Aktsiaselts Infortar interim report for Q1 2024

Infortar will arrange a webinar for investors today 6 May 2024.Please join the webinar via the following links:

• at 12:00 (EET) Estonian webinar
• at 14:00 (EET) English webinar

Infortar's results for the first quarter of 2024 are remarkable, showing significant growth in revenue and profit. The company's revenue increased to 373 million euros and profit amounted to 62 million.

The chairman of the board of Infortar Ain Hanschmidt comments:

„Infortar succeeded in increasing its sales volumes and continues its expansion into new markets and sectors amidst stabilized energy prices. Today, more than 80 percent of our revenue is generated from foreign markets. Our investments have proven profitable, and as one of the largest investment companies in the region, we are continually seeking new growth opportunities”.

Infortar’s subsidiary Eesti Gaas (Elenger in foreign markets), which is the largest privately owned energy company in the region, increased its sales volume by 74 percent compared to the same period last year, reaching a total of 6.1 TWh. The company's market share in gas sales in the Finnish-Baltic region increased to 26.4 percent, and Eesti Gaas/Elenger imports about a third of the natural gas consumed in the region.

In addition to energy, maritime transport and real estate, Infortar entered the agriculture sector by signing agreements to acquire a majority stake in one of Estonia's largest dairy farms in Halinga, Pärnumaa.

Tallink reported profitable quarterly results. In real estate segment, the expansion of Tallink's logistics center in Maardu was completed. Both major constructions – the 25,000 sqm RIMI logistics center in Saue and the new bridge in Pärnu – have progressed according to the plan.

Compared to the first quarter of the previous year, Infortar's EBITDA increased by 40 percent, and profit by 32 percent. Infortar's equity reached 853 million euros as of March 31 this year, and its asset volume reached 1.4 billion euros. The company made investments totalling 7 million euros in the first quarter.

Since the end of last year, Infortar's shares have been listed on the Nasdaq Baltic Stock Exchange. A total of 5,517 retail investors from Estonia and professional investors from Europe participated in the company's initial public offering, with the total volume of subscriptions reaching 41.4 million euros, which was 1.3 times the base offer size. Infortar's stock has been the best performer in the Nasdaq Baltic stock exchange's main list in the first quarter of this year, with the company's stock rising by 27 percent.

KEY FIGURES OF FINANCIAL YEAR

	Q1 2024	Q1 2023	2023
Revenue (in thousands of EUR)	372 584	347 480	1 084 626
Gross profit (in thousands of EUR)	50 004	65 812	149 473
EBITDA (in thousands of EUR)	74 004	52 560	143 283
EBITDA margin %	19,9%	15,1%	13,2%
Net profit (in thousands of EUR)	67 624	49 679	123 628
Total profit (in thousands of EUR)	62 062	46 777	293 830
Earnings per share (EUR)*	2,9	2,2*	13,9*
Total equity (in thousands of EUR)	852 690	566 482	820 210
Total liabilities (in thousands of EUR)	375 327	340 568	441 160

* Earnings per share have been calculated for all reported periods based on the following formula: net profit for the reporting year divided by the number of issued shares as of March 31, 2024 (Q1 2024 = (62,062,000 / 1,000) / 21,166,239 = 2.9 euros per share). In 2023 and 2024, share splits and the issuance of new shares occurred. For comparability purposes, the formula uses the currently valid number of shares each time.

Revenue

In the first quarter of the 2024, the consolidated revenue of the group increased by 25.1 million euros to 372.6 million euros (compared to consolidated revenue of 347.5 million euros in the first quarter of 2023). A significant positive impact was achieved by the growth in regional gas sales market share to 26%, which allowed for an increase in revenue compared to the previous year.

EBITDA and segment reporting

The EBITDA of the Energy segment in the first quarter of the 2024 was 73.9 million euros (compared to 50.5 million euros in the first quarter of the 2023). Profitability is not related to the volatility of energy prices but rather to the increase in market share and sales volumes. Infortar subsidiary, AS Eesti Gaas, actively manages price risks by using derivative instruments and regional natural gas storage facilities.

The Shipping segment's EBITDA in the first quarter of the 2024 was 34.5 million euros (compared to 27.1 million euros in the first quarter of the 2023). Infortar consolidates the results of AS Tallink Grupp using the equity method, meaning that results of AS Tallink Grupp are reflected in the segment reporting according to Infortar's ownership percentage in AS Tallink Grupp. In segment reporting, 100% of AS Tallink Grupp results (including 100% EBITDA) are accounted for in accordance with applicable accounting rules.

In the Real Estate segment, the profitability is assessed based on the EBITDA of separate real estate companies. The Real Estate EBITDA in the first quarter of the 2024 was 3.8 million euros (compared to 3.7 million euros in the first quarter of the 2023 fiscal year). In the first quarter of 2024, the extension of Tallink's logistics center was completed, adding an addition 3,800 square meters of warehouse space to the real estate portfolio.

Net profit
Consolidated net profit in the first quarter of the 2024 was 62.1 million euros (compared to 46.8 million euros in the first quarter of the 2023).

Financing

Loan and leasing obligations in the first quarter of the 2024 amounted to 375.3 million euros (compared to 340.6 million euros in the first quarter of the 2023). The company's net debt decreased from 354 million euros at the end of 2023 to 196 million euros. The net debt to EBITDA ratio is 1.3.

Consolidated income statement, in thousands of euros

			Q1 2024	Q1 2023	2023
Revenue			372 584	347 480	1 084 626
Cost of goods (goods and services) sold			-322 573	-281 478	-934 811
Write-down of receivables			-7	-190	-342
Gross profit			50 004	65 812	149 473
Marketing expenses			-415	-346	-1 620
General administrative expenses			-7 238	-3 250	-22 085
Profit (loss) from the change in the fair value of the investment property			156	0	-4 074
Unsettled gain/loss on derivative financial instruments			24 659	0	1 969
Other operating revenue			600	527	2 523
Other operating expenses			-142	-13 064	-2 558
Operating profit			67 624	49 679	123 628
Profit (loss) from investments accounted for by equity method			2 000	723	39 639
Financial income and expenses
Other financial investments			0	-24	-4
Interest expense			-6 745	-3 955	-22 573
Interest income			1 244	645	2 765
Profit (loss) from changes in exchange rates			-2	-129	-173
Gain from discount purchase			4	0	159 158
Total financial income and expenses			-5 499	-3 463	139 173
Profit before tax			64 125	46 939	302 440
Corporate income tax			-2 063	-162	-8 610
Profit for the financial year			62 062	46 777	293 830
including:
Profit attributable to the owners of the parent company			62 167	46 982	293 778
Profit attributable to non-controlling interest			-105	-205	52
Total of other comprehensive income					-58 275
including:
Comprehensive profit attributable to the owners of the parent company					235 547
Comprehensive profit attributable to non-controlling interest					52
Ordinary and diluted earnings per share (in euros per share)					14,62
Diluted earnings per share (in euros per share)					14,15

* The revaluation of non-cash derivative instruments in consolidated profits does not affect the profitability or cash-generating ability of AS Eesti Gaas or Infortar's core business activities.

Consolidated statement of financial position, in thousands of euros

ASSETS	31.03.24	31.03.23	31.12.2023
Current assets
Cash and cash equivalents	179 528	199 845	87 115
Short term financial investments	1	1	0
Derivative financial assets	3 938	26 922	28 728
Settled derivative receivables	5 050	24 198	5 958
Other prepayments and receivables	121 920	93 549	162 575
Prepayments for taxes	1 067	1 064	925
Trade and other receivables	16 982	3 931	20 185
Prepayments for inventories	3 560	16 370	3 493
Inventories	61 839	38 360	146 884
Total current assets	393 885	404 240	455 863
NON-CURRENT ASSETS
Investments to associates	348 811	300 711	346 014
Derivative and other financial assets	395	6 508	1 125
Long-term loans and other receivables	7 519	10 037	9 072
Investment property	179 655	163 144	176 024
Property, plant and equipment	443 872	149 928	446 748
Intangible assets	14 525	8 876	14 366
Right-of-use assets	10 797	10 055	11 300
Total non-current assets	1 005 574	649 259	1 004 649
TOTAL ASSETS	1 399 459	1 053 499	1 460 512

CURRENT LIABILITIES	31.03.24		31.03.23	31.12.2023
Loan liabilities	120 733		149 249	184 259
Rental liabilities	1 470		1 452	1 766
Payables to suppliers	50 766		68 813	74 751
Tax obligations	23 050		21 792	32 822
Buyers' advances	2 422		4 666	3 099
Short term derivatives	1 879		2 842	1 463
Settled derivatives	13 557		4 364	10 851
Other current liabilities	4 017		590	3 659
Total current liabilities	217 894		253 768	312 670
NON CURRENT LIABILITIES
Long-term provisions	11 209		680	8 399
Deferred taxes	33 684		25 051	33 233
Other long-term liabilities	29 990		17 651	30 679
Long-term derviatives	868		0	186
Loan-liabilities	244 334		181 918	246 410
Rental liabilities	8 790		7 949	8 725
Total non-current liabilities	328 875		233 249	327 632
TOTAL LIABILITIES	546 769		487 017	640 302
Equity
Share capital	2 117		1 985	2 105
Own shares	-95		-95	-95
Share premium	32 484		0	29 344
Other reserves	205		205	205
Option reserve	4 822		2 123	3 864
Risks hedging reserve *	-9 662		32 841	24 118
Unrealised currency translation differences	49		3	-39
Employment benefit reserve	-44		0	-44
Retained earnings	759 918		481 890	466 140
Net profit of the financial year	62 167		46 982	293 778
Total equity attributable to equity	851 961		565 934	819 376
holders of the Parent	729		548	834
Minority interests	852 690		566 482	820 210
Total equity	1 399 459		1 053 499	1 460 512

* The revaluations of non-monetary derivative instruments in consolidated profits do not affect the profitability or cash flow generation ability of Eesti Gaas or Infortar's main business activities.

	CONSOLIDATED CASH FLOW STATEMENT in thousands of EUR	Q1 2024	Q1 2023	2023
Cash flows from operating activities Profit for the financial year
		62 062	46 777	293 830
Adjustments
Depreciation, amortisation		6 536	2 881	15 581
Change in the fair value of the investment property		-156	0	4 074
Equity profits/losses		-2 000	-723	-39 639
Change in the value of derivatives		25 520	50 544	54 122
Other financial income/expenses		-1 161	-621	-161 965
Calculated interest expenses		6 745	3 955	22 573
Profit/loss from non-current assets sold		-44	-30	-91
Income from grants recognised as revenue		-42	-279	784
Corporate income tax expense		2 063	162	8 610
	Income tax paid	-1 612	-1	-267
	Change in receivables and prepayments related to operating activities	44 714	115 296	54 540
	Change in inventories	84 979	31 603	-61 914
	Change in payables and prepayments relating to operating activities	-60 965	-13 988	-406
	Total cash flows from operating activities	166 639	235 576	189 832
	Cash flows from investing activities
	Purchases of associates	-797	-3 927	-10 314
	Purchases of subsidiaries	0	-4	-103 414
	Given loans	0	0	0
	Paybacks from given loans	1 807	5 700	6 652
	Interest gain	906	603	2 691
	Purchases Investment property	-3 474	-2 604	-18 304
	Purchases of property, plant and equipment	-2 977	-4 635	-18 143
	Proceeds from sale of  property	66	32	-252
	Net cash used in investing activities	-4 469	-4 835	-141 084
	Rahavood finantseerimistegevusest
	Changes in overdraft	-30 528	-15 929	14 348
	Proceeds from borrowings	59 926	900	287 606
	Repayments of borrowings	-95 001	-71 518	-312 846
	Repayment of finance lease liabilities	-593	-429	-2 233
	Interest paid	-6 713	-3 922	-22 224
	Dividends paid	0	0	-15 750
	Gain from share emission	152	0	29 464
	Net cash used in financing activities	-69 757	-90 898	-21 635
	TOTAL NET CASH FLOW	92 413	139 843	27 113

Infortar operates in six 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. 113,000 m2. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, agriculture, printing, taxi business and many other areas. A total of 103 companies belong to the Infortar group: 48 subsidiaries, 5 affiliated companies and 50 subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 1,325 people.

Kadri Laanvee

Investor Relations Manager
e-mail: [e-mail]
phone: [phone]
https://infortar.ee/en/investor

Attachments

• Q1 2024 ENG presentation
• Q1 2024 ENG