Merko Ehitus grew its revenue and net profit in Q3

In Q3 2020, Merko Ehitus posted revenue of EUR 79.7 million and a net profit of EUR 4.9 million, representing growth of 8.6% and 92%, respectively, compared to the previous year. The group’s 9-month revenue amounted to EUR 209 million and net profit to EUR 13.1 million. In 9 months, Merko sold 534 apartments.

“The majority of this year’s profit has come from the sale of apartments in previously launched projects. We sold the most apartments in Vilnius, where we reaped the results of the good work done in the last couple of years. The share of apartment development in our business has grown – therefore, the quarterly results may vary considerably, depending on when the projects are finished,” said the chairman of AS Merko Ehitus management board Andres Trink.

In the first 9 months of 2020, Merko’s sales revenue in the area of real estate development grew more than three times compared to the same period in the preceding year, and the number of apartments sold increased more than 2.5 times. The largest apartment development projects include Uus-Veerenni, Lahekalda and Pikaliiva in Tallinn, Gaiļezers and Viesturdārzs in Riga, and Vilneles Slenis and Rinktinės Urban in Vilnius.

“Public procurements make up most of the construction contracts concluded in the first 9 months. We do not foresee an increase in the volume of orders in the Baltic construction market in the coming 12 months,” commented Andres Trink. The group companies concluded new contracts for EUR 248 million in the first 9 months of 2020 and for EUR 72.9 million in Q3. The largest of those were the establishment of the third development stage of the Mustamäe medical campus of the North Estonia Medical Centre, the renovations of Nordic Hotel Forum and Tallink City Hotel in Estonia and the construction of the Orkla waffle and biscuit factory in Ādaži as well as a kindergarten in Salaspils, both in Latvia. As at the end of September, the group’s secured order book balance was EUR 251.2 million.

In Q3, the largest projects in progress were the Tallinn School of Music and Ballet, the Arte Gymnasium, Terminal D parking house at the Tallinn passenger port, a data centre in Harju County, the reconstruction of Aaspere-Haljala road section, and the design and construction of the infrastructure of the Republic of Estonia’s southeast land border. In Latvia, work continued on the school building and dormitory in Pinki and Lidl logistics centre as well as the reconstruction of the Riga Technical University Civil Engineering Faculty building. In Lithuania, the major ongoing projects included Hotel Neringa in Vilnius, wind park infrastructure facilities in Telšiai district, and, in Kaunas, the district police headquarter building and NATO barracks.