Merko: Audited annual report 2022

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


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.


in thousand euros

2022 2021
Revenue 409,633 339,375
Cost of goods sold (355,975) (292,563)
Gross profit 53,658 46,812
Marketing expenses (4,077) (3,611)
General and administrative expenses (15,860) (13,925)
Other operating income 3,144 3,508
Other operating expenses (1,834) (582)
Operating profit 35,031 32,202
Finance income 1 12
Finance costs (1,450) (886)
Profit (loss) from associates and joint ventures 3,516 799
Profit before tax 37,098 32,127
Corporate income tax expense (2,995) (3,104)
Net profit for financial year 34,103 29,023
incl.    net profit attributable to equity holders of the parent 34,640 29,140
net profit attributable to non-controlling interest (537) (117)
Other comprehensive income (loss), which can subsequently be classified in the income statement    
Currency translation differences of foreign entities 30 33
Comprehensive income for the period 34,133 29,056
incl.    attributable to equity holders of the parent 34,648 29,163
attributable to non-controlling interest (515) (107)
Earnings per share for profit attributable to equity holders of the parent (basic and diluted, in EUR) 1.96 1.65


in thousand euros

31.12.2022 31.12.2021
Current assets    
Cash and cash equivalents 17,665 44,930
Trade and other receivables 77,959 55,484
Prepaid corporate income tax 38 114
Inventories 225,661 160,593
  321,323 261,121
Non-current assets
Investments in associates and joint ventures 12,895 7,703
Other long-term loans and receivables 22,982 24,079
Deferred income tax assets 693 622
Investment property 11,485 13,828
Property, plant and equipment 17,452 16,350
Intangible assets 582 669
66,089 63,251
TOTAL ASSETS 387,412 324,372
Current liabilities
Borrowings 49,687 11,636
Payables and prepayments 96,248 90,054
Income tax liability 1,241 681
Short-term provisions 9,820 7,976
156,996 110,347
Non-current liabilities
Long-term borrowings 42,236 41,001
Deferred income tax liability 2,355 3,112
Other long-term payables 2,133 2,900
46,724 47,013
TOTAL LIABILITIES 203,720 157,360
Non-controlling interests (495) (227)
Equity attributable to equity holders of the parent
Share capital 7,929 7,929
Statutory reserve capital 793 793
Currency translation differences (783) (791)
Retained earnings 176,248 159,308
184,187 167,239
TOTAL EQUITY 183,692 167,012

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 (  The ESEF-compliant machine-readable annual report is generated only in Estonian language.

2022 Merko Ehitus annual report

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