Management report
In 2024 AS Linda Nektar (The Company's) unaudited turnover was EUR 2,543,793 (12 months 2023: EUR 2,489,789). This marked an increase of 2.2% year-on-year and was largely identical to the EUR 2.5m management guidance reiterated in August 2024. The 12 months of 2024 ended in a net loss of EUR 146,343 (12 months 2023: net loss EUR 130,660) reflecting a more complex macroeconomic landscape.
On a comparative year-on-year basis the bottom line was mainly impacted by higher operational costs in 2024. This represents increases in raw materials and labour expenses while energy costs have been slightly reduced by the introduction of on-site solar panel installations.
From a business development perspective management can confirm that the sales registered in the first half of the year outside the European Union are now part of a formal product launch, with further revenue expected to be recorded there in the first half of 2025. Absolute sales levels through time there will be largely dependent on the level of success of the final product in the local market there (note that Linda Nektar continues to only produce fermented beverages for the drinks industry focusing on unpacked fruit wines under a Business-to-Business [B2B] model). There is no exposure foreign exchange risk as the sales contract has been fixed in EUR terms. Other product development projects are in place however, they are not presently expected to be launched in the current financial year.
In 2025, in order to meet the needs of our customers and consumers, as well as to adapt to changes in the operating and regulatory environment, the Company will focus on gradual and long-term improvement through optimisation and innovation in our operations. This includes strengthening our export capabilities and expanding our portfolio with a new range of non-alcoholic products and other fermented ingredients. As noted previously, such projects typically have a lead time of several years in the development phase from the time of their inception.
Financial review
As of 31 December 2024, the Company's total assets came to EUR 3,409,922 (31.12.2023: EUR 3,762,147) marking a decrease of 9.4% year-on-year. Current assets amounted to EUR 1,119,049 (31.12.2023: 1,215,241) or 32.8% of total assets. Fixed assets amounted to EUR 2,290,873 (31.12.2023: EUR 2,546,906) or 67.2% of the balance sheet total. Cash and cash equivalents came to EUR 125,136 (31.12.2023: EUR 316,256).
Operating cash flow for the 12 months of 2024 was positive EUR 151,985 (2023: EUR 342,762). Although this is less than half of the respective 2023 figure, the main influence on this is a sizeable EUR 145,015 amount of finished goods in transit. Investing cash flows are less than one third of the respective 2023 number as no active capital expenditure is presently required. Financing cash flows were impacted by the repayment of the majority of the previous loan liability of EUR 131,541. The liabilities of AS Linda Nektar totalled EUR 203,013 (31.12.2023: EUR 282,483) and equity amounted to EUR 3,206,909 (31.12.2023: EUR 3,479,664).
A total of EUR 157,240 was invested into fixed assets (12 months 2023: EUR 353,822). Depreciation costs for the 12 months of 2024 amounted to EUR 355,080 (12 months 2023: EUR 353,883). Some investments were implemented through support provided by the Agricultural Registers and Information Board (ARIB) as part of Rural Development Plan measure 4 'Investments into fixed assets'. A subsidy of EUR 66,466 was paid out in 2024. Assets acquired with the help of government grants are recorded in the balance sheet at net acquisition cost, i.e., the acquisition cost, less government grants received for the purpose of acquiring assets.
The Company works systematically to promote sustainability and responsibility. Adherence to sustainable operating principles, the Company's certified food safety management systems and the Lean operating model are important prerequisites for achieving responsibility goals. In order to protect the environment around us, we focus on using renewable energy in production as well as reducing water consumption.
As of 31 December 2024, the Company had 15 employees, one Management Board Member and four Supervisory Board Members. Labour costs for the 12 months of 2024 (including taxes) amounted to EUR 522,685 (12 months 2023: EUR 514,856).
In 2024, the Company paid a total of EUR 126,412 in two dividend payments (12 months 2023: EUR 158,014). The income tax cost on dividends was EUR 20,578 (12 months 2023: EUR 26,654).
Taking into account the present operating environment management is setting its 2025 revenue guidance at EUR 2.6m, effectively reflecting a flat outcome compared with 2024.
Financial Ratios
| 2024 | 2023 | ||
| Current Ratio = Current Assets / Current Liabilities | x | 5.51 | 4.97 |
| Quick ratio = (Current Assets - Inventories) / Current Liabilities | x | 2.08 | 2.70 |
| Working Capital = Current Assets - Current Liabilities | 916 036 | 970 613 | |
| Equity Ratio = Total Equity / Total Assets*100 | % | 94.05 | 92.49 |
| Net Profit Margin= Net Profit / Sales Revenue*100 | % | -5.75 | -5.25 |
| Debt to Assets= Total Liabilities / Total Assets | x | 0.06 | 0.08 |
Statement of financial position
(In Euros)
| 31.12.2024 | 30.06.2024 | 31.12.2023 | 30.06.2023 | |
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 125 136 | 313 303 | 316 256 | 319 198 |
| Receivables and prepayments | 297 139 | 349 775 | 343 528 | 496 448 |
| Inventories | 696 774 | 567 015 | 555 457 | 643 237 |
| Total current assets | 1 119 049 | 1 230 093 | 1 215 241 | 1 458 883 |
| Non-current assets | ||||
| Receivables and prepayments | 0 | 31 | 68 | 68 |
| Property, plant and equipment | 2 283 543 | 2 360 750 | 2 534 034 | 2 480 150 |
| Intangible assets | 7 330 | 10 391 | 12 804 | 16 391 |
| Total non-current assets | 2 290 873 | 2 371 172 | 2 546 906 | 2 496 609 |
| Total assets | 3 409 922 | 3 601 265 | 3 762 147 | 3 955 492 |
| Liabilities and equity | ||||
| Liabilities | ||||
| Current liabilities | ||||
| Loan liabilities | 15 211 | 37 484 | 108 897 | 25 000 |
| Payables and prepayments | 187 802 | 247 327 | 135 731 | 258 370 |
| Total current liabilities | 203 013 | 284 811 | 244 628 | 283 370 |
| Non-current liabilities | ||||
| Loan liabilities | 0 | 0 | 37 855 | 21 900 |
| Total non-current liabilities | 0 | 0 | 37 855 | 21 900 |
| Total liabilities | 203 013 | 284 811 | 282 483 | 305 270 |
| Equity | ||||
| Issued capital | 1 580 143 | 1 580 143 | 1 580 143 | 1 580 143 |
| Share premium | 617 517 | 617 517 | 617 517 | 617 517 |
| Statutory reserve capital | 93 629 | 93 629 | 93 629 | 93 629 |
| Retained earnings (loss) | 1 061 963 | 1 061 963 | 1 319 035 | 1 319 035 |
| Reporting period profit (loss) | -146 343 | -36 798 | -130 660 | 39 898 |
| Total equity | 3 206 909 | 3 316 454 | 3 479 664 | 3 650 222 |
| Total liabilities and equity | 3 409 922 | 3 601 265 | 3 762 147 | 3 955 492 |
Income statement
(In Euros)
| 2024 | H2 2024 | 2023 | H2 2023 | |
| Revenue | 2 543 793 | 1 142 262 | 2 489 789 | 1 053 147 |
| Other income | 10 257 | 9 999 | 0 | 0 |
| Changes in inventories of finished goods and work in progress | 111 558 | 101 098 | 14 068 | -21 557 |
| Raw materials and consumables used | -1 665 316 | -765 813 | -1 495 920 | -636 926 |
| Other operating expenses | -248 697 | -145 550 | -245 237 | -139 171 |
| Employee expenses | -522 685 | -264 798 | -514 856 | -254 813 |
| Depreciation and impairment loss (reversal) | -355 080 | -177 559 | -353 883 | -173 469 |
| Other expenses | -197 | -58 | -883 | -9 |
| Operating profit (loss) | -126 367 | -100 419 | -106 922 | -172 798 |
| Interest income | 3 290 | 1 691 | 3 952 | 3 276 |
| Interest expense | -2 688 | -528 | -1 036 | -1 036 |
| Profit (loss) before tax | -125 765 | -99 256 | -104 006 | -170 558 |
| Income tax expense | -20 578 | -10 289 | -26 654 | 0 |
| Reporting period profit (loss) | -146 343 | -109 545 | -130 660 | -170 558 |
Statement of cash flows
(In Euros)
| 2024 | H2 2024 | 2023 | H2 2023 | |
| Cash flows from operating activities | ||||
| Operating profit (loss) | -126 367 | -100 419 | -106 922 | -172 798 |
| Adjustments | ||||
| Depreciation and impairment loss (reversal) | 355 080 | 177 559 | 353 883 | 173 469 |
| Other adjustments | -9 999 | -9 999 | 0 | 0 |
| Total adjustments | 345 081 | 167 560 | 353 883 | 173 469 |
| Changes in receivables and prepayments related to operating activities | 46 457 | 52 667 | 171 548 | 152 920 |
| Changes in inventories | -149 658 | -129 759 | 107 883 | 87 780 |
| Changes in payables and prepayments related to operating activities | 36 762 | 416 | -156 976 | -115 546 |
| Income tax refund (paid) | -10 289 | -10 289 | -26 654 | 0 |
| Proceeds from government grants | 9 999 | 9 999 | 0 | 0 |
| Total cash flows from operating activities | 151 985 | -9 825 | 342 762 | 125 825 |
| Cash flows from investing activities | ||||
| Purchase of property, plant and equipment and intangible assets | -152 220 | -94 026 | -429 028 | -230 859 |
| Proceeds from government grants | 66 466 | 0 | 116 417 | 0 |
| Interest received | 3 290 | 1 691 | 3 952 | 3 276 |
| Total cash flows from investing activities | -82 464 | -92 335 | -308 659 | -227 583 |
| Cash flows from financing activities | ||||
| Loans received | 0 | 0 | 166 000 | 119 100 |
| Repayments of loans received | -131 541 | -22 273 | -19 248 | -19 248 |
| Interest paid | -2 688 | -528 | -1 036 | -1 036 |
| Dividends paid | -126 412 | -63 206 | -158 014 | 0 |
| Total cash flows from financing activities | -260 641 | -86 007 | -12 298 | 98 816 |
| Total cash flows | -191 120 | -188 167 | 21 805 | -2 942 |
| Cash and cash equivalents at beginning of period | 316 256 | 313 303 | 294 451 | 319 198 |
| Change in cash and cash equivalents | -191 120 | -188 167 | 21 805 | -2 942 |
| Cash and cash equivalents at end of period | 125 136 | 125 136 | 316 256 | 316 256 |
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 | 1 490 595 | 3 768 339 |
| 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 | -13 546 | -1 |
| 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 |
| Reporting period profit (loss) | 0 | 0 | 0 | -109 545 | -109 545 |
| 31.12.2024 | 1 580 143 | 617 517 | 93 629 | 915 620 | 3 206 909 |
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
