AS Tallinna Vesi´s financial results for the 1st quarter of 2020
AS 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 proposalSupervisory 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 INDICATORSGross 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
Karl Heino BrookesChairman of the Management Board+372 62 62 200 karl.brookes@tvesi.ee
AttachmentQ1 2020 Final report ENG
