared to the first half of 2023. However, there is one important point worth highlighting in the sales breakdown that confirms some progress in diversifying future revenue streams. This was a EUR 95k non-EU sale and is related to an industrial launch as a result of a long-term collaboration with global beverage industry players and partners.
Financial review
In H1 2024 AS Linda Nektar (The Company's) unaudited turnover was EUR 1,401,531 (H1 2023: EUR 1,436,642). This marked a decrease of 2.4% year-on-year. The first 6 months of 2024 ended in a net loss of EUR 36,798 (H1 2023: net profit EUR 39,898).
As of 30 June 2024, the Company's total assets came to EUR 3,601,265 (30.06.2023: EUR 3,955,492) marking a decrease of 9.0% year-on-year. Current assets amounted to EUR 1,230,093 (30.06.2023: EUR 1,458,883) or 34.2% of total assets. Fixed assets amounted to EUR 2,371,172 (30.06.2023: EUR 2,496,609) or 63.1% of the balance sheet total. Cash and cash equivalents came to EUR 313,303 (30.06.2023: EUR 319,198). Operating cash flow for the first 6 months of 2024 was a positive EUR 161,810 (H1 2023: EUR 220,457).
The liabilities of AS Linda Nektar totalled EUR 284,811 (30.06.2023: EUR 305,270) and equity amounted to EUR 3,316,454 (30.06.2023: EUR 3,650,222). As of 30 June 2024, there were loan commitments of EUR 37,484 for investments (30.06.2023: EUR 46,900).
A total of EUR 59,949 was invested into fixed assets (6 months 2023: EUR 130,057). Depreciation costs for the first 6 months of 2024 amounted to EUR 177,521 (6 months 2023: EUR 180,414).
As of 30 June 2024, the Company had 15 employees, one Management Board Member, and four Supervisory Board Members. Labour costs for the 6 months of 2024 (including taxes) amounted to EUR 257,887 (6 months 2023: EUR 260,043).
In H1 2024, the Company paid EUR 63,206 in dividends (H1 2023: EUR 158,014). The income tax cost on dividends was EUR 10,289 (6 months 2023: EUR 26,654).
Taking into account the present operating environment management reiterates its conservative 2024 revenue guidance figure of EUR 2.5m, effectively reflecting a flat outcome compared with 2023.
Financial Ratios
| H1 2024 | H1 2023 | ||
| Current Ratio = Current Assets / Current Liabilities | x | 4.32 | 5.15 |
| Quick ratio = (Current Assets - Inventories) / Current Liabilities | x | 2.33 | 2.88 |
| Working Capital = Current Assets - Current Liabilities | 945 282 | 1 175 513 | |
| Equity Ratio = Total Equity / Total Assets*100 | % | 92.09 | 92.28 |
| Net Profit Margin = Net Profit / Sales Revenue*100 | % | -2.63 | 2.78 |
| Debt to Assets = Total Liabilities / Total Assets | x | 0.08 | 0.08 |
Statement of financial position
(In Euros)
| 30.06.2024 | 31.12.2023 | 30.06.2023 | |
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | 313 303 | 316 256 | 319 198 |
| Receivables and prepayments | 349 775 | 343 528 | 496 448 |
| Inventories | 567 015 | 555 457 | 643 237 |
| Total current assets | 1 230 093 | 1 215 241 | 1 458 883 |
| Non-current assets | |||
| Receivables and prepayments | 31 | 68 | 68 |
| Property, plant and equipment | 2 360 750 | 2 534 034 | 2 480 150 |
| Intangible assets | 10 391 | 12 804 | 16 391 |
| Total non-current assets | 2 371 172 | 2 546 906 | 2 496 609 |
| Total assets | 3 601 265 | 3 762 147 | 3 955 492 |
| Liabilities and equity | |||
| Liabilities | |||
| Current liabilities | |||
| Loan liabilities | 37 484 | 108 897 | 25 000 |
| Payables and prepayments | 247 327 | 135 731 | 258 370 |
| Total current liabilities | 284 811 | 244 628 | 283 370 |
| Non-current liabilities | |||
| Loan liabilities | 0 | 37 855 | 21 900 |
| Total non-current liabilities | 0 | 37 855 | 21 900 |
| Total liabilities | 284 811 | 282 483 | 305 270 |
| Equity | |||
| Issued capital | 1 580 143 | 1 580 143 | 1 580 143 |
| Share premium | 617 517 | 617 517 | 617 517 |
| Statutory reserve capital | 93 629 | 93 629 | 93 629 |
| Retained earnings (loss) | 1 061 963 | 1 319 035 | 1 319 035 |
| Reporting period profit (loss) | -36 798 | -130 660 | 39 898 |
| Total equity | 3 316 454 | 3 479 664 | 3 650 222 |
| Total liabilities and equity | 3 601 265 | 3 762 147 | 3 955 492 |
Income statement
(In Euros)
| H1 2024 | H1 2023 | |
| Revenue | 1 401 531 | 1 436 642 |
| Other income | 258 | 0 |
| Changes in inventories of finished goods and work in progress | 10 460 | 35 625 |
| Raw materials and consumables used | -899 503 | -858 994 |
| Other operating expenses | -103 147 | -106 066 |
| Employee expenses | -257 887 | -260 043 |
| Depreciation and impairment loss (reversal) | -177 521 | -180 414 |
| Other expenses | -139 | -874 |
| Operating profit (loss) | -25 948 | 65 876 |
| Interest income | 1 599 | 676 |
| Interest expenses | -2 160 | 0 |
| Profit (loss) before tax | -26 509 | 66 552 |
| Income tax expense | -10 289 | -26 654 |
| Reporting period profit (loss) | -36 798 | 39 898 |
Statement of cash flows
(In Euros)
| H1 2024 | H1 2023 | |
| Cash flows from operating activities | ||
| Operating profit (loss) | -25 948 | 65 876 |
| Adjustments | ||
| Depreciation and impairment loss (reversal) | 177 521 | 180 414 |
| Total adjustments | 177 521 | 180 414 |
| Changes in receivables and prepayments related to operating activities | -6 210 | 18 628 |
| Changes in inventories | -19 899 | 20 103 |
| Changes in payables and prepayments related to operating activities | 36 346 | -37 910 |
| Income tax refund (paid) | 0 | -26 654 |
| Total cash flows from operating activities | 161 810 | 220 457 |
| Cash flows from investing activities | ||
| Purchase of property, plant and equipment and intangible assets | -58 194 | -201 689 |
| Proceeds from government grants | 66 466 | 116 417 |
| Interest received | 1 599 | 676 |
| Total cash flows from investing activities | 9 871 | -84 596 |
| Cash flows from financing activities | ||
| Loans received | 0 | 46 900 |
| Repayments of loans received | -109 268 | 0 |
| Interest paid | -2 160 | 0 |
| Dividends paid | -63 206 | -158 014 |
| Total cash flows from financing activities | -174 634 | -111 114 |
| Total cash flows | -2 953 | 24 747 |
| Cash and cash equivalents at beginning of period | 316 256 | 294 451 |
| Change in cash and cash equivalents | -2 953 | 24 747 |
| Cash and cash equivalents at end of period | 313 303 | 319 198 |
Statement of changes in equity
(In Euros)
| Issued capital | Share premium | Statutory reserve capital | Retained earnings (loss) | Total | |
| 31.12.2022 | 1 580 143 | 617 517 | 80 084 | 1 490 594 | 3 768 338 |
| Reporting period profit (loss) | 0 | 0 | 0 | 39 898 | 39 898 |
| Declared dividends | 0 | 0 | 0 | -158 014 | -158 014 |
| Changes in reserves | 0 | 0 | 13 545 | -13 545 | 0 |
| 30.06.2023 | 1 580 143 | 617 517 | 93 629 | 1 358 933 | 3 650 222 |
| Reporting period profit (loss) | 0 | 0 | 0 | -170 558 | -170 558 |
| 31.12.2023 | 1 580 143 | 617 517 | 93 629 | 1 188 375 | 3 479 664 |
| Reporting period profit (loss) | 0 | 0 | 0 | -36 798 | -36 798 |
| Declared dividends | 0 | 0 | 0 | -126 412 | -126 412 |
| 30.06.2024 | 1 580 143 | 617 517 | 93 629 | 1 025 165 | 3 316 454 |
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
