Chairman's Message on Merko's Growth in 2024
Dear shareholders and esteemed readers,
The year 2024 has concluded with remarkable turnover and profits for Merko. In this report, we aim to share insights into our financial accomplishments and our activities throughout this remarkable year. As we edge closer to our 35th anniversary, it's clear that our success is driven by our dedicated workforce and our transformation into an international player.
While we exited the Norwegian market in 2024, our operations in Estonia, Latvia, and Lithuania remain robust. This year underlined a critical observation: despite geographical proximity, market sentiments can vary tremendously. Each country's opportunities and challenges are unique, which our local teams navigate with professionalism and expertise. This balance of risk and opportunity is what makes us strong.
The Strength of Our Teams
At the heart of Merko's success is our dedicated team. Their hard work and commitment have positioned us for outstanding performance throughout 2024. We owe a heartfelt thanks to our team, our customers in the construction service sector, and home buyers who appreciate the quality we uphold. Additionally, we are grateful to our investors who continue to champion our endeavors.
The accolades we received this year speak volumes about our dedication not only to our financial goals but also to our broader responsibility. It is noteworthy that Merko's 2024 report includes our first Environmental, Social, and Governance (ESG) report, reflecting our commitment to transparency and responsibility in the construction industry. To conserve resources, we encourage everyone to review our report online rather than in print.
Market Outlook for 2025
The new year has introduced significant turbulence in political landscapes and market conditions globally. The construction and real estate sectors are notably susceptible to these developments. Moving forward, we may encounter periods of subdued activity, or conversely, a robust recovery.
Predicting the future can be tricky in these volatile times, but what’s certain is that Merko is well-prepared to thrive in 2025 and beyond. Our adaptability, coupled with a solid financial foundation and talented team, underscores our confidence in overcoming upcoming challenges and seizing market opportunities.
Consolidated Financial Performance Overview
Consolidated Statement of Comprehensive Income – In Thousands of Euros
In 2024, Merko achieved revenues of €539,049, a remarkable increase from €466,304 in 2023. Our operational efficiencies allowed us to maintain a gross profit of €95,887, elevating from the previous year’s €65,037.
Despite the increase in operational costs—marketing expenses rose to €5,030 and general administrative expenses to €21,908—we also reported substantial other operational income of €5,724, augmenting our operating profit to €72,483, significantly up from €44,482 in 2023. This translated to a profit before tax of €76,414 in 2024, with a net profit of €64,594, compared to €45,901 the year before.
Comprehensive Financial Position
Consolidated Statement of Financial Position – In Thousands of Euros
As of December 31, 2024, Merko's total assets reached €447,095, a growth from €425,260 in 2023. Current assets have notably increased, indicative of our strong operational liquidity.
Our financial liabilities effectively lowered to €192,837 from €213,360. This reduction demonstrates our ongoing commitment to efficient debt management. Equally, our total equity now stands at €254,258, an increase from €211,900 last year, showcasing the solidity of our financial health.
Frequently Asked Questions
What were Merko's key financial achievements in 2024?
In 2024, Merko achieved record revenues of €539 million, reflecting a strong growth trajectory alongside a net profit of €64 million.
How has Merko adapted to market changes in 2025?
Merko is preparing for varying market conditions and remains flexible to pursue opportunities amidst potential challenges in the construction and real estate sectors.
What does Merko's ESG report signify?
The inclusion of the ESG report in Merko's annual review reflects our commitment to responsible business practices and sustainability within the construction sector.
What funding approach has Merko taken for its operations?
Merko maintains a robust balance sheet, lowering total liabilities to ensure financial stability while promoting growth across various markets.
How is Merko's workforce structured across its operational regions?
As of the end of 2024, Merko employed 605 professionals across Estonia, Latvia, and Lithuania, demonstrating our strength and local expertise.
