Audited annual report 2022

AS Merko Ehitus consolidated audited financial results for 2022 remain unchanged compared to the preliminary disclosure on 9 February 2023.

STATEMENT OF THE CHAIRMAN OF THE MANAGEMENT BOARD

2022 was a year of good financial results for Merko. Revenue broke the 400-million-euro mark, half of it coming from outside Estonia. Profit grew 19 per cent and return on equity was 20.4 per cent. Considering the rapid rise in interest rates and the worsening of the investment climate, I’m glad that our figures managed to keep pace with high inflation.

Merko’s operating activity rests on two foundations – residential real estate development and provision of construction service. The group’s results for 2022 reflect the growth of our past investments into apartment development, and successful apartment sales on all three Baltic markets. We’re also pleased that our construction service business area succeeded in managing risks extremely well in a turbulent operating environment.

The war in Ukraine rages on. The transition to the green economy continues. Government intervention in the economy, the number of regulations and the compliance burden on companies are all growing. The apartment market, which was frozen in spring 2022, is still in a waiting phase. The economy’s momentum has dissipated for now, and high Inflation and rising interest rates continue.

We are also determined to stay the course: to create a better living environment and new homes, build modern buildings and good infrastructure. In recent years, we have learned not to be overly surprised by the big changes around us and rapidly adapt to them, without forgetting the long-range perspective. We do our work, attend to our business, and cherish our employees and partners. We value the trust placed in Merko and learn from our mistakes. Wherever we are able to, we try to give back to society.

I would like to thank all of Merko’s employees and partners for coping well in these challenging conditions.

Thanks to the buyers of the homes we build and our construction service customers for their trust. Our gratitude goes out to our shareholders for believing in Merko in tough times.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
in thousand euros

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
in thousand euros

A copy of AS Merko Ehitus audited annual report for 2022 is attached to the announcement and is also published on Nasdaq Tallinn and Merko’s web page (group.merko.ee).  The ESEF-compliant machine-readable annual report is generated only in Estonian language.

Andres Trink
Chairman of Management Board
AS Merko Ehitus
+372 650 1250
andres.trink@merko.ee

Urmas Somelar
Head of Finance
AS Merko Ehitus
+372 650 1250
urmas.somelar@merko.ee

AS Merko Ehitus (group.merko.ee) group companies develop real estate and construct buildings and infrastructure. We create a better living environment and build the future. We operate in Estonia, Latvia, Lithuania and Norway. As at the end of 2022, the group employed 661 people, and the group’s revenue for 2022 was EUR 410 million.

Attachment

• 2022 Merko Ehitus annual report