AS Merko Ehitus consolidated audited financial results for 2021 remain unchanged compared to the preliminary disclosure on 10 February 2022.
STATEMENT OF THE CHAIRMAN OF THE MANAGEMENT BOARD
2021 was a successful year for Merko. We fulfilled the group’s financial goals and investment plans and our profit grew 26%. These targets were met despite the continuing pandemic, supply chain problems, rising costs of construction and a spike in energy prices. Our greater strategic focus on residential development, selection of projects with higher potential, efficient implementation of decisions, and organizational ability to adapt – all rewarded us.
The 18.8% return on equity achieved last year is a good result considering the group’s high capitalization. Moreover, with the purchasing power of money decreasing, the fact that our return on equity outstripped inflation is to be cheered.
During the last two years, we have learned to operate in the environment of coronavirus restrictions, unexpected supply chain disruptions and volatile prices. Just as we thought the pandemic might be ending and we would return to the usual stability, another black swan entered the picture. The Ukraine war and the global economic conflict that started concurrently will not leave us or the construction and real estate sector unscathed. We do not yet know how the further developments will impact us. But we do have the knowledge that Merko is a strong company with a well-functioning team and that we will get by.
I would like to thank the employees and partners of the Merko group for their joint efforts and positive results. I gratefully acknowledge the buyers of the homes we have built and construction service customers for your trust in us. And I thank all of our shareholders who have decided to make the journey with us in the current unstable world.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
in thousand euros
| 2021 | 2020 | |
| Revenue | 339,375 | 315,918 |
| Cost of goods sold | (292,563) | (272,169) |
| Gross profit | 46,812 | 43,749 |
| Marketing expenses | (3,611) | (4,212) |
| General and administrative expenses | (13,925) | (13,412) |
| Other operating income | 3,508 | 2,320 |
| Other operating expenses | (582) | (2,979) |
| Operating profit | 32,202 | 25,466 |
| Finance income | 12 | 1 |
| Finance costs | (886) | (866) |
| Profit (loss) from associates and joint ventures | 799 | (144) |
| Profit before tax | 32,127 | 24,457 |
| Corporate income tax expense | (3,104) | (1,954) |
| Net profit for financial year | 29,023 | 22,503 |
| incl. net profit attributable to equity holders of the parent | 29,140 | 22,994 |
| net profit attributable to non-controlling interest | (117) | (491) |
| Other comprehensive income (loss), which can subsequently be classified in the income statement | ||
| Currency translation differences of foreign entities | 33 | (115) |
| Comprehensive income for the period | 29,056 | 22,388 |
| incl. attributable to equity holders of the parent | 29,163 | 22,890 |
| attributable to non-controlling interest | (107) | (502) |
| Earnings per share for profit attributable to equity holders of the parent (basic and diluted, in EUR) | 1.65 | 1.30 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
in thousand euros