Aktsiaselts Infortar 2023 audited Annual Report
The Supervisory Board of Aktsiaselts Infortar approved the audited annual report for 2023 and will submit it to the Annual General Meeting for approval.
Major events
Energy
- The group's electricity and gas sales volumes doubled in 2023, reaching a total of 15.9 TWh in Finland, Estonia, Latvia, Lithuania, and Poland.
- The most substantial investment in 2023 was the acquisition of Gaso, which owns the gas distribution network in Latvia. This led to a significant expansion in the infrastructure segment, complementing energy sales and production.
Maritime transport
- In the maritime transport sector, Infortar continued to increase its shareholding in AS Tallink Grupp, and as of today, the ownership in AS Tallink Grupp stands at 42.33%.
Real estate
- In the real estate sector, Infortar group major development projects included the construction of the logistics center in Saue and the new bridge in Pärnu, and the expansion of the Tallink logistics center.
KEY FIGURES OF FINANCIAL YEAR
*Key figures* *12 months 2023* *12 months 2022*
Sales revenue, m€ 1 084,626 1 053,712
Gross profit, m€ 149,473 126,537
EBITDA, m€ 143,283 120,046
EBITDA margin (%) 13,2% 11,4%
Net profit, EBIT, m€ 123,628 99,140
Total profit, m€ 293,830 96,124
Net profit from recurring business operations ^1 138,746 106,616
EPS (euros)^2 14.62 4.77
Total equity 820,210 568, 677
Total liabilities 441,160 427,205
Net debt 354,045 367,203
Long-term debt / EBITDA 2.0x 1.7x
^1 Includes a one-time profit of 159 million euros from the acquisition of Gaso, and in 2023, additional real estate revaluations.^ 2 The calculation is based on the number of shares as of 31.12.2023, totaling to 21 045 000 shares, from which the number of treasury shares, totaling to 945 000 shares, has been deducted.
Revenue
2023, the group's consolidated revenue increased by 30.9 million euros to 1,084.6 million euros (consolidated revenue for 2022 was 1,053.7 million euros). Revenue growth was driven by the increase in gas sales volumes and the expanded market share in the Baltic-Finnish region, reaching to 25%.
EBITDA and segment reporting
The annual EBITDA of the Energy segment was 135,9 million euros in 2023 (106.3 million euros in 2022). The profitability is connected with the increase in market share and the doubling of sales volumes. The group's subsidiary, AS Eesti Gaas, actively manages market price risks by utilizing regional natural gas storage options and using relevant financial derivative instruments.
The annual EBITDA of the Shipping segment was 214.5 million euros in the 2023 (135.8 million euros in 2022). Infortar consolidates the results of AS Tallink Grupp using the equity method, in accordance with its percentage of ownership in AS Tallink Grupp. However, in segment reporting, the results of Tallink Grupp AS, include 100% of the EBITDA, as it is in accordance with applicable accounting rules.
In the Real Estate segment, the profitability is assessed based on the EBITDA of separate real estate companies’ results. In 2023, the total annual EBITDA of real estate was 12.3 million euros (in 2022, the total annual EBITDA of real estate was 11.4 million euros). In 2023, three new buildings were added to the portfolio at the addresses Liivalaia 9, Tähesaju 9, and Tähesaju 11.
Net profit
The consolidated net profit for the year 2023 is 293.8 million euros (compared to 96.1 million euros in the year 2022). One-time significant transactions impacting the net profit include the acquisition of the Latvian gas distribution company Gaso and the effects of property revaluation. Non-recurring items affecting previous year net profit include the extraordinary profit booked from acquisition of the Latvian gas distribution company Gaso and the revaluation of the real estate portfolio. Infortar’s net profit from recurring operations (excluding non-recurring items, which affect comparability) is 144,8 million euros.
The consolidated operating profit for 2023 was 123.6 million euros (compared to 99.1 million euros in 2022).
Investments
In the past three years (2021-2023), Infortar Group has invested approximately 265 million euros, with the largest investment being the acquisition of Gaso in 2023.
Infortar will continue its investments in the future. Investments already planned for the years 2024 and 2025 totaling approximately 110 million euros. The major ongoing development projects include the establishment of a logistics center in Saue and the construction of a 4MW solar power plant in Latvia.
Financing
The total loan and leasing obligations in 2023 amounted to 441.2 million euros (compared to 427.2 million euros in 2022). Financing activities cash flow also includes the proceeds from the initial public offering, which amounted to 31.2 million euros.
Dividends
According to the dividend policy confirmed on October 31, 2023, the objective is to pay dividends of at least 1 euro per share per fiscal year. Dividend payments are made semi-annually. The Management Board and The Supervisory Board propose to General Meeting of Shareholders to pay a dividend of 3 euros per share for the 2023 financial results.
*Consolidated statement of profit or loss and other comprehensive income*
*Audited, **€ thousand*
*12-month 2023 *
*12-month 2022 *
Revenue 1 084 626 1 053 712
Cost of sales -934 811 -927 175
Gross profit/ loss *149 473* *126 537*
Marketing expenses -1 620 -1 408
Administrative expenses -22 085 -17 520
Profit (loss) from the change in the fair value of the investment property -4 074 -10 492
Other operating income 4 492 2 261
Other operating expenses -2 258 -238
Operating profit/ loss *123 628* *99 140*
Financial income 2 765 680
Financial expenses -22 750 -6 275
Profit (loss) from investments in the equity method 39 639 8 157
Gain from discount purchase 159 158
*Profit (loss) before tax* *302 440* *101 702*
Income tax expense -8 610 -5 578
Net profit of the financial year *293 830* *96 124*
Equity holders of the Parent 293 778 95 943
Minority interests 52 181
Other comprehensive income
Revaluation of post-employment benefit obligations -44
Cash flow hedges - the effective portion of a change in fair value * -58 189 94 772
Exchange rate differences from the translation of foreign subsidiaries -42 3
*Total other comprehensive income* *-58 275* *94 775*
Total comprehensive income / loss for the financial year *235 555* *190 899*
Attributable to: * * * *
Equity holders of the Parent 235 547 190 718
Minority interests 52 181 14,62 15,23
Ordinary earnings per share (in euros per share) 14,56 15,23
* The revaluations of non-monetary derivative instruments in consolidated profits do not affect the profitability or cash flow generation ability of AS Eesti Gaas or Infortar's main business activities.
*Consolidated statement of financial position*
*Audited, € thousand* *31.12.2023* *31.12.2022*
ASSETS
Cash and cash equivalents 87 115 60 002
Short-term derivatives 28 728 71 109
Derivative financial assets 5 958 108 917
Trade and other receivables 162 575 122 006
Prepayments 24 603 76 752
Prepayments for inventories 146 884 16 654
*Total current assets* *455 863* *455 440*
*Investments to associates* 346 014 296 061
Derivative and other financial assets 1 125 12 866
Long-term loans 9 072 15 736
Long-term requirements 176 024 160 540
Investment property 446 748 147 724
Property, plant and equipment 14 366 8 853
Intangible assets 11 300 10 192
Right-of-use assets *1 004 650* *651 972*
*Total non-current assets* *1 460 512* *1 107 412*
LIABILITIES AND EQUITY
Interest-bearing loans and borrowings 186 025 266 308
Payables to suppliers 74 751 19 845
Tax obligations 32 822 31 135
Buyers' advances 3 099 10 169
Other current liabilities 15 973 6 766
*Total current liabilities* *312 670* *334 223*
Interest-bearing loans and borrowings 255 135 160 897
Other long-term liabilities 30 865 18 076
Long-term provisions 8 399 649
Deferred taxes 33 233 24 890
*Total non-current liabilities* *327 632* *204 512*
*Total liabilities* *640 302* *538 735*
Share capital 2 105 1 985
Own shares -95 -95
Share premium 29 344
Reserve capital 28 143 84 162
risk hedging reserve* 24 118 82 307
Unrealized currency translation differences -39 3
Retained earnings 466 140 385 947
Net profit of the financial year 293 778 95 943
Total equity attributable to equity holders of the Parent 819 376 567 945
Minority interests 834 732
Total equity *820 210* *568 677*
*TOTAL LIABILITIES AND EQUITY* *1 460 512* *1 107 412*
*This represents a change in the accounting for risk management positions, which affects the consolidated profit result.
*Consolidated statement of cash flows*
*Audited, € thousand*
* 2023 *
* 2022 *
Cash flows from operating activities
Net profit of the financial year 302 440 101 702
Adjustments: -104 561 -39 818
Income tax paid -267 -4 051
Changes in assets related to op.activities 54 540 -116 072
Changes in inventories -61 914 3 667
Changes in liabilities related to op.activities -406 55 611
Net cash from operating activities 189 832 1 039
Cash flows from investing activities
Acquisition / reduction of capital of associates -113 728 -4 895
Given loans -6 438
Paybacks from given loans, and interest gain 9 343 992
Purchases of property, plant and equipment -18 143 -14 250
Purchases Investment property -18 556 -23 881
Net cash used in investing activities -141 084 -48 472
Cash flows from financing activities
Received government grants 3 251
Changes in overdraft 14 348 -9 456
Proceeds from borrowings 130 567 193 397
Repayments of borrowings -312 846 -98 833
Repayment of finance lease liabilities -2 233 -2 037
Interest paid -22 224 -7 960
Dividends paid -15 750 -16 110
Proceeds from share emission 29 464
Net cash used in financing activities -21 635 62 252
*TOTAL NET CASH FLOW* *27 113* *14 819*
Cash at the beginning of the year 60 002 45 183
Cash at the end of the period 87 115 60 002
Net (decrease)/increase in cash 27 113 14 819
Cash flows from financing activities
Aktsiaselts Infortar consolidated annual report 2023 is attached to this notice and will be made available on website www.infortar.ee/en/reports.
Infortar operates in five countries, the company's main fields of activity are energy, maritime transport, and real estate. Infortar owns a 42,3% stake in AS Tallink Grupp, a 100% stake in AS Eesti Gaas and a versatile and modern real estate portfolio of approx. 110,000 m2. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, printing, taxi business and many other areas. A total of 103 companies belong to the Infortar group: 47 subsidiaries, 5 affiliated companies and 50 subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 1,308 people.
Additional information:
Kadri Laanvee
Investor Relations Manager
e-mail: kadri.laanvee@infortar.ee
phone: +372 5156662
https://infortar.ee/en/investor
*Attachments*
· Infortar_aastaraamat_2023_ENG
· AS Infortar sõltumatu vandeaudiitori aruanne ESEF