UPP Olaines OÜ consolidated unaudited financial results for fourth quarter and 12 months of 2019
MANAGEMENT REPORT FOR 12 MONTHS 2019Financial commentary for the fourth quarter and financial year of 2019Net operating revenues were 654 287 euros for the fourth quarter of 2019, increased by 15% from 569 252 euros for the fourth quarter of 2018. Net operating revenues for the financial year 2019 were 2 588 257 euros, increased by 6% from 2 447 108 euros for the financial year 2018. The quarterly increase in net operating revenues is due to the accounting of the 2018 land tax in fourth quarter, where the land tax for the whole financial year was accounted for the fourth quarter of 2018, leading to unproportionally high land tax expense for the period and reducing the net operating revenue compared to fourth quarter of 2019. The annual increase in net operating revenues is due to indexation of rent and increased efficiency in operations.Adjusted net operating income was 622 377 euros for the fourth quarter of 2019, increased by 17% from 532 126 euros for the fourth quarter of 2018. Adjusted net operating income for the financial year 2019 was 2 502 077 euros, increased by 10% from 2 277 771 euros for the financial year 2018. The quarterly increase in adjusted net operating income is due to the aforementioned accounting for the 2018 land tax. The annual increase in adjusted net operating income is due to indexation and increased efficiency in operations and management of the Company.Net income attributable was 623 900 euros for the fourth quarter of 2019, increase by fourfold from 109 481 euros for the fourth quarter of 2018. Net income attributable for financial year 2019 was 1 391 660 euros, doubled from 712 082 euros for the financial year 2018. The quarterly increase in net income attributable is partly due to the aforementioned accounting for the 2018 land tax in the fourth quarter of 2018 and partly due to the 112 000 euros in financial income from the IRS agreement for the fourth quarter of 2019. The annual increase in net income attributable is due to the transaction costs which reduced the net income attributable for 2018, the increased efficiency in operations and management of the Company, and due to the IRS agreement creating financial income for the first time for the reporting period.At the end of the reporting period the Company ordered the assessment of the fair value of the Investment property. The valuation was carried out by accredited real estate evaluators.After the reporting period there was a change in the Group structure, where on January 22nd 2020 the subsidiaries SIA Olaines Logistics and SIA Olaines Logistics Parks were merged. The merger was planned and part of normal management of the business, referred to also in the note issue terms and conditions, where the target SIA Olaines Logistics Parks was merged into the acquirer SIA Olaines Logistics. The merger took somewhat longer compared to mergers in Estonia and Lithuania due to the peculiarities of the Latvian legislation. The merger will further increase the efficiency of the Company’s operations and management. Interim report at hand has the Group structure listed in its’ former form, future interim reports will include the updated Group structure.
Key indicators of financial performance and position for 12 months 2019
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTSCondensed consolidated interim statement of comprehensive income
Condensed consolidated interim statement of financial position
Siim SildDirector+372 5626 firstname.lastname@example.orgAttachmentOlaines Q4 report 2019 ENG 02.03.20